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The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan9apos9s Data

Author

Listed:
  • Saleem Khan

    (Assistant Professor,)

  • Salman Azad Khan

    (MS Scholar,)

  • Muhammad Tariq

    (Assistant Professor,)

Abstract

This research gives a brief overview of Pakistan’s economic growth and income inequality, and empirically assesses the relationship between these two variables of the country over the period of 1990 – 2015. In the empirical part, our study employs the augmented ADF test and simple regression analysis. ADF test results depict that both variables of the model are stationary at the level and exhibit no unit root at the level. Further, in regression results, the coefficient estimates are significant and reveal an inverted U linkage between economic growth of the country and distribution of income. The income level of the country alone explains a significant part of the income inequality. Instead, the lagged dependent variable coefficient is significant and partly explains variation in inequality.

Suggested Citation

  • Saleem Khan & Salman Azad Khan & Muhammad Tariq, 2016. "The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan9apos9s Data," Global Economics Review, Humanity Only, vol. 1(1), pages 24-35, December.
    • Handle: RePEc:aaw:journl:v:1:y:2016:i:1:p:24-35
    DOI: 10.31703/ger.2016(I-I).03
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic Growth; Income Inequality; ADF Test; Regression Analysis;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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