DOI: https://doi.org/10.36719/2663-4619/117/23-29
Aysel Babayeva
Azerbaijan State University of Economics
Master student
https://orcid.org/0009-0001-8786-7090
ayselmat94@gmail.com
Statistical Analysis of the Relationship Between Macroeconomic
Indicators and Income Inequality in Azerbaijan
Abstract
This article analyzes the relationship between income inequality and key macroeconomic indicators – gross domestic product (GDP), inflation, unemployment, external debt and trade balance – in Azerbaijan for the period 2008–2023 on a statistical basis. The relevance of the topic lies in the fact that reconciling economic development with social justice and equal distribution is an important strategic issue for developing countries. The article uses the Gini coefficient as an indicator of income inequality, as well as regional income differences.
The aim of the study is to clarify the impact of economic development indicators on income distribution and to assess the social consequences of these relationships. The object is the Azerbaijani economy, and the subject is the interaction between income inequality and macroeconomic variables. Descriptive statistics, comparative analysis and empirical approaches based on international databases were used as methods.
The study shows that inflation and informal employment are factors that increase income inequality, while social protection measures and the development of the non-oil sector reduce it. The relationship between the Gini coefficient and GDP, inflation, and unemployment is explained by direct and indirect mechanisms.
Keywords: income inequality, Cini index, Azerbaijan, GDP, inflation