A Conceptual Study on Income Inequality and Economic Growth in Bangladesh

Abstract

Reducing income inequality through economic growth remains a debatable issue in economic development literature and has long been the subject of extensive research. The relationship between these two factors is complex and dynamic, with the direction and strength of the relationship varying across countries and over time. Bangladesh as a developing country keeps a commendably steady growth of GDP in the recent decade. While it is believed that the growth trajectory pours its benefits in curbing income inequality, in reality, the poorer become the poorest, and the richer become the richest over the decade in Bangladesh. Therefore, the debate over economic growth and income inequality has become a great controversy. Numerous studies in Bangladesh have investigated the connection between economic growth and income inequality, but the results have been inconclusive. While some research has revealed a link between income inequality and economic growth, other studies have not identified any notable association. The issue of income inequality in Bangladesh is further complicated by the country's ongoing efforts to reduce poverty, which has resulted in both positive and negative impacts on income inequality. The lack of consensus in the literature highlights the need for continued research in this area. In light of these findings, the purpose of this conceptual paper is to review the existing literature on the relationship between income inequality and economic growth in Bangladesh. This paper provides a comprehensive overview of the various theories and empirical studies that have been conducted in this area, including the latest findings and research gaps. The paper concludes by highlighting the need for further research in order to better understand the complex and dynamic relationship between income inequality and economic growth in Bangladesh.

Keywords: Income Inequality, Economic Growth, Conceptual Study, Bangladesh

DOI: 10.7176/JESD/14-5-04

Publication date:March 31^st 2023