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Vietnam's economy over the past decade grew at one of the highest rates in the world. The broadly based nature of this growth sent tumbling by over 20% points the proportion of the population falling under an internationally comparable poverty line. Yet this growth has also generated increases in income inequality which, by some measures, threaten to give Vietnam one of the highest Gini coefficients...
The paper uses new cross-country data on income and asset (land) distribution to show that (i) there is a strong negative relationship between initial inequality in the asset distribution and long-term growth; (ii) inequality reduces income growth for the poor, but not for the rich; and (iii) available longitudinal data provide little support for the Kuznets hypothesis. Policies that increase aggregate...
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