Ferede, Tadele (Dr)Sisay, Andualem2021-11-302023-11-042021-11-302023-11-042021-09http://etd.aau.edu.et/handle/123456789/29039Identifying the impact of income inequality on economic growth has paramount importance for shared and broad-based economic growth. Thus this study was conducted to examine the effect of income inequality on economic growth evidence from Ethiopia. To achieve this objective time series data from 1982 to 2019 was used and it is examined by using ARDL estimation technique. Economic growth was used as dependent variable and income inequality, population growth, urbanization, inflation and financial development were used as independent variables. The estimation result revealed that in the long run urbanization, financial development, population growth and income inequality have positive significant effect. While in the short run urbanization and financial development have negative significant effect, but population growth and income inequality have positive significant effect. The coefficient of the ECM is negative 0.913 and this signifies that a deviation from the long-run equilibrium subsequent to a short-run shock is corrected by about 91.3 percent at the end of each year. Based on the findings the study recommends that the government and other concerning body the government has to implement pro-poor strategy to include all section of the economy from the benefits of growth, improving the performance of secondary marketenincome inequalityARDLeconomic growthThesis