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

Author

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  • 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 3 countries of North Africa (Tunisia, Morocco and Egypt) over the period 1970-2004. 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," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(1), pages 142-154, March.
  • Handle: RePEc:asi:aeafrj:2012:p:142-154
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    References listed on IDEAS

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    6. YIN Heng & GONG Liutang & ZOU Heng-fu, 2006. "Income inequality and economic growth¡ª¡ªthe Kuznets curve revisited," Frontiers of Economics in China, Higher Education Press, vol. 1(2), pages 196-206, June.
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    Cited by:

    1. Fernando Delbianco & Carlos Dabús & María Ángeles Caraballo, 2014. "Income inequality and economic growth: New evidence from Latin America," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, August.
    2. Amarante, Veronica, 2009. "Income Inequality and Economic Growth in Latin America," Economics PhD Theses 0109, Department of Economics, University of Sussex.

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