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The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis

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Main Authors: Md Muhibbullah, Mala Rani Das
Other Authors: md.muhibbullah@live.iium.edu.my
Format: Article
Language:English
Published: School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP) 2019
Subjects:
Co-integration
Inequality
Inflation
Impulse response function
VECM
Online Access:http://dspace.unimap.edu.my:80/xmlui/handle/123456789/61023
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spelling my.unimap-610232019-07-12T03:52:11Z The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis Md Muhibbullah Mala Rani Das md.muhibbullah@live.iium.edu.my muhibedu@gmail.com Co-integration Inequality Inflation Impulse response function VECM Link to publisher's homepage at http://ijbt.unimap.edu.my Income inequality has become a major public issue all over the world. Each year the gap between the rich and poor is rising, and the circumstance has turned to be miserable in many countries. This paper investigates the impact of inflation on income inequality using data from the period of 1990 to 2015. The study uses econometric techniques on the time series data. All data are found to be stationary at first difference by using Augmented Dickey-Fuller (ADF) test. The results of Johannsen co-integration test confirm that there is a long-run positive significant relationship among the examined variables. The result shows that if inflation increases by 1%, income inequality increases by 4.99%. The result of the vector error correction model (VECM) shows that inequality requires approximately 0.35% of error correction per year and inflation requires 22.74% of error correction per year to reach equilibrium. The result of the impulse response function indicates that one standard deviation shock from inequality and inflation causes inequality to rise over time. When one standard deviation shock is given to inequality causes inflation to decline after 1.5 years then neutralized after 3.5 years where shock from inflation, inflation becomes negative after two years and neutralized after six years. 2019-07-12T03:52:11Z 2019-07-12T03:52:11Z 2019-06 Article International Journal of Business and Technopreneurship, vol.9(2), 2019, pages 141-150 2231-7090 2232-1543 (online) http://dspace.unimap.edu.my:80/xmlui/handle/123456789/61023 en School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP)
institution Universiti Malaysia Perlis
building UniMAP Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Perlis
content_source UniMAP Library Digital Repository
url_provider http://dspace.unimap.edu.my/
language English
topic Co-integration
Inequality
Inflation
Impulse response function
VECM
spellingShingle Co-integration
Inequality
Inflation
Impulse response function
VECM
Md Muhibbullah
Mala Rani Das
The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis
description Link to publisher's homepage at http://ijbt.unimap.edu.my
author2 md.muhibbullah@live.iium.edu.my
author_facet md.muhibbullah@live.iium.edu.my
Md Muhibbullah
Mala Rani Das
format Article
author Md Muhibbullah
Mala Rani Das
author_sort Md Muhibbullah
title The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis
title_short The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis
title_full The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis
title_fullStr The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis
title_full_unstemmed The Impact of Inflation on the Income Inequality of Bangladesh: A Time Series Analysis
title_sort impact of inflation on the income inequality of bangladesh: a time series analysis
publisher School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP)
publishDate 2019
url http://dspace.unimap.edu.my:80/xmlui/handle/123456789/61023
_version_ 1643806550522855424
score 13.222552

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