scholarly journals Probing Institutional Quality Through Ethnic Diversity, Income Inequality and Public Spending

2018 ◽  
Vol 142 (2) ◽  
pp. 581-595 ◽  
Author(s):  
Ghulam Rasool Madni
Keyword(s):  
Income Inequality ◽  
Ethnic Diversity ◽  
Public Spending ◽  
Institutional Quality

scholarly journals The Impact of Institutional Quality on Social Cohesion: Evidence from Worldwide Perspective

2020 ◽  
Vol Volume 4 (Issue 3) ◽  
pp. 207-231
Author(s):  
Muhammad Nadeem ◽  
Mumtaz Anwar ◽  
Zahid Pervaiz
Keyword(s):  
Income Inequality ◽  
Social Cohesion ◽  
Ethnic Diversity ◽  
Institutional Quality ◽  
Fixed Effect Model ◽  
Effect Model ◽  
Two Factors ◽  
The Impact ◽  
Harmful Effects

Diversity and socioeconomic deprivation have been widely discussed as determinants of social cohesion. These two factors are considered to be a threat to social cohesion. The existing literature identifies the problem however the literature suggesting the solution is very limited. The most important determinant which can cure the problems of social cohesion is the better quality of institutions, however, the literature on this aspect is very scant. Current study has investigated the impact of institutional quality on social cohesion. Current study employs the fixed effect model for estimation. The analysis is conducted for 135 countries, using five-year average panel data. The results suggest that institutional quality augments social cohesion, while ethnic diversity, income inequality, and globalization are a threat to social cohesion. Gender equality and per capita income also augment social cohesion. Moreover, the threat to social cohesion is greater when there is: low institutional quality and high: ethnic diversity, and income inequality as compared to a situation where there are high institutional quality and low: ethnic diversity, and income inequality. The results further suggest that the harmful effects of ethnic diversity, globalization, and inequality can be, not only overcome by institutional quality but can also be put to use to enhance social cohesion.

scholarly journals Sustainable Utilization of Financial and Institutional Resources in Reducing Income Inequality and Poverty

2021 ◽  
Vol 13 (3) ◽  
pp. 1038
Author(s):  
Atta Ullah ◽  
Zhao Kui ◽  
Saif Ullah ◽  
Chen Pinglu ◽  
Saba Khan
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Development ◽  
Institutional Quality ◽  
Vital Role ◽  
Electronic Government ◽  
Sustainable Utilization ◽  
One Belt One Road ◽  
Institutional Resources ◽  
Belt And Road

This study aims to determine the role of globalization, electronic government, financial development, concerning the moderation of institutional quality in reducing income inequality and poverty in One Belt One Road countries. The electronic government and regional integration of the economies of the One Belt One Road countries has increased globalization and can play a vital role in reducing income inequality and poverty. However, this globalization and digital transformation of government systems can only be beneficial in the presence of good institutional quality. The sample includes 64 One Belt One Road countries from 2003 to 2018. We employed a two-step system generalized method of moment (Sys-GMM) and a robustness check through Driscoll–Kraay standard errors regression. Our findings show that globalization, economic growth, e-government development, government expenditure, and inflation have a statistically significant and negative impact on income inequality and are key to eradicating income inequality and poverty. On the other hand, financial development, gross capital formation, and population size positively influence income inequality, which causes an increase in poverty and income inequality as financial development and population levels increase. Moderating variable institutional quality also positively impacts income inequality, which means that institutional quality in Belt and Road Countries is weak, as they are mostly developing countries that need to improve their systems. Moreover, the marginal effect also revealed that institutional quality has a corrective effect on the factors’ relationship with income inequality. Our findings endorse and conclude that globalization and e-government development improve economic growth and eradicate poverty and income inequality by boosting digitalization, investments, job creation, and wage increases for semi-skilled and unskilled human capital in Belt and Road countries. The sustainable utilization of financial and institutional resources plays a vital role in reducing income inequality and poverty in Belt and Road countries.

scholarly journals Credit composition and income inequality in Vietnam: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Quoc Hoi ◽  
Hương Lan Trần
Keyword(s):  
Income Inequality ◽  
Educational Level ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Primary Data ◽  
Data Set ◽  
Content Type ◽  
Private Credit ◽  
The Impact

PurposeThis paper aims to examine the credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit had adverse effects on income inequality. The authors also examine whether the impact of policy credit on income inequality is conditioned by the educational level and institutional quality.Design/methodology/approachThe authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem.FindingsThe authors show that while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality, due to the asymmetric effects of different types of credit.Originality/valueThis is the first study that examines the links between the two components of credit and income inequality as well as constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.

