Analysis reveals a long-term equilibrium between income distribution inequality and its determinants, suggesting policy changes.
The research aims to measure and analyze the determinants of inequality in income distribution in the Iraqi economy for the period (2004-2023) based on the modern methodology of cointegration and using the Autoregressive Distributed Lag Model. The results of the cointegration test indicate the existence of an integration relationship between the variables, which means the existence of a long-term equilibrium relationship between the coefficient of inequality in income distribution (Gini coefficient) and its determinants in the short and long term at a statistical significance level (1%). The research found a significant positive effect between the Gini coefficient (and absolute poverty line, inflation rate, Age dependency ratio, average per capita share of national income, government spending as a percentage of GDP) and there is a significant inverse relationship between the Gini coefficient and (degree of economic exposure, spending on education as a percentage of GDP, population growth rate, unemployment rate). The research concluded with several recommendations, the most important of which is increasing the average per capita income of citizens by raising the efficiency of workers and increasing their productivity, linking wages to productivity, and abandoning privatization programs that would lead to higher unemployment and inequality stability in income distribution.
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AlMihihimdy-Muhammadi et al. (2025) studied this question.
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