Evaluating the Distributive effects of Economic Misery Index in Selected Islamic Countries (FMOLS approach)

Subject Areas : علوم سیاسی

Mohammad Ghaffary Fard ¹ , Hashem Maleki Nasr ² , Abolhassan Saberi ³ , Muhammad Ismail ⁴

1 - Ahlul Bayt Intentional University
2 - Ahl al-Bayt International University
3 - Ahl al-Bayt International University
4 - Ahl al-Bayt International University

Received: 2022-06-12 Accepted : 2022-08-26 Published : 2022-08-30

Keywords: Gini Coefficient, Income distribution, Misery index, Selected Islamic countries,

Abstract :

Income inequality is one of the undesirable phenomena of social life and most of the countries in the world have kept it their main goal to reduce Income inequality. This study is based on the economic impact of the doom index on the distribution of income using data from selected Islamic countries (Afghanistan, Albania, Egypt, Indonesia, Iran, Malaysia, Pakistan, Turkey, Bangladesh, Kazakhstan, Moldova and Uganda) from 2010 to 2018, using panel data approach for variables EViews model is used. This study explains the significant effect of misery index with a coefficient of (0.057) on the Gini coefficient and shows that with a one percent increase in the misery index can increase Gini coefficient by 0.057 percent and increases the class gap in societies. It also shows that Labor productivity with a coefficient of 0.01 has a significant negative effect on the Gini coefficient, which explains the 0.01% decrease in income distribution inequality due to a 1% increase in labor productivity. Therefore, in addition to controlling inflation and unemployment, improving human resource skills, economic policymakers should use incentive mechanisms to develop exports and the effectiveness of governments to reduce the class gap in their societies.