GDP corrected with income inequality as the measure of economic growth
DOI:
https://doi.org/10.15584/nsawg.2024.1.1Keywords:
GDP per capita, inequalities of incomes, EU countriesAbstract
The aim of the article is to develop a method for correcting GDP per capita using measures of income inequality. The amount of GDP per capita obtained in this way, adjusted by measures of income inequality, allows for comparison of EU countries in terms of the amount of this new measure. Determining five groups of countries and indicating how the GDP per capita relations between them have changed before and after taking into account inequality is an important added value of this article. The time range covered the years 2005–2020. The spatial scope included the EU countries, i.e. the 28 member states that were in the EU at that time. Statistical material was obtained from Eurostat and OECD databases. The main hypothesis can be summarised as the statement that income inequality has an impact on economic development, as measured by the GDP growth rate. To illustrate and verify the hypothesis, statistical methods were used: examining variability, correlation, verification of variables, as well as methods of logical analysis and examining cause-and-effect relationships. The general conclusions of the study indicate that the presented method of correcting GDP per capita is a solution, but it does not exhaust all the issues and problems associated with taking into account income inequality in GDP estimates. Moreover, interesting conclusions in the application sphere appear when the new GDPN(d) measure is used to isolate and compare groups of member countries, because the country rankings changed after correcting the GDP for inequalities.
References
Arnold, F., Blochliger, H. (2016). Regional GDP in OECD countries: How has the inequality developed over time? OECD Economics Department Working Papers, 1329, 5–21. DOI: 10.1787/5jlpq7xz3tjc-en.
Balcerzak, A.P. (2011). Taksonomiczna analiza jakości kapitału ludzkiego w Unii Europejskiej w latach 2002–2008. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu. Taksonomia, 18(176), 456–467.
Banerjee, A., Duflo, E. (2003). Inequality and growth: What can the data say? Journal of Economic Growth, 8(3), 267–299. DOI: 10.3386/w7793.
Barro, R.J. (2000). Inequality and Growth in a Panel of Countries. Journal of Economic Growth, 5, 5–32. DOI: 10.1023/a:1009850119329.
Berg, A., Ostry, J.D., Tsangarides, C.G., Yakhshilikov, Y. (2018). Redistribution, inequality and growth: new evidence. Journal of Economic Growth, 23(3), 259–305. DOI: 10.1007/s10887-017-9150-2.
Clarke, G.R.G. (1995). More evidence on income distribution and growth. Journal of Development Economics, 47(2), 403–427. DOI: 10.1016/0304-3878(94)00069-o.
Ćwiek, M., Trzcińska, K. (2022). The economic situation of households in Poland and the Czech Republic. Comparative analysis. Nierówności Społeczne a Wzrost Gospodarczy, 72(4), 26–43. DOI: 10.15584/nsawg.2022.4.2.
Dahlke, P. (2017). Samorząd terytorialny w procesie kształtowania rozwoju gospodarczego regionu na przykładzie województwa wielkopolskiego. Piła: Wydawnictwo Państwowej Wyższej Szkoły Zawodowej im. Stanisława Staszica w Pile.
Deininger, K., Olinto, P. (2000). Asset distribution, inequality and growth. Policy Research Working Paper, 2375, 1–29. DOI: 10.1596/1813-9450-2375.
Dominicis, I., Florax, R., Groot, H. (2008). A meta-analysis on the relationship between inequality and economic growth. Scottish Journal of Political Economy, 55(5), 654– 682. DOI: 10.1111/j.1467-9485.2008.00470.x.
Forbes, K.J. (2000). A reassessment of the relationship between inequality and growth. American Economic Review, 90(4), 869–887. DOI: 10.1257/aer.90.4.869.
Grabiński, T. (1984). Wielowymiarowa analiza porównawcza w badaniach dynamiki zja¬wisk gospodarczych. Kraków: Wydawnictwo AE w Krakowie.
GUS. (2024). Pojęcia stosowane w statystyce publicznej Pobrane z: https://stat.gov.pl/ metainformacje/slownik-pojec/pojecia-stosowane-w-statystyce-publicznej/3077,po¬jecie.html (2024.01.08).
Gutierrez-Romero, R. (2020). Inequality affects long-run growth: Cross-industry, cross-country evidence. SSRN Electronic Journal, 1–41. DOI: 10.2139/ssrn.3592024.
