1.

INTRODUCTION
In the recent past, poverty alleviation has been identified as one of the most pressing issues
globally (G. E. Nzeribe et al, 2022). Correspondingly, studies conducted by (Yunus and Weber,
2007) suggested that reducing the extent of poverty can influence the lives of enormous of
people across the world. This means that people living in poverty feel like they have no control
over their lives, their human rights are violated, and they are exposed to life-threatening danger.
The issue aligns with the initial objective of the sustainable development goals, emphasizing that
eliminating poverty in all its aspects and manifestations is crucial for any country to attain
sustainable development. Nevertheless, a persistent query revolves around whether development
policy should prioritize growth, poverty, and/or inequality . Additionally, Bourguignon (2004)
placed more emphasis on the need for strong, nation-specific mixes of growth and distribution
methods to achieve the goal of rapid poverty reduction.

One of the main objectives of economic policy in Africa over the past few decades has been to
reduce poverty sustainably to guarantee that substantial progress is achieved toward achieving
the sustainable development goals in the post-2015 development agenda (UNDP, 2017). With
this aim, income inequality between countries has been the main research issue (Bicaba and
Ncube, 2017). However, even though many African nations have demonstrated robust economic
growth in recent decades, the continent's indexes of poverty and human development have not
improved as anticipated (Anyanwu et al, 2016; Asongu et al, 2019; Shimeles and Nabassaga,
2018).

Nowadays, debates among scholars have centered on encouraging quicker growth in areas that
are more deprived, especially in landlocked nations to guarantee a link between greater national
prosperity and decreased regional difference (Anyanwu, 2014; Diao and McMillan, 2018 and
Rodrik, 2016). Every country's economy, however, grows distinctly, with a common element
that emerges as economic expansion takes off and shifts the production process from the
agricultural to the industrial to the services sectors, which are more concentrated in cities. The
optimization of factors of production in the industrial, services, and agricultural sectors, which
support economic growth, is this structural transformation (Kuznets, 1973; Lewis, 1954).
Accordingly, Boushey (2015, 2020), Alesina and Perotti (1996) Persson and Tabellini (1994)
showed that income inequality noticeably slackens down the complete economic growth as it
curbs the efficient and equitable utilizations of accessible resources. Thus, income inequality
reduces the pace at which growth translates into poverty reduction (Boushey, 2020;
Bourguignon, 2004; Kakwani, 1993). Consequently, if there had been less income inequality,
African nations would have made far greater strides toward growth and the eradication of
poverty than they have. To be more precise, the main goal of the Ethiopian government is to
reduce poverty, and the main, though not exclusive, means of achieving this goal is economic
growth. Fundamental issues like what are the processes and prerequisites for economic growth to
result in the decrease of poverty are brought up by this policy approach. What impact do starting
poverty and inequality have on the likelihood of long-term, strong economic growth? and what
are the short- and long-term connections between economic growth, income inequality, and
poverty? (Alemayehu G. et al, 2008).
2. Methodology
This review follows the guidelines set by the Preferred Reporting Items for systematic Reviews
(PRISMA). Figure 1 presents a flowchart that outlines the methodology used for identification,
screening and inclusion of relevant studies in the current review article.
 Figure 1: Identification of studies via Databases and Registers

Identification
Records identified via Additional records identified
database (Google scholar, through other sources (website,
PubMed, science direct, institutions and citations)
Web of science and searching (n=85)
Cochran Library) searching
(n=5744)

Screening
Number of Duplicated Records Removed (n=2768)

Records screened (n=3061) Records excluded based on specific

criteria in inclusion criteria and data
extraction protocol (n=2947)

Full text article assessed for

eligibility (n=114) Full text articles excluded due to 2006-2024
editorials, correspondences, proceedings and
reviews (n=80)

Included
Studies included in the
systematic literature review
(n=34)

