The Impact of Income Inequality on the Economic Growth of Iran: An Empirical Analysis

Abstract

In the 20th century, discrimination in the progress rate of people’s living standard in different regions of the world remains. The ratio of poverty has been dropped significantly in developing countries during the last two decades, but the improvement has been nevertheless unequal (the annual statistics of the World Bank reports). Since 1981 to 2001, a fall from 1.5 billion to 1.1 billion of a number of people living under poverty has been recorded. Yet many developing and less developed economies are caught in circumstances leading to never-ending poverty. For instance, Sub-Saharan Africa has witnessed an increase in poverty with numbers growing from 41 percent to 46 percent in the same time span (1981-2001). At the same time as in Eastern Europe and Central Asia, poverty rose about 20 percent in 2001. For that reason, poverty reduction spread at a large scale is the most demanding target for developing countries with low-income.