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Redistribution and Economic Growth in Integrated Economies

Rehme, Günther (2008)
Redistribution and Economic Growth in Integrated Economies.
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Item Type: Report
Type of entry: Primary publication
Title: Redistribution and Economic Growth in Integrated Economies
Language: English
Date: 20 November 2008
Place of Publication: Darmstadt
Series: Darmstadt Discussion Papers in Economics
Series Volume: 141
Corresponding Links:
Abstract:

Many theoretical models show that redistribution causes low growth or capital outflows even though empirically redistribution and growth are often found to be positively associated across countries. This paper argues that tax competition and the danger of capital outflows leads optimizing governments to pursue high growth, no redistribution policies in technologically similar economies. However, the government of a technologically superior economy may attract foreign and domestically owned capital and may have relatively higher GDP growth and more resources for redistribution than in a closed economy. Thus, redistributing governments may have a relatively stronger interest in technological advance or high economic integration. The results imply that one may well observe a positive association between redistribution and growth across countries.

Uncontrolled Keywords: Growth; Redistribution; Tax Competition; Capital Mobility
URN: urn:nbn:de:tuda-tuprints-47856
Additional Information:

JEL - Classification: O4, H21, D33, C72, C21, F21; Erstellt November 2004

Classification DDC: 300 Social sciences > 330 Economics
Divisions: 01 Department of Law and Economics
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > Economic Theory
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete
Date Deposited: 20 Nov 2008 08:17
Last Modified: 25 Oct 2023 08:25
URI: https://tuprints.ulb.tu-darmstadt.de/id/eprint/4785
PPN: 386810702
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