Symmetric and Asymmetric Effects of Economic Growth on Income Distribution in the Iranian Economy, using Nonlinear Autoregressive Distributed Lag (NARDL) Approach

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Economics, Faculty of Management & Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.

2 Professor, Department of Economics, Faculty of Management, Economic & Accounting, Payam Noor University, Tehran, Iran.

3 Associate Professor, Department of Economics, Faculty of Management & Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.

Abstract

Numerous factors can influence income distribution, and identifying these factors and examining their impact is of great importance. The objective of the present research is to analyze the impact of economic growth on income distribution in Iran's economy using the Autoregressive Distributed Lag (ARDL) approach over the period 1357-1401 (1978-2022).
The results of the study indicate that, using the Nonlinear ARDL (NARDL) approach, in the long run, a negative shock to economic growth has a positive and significant effect on the Gini coefficient, whereas a positive growth shock does not have a significant effect on the Gini coefficient. Furthermore, in the long run, the inflation rate and unemployment rate also have a positive and significant impact on the Gini coefficient; such that an increase in these variables leads to a rise in income inequality. Additionally, in the long run, the variables of per capita bank facilities and per capita government expenditures have a negative effect on the Gini coefficient, meaning that an increase in these variables reduces income inequality. Moreover, in estimating the short-run relationships via NARDL, the results showed that the error correction coefficient adjusts approximately 73% of the disequilibrium in the Gini coefficient in each period for the subsequent period.

Keywords

References

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اقتصاد دفاع و توسعه پایدار
Volume 10, Issue 38
December 2025
Pages 85-107

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