Hussain, M.A., Greve, B. (2023). The possible impact of changes in demography on economic inequality in Europe. In: U.R. Wagle (ed.), Research Handbook on Poverty and Inequality (p. 245–267). Northampton: Elgar Handbook of Inequality. DOI: 10.4337/9781800882300.
Kornai, J. (2014). Dynamizm, rywalizacja i gospodarka nadmiaru. Kraków: Fundacja GAP.
Kośny, M., Peternek, P. (2011). Wielkość próby a istotność wnioskowania statystycznego. Didactics of Mathematics, 8(12), 71–80.
Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, XLV(1), 1–28.
Li, H., Zou, H. (1998). Income inequality is not harmful for growth: theory and evidence. Review of Development Economics, 2(3), 318–334. DOI: 10.1111/1467-9361.00045.
Myrdal, G. (1973). Against the Stream. Critical Essays on Economics. London: Macmillan. DOI: 10.1007/978-1-349-02205-2_11.
Neves, P.C., Afonso, O., Silva, S.T. (2016). A meta-analytic reassessment of the effects of inequality on growth. World Development, 78, 386–400. DOI: 10.1016/j.worlddev.2015.10.038.
OECD. (2008). Handbook on Constructing Composite Indicator. Methodology and user guide. Pobrane z: https://read.oecd-ilibrary.org/economics/handbook-on-constructing-composite-indicators-methodology-and-user-guide_9789264043466-en#page9 (2024.01.08).
Panizza, U. (2002). Income inequality and economic growth: evidence from American data. Journal of Economic Growth, 7(1), 25–41. DOI: 10.2139/ssrn.178708.
Piasecki, R. (2008). Ekonomia rozwoju wobec problemów nędzy i nierówności na świecie, Annales. Etyka w życiu gospodarczym, 11(1), 225–232.
Piketty, T., Saez, E., Zucman, G. (2022). Twenty Years and Counting: Thoughts about Measuring the Upper Trail. The Journal of Economic Inequality, 20, 255–264. DOI: 10.1007/s10888-022-09536-8.
Polak, E. (2014). Rozwój zintegrowany a dobrobyt społeczno-ekonomiczny – kłopoty z pomiarem. Nierówności Społeczne a Wzrost Gospodarczy, 37, 5–19.
Poskrobko, T. (2012). Nowe koncepcje i teorie rozwoju w ekonomii. W: S. Czaja, A. Becla, J. Włodarczyk, T. Poskrobko, Wyzwania współczesnej ekonomii (s. 77– 118). Warszawa: Difin.
Raport „The Economist” (2012). Pobrane z: https://www.obserwatorfinansowy.pl/ (2023.09.26).
Sarama, M. (2012). Wybrane problemy tworzenia wskaźników złożonych w badaniach rozwoju społeczeństwa informacyjnego i gospodarki elektronicznej, Zeszyty Naukowe Uniwersytetu Szczecińskiego,702, „Ekonomiczne Problemy Usług”, 87, 345–353.
Słodowa-Hełpa, M. (2013). Rozwój zintegrowany. Warunki, wymiary, wyzwania. Warszawa: CeDeWu.
Solarin, S.A., Erdogan, S., Pata, U.K. (2023). Convergence of Income Inequality in OECD Countries Since 1870: A Multi-Method Approach with Structural Changes. Social Indicator Research, 166, 601–626. DOI: 10.1007/s11205-023-03080-2.
Stiglitz, J. (2016). Inequality and Economic Growth. The Political Quarterly, 86(S1), 134–155. DOI:10.1111/1467-923X.12237.
Tsounta, E., Suphaphiphat, N., Ricka, F., Dabla-Norris, E., Kochhar, K. (2015). Causes and Consequences of Income Inequality. Staff Discussion Notes, 15(3), 1–39. DOI: 10.5089/9781513555188.006.
UNDP. (2020). Human Development Report 2020: The Next Frontier: Human Development and the Anthropocene. New York: UNDP.
Woźniak, M.G. (2004). Wyznaczniki prowzrostowej strategii ograniczającej nierówności społeczne wynikające z teorii wzrostu. Nierówności Społeczne a Wzrost Gospodarczy, 4, 77–87.
Wójcik-Żołądek, M. (2013). Nierówności społeczne w Polsce. Infos, Biuro Analiz Sejmowych, 20(157), 1–4.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 University of Rzeszow
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
