International Journal of Nonlinear Analysis and Applications

The effect of economic growth and misery index on income inequality in Iran (Autoregressive Distributed Lag (ARDL))

Document Type : Research Paper

Authors

Department of Economics, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

Abstract

Improving people’s quality of life and increasing the level of public welfare are among the goals defined by different governments around the world. In meeting such goals, reducing income inequality is one of the factors that play a major role. Therefore, it is of high significance to figure out the factors related to income inequality. The present study was conducted to investigate the relationship between income inequality, economic growth and misery index in Iran, and in this regard, time series data related to the years 1971-2019 have been used. The income inequality index in the present study is the Gini coefficient and to estimate the research model, Autoregressive Distributed Lag (ARDL) method has been used. The results indicated that increasing as the misery index increases, income inequality in Iran will increase as well. Moreover, the ratio of real government spending to real GDP and economic growth has a positive effect on increasing inequality and the ratio of total real investment to real GDP and a dummy variable for revolution have a negative effect on income inequality.

Keywords

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International Journal of Nonlinear Analysis and Applications
Volume 14, Issue 3
March 2023
Pages 343-351
  • Receive Date: 20 December 2021
  • Revise Date: 06 February 2022
  • Accept Date: 08 February 2022