A Study of Thought Developments on the Relationship and Interactions of Inequality and Growth and its Implications for the Iranian Economy

Analyzing the roots of inequality and its relationship with socioeconomic development has become one of the longest-running controversies in the history of economics in theoretical and practical policymaking fields. The study of the evolution of inequality at both domestic and international levels, in addition to exhibiting augmented sensitivity to it and requiring serious attention, reveals many complexities in the fields of social, political, and cultural sciences, especially in developing countries. The study of the opinions of the pioneers and examining the competing theories in a way that includes the experiences of successful and unsuccessful countries in achieving equality and development can play an enlightening and improving role in providing a way for decision-makers and those concerned about the country's development.In the present study, with an analytical-descriptive approach, a theoretical explanation of the relationship between inequality and growth has been conducted, focusing on the channels of positive and negative effects of inequality on growth, the most important of them along with the mechanism of influence have been outlined. In conclusion, while providing statistical evidence, the implications of the issue for the economy of Iran have been discussed. The results indicated that the anti-development consequences of inequality in the economy of Iran can be examined through two important channels: rent-seeking and altering consumption patterns, and creating dependence.