Abstract
In this article, we revisit the growth distribution trade-off, drawing from the recent
theory and empirics of growth. We differentiate between episodes of growth acceleration and episodes of growth maintenance. We show that while there may be a trade-off between growth and distribution during a growth acceleration, there is no trade-off in growth maintenance. During a growth maintenance episode, policies and institutional reforms that improve income distribution may actually be growth-enhancing.
theory and empirics of growth. We differentiate between episodes of growth acceleration and episodes of growth maintenance. We show that while there may be a trade-off between growth and distribution during a growth acceleration, there is no trade-off in growth maintenance. During a growth maintenance episode, policies and institutional reforms that improve income distribution may actually be growth-enhancing.
| Original language | English |
|---|---|
| Pages (from-to) | 471-483 |
| Number of pages | 13 |
| Journal | Journal of Development Effectiveness |
| Volume | 7 |
| Issue number | 4 |
| Early online date | 7 Oct 2015 |
| DOIs | |
| Publication status | Published - 2015 |
Research Beacons, Institutes and Platforms
- Global Development Institute
