Income inequality and economic growth an empirical analysis of Kenya /
Despite the well-known potential benefits of equality of income in economic growth, the statistics for Kenya show that income is heavily skewed in favour of the rich and against the poor with the country’s top 10% households controlling 42% of the total income while the bottom 10% controls less than...
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| Testületi szerző: | |
| Dokumentumtípus: | Könyv része |
| Megjelent: |
Faculty of Economics and Business Administration Doctoral School in Economics
Szeged
2020
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| Sorozat: | Proceedings of the Central European PhD Workshop on Technological Change and Development
4 |
| Kulcsszavak: | Gazdasági növekedés - Kenya, Jövedelmi egyenlőtlenség - Kenya |
| Tárgyszavak: | |
| Online Access: | http://acta.bibl.u-szeged.hu/77669 |
| Tartalmi kivonat: | Despite the well-known potential benefits of equality of income in economic growth, the statistics for Kenya show that income is heavily skewed in favour of the rich and against the poor with the country’s top 10% households controlling 42% of the total income while the bottom 10% controls less than 1%. The existing empirical evidence for the Kenyan economy does not shed light on whether there is a robust association between income inequality and growth over time. This paper provides an empirical investigation on the relationship between income inequality and economic growth and the hypothesis addressed was: inequality is harmful for growth. We contribute to the literature by employing an autoregressive distributed lag model using a time series date spanning from 1990–2015. The study found a significant positive but weak long run relationship between income inequality and growth. The short run was a strong positive relationship, which was significant at 1% level. This income inequality favours the rich, and therefore, to ensure fair distribution of wealth and a balanced growth, a policy goal should be equity in income distribution to reduce excessive income disparities. More research should be carried out on all other measures of inequality, to bring to light, which among them is more influential to GDP growth. |
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| Terjedelem/Fizikai jellemzők: | 338-356 |
| ISBN: | 978-963-306-741-3 |