Examining Income Inequality and its Impacts in U.S. States and Islamic Countries

One of the most important controversial issues in economics is economic inequality in the long-term economic growth. Due to the convergence of the idea that the hypothesized absolute convergence is known، the neoclassical growth model of Solow - Swan is expected. The basic assumptions within the model predict economic growth in underdeveloped countries will overtake the developed countries، so that over time، the income inequality between different countries will disappear. In other words، according to this hypothesis، the international poverty should be disappeared by itself.

One of the main fundamental problems (facing economic theory) is reducing the gap in income between rich and poor countries. This question is related to one of the oldest and most controversial issue in the economy which is called the income convergence hypothesis. The growth models such as Solow neoclassical growth model-factor price equalization theorem Swan and Samuelson is predicted.

Time series model results show that only Indonesia، Malaysia، and Turkey have، towards America (a country with a high GDP per capita) are convergent، while other countries have been diverging from it.

In brief، tests of convergence between the country and the other countries which are studied only Bangladesh and Nigeria convergence between Iran and the two countries have been seen.