Does inequality affect investment in a nonlinear way? : A Cross-Country Analysis
➢ This paper explores the relationship between inequality and investment based on a panel of 95 countries. ➢ This work contributes to the investment determinants literature because (i) it controls by a wide set of variables contrasting different theoretical approaches; (ii) it tests for a possible...
Guardado en:
| Autores principales: | , |
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| Formato: | Objeto de conferencia |
| Lenguaje: | Inglés |
| Publicado: |
2019
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| Acceso en línea: | http://sedici.unlp.edu.ar/handle/10915/110317 |
| Aporte de: |
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I19-R120-10915-110317 |
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dspace |
| institution |
Universidad Nacional de La Plata |
| institution_str |
I-19 |
| repository_str |
R-120 |
| collection |
SEDICI (UNLP) |
| language |
Inglés |
| topic |
Ciencias Económicas Inequality Investment |
| spellingShingle |
Ciencias Económicas Inequality Investment Carrera, Jorge Eduardo Vega, Pablo de la Does inequality affect investment in a nonlinear way? : A Cross-Country Analysis |
| topic_facet |
Ciencias Económicas Inequality Investment |
| description |
➢ This paper explores the relationship between inequality and investment based on a panel of 95 countries.
➢ This work contributes to the investment determinants literature because (i) it controls by a wide set of variables contrasting different theoretical approaches; (ii) it tests for a possible nonlinear relationship; and (iii) the sample includes advanced and developing countries.
➢ We find a "U-shape" relationship between inequality and investment. At low levels of initial inequality, an increase in inequality is associated with a lower investment; but at high levels of initial inequality, the relationship is positive.
➢ Given the high correlation between the wage share and income dispersion, policies of wage restriction increase inequality, thus generating lower investment and growth in countries with low or middle levels of initial inequality.
➢ With high levels of initial inequality, the result is the opposite, so it is possible, if such countries are open economies (i.e. “export-led”), that they can fall into a trap of high growth with high inequality, where only government policy can push the country to the other side of the “U.”This paper explores the relationship between inequality Imágenes and investment based on a panel of 95 countries.
➢ This work contributes to the investment determinants literature because (i) it controls by a wide set of variables contrasting different theoretical approaches; (ii) it tests for a possible nonlinear relationship; and (iii) the sample includes advanced and developing countries.
➢ We find a "U-shape" relationship between inequality and investment. At low levels of initial inequality, an increase in inequality is associated with a lower investment; but at high levels of initial inequality, the relationship is positive.
➢ Given the high correlation between the wage share and income dispersion, policies of wage restriction increase inequality, thus generating lower investment and growth in countries with low or middle levels of initial inequality.
➢ With high levels of initial inequality, the result is the opposite, so it is possible, if such countries are open economies (i.e. “export-led”), that they can fall into a trap of high growth with high inequality, where only government policy can push the country to the other side of the “U.” |
| format |
Objeto de conferencia Objeto de conferencia |
| author |
Carrera, Jorge Eduardo Vega, Pablo de la |
| author_facet |
Carrera, Jorge Eduardo Vega, Pablo de la |
| author_sort |
Carrera, Jorge Eduardo |
| title |
Does inequality affect investment in a nonlinear way? : A Cross-Country Analysis |
| title_short |
Does inequality affect investment in a nonlinear way? : A Cross-Country Analysis |
| title_full |
Does inequality affect investment in a nonlinear way? : A Cross-Country Analysis |
| title_fullStr |
Does inequality affect investment in a nonlinear way? : A Cross-Country Analysis |
| title_full_unstemmed |
Does inequality affect investment in a nonlinear way? : A Cross-Country Analysis |
| title_sort |
does inequality affect investment in a nonlinear way? : a cross-country analysis |
| publishDate |
2019 |
| url |
http://sedici.unlp.edu.ar/handle/10915/110317 |
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AT carrerajorgeeduardo doesinequalityaffectinvestmentinanonlinearwayacrosscountryanalysis AT vegapablodela doesinequalityaffectinvestmentinanonlinearwayacrosscountryanalysis |
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Repositorios |
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