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Economic Growth and Income Inequality: Empirical Evidence from North African Countries

Author

Listed:
  • Zouheir Abida

    (University of Sfax, Faculty of Economics and Management of Sfax- Tunisia)

  • Imen Mohamed Sghaier

    (University of Sfax, Faculty of Economics and Management of Sfax- Tunisia)

Abstract

This paper examines the empirical relationship between economic growth and income inequality for 4 countries of North Africa (Tunisia, Algeria, Morocco and Egypt) over the period 1970-2007. The results of this paper indicate that the long-run growth elasticity of income inequality is negative and significant implying that keeping other factors constant; more income inequality reduces economic growth. Moreover, this paper finds evidence that more physical and human capital investment and higher openness to trade have statistically significant impact on enhancing economic growth and reducing poverty.

Suggested Citation

  • Zouheir Abida & Imen Mohamed Sghaier, 2012. "Economic Growth and Income Inequality: Empirical Evidence from North African Countries," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 15(2), pages 29-44, November.
    • Handle: RePEc:zag:zirebs:v:15:y:2012:i:2:p:29-44
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    Citations

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    Cited by:

    1. Enock Mwakalila, 2023. "Income inequality: a recipe for youth unemployment in Africa," SN Business & Economics, Springer, vol. 3(1), pages 1-19, January.
    2. Abdel-Rahman, Alaa & Fuller, David, 2014. "Education and employment in Egypt: the policies, discrepancies and possible solutions," MPRA Paper 67571, University Library of Munich, Germany.
    3. Muhammad Shahbaz & Ijaz Rehman & Nurul Mahdzan, 2014. "Linkages between income inequality, international remittances and economic growth in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1511-1535, May.
    4. Hasanul Banna & Muhammad Mehedi Masud & Shamsulbahriah K. A. Rodrigo, 2020. "How does economic growth impact on income inequality across ethnic groups in Malaysia?," Poverty & Public Policy, John Wiley & Sons, vol. 12(4), pages 397-420, December.
    5. Amarante, Veronica, 2009. "Income Inequality and Economic Growth in Latin America," Economics PhD Theses 0109, Department of Economics, University of Sussex Business School.
    6. Fernando Delbianco & Carlos Dabús & María Ángeles Caraballo, 2014. "Income inequality and economic growth: New evidence from Latin America," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, August.

    More about this item

    Keywords

    Economic Growth; Income Inequality; Panel cointegration;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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