Original scientific paper
Economic Growth and Income Inequality: Empirical Evidence from North African Countries
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 signifi cant implying that keeping other factors constant; more income inequality reduces economic growth. Moreover, this paper fi nds evidence that more physical and human capital investment and higher openness to trade have statistically signifi cant impact on enhancing economic growth and reducing poverty.
Keywords
Economic Growth; Income Inequality; Panel cointegration
Hrčak ID:
93379
URI
Publication date:
1.12.2012.
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