The interaction of inequality and growth and the direction of causality in this relationship have been an extensively discussed topic with several questions but without clear answers both in the theoretical and empirical literature. The current paper contributes mainly into the new economic...

The process of European integration has introduced a valuable empirical example on the impact of economic integration on income convergence. Many empirical papers confirm the income convergence within the new member states and between the new and old members. At the same time it is found that...