The Impact of Economic Growth, Education Level, and Inflation Rate on Income Inequality in Malaysia

Regina Lee, Junup and Nur Nadhira, Baharuddin and Joanne Shaza, Janang (2023) The Impact of Economic Growth, Education Level, and Inflation Rate on Income Inequality in Malaysia. International Journal of Academic Research in Business & Social Sciences, 13 (8). pp. 910-921. ISSN 2222-6990

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Purpose: The goal of this study is to look at the determinants that contribute to income inequality in Malaysia. Methodology: The time series spans the years 1990 - 2019, with 30 observations. The empirical findings of this study were obtained using three important econometrics tests through E-views software: Augmented Dickey-Fuller (ADF) test and Phillips-Perron (PP) test, the JJ Cointegration test, and the Vector Error Correction Model (VECM) test. Expected Findings: The result reveals that economic growth, education level, and inflation rate have long-run and short-run relationships with income inequality in Malaysia. Practical Implications: The government needs to implement and introduce new ways and solutions in increasing and enhancing the quality of the education system that could aid in reducing the country’s income inequality. Originality/Value: Findings of this study will assist the government and policymakers in determining the major drivers that are beneficial in reducing income inequality.

Item Type: Article
Uncontrolled Keywords: Income Inequality, Economic Growth, Education Level, Inflation.
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Baharuddin
Date Deposited: 04 Sep 2023 02:39
Last Modified: 04 Sep 2023 02:39

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