Causal relationship between income inequality and economic growth in Ethiopia

The aim of this study was to see the direction causality and investigate existence a long-run relationship between income inequality economic growth in Ethiopia. has employed annual time series data over period 1980 up 2017. This is conducted by utilizing Autoregressive Distributive Lag (ARDL) techniques. ARDL bounds testing approach been used for cointegration error correction method (ECM). unit root problem tested use ADF test Phillips-Perron test. researcher concluded that there negative long run. However, short run, positive relationship. magnitude ETC coefficient −1.004961 justified about 100.4961 percent, disequilibrium annually converges towards equilibrium. In addition, VECM granger tests show unidirectional runs from both government should focus their efforts on middle poorest classes reduce support sustainable