This study aims to examine the impact of economic growth on income inequality in Malaysia with special attention to the distribution of income among different ethnic groups. Twofold methodologies have been used in this analysis. The primary methodology is descriptive in nature where tables, charts, and diagrams have been extracted from the specific sources for analysis. Second, this paper applies the Granger noncausality test to estimate the causality and also applies the ARDL (autoregressive distributed lag) regression model to see the shot‐run and long‐run dynamic relationship between economic growth and income inequality in the context of Malaysia using the data of 1970–2018 from the household income survey, World Development Indicators, and the Standardized World Income Inequality Database. Additionally, it deploys panel Granger noncausality and dynamic pool mean group regression for the robustness of the results. This study reveals that the income gap among ethnic groups has been narrowed; although, intra‐ethnic income inequality is still very high, especially among Indians. The study further advises that income inequality does not Granger‐cause economic growth; rather, economic growth does Granger‐cause income inequality, and economic growth affects income inequality negatively, regardless of ethnicity, suggesting that economic growth significantly contributes to the reduction of income inequality in Malaysia. The paper concludes with a few policies which could significantly contribute to reducing income inequalities and achieving greater economic development goals, such that Malaysia can become a developed country by 2030.

中文翻译：

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经济增长如何影响马来西亚各族裔的收入不平等？

这项研究旨在检验经济增长对马来西亚收入不平等的影响，并特别关注不同族裔之间的收入分配。在此分析中使用了双重方法。主要方法本质上是描述性的，其中表，图表和图表是从特定来源中提取出来进行分析的。其次，本文运用Granger非因果关系检验来估计因果关系，并运用ARDL（自回归分布滞后）回归模型来观察马来西亚在大背景下经济增长与收入不平等之间的短期和长期动态关系。 1970-2018年的数据来自家庭收入调查，世界发展指标和标准化的世界收入不平等数据库。此外，它部署面板Granger非因果关系和动态池均值组回归以确保结果的鲁棒性。这项研究表明，族裔之间的收入差距已经缩小。尽管族裔内部的收入不平等仍然很高，尤其是在印度人当中。这项研究进一步建议，收入不平等不会格兰杰引起经济增长。相反，经济增长确实会引起格兰杰的收入不平等，而经济增长会对收入不平等产生负面影响，而与种族无关，这表明经济增长在很大程度上有助于减少马来西亚的收入不平等。本文以一些政策作为总结，这些政策可能会大大有助于减少收入不平等和实现更大的经济发展目标，从而使马来西亚到2030年成为发达国家。