Abstract
Inequality in the distribution of income of the population has a certain impact on different aspects of the economic and socio-cultural development of countries and regions. This inequality arises due to a number of factors as the current nature of the production specialization, the availability of production and economic infrastructure, the achieved level of development of the social sphere, socio-cultural, demographic, and other factors. The main objective of this study is to assess the nature and extent of the impact of income inequality in the Russian regions for the subsequent justification of the directions of socio-economic development. We conducted an econometric analysis of the impact of intraregional income inequality (the Gini coefficient), fixed capital investment per capita, and average per capita consumer spending on one of the main indicators of regional economic growth (GRP) per capita was carried out. The model is based on panel data for the period 2012-2018 for 85 regions of the Russian Federation. The results of the study confirm two of three hypotheses. As prospects for further research, it is proposed to consider the impact of inequality in the distribution of household income on economic growth for different groups of regions, including resource-type regions and regions with a predominance of manufacturing industries, as well as for leading regions and regions with a relatively low level of socio-economic development.
Highlights
Inequality in the distribution of income of the population has a certain impact on different aspects of the socio-economic development of countries and regions
We assume that income inequality has a negative impact on economic growth, as it hinders the formation and development of human capital, increases the burden on the social sphere, contributes to the strengthening of social tension and the growth of crime; second, we suggest that income inequality has a positive impact on economic growth since the formation of a high-income population group can provide an influx of investment in the economy, including in the development of highly technological industries
The analysis shows that investment ("physical capital") is one of the main factors that have a significant impact on economic growth in the Russian regions
Summary
Inequality in the distribution of income of the population has a certain impact on different aspects of the socio-economic development of countries and regions. The average per capita income of the population in 2019 of the Yamalo-Nenets Autonomous Okrug was 5 times higher than the corresponding indicator in the Ingushetia Republic and 4.5 times higher in the Kalmykia Republic. This anecdotal evidence reflects a significant interregional differentiation of the population's income. Objective of this study is to assess the nature and extent of the impact of income inequality in the Russian regions on one of the main indicators of economic growth – gross regional product (GRP) per capita – for the subsequent justification of the directions of socio-economic development
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