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Economic Growth and Income Inequality in Sudan: An Empirical Investigation

Jurnal Ekonomi Malaysia

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Title Economic Growth and Income Inequality in Sudan: An Empirical Investigation
 
Creator Abdallah, Atif Awad; Department of Kassala, Sudan
 
Subject


 
Description ABSTRACTThis article examined from an empirical point of view the relationship between economic growth and income inequality in Sudan. In particular, the study tested Kuznets’ hypothesis which suggests that the relationship between the two variables took the form of an inverted U-shape curve. The importance of the study stems from the fact that pro-poor economic growth is often seen as important for poverty reduction not only through raising incomes but also in improving the distribution of income in favour of the poor. Ordinary least squares (OLS) technique is applied to crosssection data covering 36 provinces in Sudan for the year 1996. The data on the Gini coefficient and nominal average income are obtained from the 1996 Migration and Labour Force Survey, while the consumer price index for the year 1990 is obtained from the Central Bureau of Statistic. These data are used to estimate the relationship between Gini coefficient and real per capita income. The empirical result suggests that there is a positive relationship between income growth and the inequality parameter, while the Kuznets’ hypothesis is not confirmed by the empirical results. These result indicates that the economy has not yet reached the Kuznets’ turning point beyond which income growth leads to less inequality.Keywords: economic growth; income inequality; poverty; Gini coefficientABSTRAKArtikel ini meneliti dari sudut empirikal hubungan antara pertumbuhan ekonomi dan ketidaksetaraan pendapatandi Sudan. Secara khususnya, analisis yang dibuat menguji hipotesis Kuznets yang mengatakan bahawa hubunganantara kedua-dua pemboleh ubah adalah berbentuk U-terbalik. Kepentingan kajian ini diasaskan kepada kenyataan bahawa pertumbuhan ekonomi pro miskin untuk membasmi kemiskinan bukan sahaja boleh dicapai melalui peningkatan pendapatan, tetapi juga melalui agihan pendapatan yang lebih cenderung kepada golongan miskin. Kaedah OLS digunakan untuk menganalisis data keratan rentas merangkumi 36 wilayah di Sudan bagi tahun 1996. Data mengenai pekali Gini dan pendapatan purata nominal diperolehi dari Kajian Tenaga Buruh dan Migrasi 1996, manakala indeks harga pengguna bagi tahun 1990 diperolehi dari Central Bureau of Statistics. Data ini digunakan untuk menganggarkan hubungan antara pekali Gini dengan pendapatan per kapita benar. Hasil kajian menunjukkan bahawa terdapat hubungan positif antara pertumbuhan pendapatan dan parameter ketidaksetaraan, menyebabkan hipotesis Kuznets tidak dapat disahkan melalui hasil kajian empirikal ini. Keputusan ini menunjukkan bahawa ekonomi Sudan belum mencapai titik pusingan U-terbalik Kuznets di mana pertumbuhan pendapatan membawa kepada pengurangan dalam ketidaksetaraan.Kata kunci: pertumbuhan ekonomi; ketidaksetaraan pendapatan; kemiskinan; pekali Gini
 
Publisher Universiti Kebangsaan Malaysia
 
Contributor
 
Date 2012-02-19
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article

 
Format application/pdf
 
Identifier http://ejournal.ukm.my/jem/article/view/1332
 
Source Jurnal Ekonomi Malaysia; Vol 44 (2010): Jurnal Ekonomi Malaysia
0126-1962
 
Language eng
 
Relation http://ejournal.ukm.my/jem/article/view/1332/1197
 
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