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The idea that high levels of economic inequality negatively affect the rate and sustainability of economic growth is quite popular in the scientific literature. Therefore, it is usually proposed to take some regulative measures to reduce economic inequality in order to boost economic growth....
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This article examines the causal relationship between foreign aid, poverty, and economic growth in 82 developing … relationship between economic growth and poverty; (b) a unidirectional causal relationship from economic growth to foreign aid; and … (c) unidirectional causality from poverty to foreign aid. In the long-run, the study found that (a) foreign aid tends to …
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