## Inequality, Poverty, and Growth: Cross-Country Evidence

_IMF Working Papers, February 1, 2005_

## Source details

**Canonical URL:** [Inequality, Poverty, and Growth: Cross-Country Evidence](https://www.imf.org/en/publications/wp/issues/2016/12/31/inequality-poverty-and-growth-cross-country-evidence-17956)

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## Bibliographic details
- Authors: Garbis Iradian
- Published: February 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451860474.001

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### Key findings and empirical results
- The paper examines the empirical relationship between inequality and growth, and analyzes the impacts of growth, inequality, and government spending on poverty reduction.
- A new panel dataset has been assembled on inequality and poverty that reduces measurement error and ensures comparability across countries and over time.
- The empirical results challenge the belief that income inequality has a negative effect on growth.
- The results confirm the validity of the Kuznets curve.
- Credit market imperfections in low- and medium-income countries are identified as the likely reason for the positive link between inequality and growth over the short-to-medium term.
- In the long term, inequality may have an adverse impact on growth.

### Analysis themes and mechanisms
- Data quality and comparability: emphasis on a newly assembled panel dataset designed to reduce measurement error across countries and over time.
- Short-to-medium term dynamics: identification of credit market imperfections as a mechanism linking higher inequality to higher growth in low- and medium-income countries.
- Long-term dynamics: potential adverse effects of inequality on long-run growth, even if short-term links are positive.
- Poverty reduction drivers analyzed: growth, inequality, and government spending.

### Publication and metadata
- Author: Garbis Iradian
- Date: February 1, 2005
- Pages: 39
- Volume: 2005
- Issue: 028
- Series: Working Paper No. 2005/028
- DOI: https://doi.org/10.5089/9781451860474.001
- Stock No: WPIEA2005028
- ISBN: 9781451860474
- ISSN: 1018-5941

*Inequality, Poverty, and Growth: Cross-Country Evidence — IMF Working Paper by Garbis Iradian, February 1, 2005.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/inequality-poverty-and-growth-cross-country-evidence-17956_