Author information:
Réka Vitkovics https://orcid.org/0009-0006-6758-273X: ESIC Business & Marketing School, Graduate Student. E-mail: vitko.reka@gmail.com
Abstract:
In recent years, climate change and the pandemic have brought the issue of the link between inequality and economic growth to the fore. In my essay, I examine this relationship, focusing on whether inequality has a positive or negative effect on economic growth. I approach the issue through the lens of income inequality without seeking to explore all aspects of inequality. Starting from the relevant conceptual framework, I present the link between global inequality and long-term growth. Since inequalities affect both developed and developing countries, I compare them and show why the latter cannot repeat the economic progress achieved by earlier industrialisers. Finally, I conclude that the clear objective should be to reduce excessive inequalities.
Cite as (APA):
Vitkovics, R. (2023). Trends in Income Inequality and Its Impact on Economic Growth. Financial and Economic Review, 22(4), 136–159. https://doi.org/10.33893/FER.22.4.136
Column:
Essay
Journal of Economic Literature (JEL) codes:
B55, D63, F63, O15
Keywords:
social inequality, income inequality, income distribution, economic growth
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