The impact of population aging on income inequality in developing countries: Evidence from rural China

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

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Old, not yet rich? The impact of population aging on export upgrading in developing countries

China Economic Review ◽

10.1016/j.chieco.2021.101707 ◽

2021 ◽

pp. 101707

Author(s):

Feifei Wu ◽

Hongna Yang ◽

Bo Gao ◽

Yan Gu

Keyword(s):

Developing Countries ◽

Population Aging ◽

The Impact

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Medical system and nutrition improvement for the rural elderly

Journal of Health Population and Nutrition ◽

10.1186/s41043-019-0189-x ◽

2019 ◽

Vol 38 (1) ◽

Author(s):

Zhenhua Wang ◽

Jinqi Jiang ◽

Qiyan Zeng

Keyword(s):

Population Aging ◽

Rural China ◽

The Elderly ◽

Rural Elderly ◽

Medical System ◽

Carbohydrate Intake ◽

Nutrition Survey ◽

Difference In Differences ◽

Nutrition Intake ◽

The Impact

Abstract Background Insufficient nutrition intake has negatively influenced the health of the elderly in rural China where the problem of population aging is serious. The present study aims to explore whether the medical system, called the New Rural Cooperative Medical System (NRCMS), can improve the rural elderly’s nutrition intake and the mechanism behind it. Methods The difference in differences (DID) model and the propensity score matching-difference in differences (PSM-DID) model are both performed to investigate the impact of the medical system on nutrition improvement for the rural elderly. Two thousand seven hundred eighty rural elderly samples tracked in 2000 and 2006 from the China Health and Nutrition Survey are analyzed. Indices for the elderly’s nutrition intake includes daily average intake of energy, fat, protein, and carbohydrate. Results The results show that participation in the NRCMS can significantly increase the rural elderly’s total energy intake, carbohydrate intake, and protein intake by 206.688 kcal, 36.379 g, and 6.979 g, respectively. A more significant impact of the NRCMS on nutrition intake is observed in the central and near-western where economic development is lagging behind. Also, compared to people of 18–60 age group, such impact is statistically more significant in the elderly for the carbohydrate intake. Conclusions The NRCMS can improve the rural elderly’s nutrition intake in China. As the population ages rapidly in rural China, the present study provides recommendations on how to improve nutrition and health status of the elderly from the aspect of the medical system.

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Do government expenditure reduce income inequality: evidence from developing and developed countries

Studies in Economics and Finance ◽

10.1108/sef-09-2020-0393 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Noor Zahirah Mohd Sidek

Keyword(s):

Developing Countries ◽

Income Inequality ◽

Driving Forces ◽

Government Expenditure ◽

Developed Countries ◽

Policy Implications ◽

Content Type ◽

Positive Effects ◽

The Impact ◽

Developing And Developed Countries

Purpose This paper aims to re-examine the impact of government expenditure on income inequality. Existing studies provide mixed results on whether government expenditure reduces or increases income inequality. In this paper, government expenditure is viewed as a tool for redistribution, hence, its impact on inequality is examined. Design/methodology/approach A sample of 122 countries with 91 and 31 countries categorized as developing and developed countries is used. The dynamic panel threshold regression is used to examine the impact of government expenditure on income inequality and to estimate the turning point of the negative or positive effects. Findings The major findings suggest that, in general, government expenditure does reduce income inequality. Results from developed countries support the inversed U-shaped Kuznet curve where higher government expenditure initially led to more inequality but would eventually bring about a positive effect after a certain threshold level. For developing countries, education and development expenditure were the driving forces towards lower income inequality. Practical implications Several policy implications can be derived from this paper. First, government expenditure is a useful tool to alleviate the problem of income inequality. More integration with the global economy via trading activities is also an important channel to help reduce income inequality. Finally, better institutional quality provides an effective ecosystem in promoting better redistribution of income via government expenditure. Originality/value This paper presents a maiden attempt to estimate a threshold value or when government expenditure starts to reduce or increase income inequality. The sample is segregated into developed and developing countries to further control the effect of government size and the level of development of a country.

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THE IMPACTS OF GLOBALIZATION ON THE LABOR SHARE: EVIDENCE FROM ASIA

The Singapore Economic Review ◽

10.1142/s0217590820440038 ◽

2020 ◽

Vol 65 (supp01) ◽

pp. 57-73

Author(s):

XIAOSHAN HU ◽

GUANGHUA WAN ◽

JING WANG

Keyword(s):

Developing Countries ◽

Panel Data ◽

Income Inequality ◽

World Wide ◽

Trade Openness ◽

Labor Income ◽

Significant Determinant ◽

Outward Fdi ◽

Labor Share ◽

The Impact

The decline in the share of labor income — an indicator of functional income distribution — has contributed to rising income inequality world-wide. Despite a growing literature, little is known about the effects of globalization on the labor share or inequality in Asia where some of the economies are most globalized. Applying fixed-effect regressions to panel data from 29 Asian economies over the period from 1980 to 2014, we focus on the impacts of globalization on the labor share in Asia where globalization is measured by trade openness and FDI. The modeling results show that trade openness is a significant determinant of the labor share. More specifically, the impact of export is significantly negative and the impact of import is positive. In terms of FDI, the coefficient of the inward FDI is significantly positive and that of the outward FDI is significantly negative in developing countries only.

