Nejednakost i ekonomski rast

Research objective of this paper is to analyse the relationship of inequality and economic growth. It does so by describing inequality and economic growth in more details, over viewing existing research on the topic and finally conducting a regression analysis and drawing conclusions from it. Existing literature on the subject gives differing views; some economists argue that inequality has positive impact on economic growth, while other economist argue that it has a negative impact on economic growth. This paper uses cross-sectional analysis with data from year 2017 to determine the impact of inequality in countries around the world, and also specifically in the European Union. Results show no significant relationship between inequality and economic growth in both observed models. This is contradictory to neoclassical view on impact of inequality, however it is in line with research that was conducted on the subject in the recent years. Further research should be done exploring the effects of after-tax inequalities on economic growth