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B razil and C hina: Two Routes of Economic Development?
Author(s) -
Policardo Laura,
Punzo Lionello F.,
Sánchez Carrera Edgar J.
Publication year - 2016
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12175
Subject(s) - cointegration , economics , convergence (economics) , income distribution , relevance (law) , distribution (mathematics) , macroeconomics , keynesian economics , econometrics , neoclassical economics , inequality , law , political science , mathematical analysis , mathematics
We look at two emerging economies, B razil and C hina, and propose an evaluation of their recent development in terms of growth performance and the evolution of income inequality. Our analysis, therefore, is related to the literature on their recent vast growth and also to the much debated K uznets curve and theory. However, we claim that neither the growth nor the K uznets approach capture recent relevant phenomena characterizing such countries' dynamics: namely, the presence of at least two distinct growth models. Cointegration analysis and empirical evidence seem to corroborate our interpretation. They also offer some further insights. We surmise that while contributing to press for a further re‐examination of convergence in the light of the issue of income distribution, such findings have interpretative relevance and policy implications for other less developed countries.