A Study on Equity and Distribution of National Income and Poverty Method

Abstract

The study offers an analysis of two important indicators: the equity of the distribution of national income and poverty, using the Gini coefficient, as it gives a numerical measure of the equity of the distribution. The last decades in Iraq and Egypt have witnessed widening the gap between different income groups due to several economic, political, and social factors. Therefore, the research focused on analyzing and measuring the phenomenon of poverty and its relation to the equity of income distribution for a sample of developing countries based on the annual statistical bulletins of the World Bank. Research has increased the phenomenon of poverty. In Iraq, based on national income per capita and total household consumption data using the Gini coefficient, the research concluded with a set of conclusions. The most important is the widening of the gap between per capita consumption and total family consumption increase in national income in Iraq. About the analysis of the phenomenon of Poverty in Egypt, the great disparity is also evident. In the poverty gap between national income per capita and total household consumption, despite the increase in national income in both countries, indicating low national income equity in both countries, and this is the result of the high cost of living and low real incomes, as well as the depreciation of the local currency. Therefore, the research problem boils down to whether the increase in the national income rate reflects positively in reducing inequality in the income distribution of the two countries and reduces the phenomenon of poverty.