The Relationship between Income Inequality and Economic Growth in Urban and Rural Areas of Iran: Application of

Subject Areas : Agricultural Economics Research

S .A . Mortazavi ¹ (استادیار اقتصاد کشاورزی دانشکده کشاورزی دانشگاه تربیت مدرس)
F. Seraj Zadeh ² (دانشجوی کارشناسی ارشد اقتصاد کشاورزی دانشکده کشاورزی دانشگاه تربیت مدرس)
M . Shokohi ³ (دانشجوی دکترای دانشکده اقتصاد و توسعه کشاورزی دانشگاه تهران)

Received: 2015-12-19 Accepted : 2015-12-19 Published : 2011-03-21

Keywords: Economic Growth, income inequality, urban and rural regions,

Abstract :

In the literature of development economics there are two well known propositions about poverty reduction. (i); poverty can be reduced by promoting economic growth and by improving income distribution. (ii); increasing economic growth may worsen income distribution. This study attempted to investigate the relationship between inequality income and economic growth in urban and rural regions using Kuznets curve during 1980-2007 period. The results showed evidence of the inverted N-shaped relationship between per capita income and inequality of income in rural regions while, there was N-shaped relationship between per capita income and inequality income in urban areas. Also, increment in per capita income by 1 percent increased inequality of income in urban and rural areas by 0.44 and 0.41 percent respectively. JEL Classification : D63، R11  

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