Research Information System
REGIONAL STATISTICS, vol.16, no.2, pp.301-317, 2026 (ESCI, Scopus)
Income inequality continues to pose a critical challenge in developed economies, with ongoing discussions regarding its association with economic growth. Clarifying whether increased in gross domestic product (GDP) per capita balances income distribution or reinforce existing disparities is essential for shaping effective economic and social policies. Herein, the connection between economic growth and income inequality notably varies between the United States and the United Kingdom in 1990-2021, reflecting their distinct institutional arrangements and policy approaches. Applying the autoregressive distributed lag model, the analysis investigates the long-term relationships between GDP per capita and income inequality. The F-bounds test statistic exceeds the critical upper bound for both countries, confirming a strong cointegration relationship. Reportedly, a 1% rise in GDP per capita in the United States corresponds to a 0.026% increase in income inequality, whereas a similar rise is associated with a 0.138% decrease in income inequality in the United Kingdom. These divergent patterns highlight the influence of national policy design, social welfare systems, and income redistribution mechanisms on the distributional outcomes of economic growth, suggesting the need for context-specific approaches to promote equitable development.