Source: Adapted from PRISMA (2020) flow diagram of eligible studies

2.1. Problems and Information of Research Questions
Quite a lot of research articles on economic growth-income inequality-poverty triangle (EGIT)
collected in different database. Numerous published articles were accessible distinctly and a
Thorough evaluations were necessary to compile all the data, make conclusions, and prevent any
discrepancies, ambiguities, or misinterpretations. This systematic review was guided by the
questions, ″How economic growth, income inequality and poverty related to each other in
different countries, data type, methods of analysis and measurements of the variables″. The
problem was formulating during searching and assessing the importance of economic growth to
poverty and income inequality reduction to the current world. Because, different measurements
of poverty, income inequality and economic growth, this review tried to incorporate all possible
measurements as much as possible with different methods of analysis under various countries.
2.2. Article Search for Data Extraction
An extensive search of research articles was conducted in databases (Google scholar, PubMed,
science direct, Web of science and Cochran Library) and other sources (website, institutions and
citations searching). The research articles searched via following key terms, titles, citations and
phrases extracted from title, abstract in grouping or distinctly using Boolean operators (More
specifically, "OR" or "AND"): "Economic growth", "poverty", "income inequality", "poverty
reduction", "Nexus among Economic growth-income inequality-Poverty" and " measurements of
Economic growth, income inequality and Poverty ".
2.3. Inclusion and Exclusion Criteria
3.3.1. The inclusion Criteria: original research articles on Economic Growth-Income
Inequality-Poverty, full text research articles and recent studies (2008-2024) published in English
language and available online were included in this study.
3.3.2. Exclusion Criteria: Studies not peer-reviewed and published in other language other than
English language, systematic review and literature review articles, low quality articles, protocols,
working papers, studies conducted before 2008 and duplicated publications or extensions of
analysis from original studies.
2.4. Data Extraction
The selection of all retrieved articles was carried out gradually by two individuals (SZ and BW)
and finally the extracted articles were combined and clearly presented with the key information
and findings.
 Table 1: Related studies on Income inequality, poverty and Economic growth triangle
Topic Author(s) Types of Data Measurements of economic Methods of Findings
(Year) growth (EG), Income Analysis
inequality (INE) and
Poverty (POV)

The relationship between poverty, Amponsah panel data from 35 POV-Poverty headcount 2SIV-GMM POV negatively related with EG. But EG
income inequality and inclusive growth et al (2023) SSA countries index. reduce POV and EG moderates the adverse
in Sub-Saharan Africa (SSA) between 1990-2018 INE-net Gini coefficient. effect of INE on POV.
EG-GDP per person
employed.
Inequality and the impact of growth on Anis (2023) Pannel data- from 45 EG-GDP growth. FD-GMM EG begins to reduce extreme poverty when
poverty in sub-Saharan Africa: A GMM middle and low- POV-Poverty headcount INE is at or below a threshold for the low-
estimator in a dynamic panel threshold income SSA index. income and middle-income countries. Which
model countries over the INE-net Gini index. implies that that there is no relationship
period 2010–2021 between EG and POV above the INE
threshold levels for the low-income and the
middle-income countries respectively.
Growth and Inequality: A Meta-Analysis De Panel data INE- Gini Coefficient EG- MEM & Income inequality Positively affected
Dominicis et From LCD and Annual GDP growth. HLM economic growth
al (2006) OECD

Serin Oktay, Unbalanced Panel EG-GDP per capita. PMGE In all income groups, EG negatively affects
Income Inequality, Poverty and Growth D. and data from 1995-2017 POV-Poverty headcount POV, but INE positively affects POV. On the
Algan, N. in 20-lower income index. other hand, INE positively affects EG in the
(2022) countries, 42-middele INE- Gini coefficient. middle-income group, nonetheless in the
income countries and high-income group the increase in growth
31-higher income decreases inequality.
countries
Poverty-Growth-Inequality Triangle: G. E. Time series data from POV-Poverty incidence ARDL & INE had a positive relationship with POV,
Empirical Evidence from Nigeria Nzeribe et al 1980-2018 INE-Gini coefficient TYTC while the interaction of EG and INE had
(2022) EG-Per capita real domestic a negative relationship with POV.
product
 Yousry H. Time series data from EG-RGDP Per capita SEM & 3SLS EG affects POV negatively through the
The Growth, Inequality, and Poverty & Mohamed 1975-2019 growth. income inequality channel, which leads to a
Triangle: Empirical Evidence from A. (2024) INE-Gini index. decrease in the POV, and it has negative
Egypt Pov-poverty (1.90$ per effect on EG. In contrast, INE has a negative
day). effect on EG, but there is a negative
reciprocal relationship between POV and
INE.
Do Poverty and Economic Growth Maurilla A. Panel data from five EG-regional RGDP growth. SEM & There is no relationship between INE and EG
Matter for Income Inequality Reduction et al (2022) cities in Yogyakarta POV- Number of poor 3SLS. and POV.
in Yogyakarta Province? Province from 2010- population.
2021 INE-Income to Gini ratio.

