Inequality, Economic Growth, and Redistribution; Literature Review
Keywords:
economic growth, inequality, redistribution, infrastructure
Abstract
Economists have long believed that economic growth will solve the problem of inequality and poverty. For decades, the question of whether and how inequality affects growth has been the subject of open debate in the academic world. In the same section, the redistribution which is considered part of the equalization step also has positive and negative impacts on economic growth. This paper presents a literature review consisting of several sections including: 1) literature review on the relationship between inequality and growth; 2) the relationship between redistribution and growth; 3) even distribution of infrastructure is part of the form of redistribution.
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References
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Alesina, A., & Rodrik, D. (1994). Distributive Politics and Economic Growth. The Quarterly Journal of Economics, 109(2), 465–490. https://doi.org/10.2307/2118470
Barro, R. J. (2000). Inequality and Growth in a Panel of Countries. Journal of Economic Growth, 5(1), 5–32. https://doi.org/10.1023/A:1009850119329
Berg, A., Ostry, J. D., Tsangarides, C. G., & Yakhshilikov, Y. (2018). Redistribution, inequality, and growth: new evidence. Journal of Economic Growth, 23(3), 259–305. https://doi.org/10.1007/s10887-017-9150-2
Binatli, A. O. (2012). Growth and Income Inequality: A Comparative Analysis. Economics Research International, 2012, 1–7. https://doi.org/10.1155/2012/569890
Boadway, R., & Keen, M. (2000). Redistribution. In Handbook of Income Distribution (Vol. 1, pp. 677–789). https://doi.org/10.1016/S1574-0056(00)80015-9
Boadway, R., & Pestieau, P. (2011). Indirect Taxes for Redistribution: Should Necessity Goods Be Favored? (No. 3667). Retrieved from https://ssrn.com/abstract=1971162
Boarnet, M. G. (1995). Transportation Infrastructure, Economic Productivity, and Geographic Scale: Aggregate Growth versus Spatial Redistribution (No. UCTC NO. 255). Retrieved from https://escholarship.org/uc/item/6sj276z4
Boikova, T., & Dahs, A. (2018). Inequality and economic growth across countries of the Eurozone. International Journal of Sustainable Economy, 10(4), 315. https://doi.org/10.1504/IJSE.2018.095254
Burgoon, B. (2006). On Welfare and Terror: Social Welfare Policies and Political-Economic Roots of Terrorism. Journal of Conflict Resolution, 50(2), 176–203. https://doi.org/10.1177/0022002705284829
Calderon, C., & Chong, A. (2004). Volume and Quality of Infrastructure and the Distribution of Income: An Empirical Investigation. Review of Income and Wealth, 50(1), 87–106. https://doi.org/10.1111/j.0034-6586.2004.00113.x
Enders, W., Hoover, G. A., & Sandler, T. (2016). The Changing Nonlinear Relationship between Income and Terrorism. The Journal of Conflict Resolution, 60(2), 195–225. https://doi.org/10.1177/0022002714535252
Frank, M. W. (2009). Inequality and Growth In The United States: Evidence From A New State-Level Panel Of Income Inequality Measures. Economic Inquiry, 47(1), 55–68. https://doi.org/10.1111/j.1465-7295.2008.00122.x
Galor, O., & Zeira, J. (1993). Income Distribution and Macroeconomics. The Review of Economic Studies, 60(1), 35. https://doi.org/10.2307/2297811
Halter, D., Oechslin, M., & Zweimüller, J. (2014). Inequality and growth: the neglected time dimension. Journal of Economic Growth, 19(1), 81–104. https://doi.org/10.1007/s10887-013-9099-8
Hidayat, M., Darwin, R., & Hadi, M. F. (2018). Inequality of Interregional Development in Riau Indonesia; Panel Data Regression Approach. International Journal of Economics and Financial Issues, 8(5), 184–189. Retrieved from http://econjournals.com/index.php/ijefi/article/view/6919
Hidayat, M., Darwin, R., & Hadi, M. F. (2020). Does Energy Infrastructure Reduce Inequality Inter-Regional in Riau Province, Indonesia? International Journal of Energy Economics and Policy, 10(1), 160–164. https://doi.org/10.32479/ijeep.8658
Kaldor, N. (1957). A Model of Economic Growth. The Economic Journal, 67(268), 591. https://doi.org/10.2307/2227704
Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1), 1–28. https://doi.org/10.2307/1811581
Lessmann, C. (2012). Regional Inequality and Decentralization: An Empirical Analysis. Environment and Planning A: Economy and Space, 44(6), 1363–1388. https://doi.org/10.1068/a44267
Li, B., Li, T., Yu, M., & Chen, B. (2017). Can equalization of public services narrow the regional disparities in China? A spatial econometrics approach. China Economic Review, 44, 67–78. https://doi.org/10.1016/j.chieco.2017.03.010
Li, H., & Zou, H. (1998). Income Inequality is not Harmful for Growth: Theory and Evidence. Review of Development Economics, 2(3), 318–334. https://doi.org/10.1111/1467-9361.00045
Melo, P. C., Graham, D. J., & Brage-Ardao, R. (2013). The productivity of transport infrastructure investment: A meta-analysis of empirical evidence. Regional Science and Urban Economics, 43(5), 695–706. https://doi.org/10.1016/J.REGSCIURBECO.2013.05.002
Mishra, A., & Agarwal, A. (2019). Do infrastructure development and urbanisation lead to rural-urban income inequality Evidence from some Asian countries. International Journal of Sustainable Economy, 11(2), 167. https://doi.org/10.1504/IJSE.2019.099054
Persson, T., & Tabellini, G. (1994). Is Inequality Harmful for Growth? The American Economic Review, Vol. 84, pp. 600–621. https://doi.org/10.2307/2118070
Piazza, J. A. (2011). Poverty, minority economic discrimination, and domestic terrorism. Journal of Peace Research, 48(3), 339–353. https://doi.org/10.1177/0022343310397404
Seneviratne, D., & Sun, Y. (2013). Infrastructure and Income Distribution in ASEAN-5 : What are the Links? (No. 13/41). Retrieved from https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Infrastructure-and-Income-Distribution-in-ASEAN-5-What-are-the-Links-40316
Shin, I. (2012). Income inequality and economic growth. Economic Modelling, 29(5), 2049–2057. https://doi.org/10.1016/j.econmod.2012.02.011
Solé-Ollé, A. (2013). Inter-regional redistribution through infrastructure investment: Tactical or programmatic? Public Choice, 156(1–2), 229–252. https://doi.org/10.1007/s11127-011-9896-6
Tullock, G. (1997). Reasons for Redistribution. In Economics of Income Redistribution (2nd ed., pp. 1–16). https://doi.org/10.1007/978-94-011-5378-2_1
Alesina, A., & Perotti, R. (1996). Income distribution, political instability, and investment. European Economic Review, 40(6), 1203–1228. https://doi.org/10.1016/0014-2921(95)00030-5
Alesina, A., & Rodrik, D. (1994). Distributive Politics and Economic Growth. The Quarterly Journal of Economics, 109(2), 465–490. https://doi.org/10.2307/2118470
Barro, R. J. (2000). Inequality and Growth in a Panel of Countries. Journal of Economic Growth, 5(1), 5–32. https://doi.org/10.1023/A:1009850119329
Berg, A., Ostry, J. D., Tsangarides, C. G., & Yakhshilikov, Y. (2018). Redistribution, inequality, and growth: new evidence. Journal of Economic Growth, 23(3), 259–305. https://doi.org/10.1007/s10887-017-9150-2
Binatli, A. O. (2012). Growth and Income Inequality: A Comparative Analysis. Economics Research International, 2012, 1–7. https://doi.org/10.1155/2012/569890
Boadway, R., & Keen, M. (2000). Redistribution. In Handbook of Income Distribution (Vol. 1, pp. 677–789). https://doi.org/10.1016/S1574-0056(00)80015-9
Boadway, R., & Pestieau, P. (2011). Indirect Taxes for Redistribution: Should Necessity Goods Be Favored? (No. 3667). Retrieved from https://ssrn.com/abstract=1971162
Boarnet, M. G. (1995). Transportation Infrastructure, Economic Productivity, and Geographic Scale: Aggregate Growth versus Spatial Redistribution (No. UCTC NO. 255). Retrieved from https://escholarship.org/uc/item/6sj276z4
Boikova, T., & Dahs, A. (2018). Inequality and economic growth across countries of the Eurozone. International Journal of Sustainable Economy, 10(4), 315. https://doi.org/10.1504/IJSE.2018.095254
Burgoon, B. (2006). On Welfare and Terror: Social Welfare Policies and Political-Economic Roots of Terrorism. Journal of Conflict Resolution, 50(2), 176–203. https://doi.org/10.1177/0022002705284829
