An Econometric Analysis of the Links Between Income Inequality and Economic Growth
Abstract
This study investigates temporal demographic changes and income
inequalities, and more importantly the relationship between income inequality
and economic growth inWest Virginia. Departing from earlier
studies, a regional growth model is utilized and empirically tested using
county level West Virginia data (1990-2000). Results suggest that
per-capita income change is positively related to population and employment
changes but negatively related to income inequality. This
empirical evidence indicates that higher income inequality can potentially
hinder economic growth.
inequalities, and more importantly the relationship between income inequality
and economic growth inWest Virginia. Departing from earlier
studies, a regional growth model is utilized and empirically tested using
county level West Virginia data (1990-2000). Results suggest that
per-capita income change is positively related to population and employment
changes but negatively related to income inequality. This
empirical evidence indicates that higher income inequality can potentially
hinder economic growth.