Determinants of income distribution inequality in Iraq Using the ARDL model for the period (2000-2023)

Abstract

Income distribution inequality is closely associated with the prevailing political and economic systems, as well as with the dominant mechanisms and patterns of distribution. A high level of inequality is often regarded as an indicator of societal underdevelopment. Consequently, promoting distributive justice and reducing inequality have become prominent economic, political, and social objectives for many countries, including Iraq. This study seeks to measure and analyze the determinants of income inequality in Iraq by employing the Autoregressive Distributed Lag (ARDL) cointegration model developed by Pesaran et al. (1999, 2001). The analysis examines both short-run and long-run relationships among variables using EViews 12, based on annual data obtained from the World Bank and the Central Statistical Organization of Iraq. The Gini coefficient is employed as the primary measure of income inequality. The findings indicate that higher unemployment contributes to an increase in the Gini coefficient by approximately 0.0287% in the short run and 0.0210% in the long run. In light of these results, the study provides a set of insights and policy recommendations aimed at reducing income inequality and fostering greater economic justice.