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

Saleem Khan, Salman Azad Khan and Muhammad Tariq
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Saleem Khan: Assistant Professor,
Salman Azad Khan: MS Scholar,
Muhammad Tariq: Assistant Professor,

Global Economics Review, 2016, vol. 1, issue 1, 24-35

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.

Keywords: Economic Growth; Income Inequality; ADF Test; Regression Analysis (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aaw:journl:v:1:y:2016:i:1:p:24-35

DOI: 10.31703/ger.2016(I-I).03

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