Investigating the Connection Between Income Inequality and Economic Expansion

Since the Kuznets curve theory was published, more and more researchers have explored the relationship between 2 elements (economic growth and income inequality), such as whether income inequality has a good or bad impact on a country's economic growth. Because each researcher uses different methods and data, so there are different conclusions for the statement. Some researchers show that economic growth will not be influence by a growth of income inequality in the short term, but when a country is in a long-term income inequality, this situation will make the gap between rich and poor wider and wider. Research scholars recommended that the government should pay attention to the country's income distribution. This paper uses the collected data to build a multi-linear regression model to explore which factor has the greatest impacts on income inequality, as well as to investigate the connection between the two factors (economic growth and income disparity). The main element, according to this paper's findings, is GDP, and there is an inverse relationship between the two. When the economy grows, the degree of income inequality rises, but when the economy grows to a certain value, the degree of income inequality will decrease with economic growth.