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The Impact of Population Ageing: A Review

Iranian Journal of Public Health ◽

10.18502/ijph.v50i12.7927 ◽

2021 ◽

Author(s):

Zainab Ismail ◽

Wan Ibrahim Wan Ahmad ◽

Salasiah Hanin Hamjah ◽

I Komang Astina

Keyword(s):

Developing Countries ◽

Older People ◽

Population Aging ◽

Policy Implications ◽

Financial Security ◽

Older Population ◽

Background Population ◽

Care Health ◽

The Government ◽

The Impact

Background: Population aging refers to the increase in number and percentage of older population aged 60 yr and above, and at the same time, decreasing in number and percentage of the young population aged 15 yr old and below. Starting in developed countries, population aging has now become a distinctive demographic phenomenon in developing countries. Nowadays developing countries have become the home to the largest proportion of older people in the world. This paper aimed to analyze the impact of population aging in Malaysia. Methods: We employed a secondary data analysis related to the impact of population aging in Malaysia. In analyzing the data, the paper detailed, segmented, coded and, formulated the text into themes through a thematic approach. The themes that emerged from the data were family changes, migration of youth, support and care, health problems, financial security as well as housing problems. These emerged themes mapped the shared patterns of the impacts of the population aging. Results: With the increasing of the older population in Malaysia, there are various impacts of population aging emerged, particularly in terms of family changes, youth migration to cities, support and care, health, financial security and housing. The discussion in this article is revolved around these impacts. Conclusion: The growth of older people and the impact emerging from it has certain policy implications for the government of the country. Thus, the government needs to prepare for adequate policies and resources for future older people.

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THE IMPACT OF FINANCIAL INCLUSION ON POVERTY AND INCOME INEQUALITY IN DEVELOPING COUNTRIES

Научные исследования в современном мире. Теория и практика: сборник избранных статей Всероссийской (национальной) научно-практической конференции (Санкт-Петербург, Декабрь 2020) ◽

10.37539/nitp312.2020.74.19.019 ◽

2020 ◽

Author(s):

Патимат Султановна Батаева ◽

Ахмед Магомедович Гачаев

Keyword(s):

Developing Countries ◽

Income Inequality ◽

Social Inclusion ◽

Financial Inclusion ◽

The Impact ◽

Opening Up

Финансовая доступность - ключевой элемент социальной интеграции, особенно полезный в борьбе с бедностью и неравенством доходов, открывающая во многом возможности для обездоленных слоев населения. Статья направлена на изучение влияния финансовой доступности на сокращение бедности и неравенства доходов, а также их детерминант и условных эффектов в развивающихся странах. Financial inclusion is a key element of social inclusion, especially useful in the fight against poverty and income inequality, opening up many opportunities for the disadvantaged. The article aims to study the impact of financial inclusion on the reduction of poverty and income inequality, as well as their determinants and contingent effects in developing countries.

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Food Price and Trade Policy Biases

10.1093/oxfordhb/9780195397772.013.009 ◽

2014 ◽

Author(s):

Kym Anderson

Keyword(s):

Developing Countries ◽

Income Inequality ◽

World Bank ◽

High Income ◽

Welfare Cost ◽

Policy Implications ◽

Trade Policies ◽

Food Markets ◽

Global Welfare ◽

The Impact

This article demonstrates how governments have distorted food markets in high-income countries, primarily through ineffective trade policies. It begins by reviewing theories on agriculture’s perceived role in development. It then considers a recent World Bank study, which presents evidence of price-distorting policies in both high-income and developing countries. Next, it discusses the contribution of agriculture to the current global welfare cost of distortions to farm and nonfarm goods markets, and the impact of those distortionary policies on income inequality and poverty. The article concludes by assessing the policy implications of the study’s empirical findings.

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Income Inequality within Countries

10.1093/oso/9780198853008.003.0005 ◽

2021 ◽

pp. 91-111

Author(s):

Andy Sumner

Keyword(s):

Developing Countries ◽

Economic Development ◽

Income Inequality ◽

Empirical Evidence ◽

Developing World ◽

National Income ◽

Global Inequality ◽

Seminal Work ◽

Great Transformation ◽

The Impact

This chapter addresses the within-country component of global inequality and the impact of deindustrialization on national income inequality. The chapter focuses on the fourth great transformation outlined, specifically the shift to a form of immiserizing growth. This chapter revisits Kuznets’ seminal work and asks what trend might be expected for national inequality during deindustrialization. The chapter makes estimates of the empirical evidence on deindustrialization, tertiarization, and national income inequality in developing countries. The accompanying myth—that if developing countries integrate more and more into GVC world, the process will lead to broad-based economic development—is critiqued. A theoretical exposition to explain the connection between deindustrialization, tertiarization, and rising national income inequality in the developing world is given.

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