Recent theoretical literature has suggested a variety of mechanisms through which poverty may deter growth and become self-perpetuating. A few papers have searched for empirical regularities consistent with those mechanisms – such as aggregate non-convexities and convergence clubs. However, a seemingly basic implication of the theoretical models, namely that countries suffering from higher levels of poverty should grow less rapidly, has remained untested...
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INFORMATION
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2009/08/01
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Document de travail de recherche sur les politiques
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WPS5012
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1
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1
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2010/07/01
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Disclosed
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Too poor to grow
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effect of inequality on growth