Abstract

VARONA-CASTILLO, Luis  and  GONZALES-CASTILLO, Jorge Ricardo. Economic growth and income distribution in Peru. Prob. Des [online]. 2021, vol.52, n.205, pp.79-107.  Epub Aug 23, 2021. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2021.205.69636.

This article analyzes the causal determinants of income distribution in Peru (IDP)during the period 1985-2017. There is empirical evidence suggesting that the GDP per capita and the slowed and unsustained economic growth of the economy have negatively impacted IDP. This can be conceptualized as a W-shaped causal relationship, in contrast to Kuznets' inverted-U hypothesis, thus reflecting a dual economy with productivity differences, low levels of human capital, and institutional weakness. This article contributes to the debate by making several recommendations, namely: balancing the market-state-society relationship with free-market and non-rentier economic policies, human capital investment policies, innovation and technology, and strengthening the social capital (geared towards endogenous economic growth) of inclusive and sustainable human development.

Keywords : Peru; economic growth; income distribution; Gini coefficient; 1985-2017.

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