Content №4 от 2004

Linkage between economic growth and poverty across the regions

Reduction of economic inequality and war on poverty remain important tasks for the state regulation in Russia. The paper presents the results of the study of linkage between inequality and economic growth in the regions. Shown are both the direct effects (the influence of economic growth on inequality) and back effects – the influence of inequality on economic growth. The empirical analysis has shown that the effect of “inequality trap” was observed when deficiency of economic resources prevents from effective war on poverty which, in its turn, checks the development of the human potential and curtails the economic growth. The dynamics of poverty was also affected by intra-regional inequality which combined the results of macro and sub-federal levels.

Kolomak Ie. A.

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