Investigating the interactions of inequality income, employment and economic growth
Subject Areas : Journal of Investment KnowledgeMohammad Reza Radfar 1 , Gholamreza Zomorodiyan 2 , Masoud Karimkhani 3
1 - Department of Business administration, Faculty of Management, Islamic Azad University - Central Tehran branch, Tehran, Iran
2 - Assistant Professor, Department of Business Management, Central Tehran Branch , Islamic Azad University, Tehran, Iran.
3 - Ph.D. student of Finance, Department of Financial Management, Central Tehran Branch , Islamic Azad University, Tehran, Iran.
Keywords: Self-regression mapping (VAR), Employment, Income inequality, Economic growth,
Abstract :
The present study examines the interactions between income, employment and economic growth inequality. To do this research, Iran's economic data was collected from 1989 to 2016 and analyzed by self-regression analysis (VAR). Simultaneously with the test of the effect of inflation and government expenditures as test variables.The results showed that there is a positive effect between income inequality and economic growth. This means that economic growth has not been distributed in the country's economy in a balanced way, and its effects have not led to the income of households. Also, there is no significant relationship between employment interaction and economic growth.Which can be attributed to the phenomenon of inflationary stagnation in the economy. Based on the results of this study, it can be suggested that, it is suggested that the level of inequality in the country be considered in the formulation of economic-social development programs of the country. Efforts to reduce or modify how governments spend on reducing inflation and resulting inequality will be effective.
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