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Inequality and economic growth in emerging market economies : A comparative analysis of Indonesia and Korea

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  • Inequality and economic growth in emerging market economies
  • Handaulah, Muhammad Rihan
  • Delft University of Technology


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Title Inequality and economic growth in emerging market economies
Similar Titles
Sub Title

A comparative analysis of Indonesia and Korea

Material Type Reports
Author(English)

Handaulah, Muhammad Rihan

Publisher

Amsterdam, Netherlands : Delft University of Technology

Date 2014-11
Pages 97
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Conditions
Economy < Economic System
Holding Delft University of Technology
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Abstract

For the last four decades, inequality has been increasing in both industrialized and emerging market countries. Inequality is a concern in development due to social-ethical and economic rationale. Inequality can impair social well-being which leads to political unrest. Also it can trigger the economic instability and hamper the economic growth. Although it is not a recent debate in the development economics, the opinion on this topic is still diverging. Thus, this research aims to examine the relationship between economic growth and inequality then analyze its influencing factors in the context of emerging market economies. It proposes to go beyond most of the earlier studies in the case countries (Indonesia and Korea) by two approaches. First, it employs Theil’s T statistics method to assess how the changes in economic structure have driven inequality and economic growth as presumed by Simon Kuznets. Second, it examines the influencing factors of inequality with a special attention to economic policy then puts it into the institutional and historical context of Indonesian and Korean economies.