To be direct, I would bet that a developing third world nation would still be expected to have a high gini. The reason that is is because this nation would still be competing in an international market. So, the top wage-earners still could have international wage competition, but the bottom will still be in poverty.
That being said, the issue is undoubtedly complicated. I mean, I doubt the high gini causes growth. It's just a likely result given an international market, and the relatively low wages at the bottom of that nation's labor market. (And note: I am just speculating, but I think this is a reasonable one given pre-existing theory. I mean, there are lines of empirical evidence that could favor or disfavor this idea)
17 Sep 2012, 10:19 pm
