المستخلص: |
This paper tests whether inequality and economic growth in eleven Middle Eastern and North African (MENA) countries are cointegrated, and estimates the impact of inequality on growth in each country separately in case cointegration exists. Assuming that each country has its own inequality- growth relationship, the paper uses time series data to estimate the impact of inequality on growth individually in each MENA country by making use of single equation cointegration techniques robust to small sample sizes such as dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS) and canonical cointegration regression (CCR). Results show that the impact of inequality on growth differs among MENA countries. The paper is valuable to policy makers in MENA countries, especially the Arab Spring countries, who aim to achieve higher growth rates by improving income inequality. The paper shows whether measures aimed at ameliorating income distribution will positively or negatively affect economic growth
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