Income Inequality, Economic Growth, Grundler & Panel Data initial INE-is the difference GMM, There is negative effect of INE on EG that
and the Effect of Redistribution Scheuermey period 1965-1969 to between GINI is market POLS, WGE we trace back to its transmission channels.
er (2015) the period 2010-2012 inequality, GINI denotes and 2SLS.
from 154 countries inequality of disposable
incomes.
EG-GDP per capita growth.

Economic Growth and Poverty Rudenko Time series data from POV- poverty headcount TWSD EG had brought about rapid reduction of the
Alleviation in Russia: Should We Take (2015) 2002-2012 index. poor people while INE had risen. But the
Inequality into Consideration? EG-Annual growth of real current situation is paradoxical – the EG only
GDP reinforces INE, is not conducive to the
alleviation of POV, and may be characterized
by low quality.
Economic Growth and Poverty: The Istiqomah & panel data of 34 POV- number of SLR, RE & There is positive effect of EG on POV, the
Moderating Effect of Income Inequality Dwita provinces in populations living below the MRM interaction between EG and INE shows
(2024) Indonesia in 2016- poverty line. negative significant effect on POV.
2020 EG- Annual GDP growth.
INE-Gini index.
Growth, Poverty and Inequality in Time series from EG-Per capita GDP growth. ECM, There is a trade-off between POV and EG
Ethiopia: Which Way for Pro-Poor Alemayehu 1962-1998. INE-Gini coefficient TM & when growth increment distributed
Growth? et al (2008) Cross-sectional data POV- Absolute income REM unequally. Reversely, when growth
in 2000 and 2004. poverty headcount ratio increment distributed equally, therefore,
Panel data from there no trade of between POV and economic
1994-2004 EG.
Relationship between Income Inequality Tigist. G & Time series data for EG- Annual real GDP ARDL model There positive relationship between INE and
and Economic Growth in Ethiopia. Maru. S 2002 to 2017 growth & ECM EG.
(2018) INE-Gini Coefficient
The Effects of Income Inequality and Kesti. E Panel data between EG-GDP per capita growth FEM, POLS There is negative short to medium-run effect
Poverty on Economic Growth. (2020) 1980 and 2018 for 46 INE-Gini index & GMM of INE on EG. However, the results are
developing countries. POV-poverty headcount sensitive to regional effects and are not
ratio. robust to alternative INE measures. But,
POV and EG are not related. Thus, INE to
affect EG more than poverty in the short to
medium-run, but due to the sensitivity of the
results no robust conclusions can be drawn.
Income inequality and Alexander F Panel of 46 EG-GDP per capita growth POLS, FEM The results indicate a weak negative short to
economic growth. (2023) developing countries INE-Gini index & GMM medium-run effect of income inequality on
between 1980 and growth. However, the results are sensitive to
2018 regional effects and are not robust to
alternative inequality measures. Poverty is
not found to affect GDP per capita growth.
Thus, the results suggest income inequality
to affect economic growth more than poverty
in the short to medium-run, but due to the
sensitivity of the results no robust
conclusions can be drawn
Income Inequality and Economic D. Selmonaj Panel data from EG- GDP (US Dollar per FEM, HTM Income inequality, poverty rate and
Growth: An Econometric Analysis of et al (2021) 2005-2018 for OECD Capita. and GMM- unemployment have significant effects on the
OECD Countries (2005-2018). countries INE- Palma ratio ABM. economic growth of a country. In fact, during
the period analyzed, we see a negative
correlation between Income inequality and
GDP for OECD countries. In addition, we
found that the most sensitive period was that
of the global economic crisis of 2008-2009.
However, when interpreting these results,
that there are also different approaches and
meanings to poverty and the points of view
of individuals and their perceptions can have
an important role.
