Income Distribution and Economic Growth: The Case of Brazil

In: The journal of developing areas, Band 43, Heft 1, S. 341-351

Abstract

In a perfect world, it will be great if the growth can be distributed equally and all poverty is removed simultaneously. Unfortunately, as Simon Kuznets has pointed out, economic growth is rarely distributed equally, in fact, according to him, economic growth initially leads to higher income inequality of income, as some sectors grow faster and some do not grow at all. In this paper, we apply the Kuznets hypothesis to the Brazilian case. Our test shows that in case of Brazil, the Gini coefficient has in fact behaved as Kuznets predicted.