A Comprehensive analysis of the factors contributing to income inequality in Malaysia. | ||
| المجلة العلمية للبحوث والدراسات التجارية | ||
| Volume 38, Issue 3, September 2024, Pages 1597-1635 PDF (559.27 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/sjrbs.2024.292681.1696 | ||
| Author | ||
| احمد الرفاعي محمد احمد امام* | ||
| كلية السياسة والاقتصاد والادارة - جامعة مايو بالقاهرة - مصر | ||
| Abstract | ||
| This study empirically analyses the main factors determining changes in income inequality in Malaysia from 1989 to 2022. It uses the ARDL (Autoregressive Distributed Lag) model for this purpose. This analysis investigates the stable, long-term relationships and immediate changes between income inequality (measured by the Gini coefficient) and a group of economic factors (such as GDP growth, foreign direct investment, inflation, and unemployment), demographic factor (population growth), and policy factors (government expenditure on education and tax revenue). The ARDL technique comprehends the intricate interaction among these elements. The key findings indicate that long-term GDP growth has a reducing influence on inequality of income, but the entrance of foreign investment, increased inflation, and unemployment worsen inequities. Augmenting investment in education and implementing a system of progressive taxation can alleviate income inequalities. The short-term impacts display a subtle and intricate pattern. This extensive research offers significant empirical data and insights to guide policies that aim to foster inclusive economic growth and ensure fair distribution of income in Malaysia. | ||
| Keywords | ||
| Income Inequality; ARDL Model; Economic Determinants; Demographic Factors; Malaysia | ||
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