Evaluation of the Impact of Income Inequalities on Economic Growth : A Transversal Analysis of the 12 Regions of Marocco

Abstract

The purpose of This study was to analyze the impact of income inequality on regional growth in Morocco. To achieve this goal, a panel data model was employed, using data from the 12 regions of Morocco, from 2015 to 2020. The study found that there was a positive linear relationship between income inequality and regional growth. The study also looked at the non-linear relationships between income inequality and regional growth. However, the cubic relationship was found to be significantly positive. This suggests that there is a nonlinear relationship between income inequality and regional growth, and that the impact of income inequality on regional growth, may vary depending on the level of income inequality. Overall, these findings have important implications for policymakers in Morocco who are seeking to promote regional development and reduce income inequality. The study suggests that policies aimed at reducing income inequality could have a positive impact on regional growth, particularly if they focus on reducing extreme levels of income inequality.