The Impact of Income Inequality on Economic Growth in Algeria: The ARDL Approach

Authors

  • Ameur Ameur Assia University of Mascara, Algeria Author
  • Mokhtari Fayeçal University of Mascara, Algeria Author

DOI:

https://doi.org/10.62345/jads.2017.6.4.3045

Abstract

This paper investigates the impact of income inequality on economic growth in Algeria over the period 1980-2015, by using the Autoregressive Distributive Lags (ARDL) approach and the Error Correction Model (ECM). The findings of Bound-test suggest that there is a long-run equilibrium between income inequality and economic growth. There is a positive and significant impact of income inequality on growth in Algeria, an increase in inequality by 1% will enhance economic growth by 7 % in the long run. However, reducing income and wealth inequality is a necessity to prevent further increases and maintain the sustainable growth in Algeria.

Author Biographies

  • Ameur Ameur Assia, University of Mascara, Algeria

    University of Mascara, Algeria, Email: assiaamer@yahoo.fr

  • Mokhtari Fayeçal , University of Mascara, Algeria

    University of Mascara, Algeria

Downloads

Published

2017-12-31

Issue

Vol. 6 No. 4 (2017): Journal of Asian Development Studies, Volume 6, Issue 4 (December 2017)

Section

Articles

Deprecated: json_decode(): Passing null to parameter #1 ($json) of type string is deprecated in /home/u344602218/websites/S7nM0pFf1/public_html/plugins/generic/citations/CitationsPlugin.php on line 68

How to Cite

The Impact of Income Inequality on Economic Growth in Algeria: The ARDL Approach. (2017). Journal of Asian Development Studies, 6(4), 56-64. https://doi.org/10.62345/jads.2017.6.4.3045