Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/169023
Authors: 
Pescu (Beca), Marușa
Ștefan, Camelia
Year of Publication: 
2016
Citation: 
[Journal:] Amfiteatru Economic Journal [ISSN:] 2247-9104 [Volume:] 18 [Year:] 2016 [Issue:] 43 [Pages:] 592-610
Abstract: 
The goal of this research paper is to empirically assess the potential effects of macroeconomic determinants of economic growth and to determine the impact of income inequality on economic growth in the long-run in ten former socialist countries from Central and Eastern Europe (CEE) which are members of the European Union (EU) during the period 2006-2014, using the System Generalized Method of Moments (GMM) as the research method. In order to achieve all the desired research objectives the following explanatory variables were used: income inequality (Gini Index), foreign direct investments (FDI), education, research and development expenditure, exports, population growth, labour productivity, tax rate, inflation rate and the Corruption Perception Index (CPI). The dependent variable employed in the empirical analysis, a proxy for the economic growth, is GDP per capita growth (annual %). The main finding of this paper’s investigations is that income inequality has a positive and statistically significant impact on economic growth and a 1% increase in the Gini coefficient enhances the GDP by 0.68% in the ten former socialist Central and Eastern European (CEE) countries which are members of the European Union (EU) during the period 2006-2014.
Subjects: 
economic growth
income inequality
Central and Eastern European (CEE) countries
European Union (EU)
system Generalized Method of Moments (GMM)
disparities
macroeconomics
JEL: 
C51
C52
O11
O15
O23
O47
O57
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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