Impact of Inequalities on Economic Growth: Case of the Developing Countries

Author(s): Sirine MNIF

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Abstract: Our work deals with the relationship between inequality and economic growth. In particular, we are interested in the impact of income inequality on growth rates. Moreover, this impact can be positive or negative and this through multiple channels of transmission. Econometrically, we verified the nature of the relationship between inequality and growth based on the technique of unbalanced panel data. An estimate by the method of dynamic panel seems more relevant and a negative relationship ranging from inequality to growth seems to be confirmed for 59 developing countries.