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THE ANALYSIS OF INCOME INEQUALITY AND ECONOMIC GROWTH RELATIONSHIP EVIDENCE FROM PAKISTANS DATA

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03 Pages : 24-35

http://dx.doi.org/10.31703/ger.2016(I-I).03      10.31703/ger.2016(I-I).03      Published : Dec 2016

The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan's Data

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.

    Economic Growth, Income Inequality, ADF Test, Regression Analysis

    (1) Saleem Khan
    Assistant Professor, Department of Economics,Abdul Wali Khan University Mardan, KP, Pakistan.
    (2) Salman Azad Khan
    MS Scholar,Department of Economics,Abdul Wali Khan University Mardan, KP, Pakistan.
    (3) Muhammad Tariq
    Assistant Professor,Department of Economics, Abdul Wali Khan University Mardan, KP, Pakistan.
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Cite this article

APA

    APA : Khan, S., Khan, S. A., & Tariq, M. (2016). The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan's Data. Global Economics Review, I(I), 24-35. https://doi.org/10.31703/ger.2016(I-I).03

CHICAGO

    CHICAGO : Khan, Saleem, Salman Azad Khan, and Muhammad Tariq. 2016. "The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan's Data." Global Economics Review, I (I): 24-35 doi: 10.31703/ger.2016(I-I).03

HARVARD

    HARVARD : KHAN, S., KHAN, S. A. & TARIQ, M. 2016. The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan's Data. Global Economics Review, I, 24-35.

MHRA

    MHRA : Khan, Saleem, Salman Azad Khan, and Muhammad Tariq. 2016. "The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan's Data." Global Economics Review, I: 24-35

MLA

    MLA : Khan, Saleem, Salman Azad Khan, and Muhammad Tariq. "The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan's Data." Global Economics Review, I.I (2016): 24-35 Print.

OXFORD

    OXFORD : Khan, Saleem, Khan, Salman Azad, and Tariq, Muhammad (2016), "The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan's Data", Global Economics Review, I (I), 24-35

TURABIAN

    TURABIAN : Khan, Saleem, Salman Azad Khan, and Muhammad Tariq. "The Analysis of Income Inequality and Economic Growth Relationship: Evidence from Pakistan's Data." Global Economics Review I, no. I (2016): 24-35. https://doi.org/10.31703/ger.2016(I-I).03