Calderon, C., & Chong, A. (2004). Volume and Quality of Infrastructure and the Distribution of Income: An Empirical Investigation. Review of Income and Wealth, 50(1), 87–106. https://doi.org/10.1111/j.0034-6586.2004.00113.x
Enders, W., Hoover, G. A., & Sandler, T. (2016). The Changing Nonlinear Relationship between Income and Terrorism. The Journal of Conflict Resolution, 60(2), 195–225. https://doi.org/10.1177/0022002714535252
Frank, M. W. (2009). Inequality and Growth In The United States: Evidence From A New State-Level Panel Of Income Inequality Measures. Economic Inquiry, 47(1), 55–68. https://doi.org/10.1111/j.1465-7295.2008.00122.x
Galor, O., & Zeira, J. (1993). Income Distribution and Macroeconomics. The Review of Economic Studies, 60(1), 35. https://doi.org/10.2307/2297811
Halter, D., Oechslin, M., & Zweimüller, J. (2014). Inequality and growth: the neglected time dimension. Journal of Economic Growth, 19(1), 81–104. https://doi.org/10.1007/s10887-013-9099-8
Hidayat, M., Darwin, R., & Hadi, M. F. (2018). Inequality of Interregional Development in Riau Indonesia; Panel Data Regression Approach. International Journal of Economics and Financial Issues, 8(5), 184–189. Retrieved from http://econjournals.com/index.php/ijefi/article/view/6919
Hidayat, M., Darwin, R., & Hadi, M. F. (2020). Does Energy Infrastructure Reduce Inequality Inter-Regional in Riau Province, Indonesia? International Journal of Energy Economics and Policy, 10(1), 160–164. https://doi.org/10.32479/ijeep.8658
Kaldor, N. (1957). A Model of Economic Growth. The Economic Journal, 67(268), 591. https://doi.org/10.2307/2227704
Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1), 1–28. https://doi.org/10.2307/1811581
Lessmann, C. (2012). Regional Inequality and Decentralization: An Empirical Analysis. Environment and Planning A: Economy and Space, 44(6), 1363–1388. https://doi.org/10.1068/a44267
Li, B., Li, T., Yu, M., & Chen, B. (2017). Can equalization of public services narrow the regional disparities in China? A spatial econometrics approach. China Economic Review, 44, 67–78. https://doi.org/10.1016/j.chieco.2017.03.010
Li, H., & Zou, H. (1998). Income Inequality is not Harmful for Growth: Theory and Evidence. Review of Development Economics, 2(3), 318–334. https://doi.org/10.1111/1467-9361.00045
Melo, P. C., Graham, D. J., & Brage-Ardao, R. (2013). The productivity of transport infrastructure investment: A meta-analysis of empirical evidence. Regional Science and Urban Economics, 43(5), 695–706. https://doi.org/10.1016/J.REGSCIURBECO.2013.05.002
Mishra, A., & Agarwal, A. (2019). Do infrastructure development and urbanisation lead to rural-urban income inequality Evidence from some Asian countries. International Journal of Sustainable Economy, 11(2), 167. https://doi.org/10.1504/IJSE.2019.099054
Persson, T., & Tabellini, G. (1994). Is Inequality Harmful for Growth? The American Economic Review, Vol. 84, pp. 600–621. https://doi.org/10.2307/2118070
Piazza, J. A. (2011). Poverty, minority economic discrimination, and domestic terrorism. Journal of Peace Research, 48(3), 339–353. https://doi.org/10.1177/0022343310397404
Seneviratne, D., & Sun, Y. (2013). Infrastructure and Income Distribution in ASEAN-5 : What are the Links? (No. 13/41). Retrieved from https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Infrastructure-and-Income-Distribution-in-ASEAN-5-What-are-the-Links-40316
Shin, I. (2012). Income inequality and economic growth. Economic Modelling, 29(5), 2049–2057. https://doi.org/10.1016/j.econmod.2012.02.011
Solé-Ollé, A. (2013). Inter-regional redistribution through infrastructure investment: Tactical or programmatic? Public Choice, 156(1–2), 229–252. https://doi.org/10.1007/s11127-011-9896-6
Tullock, G. (1997). Reasons for Redistribution. In Economics of Income Redistribution (2nd ed., pp. 1–16). https://doi.org/10.1007/978-94-011-5378-2_1
Published
2020-06-17
How to Cite
Hidayat, M., & Karimi, S. (2020). Inequality, Economic Growth, and Redistribution; Literature Review. Jurnal Akuntansi Dan Ekonomika, 10(1), 79-88. https://doi.org/10.37859/jae.v10i1.1952
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Articles
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