Drivers of income inequality in Africa: Does institutional quality matter?

2020 ◽  
Author(s):  
Mark Edem Kunawotor ◽  
Godfred Alufar Bokpin ◽  
Charles Barnor
Keyword(s):  
Income Inequality ◽  
Institutional Quality

The impact of inflation on income inequality: the role of institutional quality

2020 ◽  
Vol 27 (21) ◽  
pp. 1735-1738
Author(s):  
Chee-Hong Law ◽  
Siew-Voon Soon
Keyword(s):  
Income Inequality ◽  
Institutional Quality ◽  
The Impact

Reforming China's Public Finances to Sustain Growth

2014 ◽  
Vol 06 (02) ◽  
pp. 71-85
Author(s):  
Shuanglin LIN ◽  
Sarah Y TONG
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Local Government ◽  
Income Inequality ◽  
Government Expenditure ◽  
Public Spending ◽  
Government Debt ◽  
Environmental Problems ◽  
Policy Initiatives ◽  
Taxation System

China's public finance is characterised by a pro-growth taxation system, growth enhancing government expenditure and an expansionary fiscal policy. However, reforms are needed to tackle rising income inequality and worsening social and environmental problems, including more public spending and more progressive taxes. Measures are also needed to resolve rising local government debt. The recently concluded Third Plenum has made these its top priorities and announced various policy initiatives.

scholarly journals Does ethnic diversity increase violent crime? A global analysis of homicide rates, 1995–2013

2018 ◽  
Vol 17 (2) ◽  
pp. 175-198 ◽  
Author(s):  
Indra de Soysa ◽  
Carmen Noel
Keyword(s):  
Income Inequality ◽  
Ethnic Diversity ◽  
Good Governance ◽  
Global Analysis ◽  
Coordination Failure ◽  
Homicide Rates ◽  
Ethnic Exclusion ◽  
Ethnic Polarization ◽  
Using Data ◽  
Criminological Theories

Many scholars argue that diverse preferences and coordination failure stemming from high ethnic diversity results in high social frictions, leading to socio-political failure. Criminological theories suggest that crime is driven by very similar processes. The specialized literature on civil war, however, reports a diversity dividend, arguing that when two large groups (polarization) make up a society, the risk of armed violence is increased. Using data on global homicide rates from the period 1995–2013 for over 140 countries, we find that ethnic heterogeneity is associated with homicide rates in an inverted U-shape relationship. Measures of ethnic polarization confirm these results directly. The results suggests that ethnic polarization and ethnic dominance rather than diversity are what matter for personal security measured as homicide rates. The conditional effect of high diversity and income inequality is associated with lower homicide rates, results that reject the view that societal heterogeneity and income inequality drive social dislocation. Several possible intervening variables, such as unemployment among males and youth, ethnic exclusion and discrimination, good governance and institutional quality, as well as several demographic and political variables, do not affect the basic results. It seems that the heavy emphasis placed on ethnic diversity for explaining social dislocation and violence, in so far as it relates to a country’s homicide rate, seems to be misplaced.

Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries

2014 ◽  
Vol 14 (2) ◽  
pp. 127-162 ◽  
Author(s):  
Hernán Herrera-Echeverri ◽  
Jerry Haar ◽  
Juan Benavides Estevez-Bretón
Keyword(s):  
Venture Capital ◽  
Public Expenditure ◽  
Emerging Market ◽  
Public Spending ◽  
Institutional Quality ◽  
State Intervention ◽  
High Tech ◽  
Emerging Market Countries ◽  
Level Of Significance

This paper empirically analyzes the effects of foreign direct investment (FDI), institutional quality, and the size of a government on venture capital (VC) activity. We conclude that institutional quality, FDI, and public spending have definitive importance as elements for the development of a public policy that increases the quantity and quality of VC fund (VCF) investment. Higher institutional quality, greater FDI, and lower public spending allow the volume of VCF investment to grow. FDI shows a higher level of significance in promoting investment in high-tech companies, and institutional quality increases the productivity of FDI investment in the generation of VCF. Government spending dramatically and (counter-intuitively) adversely affects the activities of VCF. Notably, the higher the institutional quality of a country, the less state intervention is required to promote investment of VCF. The results are consistent with the hypothesis of the FDI spillover and crowding out by public spending.

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