The relationship between economic growth and inequality has been intensively analyzed over the last decades. However, empirical results remain controversial. Although a majority of papers are linking economic growth and institutions, saying that good governance has a critical bearing on economic and social outcomes there is no guarantee that benefits of economic growth are broadly shared by all population including the poor. The presentation concentrates its effort on 28 transition economies that have experienced a sharp increase in inequality after planned economy breakdown, and particularly on Russian institutional development and its effect on inequality. Cointegration and Granger causality tests are applied to evaluate the link and causality between inequality, economic growth and institutions.
Dmitry Rudenko is an Associate Professor at the Department of Economics at the University of Tyumen in Russia (Western Siberia). Dmitry Rudenko is staying at the UCRS in the capacity of guest researcher until 5 October.