Income Distribution Commons^™

Corruption, Income Inequality, And Subsequent Economic Growth, Josh Matti

Undergraduate Economic Review

This paper attempts to untangle the link between corruption and income inequality with subsequent economic growth. It uses standard OLS multiple regression analysis and data from 134 countries over a ten year time frame to test the hypothesis that after controlling for corruption, income inequality will be less significant in explaining subsequent growth rates. Perhaps it is not income equality that fosters economic growth, but rather a decrease in corruption that causes both economic growth and greater equality. This study yields some expected findings in support of well-established variables and concludes that inequality harms growth even after controlling for corruption.