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Generally, a negative relationship between growth and income equality has been observed for all economies. Transition economies experienced a sharp decline in production and income accompanied by a distortion in income distribution. Even after recovery an increase in inequality has been accompanied to increases in GDP. For instance, rapid growth in China has been accompanied by a sharp increase in the Gini coefficient. Value of this coefficient increased by 2 percentage points between 1990 and 2001 and consequently, Gini coefficient in 2003 became nearly 50 percent higher compared to that in 1981. Other formerly socialist countries also experienced the same development (Mitra‐ Yemtsov, 2006: 4).

Table 1. Gini Indices for Per Capita Incomes from “Official” Sources 1987‐1990 Armenia 0.269 Azerbaijan 0.345 Belarus 0.233 Bulgaria 0.245 Croatia 0.251 Czech Rep. 0.197 Estonia 0.240 Georgia 0.313 Hungary 0.214 Kazakhstan 0.297 Kyrgyz Rep. 0.308 Latvia 0.240 Lithuania 0.248 Macedonia 0.349 Moldova 0.267 Poland 0.255 Romania 0.232 Russia 0.259 Slovenia 0.220 Slovak Rep. 0.186 Tajikistan 0.334 Turkmenistan 0.308 Ukraine 0.240 Uzbekistan 0.351

1991 0.265 0.260 0.227

1992 0.344 0.228 0.395 0.274 0.289 0.282

1993 0.231 0.353 0.365 0.285 0.398

1994 0.280 0.340 0.270 0.350 0.330 0.310 0.350 0.360 0.290 0.409 0.250 0.360 0.330

1995 0.440 0.253 0.384 0.242 0.320 0.312 0.381

1996 0.244 0.357 0.258 0.370 0.430 0.246 0.35 0.347 0.369 0.328 0.302 0.375 0.302 0.237

1997 0.249 0.366 0.230 0.361 0.254 0.470 0.326 0.309 0.367 0.420 0.334 0.305 0.381 0.305 0.249

1998 0.253 0.345 0.333 0.239 0.354 0.250 0.411 0.321 0.332 0.326 0.298 0.398 0.298 0.262

1999 0.570 0.235 0.326 0.212 0.361 0.253 0.399 0.343 0.334 0.299 0.399 0.299 0.249 0.470 0.282

2000 0.247 0.332 0.232 0.389 0.259 0.414 0.327 0.355 0.437 0.345 0.310 0.394 0.310 0.264 0.288

2001 0.537 0.373 0.245 0.333 0.231 0.385 0.272 0.

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