Poverty and socio-economic inequality in the context of economic growth: empirical analysis and regulation strategies

Relevance.The growth of poverty and socio-economic inequality remains one of the key threats to the sustainable development of the global economy. Global crises of the last decade ‒ the COVID-19 pandemic, inflationary shocks, and geopolitical instability ‒ have intensified social imbalances, exacerbating the problem of equitable resource distribution. Under these conditions, the relevance of searching for effective tools of state fiscal policy increases, enabling the simultaneous stimulation of economic growth and reduction of social inequality.

The purpose of the study is to identify the interlinkages between poverty, socio-economic inequality, and economic growth, as well as to determine directions for improving Russia's fiscal policy taking into account international experience.

Objectives. To achieve this purpose, the following tasks are addressed: analyzing the dynamics of poverty and inequality in countries with different levels of development, assessing the impact of tax-budget instruments on their reduction, and identifying institutional factors that determine the effectiveness of state financial policy.

Methodology.The empirical base of the study is formed on the basis of statistical data from the World Bank, OECD, WID, Rosstat, and the National Bureau of Statistics of China for 2016–2022. Methods of comparative analysis, regression modeling, correlation and graphical analysis, as well as visualization of results in the form of scatter plots and heat maps, were used.

Results. The research results confirm that redistributive mechanisms of fiscal policy have a significant impact on poverty reduction, but their effect on the level of socio-economic inequality depends on the structure of expenditures and the quality of economic institutions.

Conclusions. Based on the comprehensive interlinkages between poverty, inequality, and economic growth, taking into account international experience and the national specifics of Russia, it is recommended to enhance the efficiency and targeting of social payments, develop progressive elements of the tax system to overcome excessive asset inequality, and expand investments in human capital.

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