Göksu Aslan - Affiliation: PhD Candidate, University of Messina, Italy

In this paper, redistribution and inequality impact on economic growth are observed for the countries in the panel framework approach, in the extent of their economic freedom score. There exists a growing research interest on inequality and economic growth relationships in the global level. On the other hand, redistributive policies and their effects are highly controversial since some views cover that the interventions for equality may have negative effects on economic growth. I apply system-GMM estimation on a dynamic panel model with time and individual country specific effects as to test inequality and redistribution effects on economic growth. Net inequality has a significant negative impact on economic growth, redistribution impact is not significant for economically free countries, while redistribution has a significant positive impact on economic growth, net inequality impact is not significant for relatively unfree countries.

Economic growth, GDP, GMM, inequality, redistribution