How Macroeconomic Factors Affect Income Distribution: The Cross-Country Evidence
Electronic Access:
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Summary:
This study develops a cross-section empirical framework to examine the relationship between the macroeconomic environment and trends in income distribution. The macroeconomic variables that are found to be associated with an improvement in income distribution are higher growth rate, higher income level, higher investment rate, real depreciation (especially for low-income countries), and improvement in terms of trade. The estimated significant effects of growth, income, and investment provide evidence that policies designed to promote investment and growth are likely also to contribute to an improvement in income distribution.
Series:
Working Paper No. 1997/152
Subject:
Foreign exchange Income distribution Income inequality Inflation National accounts Personal income Prices Real exchange rates
English
Publication Date:
November 1, 1997
ISBN/ISSN:
9781451922714/1018-5941
Stock No:
WPIEA1521997
Pages:
25
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