THE IMPACT OF REDISTRIBUTION ON INEQUALITIES AND ECONOMIC GROWTH
The article analyses the impact of inequalities and redistribution on economic growth. The analysis starts from testing the European Union on accomplishing the dual objective of economic growth and social equity. In order to test this hypothesis, I proposed a model which correlates the three varia...
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| Format: | Article |
| Language: | English |
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Academica Brâncuşi
2015-12-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
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| Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2015-Special%20ECOTREND/73_Nerau%20Vlad.pdf |
| Summary: | The article analyses the impact of inequalities and redistribution on economic growth. The analysis starts from
testing the European Union on accomplishing the dual objective of economic growth and social equity. In order to test
this hypothesis, I proposed a model which correlates the three variables above mentioned with foreign investments per
capita. The model contradicts a vision of previous research, which considers that redistribution negatively affects
economic growth and proves that a sustainable economic growth can be obtained by reducing inequalities.
In addition to empirical evidence, the article analyses the social impact of inequalities. They do not only affect
economic growth (stricto sensu) but also the development of society (lato sensu), by causing a series of desequilibriums
which undermine social consensus. The social consensus is greatly needed to adjust to major shocks EU confronts with
nowadays.
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| ISSN: | 1844-7007 1844-7007 |