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This study determines the positive effects of inequality and trade on growth both in the short run and long run.
However, the growth effect of inequality is substantially influenced by the domestic context in terms of the prevalence of credit market imperfections.
Second, both openness to trade and FDI do not have a favourable effect on income distribution in all selected developing countries.
Third, high financial liberalization exerts a negative and significant influence on income distribution in developing countries.
The study identifies credit market imperfections in low-income developing countries as the likely reason for a positive relationship between inequality and economic growth.
Essays On Volunteerism - Essays On Corruption
Similarly, growth effect of trade is found to be negative in economies where inequalities are comparatively high.Fourth, inflation seems to distort income distribution in all sets of countries.Finally, the government emerges as a major player in impacting income distribution in developing countries.The results show that inequality does matter for economic growth, but in different ways for different regions at different levels of economic development.The inequality-growth nexus is significantly negative for the low-income group but strongly significantly positive for the high-income one.The thesis also improves our understanding of cross-country variations in inequality and economic growth by providing a deeper analysis of growth-inequality relationship with a particular focus on the role of globalisation and domestic policy reforms.To achieve this aim, the thesis contains four core chapters (essays) in addition to an introductory chapter, literature review chapter and a concluding chapter.The findings of the study are robust to alternative econometric techniques, specifications, control of nonlinearity, inclusion of additional control variables, exclusion of outliers and sub-samples.I never needed anyone to do my homework for me until I got a part-time job in college.By drawing on a cross sectional and panel data set covering a large number of countries, over the period 1984-2007, and using a variety of econometric methods substantial empirical support is found for a positive relationship between the military in politics and corruption.In sum, our results reveal that a one standard deviation increase in the military in politics leads to a 0.22 unit increase in corruption index.