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2006 AEC - Growth inequality poverty nexus in Sub Saharan Africa


Most of the economic literature on the relationship between income inequality and economic growth has its origin in the path-breaking work of Kuznets (1955). In his “inverted –U” hypothesis, Kuznets suggested that economic growth (that is, a rise in average per capita income) can initially lead to a rise and then fall in income inequality within a country. Since then, however, much evidence has been accumulated both for and against this hypothesis.

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