Investigation of the economic growth, Dudzevičiūt Panel data from EG- Real GDP Per capita MLRM,OLS, majority of these countries’ poverty has been
poverty and inequality inter-linkages in ė G. & 2015-2016 for EU growth. BC and elastic of economic growth. It should be
the European Union countries. Prakapienė, countries INE-Gini coefficient. descriptive noted, that the countries with higher level of
D. (2018) POV- Growth elasticity of analysis economic development have relatively
poverty. smaller share of population living below the
national poverty lines. However, we cannot
say the same about growth-inequality
relationships, which have carried across the
EU countries. There are economically strong
countries with relatively high-income
inequality and economically weaker
countries with lower income distribution
coefficients. However, in many cases
poverty and income inequality tend to move
in the same direction.
Inequality Growth Trade-Off and Noor Panel data from POV- Growth elasticity of Decompositio Ultra-poor individuals are more sensitive to changes in
Poverty Reduction in Pakistan Fatima, et al. 2007-2019 for 4 headcount incidence, n method INE than to changes in EG. This suggests that a
(2024) provinces in Pakistan poverty gap and Severity of greater increase in average growth is needed to offset
poverty. the effects of increased inequality among the ultra-
INE-Gini coefficient. poor. Furthermore, the results suggest that POV would
decrease more significantly with a rise in average EG
among the rural population compared to the urban
population.
The growth, inequality and poverty K. Zaman et Panel data for POV- poverty headcount PCIT, In long-run relationship between POV, EG
triangle: new evidence from a panel of al (2012) Bangladesh, India, ratio. PFMOLS and and INE. The estimated long-run elasticities
SAARC countries Nepal, Pakistan EG-Annual real GDP DOLS indicates that increase in EG and INE
and Sri Lanka; growth. contributes to a fall and rise in POV,
between 1990–2008. INE-Gini coefficient. respectively. It was also found that the
impact of INE in increasing POV is
comparatively greater than that of EG in
reducing POV in SAARC countries.
A Note on Economic Growth, Inequality, Celia M. and Panel data from EG-Per capita GDP annual REM & GLS The rate of EG matters a lot in POV
and Poverty in the Philippines Aubrey D. 2003-2009 in growth. reduction, the redistribution of income
(2011) Philippines for 18 POV-Poverty rate. matters as well. More importantly, we find
regions. INE-Gini Coefficient. that, at a given rate of growth, the response
of POV rate to growth is higher when income
distribution is less unequal more specifically
EG is negatively affected POV.
Comparative investigation of the Adeleye et Panel data 58 Sub- POV- per capita PLOS, FE EG exhibit poverty-reduction properties; the
growth-poverty inequality trilemma in al. (2020) Saharan Africa (SSA) consumption expenditure and GMM growth rate of inequality intensifies POV,
Sub-Saharan Africa and Latin American and Latin American growth. inequality aggravates the impact of EG on
and Caribbean Countries (LAC) countries EG- Annual real GDP POV, and the growth-poverty-inequality
(from 2000 to 2015) growth. trilemma differs across income groups and
INE-Gini index. regional samples. Furthermore, this study
submits that the interaction of INE dampens
the positive impact of EG on the incidence of
POV and supports the
argument that the extent of inequality lessens
the effect of inclusiveness. Hence, INE is a
crucial determinant of poverty.
The relationship between income M. Panel data from EG- real GDP growth. PARDL, Both In the long run and short run, EG and
inequality, economic growth and Ramudzuli 1997-2017 quarterly INE-Gini coefficient. ECM, POV have a negative relationship whilst INE
poverty in South Africa (2019) in 9 South Africa POV-Absolute Poverty. PMG, MG and EG have a positive relationship.
provinces and CSD

