Հակոբյան Մուշեղ, Գևորգյան Պերճ 026
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THE INTERACTION BETWEEN ECONOMIC GROWTH AND POVERTY IN THE CONTEXT OF INCLUSIVE DEVELOPMENT
Hakobyan Mushegh
PhD in Economics, Associate Professor
/Armenian State University of Economics/
Gevorgyan Perch
Master’s student /Armenian State University of Economics/
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Poverty represents the insufficiency of income and living conditions for a portion of the population, while economic growth is characterized by an increase in a country`s productivity and Gross Domestic Product (GDP). However, without equitable distribution, economic growth does not guarantee a reduction in poverty. The interaction between poverty and economic growth is directly linked to various factors such as the structure of the economic system, government policy, and social conditions. Economic growth contributes to income increase and poverty reduction, but if the benefits of this growth are not distributed equally, income inequality may deepen. Poverty, in turn, can hinder economic growth by reducing human capital and labor productivity. Therefore, countries develop social and economic policies to reduce poverty levels and stimulate economic growth.
Keywords: Unequal distribution of income, unemployment, poverty, economic inequality, linear regression, Armenia`s economy, labor market, inflation, and standard of living.
DOI https://doi.org/10.61746/18292984-2025.1cmt-62