Modeli i strategije optimalnih ekonomskih nejednakosti u funkciji ekonomskog rasta
Models and strategies of optimal income inequalities in a function of economic growth

Summary/Abstract: The priority of every economy in the world is sustainable and inclusive economic growth. The Great Economic Crisis of 2008. slowed down global economic growth but also deepened distribution inequalities. Crises in recent years (the COVID-19 pandemic, wars in the Middle East, and the Russo-Ukrainian war) have had the same impact on the above variables. The goal of this paper is to connect and examine the relationship between economic inequality and economic growth and to form an optimal model where the greatest economic growth is achieved with optimal inequality. Economic inequality, on the one hand, stimulates economic growth through competitiveness. The justification for inequalities lies in the motivation and reward for above-average thinking, business and taking a risk. Excessive economic inequality, on the other hand, carries a high price through economic, political and social instability of the system. On the issue of optimal economic inequalities, there is no unified attitude between researchers. Most of the developed countries of Europe have a more even distribution of money, power and earnings. In contrast, low levels of egalitarianism are present in underdeveloped parts of the European continent (developing countries). On the other hand, if we look at the United States of America, we see high inequality in distribution and economic growth. Economic inequality is in a function of economic power (Tomaš, 2019). The relationship between income inequality and growth is analyzed on the example of European Union countries with which Bosnia and Herzegovina is connected in economic sense. One of the global goals of sustainable growth promoted by the World Bank is to reduce poverty and distributional inequality (WB, 2024). By analyzing a multiple linear regression model in which economic growth is in a function of income inequality through the SPSS programming language, a model is arrived at that predicts maximum economic growth with optimal inequality. What level of inequality, or Gini coefficient, is permissible and desirable, and to what level of inequality of distribution can economic policy makers go, is shown in this paper. Comparing the results obtained from the model with countries from the region and the world will enable the drawing of valid economic conclusions and premises that could be the basis for further research in the future.

• Details
• Contents