Global Economic and Policy: The Impact of Economic Growth on Income Inequality in Developing Countries

Abstract

This study aims to analyze the impact of economic growth on income inequality in developing countries. Economic growth is often considered an important factor in improving societal welfare; however, it may also lead to unequal income distribution if not supported by effective policies. This research uses a quantitative approach with secondary data obtained from various international reports and statistical databases. The analysis focuses on the relationship between economic growth indicators, such as Gross Domestic Product (GDP), and income inequality measured by the Gini coefficient. The findings indicate that while economic growth contributes to overall economic improvement, it does not always reduce income inequality. In some cases, growth may even widen the income gap due to unequal access to resources, education, and employment opportunities. Therefore, this study highlights the importance of government policies in ensuring inclusive growth, such as equitable income distribution, access to education, and social protection programs. The results of this research are expected to provide insights for policymakers in designing strategies to achieve sustainable and inclusive economic development.