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Addressing rising inequality in G20 economies

Zia Qureshi's picture
Income inequality has been rising in a majority of G20 economies, in some of them significantly. This rising trend in inequality has more recently started to focus attention on policies to promote a more inclusive pattern of growth. This shift in attention has also been motivated by increasing evidence from recent research that rising inequality may be harmful to economic stability and growth. Not only can rising inequality undermine longer-term growth prospects, but it can also hurt growth in the short to medium term by weakening aggregate demand.

Internet access boosts firm performance – even in difficult business environments

Caroline Paunov's picture
The Internet may boost private sector development in developing and emerging countries by improving access to market information, by facilitating more effective coordination of firms’ production and delivery chains and by creating new business opportunities. However, impacts on firm performance may not be equally strong across regions of the world, and differ with countries’ development status. A potential reason for weaker impacts is cumbersome framework conditions - shortcomings in physical infrastructures, weakly developed financial markets, and an often insufficiently skilled labor force.

Remembering John Nash

Kaushik Basu's picture
Last weekend, as my wife and I drove back to Washington after visiting James Madison’s home and the birthplace of the American constitution in Virginia, our daughter called to give us the news. John Nash and his wife, Alicia, had just been killed in a car accident on New Jersey Turnpike. The brutality of it was difficult to fathom. How could a person of such genius, after a life of so much struggle, battling schizophrenia and overcoming it, go in such a way?

Prosperity of Nations: Does culture matter for entrepreneurship?

Shankha Chakraborty's picture

Economists have been increasingly looking at culture to explain the divergent economic fortunes of nations. Does culture matter for development? If it does, what kind of culture?  In a recent paper we argue that differences in economic development across countries can be explained by a culture of entrepreneurship, that there is a role for government policy to shift culture towards risk-taking and innovation but that, ultimately, culture is subordinate to institutions.

Friday round up: Visualizing financial inclusion, food insecurity, behavioral economics, poverty among urban children, and citizen well-being

LTD Editors's picture
The Guardian's Global Development Professionals Network blog has created visualizations using Global Findex data.
 
The FAO finds in its 'The State of Food Insecurity in the World 2015' report that 795m people are undernourished globally, down 167m over the last decade, and 216m less than in 1990–92.
 

Stock-markets lead to more FDI...or is it vice-versa?

Fulbert Tchana Tchana's picture
Most studies on the relationship between foreign direct investments (FDI) and financial market development focus on financial market development as a link between FDI and economic growth. However at present our disciple has no deep understanding of direct causality between FDI and financial market development, especially in emerging markets, where financial markets are in the development stage.
 

Where babies, I mean, datasets, come from…

Kristen Himelein's picture
For most researchers, datasets come into the world in Stata format.  For those privileged few with the opportunity to collect primary data, conception happens in a concept note or grant proposal, which grows into a survey design, a sample calculation, then a questionnaire.  At this point though, most of us are content to let the stork intervene, carrying a freshly powdered dataset to our office, ready to be nursed into a strong and gifted paper.[1]  We gloss over the messy birth process, in which flesh and blood intervi

Unpacking the drivers of inequality

Augusto Lopez-Claros's picture
The relationship between growth and income inequality is more complex than the one between growth and poverty, and has been the subject of considerable study.
 
An early contribution in the 1950s by Nobel Prize-winning economist Simon Kuznets, for instance, noted that at least two forces tended to increase inequality over time. One was the concentration of savings in the upper-income groups; he observed that in the United States the wealthiest 5 percent of the population accounted for close to two-thirds of total savings.
 

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