Effect of Income Inequality on Economic Developing Countries

Effect of income inequality on
economic developing countries
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Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................5
Define the concept of income inequality....................................................................................5
What are the effects of income inequality on economy growth in developing countries...........6
What are the consequences of the income inequality in Nigeria................................................8
RESEARCH METHODOLOGY...................................................................................................10
ANALYTICAL DISCUSSION AND FINDINGS........................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Income inequality is defined as uneven distribution of income throughout the whole
population. It says that the low equal distribution, the higher inequality related to related to
income. Income inequality is generally accompanied by inequality related to wealth, that is the
unequal wealth distribution. Populations are divided in various ways for showing various levels
and makes of inequality in income like inequality in income by race or gender. Basically the
study of income inequality in showing the incomes disparity among various segments of
population (Koop, 2020).
The common kinds of disparities in income studied involve among females and males
and various ethnicities. There are many reasons of income inequality which are causing income
inequality in countries like technology has taken place of manual work so it has changed the
nature of work. The income inequality is reported through Gini index, which measures the
income dispersion on the scale of a zero to one. There is positive relationship between crime and
income inequality. Income inequality in the country encourages rate of crime which is the
biggest disadvantage. There is broad gap between poor and rich that increase crime by
decreasing law enforcement expense in areas that are low-income (Chiu and Lee, 2019) .
Research Aim and objectives
Research Aim
“To determine effects of income inequality on economy growth in developing countries.
A study on Nigeria.”
Research Objectives
 To understand the concept of income inequality.
 To determine effects of income inequality on economy growth in developing countries.
 To identify the consequences of the income inequality in Nigeria.
Research Questions
 Define the concept of income inequality?
 What are the effects of income inequality on economy growth in developing countries?
 What are the consequences of the income inequality in Nigeria?
Overview of the chapters
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In this current research report, researcher has aimed towards determining the effects of
income inequality on economy growth in developing countries. For this researcher has conducted
introduction part in which income inequality is defined where research aim and objectives are
formed. The second part involves literature review in which pre-determined objectives are
explained to meet the research questions. The third part has research methodology in which
various methods are used for gathering and analysing data. After that findings and analytical
discussion is done to explain the impact of income inequality in a country.
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