Government subsidies and income inequality in Algeria: An analytical and empirical study

Siham Matallah, Lahouari Benlahcene and Amal Matallah
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Siham Matallah: University of Oran 2, Algeria
Lahouari Benlahcene: University of Oran 2, Algeria
Amal Matallah: University of Tlemcen, Algeria

Theoretical and Applied Economics, 2022, vol. XXIX, issue 4(633), Winter, 147-162

Abstract: This paper aims, on the one hand, to test the impact of government subsidies on income inequality, and on the other hand, to investigate the role of corruption control in increasing the effectiveness of government subsidies in the process of reducing the income gap in Algeria over the period 1996-2016. The results confirm the effectiveness of government subsidies in alleviating income inequality in Algeria. The findings also show the significant negative impact of corruption control on income inequality. The combined effect of government subsidies and control of corruption appears to be of paramount importance in reducing income inequality in Algeria.

Keywords: government subsidies; income inequality; control of corruption; governance; Algeria. (search for similar items in EconPapers)
Date: 2022
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