The Implications of Economic Growth and Income Inequality on Poverty: An Analytical Study of the Libyan Economy

Yakhlef, Yusef; Saci, Sami

مجلة اقتصاديات شمال افريقيا
Volume 21, Numéro 1, Pages 1-14
2025-03-03

The Implications Of Economic Growth And Income Inequality On Poverty: An Analytical Study Of The Libyan Economy

Authors : Yakhlef Yusef . Saci Sami .

Abstract

The study examines the relationship between economic growth, income inequality, and poverty in Libya from 2000 to 2023. Using the V. Autoregressive Model, the study estimates the connections between these variables. The Theil Index measures income inequality, while individual consumption represents the poverty rate. Per capita GDP indicates economic growth. Results show that both poverty levels (POV-1) and income inequality (INQ-1) from the previous year are positively correlated with subsequent poverty levels (POV). Income inequality exhibits high elasticity with future poverty. Additionally, a decrease in per capita GDP (GRW-1) in one year leads to higher poverty levels in the following year. The study also finds no significant impact of inflation (INF-1) or political and security stability (Ps-1) on poverty in Libya.