Economic Growth and Inequality: Institutional Aspect and Empirical Analysis

Abstract

Tamara Merkulova — Head of the Chair for Economic Cybernetics and Applied Economics, Kharkov National University. Address: 4, Svobody Sq., Kharkiv, 61022, Ukraine. E-mail: tamara_merkulova@yahoo.com

The article discusses the basic hypotheses and theoretical assumptions which link the state of a country’s economic development and the inequality in its income distribution. The role of institutional factors, which have a significant influence over this relation, is revealed. The results of an empirical study regarding HDI dynamics are discussed to provide a more precise conclusion to the preceding research. The results of modeling the relation between economic growth and economic inequality using production-institutional functions are shown.