Template-Type: ReDIF-Article 1.0

Author-Name: Reka Vitkovics 
Author-Workplace-Name: ESIC Business & Marketing School 
Author-Email: vitko.reka@gmail.com
Author-Person: 

Title: Trends in Income Inequality and Its Impact on Economic Growth

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.

Classification-JEL: B55, D63, F63, O15
Keywords: social inequality, income inequality, income distribution, economic growth
Pages: 136-159
Volume: 22
Issue: 4
Year: 2023
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-22-4-e1-vitkovics.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:22:y:2023:i:4:p:136-159