Economic Growth and Inequality: Institutional Aspect and Empirical Analysis

Abstract

The article regards basic hypotheses and theoretical assumptions, which link the state of country's economic development and inequality in its income distribution. The role of institutional factors, which have a significance 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.