Freitas, Miguel Lebre deSchäfer, Henning2025-07-212025-07-212025-01-162024-12-17http://hdl.handle.net/10362/185378This study investigates the relationship between the Gini coefficient and economic growth using regression analysis. By incorporating additional regressors such as human capital, purchasing power parity, and education levels, the analysis provides a comprehensive view of the key determinants of economic growth. Empirical evidence highlights the dual role of inequality, with the Gini coefficient serving as a critical measure of income distribution's impact on growth. The regression results reveal that while initial inequality can negatively influence growth, changes in education and income parity can offset these effects. The study depictsthe importance of considering multiple explanatory variables to understand the nuanced effects of income distribution on economic growth.engGrowthIncomeGini-coefficientIncome distributionGDPPanel datamaster thesis203958667