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Analysing the nexus between income inequality and economic growth in Ethiopia: using the non linear auto regressive distributed lag model

Abate, Tadesse Wudu ; Wendimnew Sitotaw, Kalid

Cogent social sciences, 2024-12, Vol.10 (1) [Periódico revisado por pares]

Taylor & Francis Group

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  • Título:
    Analysing the nexus between income inequality and economic growth in Ethiopia: using the non linear auto regressive distributed lag model
  • Autor: Abate, Tadesse Wudu ; Wendimnew Sitotaw, Kalid
  • Assuntos: Economics ; Ethiopia ; George Mudimu, Development Sciences, Marondera University of Agricultural Sciences and Technology, Marondera, Zimbabwe ; Gini index ; inverted U shaped Kuznets curve ; non-linear ARDL model
  • É parte de: Cogent social sciences, 2024-12, Vol.10 (1)
  • Descrição: AbstractThis study analyzes economic growth and income inequality in Ethiopia to test the applicability of the inverted U shaped Kuznets hypothesis and to identify the determinants of income inequality in the country. To address these objectives successfully, annually recorded time-series data from 1992 to 2021 were applied and the data were analyzed using the newly developed “non-linear” auto-regressive distributed lag (NARDL) model. In addition to this econometric model, descriptive analysis was applied to observe the nature of the data distribution using skewedness, kurtosis and other measures of variation and central tendency. The relationship between growth and inequality in the study period was depicted using graphs, although there was no specific relationship between growth and inequality, in contrast to the idea of Kuznets curve. The estimation result from the ‘non linear’ ARDL model shows variables that can affect the level of the Gini index in both the short run and long run periods. In this regard, the lagged value of the Gini coefficient and secondary school enrollments drop out and negatively affect the Gini index, while the rising and failing parts of RGDP are positively related to the level of income inequality but with an asymmetric effect.
  • Editor: Taylor & Francis Group
  • Idioma: Inglês
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  • Realização: ABCD-USP USP   Logos de Redes Sociais: Freepik

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