Investigating the impact of GDP on income distribution in selected Islamic countries
Subject Areas : Bi-quarterly Journal of development economics and planning
reza rahimi
1
,
AliAkbar Baghestany
2
1 - Member of the Faculty of Economics and Accounting, Azad Islamic University, Tehran Branch, Center
2 - Member of the academic staff of the Institute of Planning Research, Agricultural Economics and Rural Development. Tehran Iran
Keywords: Iran, inflation, Gini Coefficient, Nonspecific domestic production,
Abstract :
Distribution of income and wealth is one of the problems and issues that exist in developing countries. This research aims to identify the factors affecting income distribution in the group of Islamic countries of Iran, Malaysia, Egypt, Algeria and Turkey during the period of 2004-2017 using panel data method. The results of Limer's F test showed that it is a panel model at a probability level of less than 0.05.In this regard, the results of the Hausman test indicate the randomness of cross-sectional effects. The estimation results of the model indicate that the logarithm of the GDP with a coefficient of 0.14, the logarithm of the price index with a coefficient of 0.07 and the logarithm of the population with a coefficient of 0.43 have a positive and significant effect on the Gini coefficient.The positive relationship between GDP and the Gini coefficient indicates the necessity of income redistribution mechanism. Considering the positive effect of inflation on the Gini coefficient, it is better to apply appropriate monetary policies to reduce inflation in the countries under review.
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