Economic Growth and Income Inequality in the Maghreb Countries

This paper examines the empirical relationship between economic growth and income inequality in the Maghreb countries (Tunisia, Morocco, and Algeria) over the period 2000-2020. The results of this paper indicate that the long-run growth elasticity of income inequality is negative and significant implying that keeping other factors constant; more income inequality reduces economic growth. Moreover, this paper finds evidence that more physical and human capital investment and higher openness to trade have statistically significant impact on enhancing economic growth and reducing poverty.

Keywords: Economic Growth, Income Inequality, Panel cointegration

JEL Classification: O4, I3, O15