Vol. 2 No. 8 (2012), Articles

Vol. 2 No. 8 (2012)

Inequality and Economic Growth

Mohamed Karim KEFI⁺⁻
Hadhek Zouhaier⁺⁻

Mohamed Karim KEFI

ISTEC Business School, Paris, France

Hadhek Zouhaier

Superior Institut of Gestion (ISG) of Gabès- TunisiaISGGabès rue JilaniHabib 6002 Gabès- Tunisia

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Keywords

Political institutions, Political instability, Corruption, Investment, Economic growth, Dynamic panel.

Abstract

The objective of this paper is to study the effect of in equality on economic growth of a set of eight developing countries during the period 2000-2009, using a dynamic panel data model and a simultaneous equations model. The key findings generated from these two empirical tests stipulate a negative effect of inequality on economic growth and vice versa.

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