Theoretical and Empirical Analysis of Growth, Poverty and Inequality in Emerging and Transition Economies
Theoretical and Empirical Analysis of Growth, Poverty and Inequality in Emerging and Transition Economies

Summary/Abstract: This article reviews current economic policy discussions about the relationship between growth, inequality, and poverty. These discussions tend to focus on whether market-driven growth is enough to eradicate poverty and reduce inequality, or whether specific policies are necessary, that is, unforeseen growth may be inadequate or even perverse. The study also presents the latest global sign on the change of economic growth into poverty decrease in developing and transition countries, with an emphasis on the role of income inequality. For this purpose, following the literature review, emerging and transition economies analyze in term of reduction of poverty together with the process of growth acceleration, an improvement of the human development variables and an increase of political democracy. In the second step, it is focused on the income distribution which means it is explores if mentioned countries practiced just economic growth or development. Obtained results claim that the economic growth taking place in the meanwhile the last 10 years contributed neither to a reduction in poverty between 2000 and 2016, calculated through to a rise in variable of human development, principally in life expectancy. The opposite way, variables worsened, as did the proxy and accountability for political pluralism and democracy. Also, it said that the economic growth realized in transition economies and emerging economies. However, the U-shaped Kuznets curve cannot be observed because following reduction in inequality realized after an extended period of growth. Results support the idea that countries with lower levels of adult literacy and public spending attract higher income inequality.

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