- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
This aim of this article is to investigate the effects of income inequality on the economic growth of Brazilian states in the period from 1994 to 2014. The transmission mechanism of the effects of income inequality on economic growth is derived from the model proposed by Halter et al. (2014). The empirical formulation adopted to achieve this goal is divided into two stages. The first stage is limited to short-term analysis, and panel data models with fixed effects, random effects, and instrumental variables are used. In the second stage, the discussion turns to the use of the error correction model for a cointegrated panel. The results suggest a significant negative correlation between income inequality and the economic growth of Brazilian states in both short-term and long-term analyses.
The discussion about the transmission channel for the effects of income inequality on economic growth is not new, and over the years, it has drawn the attention of researchers who attempt to explain the importance of this relationship. This study, for example, uses the theoretical model proposed by Halter et al. (2014), in which a theoretical model with a nonmonotonic adjustment trajectory leads to a linear model that represents the inequality-growth relationship.
The empirical results suggest that, among all of the factors studied, only the effects of education level and income inequality are analyzed in both the short term and the long term. The main conclusion drawn from these analyses is that regardless of which method is adopted (panel model with fixed effects, random effects, instrumental variables and cointegration analysis), education level and income inequality affect economic growth positively and negatively, respectively, and that these factors are able to explain some of the differences in growth rates among different regions of Brazil.
The results suggest that the dynamics of economic growth in the Brazilian states must respond positively to social policies to reduce income inequality and to encourage schooling. In recent years, Brazil has implemented a social program called "Bolsa Família", which has as main characteristics the transfer of income linked to the maintenance of children in school. This policy, according to the results found, must have a significant impact on the economic growth of the states in the long run.