Does Social Inequality Stimulate the Economic Growth? (On the examples of the chosen developing countries)

Abstract

The article critically examines the concept of social inequality, and suggests ways to determine it against the background of a wide range of factors that determine inequality among the richest and poorest countries. It also summarizes the inequalities between the three groups of countries by comparing some macroeconomic indicators of socio-economic inequality. We then checked for a linear relationship between the two quantitative variables. Using World Bank data and Reports of the United Nations on human development, we conducted an analysis of individual countries taken from three groups of countries (a total of thirty countries), for the period from 1990 to 2017. After a statistical analysis, we proved that inequality slows down economic growth.