The Relationship Between Income Seher Panel data for 143 POV- Gini coefficient. POLS, FEM complexity of the impact of income
Inequality and Economic Gülşah countries and the EG-Annual GDP growth. and REM inequality on economic growth
Growth: Are Transmission Channels (2022) periods between 1980
Effective? and 2017.
The Relationship between Growth- Syeda Anam Time series Annual POV- poverty headcount ARDL & On the short run, there is a significant
Inequality Poverty Triangle and (2014) data from 1980– ratio. VEC models negative relationship between EG & POV
Environmental Degradation: Unveiling 2011 for Pakistan EG-Annual real GDP while there is a positive relationship between
the Reality growth. EG & INE; and POV & INE. On the long-
INE-Gini coefficient. run, there is a significant positive
relationship between EG & INE, INE, and
POV & INE. but there is a negative
relationship
between EG & INE.
The triangle of poverty, economic Manuel Unbalanced panel EG- Annual per capita GDP POLS, FE, The relationship between POV, INE and EG
growth, and inequality in Central Vanegas data employed for the growth. RE and GLS varies relatively very little for different
America: does tourism matter? (2014) five Central America INE-Gini coefficient. measures of EG; EG and INE does not matter
countries (Costa POV-indigence or extreme is rejected at the 1 percent level, and the
Rica, El Salvador, poverty. coefficients are highly significant and with
Guatemala, the expected signs.
Honduras, &
Nicaragua) between
1980-2012.
The Nexus between Poverty, Inequality Ayoade S. Time series annual EG-Annual growth rate of ARDL INE had positive but insignificant effect on
and Economic Growth in Nigeria, Olabisi et al data from 1980-2018 GDP. &VEC EG both in short run and long run, while the
(1980-2018). (2020) POV- poverty derived by models short run result for absolute POV revealed a
individual consumption negative and significant relationship with the
expenditure divided by the EG; but the long run result though also
price. negative but it was insignificant.
INE-Gini coefficient.
Poverty, Income Inequality and Chinonye E. Time series annual EG-Annual real GDP MLRM, OLS revealed that INE has a negative relationship
Economic Growth in Nigeria (1981- Onwuka data from 1981-2019 growth. & ECM. with EG while POV was found to be
2019) (2021) POV- poverty headcount positively related to EG. Similarly, POV and
ratio. INE have an insignificant effect on EG.
INE-Gini coefficient.
An Empirical Analysis of Poverty- Nwamaka Time series Data EG-real per capita ECM, INE was found to be positively
Growth-Inequality Linkage in Nigeria O. (2018) from 1985-2010 with expenditure. PVECM significantly related with POV while
5 years panel. granger growth had a negative insignificant
POV- poverty head count
causality test
Index. and Bivariate
relationship. Also, there exist a long-
INE-Gini Coefficient. Correlation run relationship between POV growth
test and INE. The causality triangle flows
from EG causing INE, INE causing
POV and EG increasing. Moreover,
there is a long-run bi-directional
causality between EG and INE, INE
causing POV while there was no
evidence of causality between EG and
POV.
Does Reduction in Inequality of Ademol Time series data High POV elasticity with
Income Distribution Matter for a O. between 1970-2018. respect to INE measures
Poverty Reduction? Evidence (2019) confirm the
from Nigeria’s Poverty Trends importance of INE in POV
reducing effort. Thus, EG
policies that
promote an increase in
income in conjunction with a
reduction in income
disparities are
more effective in combating
poverty in Nigeria than those
that focus only on raising
RGDP
per capita growth.
ARDL: Autoregressive Distributive Lag; CSD: Cross-sectional Dependence; DOLS: Dynamic Ordinary Least Square; ECM: Error Correction
Model; FD-GMM: first Difference- Generalized Moment Method; FEM: Fixed Effect Model; GLS: Generalized least Square; GMM-ABM:
Generalized Moment Method-Arellano Bond Model; GMM : Generalized Moment Method; HLM: Hierarchical Linear Model; HTM: Husman
Taylor Model; MEM: Mixed Effect Model; MG: Mean Group; MLRM: Multiple Linear Regression Model; MRM: Moderated Regression
Model; OLS: Ordinary Least Square; PARDL: Pooled Autoregressive Distributive lag; PCIT: Panel Co-integration Test; PFMOLS: Panel fully
modified Ordinary Least Square; PMG: Pooled Mean Group Estimation; PVECM: Panel Vector Error Correction Model: POLS: Pooled
Ordinary Least Square; REM: Random Effect Model; SEM: Simultaneous Equation model; SLRM: Simple Linear Regression Model; 2SLS:
Two Stage Least Square;2SIVM: Two Stage Instrumental variable Model; 3SLS : Three Stage Least Square; TWSD: Two-way Shapely
Decomposition; VECM: Vector Error Correction Model; WGE: Within Group Estimation; TYTC: Toda Yamamoto Test of Causality
3. Results
3.1. Outcome of the Search

We retrieved a total of 5,829 and removed 2,768 duplicates, which left 3061 for title and
abstract screening, out of the 114 studies retained for full text screened articles 34 were
included by using different eligible inclusion and exclusion criteria (Fig.1)