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Inequality in developing economies: the role of institutional development

Amendola, Adalgiso, Easaw, Joshy and Savoia, Antonio 2013. Inequality in developing economies: the role of institutional development. Public Choice 155 (1-2) , pp. 43-60. 10.1007/s11127-011-9838-3

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This paper studies the distributive impact of institutional change in developing countries. In such economies, property rights systems may preserve the interests of an influential minority, who can control key-markets, access to assets and investment opportunities, especially if they enjoy disproportionate political power. We test this hypothesis using cross-section and panel data methods on a sample of low- and middle-income economies from Africa, Asia and Latin America. Results suggest that: (a) increasing property rights protection increases income inequality; (b) this effect is larger in low-democracy environments; (c) some countries have developed political institutions capable of counterbalancing this effect.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Springer Verlag
ISSN: 1573-7101
Date of Acceptance: 12 July 2011
Last Modified: 15 Jan 2020 10:45

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