Acta Universitatis Danubius. Œconomica, Vol. 15, No. 1 - 3


  • Collective Authors


This study examined the relationship between income inequality and economic growth in
Nigeria and its implication for economic development. The study covered the period 1981 to 2017
and employed the autoregressive distributed lag estimation technique. The results of the study showed
that economic growth had positive but insignificant impact on income inequality in Nigeria. Thus, the
study recommends the need for the government to ensure equitable distribution of economic gains
among the poor citizens. The budgetary preparation and allocation should also be pro-poor based and
tailored towards improving the welfare of the larger population and not at further enriching the few
rich ones. The implementation of the above and other welfare enhancing policies would contribute to
increasing the level of economic development in Nigeria.


Angelsen, A. & Wunder, S. (2006). Poverty and Inequality: Economic Growth is better than Its
Reputation, Chapter in Dan Banik (ed.): Poverty, Politics and Development: Interdisciplinary
Perspectives. Fagbokforlaget, Bergen.
Banya, B. (1995). Income Inequality in Developing Countries. Honors Projects. Paper 53.
Deininger, K. & Squire, L. (1998). New ways of looking at old issues: Inequality and growth. Journal
of Development Economics, 57, pp. 259-287.
Delbianco, F.; Dabús, C. & Caraballo, M.A. (2014). Income Inequality and Economic Growth: New
Evidence from Latin America. Cuadernos de Economía, 33(63), pp. 381-398.
Forbes, K.J. (2000). A Reassessment of the Relationship between Inequality and Growth. American
Economic Review, 9(4), pp. 869-887.
Grundler, K. & Scheuermeyer, P. (2015). Income Inequality, Economic Growth, and the Effect of
Redistribution, Würzburg Economic Papers, No. 95, Univ., Dep. of Economics, Chair VWL 1,
Kuznets, S. (1955). Economic Growth and Income Inequality. American Economic Review, 45, pp. 1-
Levine, R. & Renelt, D. (1992). A Sensitivity Analysis of Cross-Country Growth Regressions.
American Economic Review, 82(4), pp. 942-963.
Li, H. & Zou, H. (1998). Income inequality is not harmful for growth: Theory and evidence. Review
of Development Economics, 2, pp. 318-334.
Mnif, S. (2015). Impact of Inequalities on Economic Growth: Case of the Developing Countries,
Journal of Sustainable Development Studies, 8(1), pp. 1-20.
Nasfi, F.W. & Malek. El-W. (2014). The Relationship between Economic Growth and Income
Inequality. International Journal of Economics and Financial Issues, 4(1), pp. 135-143.
Relationships, Journal of Applied Econometric, 16, pp. 289 - 326.
Partridge, M. (1997). Is Inequality Harmful for Growth? Comment. American Economic Review,
87(5), pp. 1019-1032.
Penalosa, C.C. & Turnovsky S.J. (2006). Growth and Income Inequality: A Canonical Model,
Economics Theory, 28, pp. 25-49.
Persson, T. & Tabellini, G. (1994). Is Inequality Harmful for Growth? American Economic Review,
84(3), pp. 600-621.
Zouheir, A. & Imen M.S. (2012). Economic Growth and Income Inequality, Empirical Evidence from
North African Countries, Asian Economic and Financial Review, 2(1), pp. 142-154.