Income Inequality, Poverty, Economic Growth and Industry in Brazil: Short and Long Term Relationships via ARDL Models
DOI:
https://doi.org/10.14393/REE-v37n2a2022-62895Keywords:
Income Inequality, Poverty, Economic Growth, Industry, ARDLAbstract
This paper investigates the short and long run relationships between income inequality, poverty, economic growth and industry participation in employment for Brazil from 1985 to 2014. For this, we estimate Autoregressive Distributed Lag (ARDL) models in order to find out how the industry affects inequality and poverty and to test three traditional hypotheses in the literature: Kuznets Curve, dual economy and pro-poor economic growth. The evidences pointed to heterogeneous effects of growth and industry in poverty and inequality over time, with a social problems reduction explained by economic growth in long run and industry employment in the short run.
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