Income distribution inequality and economic growth in russia:the empirical relationship

Abstract

Purpose: analysis of the correlation between economic growth and income differentiation in Russia. Discussion: We stated income distribution irregularity effects on the economic development of society. Income distribution is really important for economic development because of its influence on productivity and the economy in general as well as its poverty level determination at any level of the average income per person. In this article we proposed a hypothesis that distribution of income has a great influence on GDP per person. There are direct correlation between GDP per person and average monthly salary and inverse correlation between GDP per person and the Gini coefficient. Results: there was concluded that a direct correlation exists not only between GDP per person and average monthly salary but between GDP per person and the Gini coefficient too. This rejects our hypothesis. The lack of inverse correlation between GDP per person and the Gini coefficient may be due to the positive and negative effects of inequality. In connection with that fact we can demarcate normal and excessive inequality in income distribution of the population.