Does abundant natural resources amplify the negative impact of income inequality on economic growth?

2021 ◽  
Vol 74 ◽  
pp. 102229
Author(s):  
Ugochukwu Michael Anyanwu ◽  
Amarachukwu Anthony Anyanwu ◽  
Andrzej Cieślik
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Natural Resources ◽  
Negative Impact

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

scholarly journals Inequality in the Income of the Population as a Determinant of the Country's Economic Growth

2020 ◽  
Vol 68 (6) ◽  
pp. 987-994
Author(s):  
Tamara Kocurová ◽  
David Hampel
Keyword(s):  
Economic Growth ◽  
Cluster Analysis ◽  
Regression Analysis ◽  
Income Inequality ◽  
Economic Performance ◽  
Negative Impact ◽  
Gdp Per Capita ◽  
Ratio Analysis ◽  
Eu Countries ◽  
Per Capita

In this article, there is explored the dependence of economic performance and economic growth on income inequality expressed by Gini coefficient and S80/S20 ratio. Analysis is based on data collected upon EU countries in years 2007, 2012 and 2017. Cluster analysis points out to heterogeneity of EU countries in observed characteristics and enables creation of three groups of countries: post-socialistic, southern and northern. Regression analysis, which takes into account groups of countries, was used to assess and illustrate the dependence. The results show that income inequality has a negative impact on the country's GDP per capita, and its impact on economic growth differs for particular groups of countries.

scholarly journals Trade Openness Effect on Income Inequality: Empirical Evidence from Indonesia

2018 ◽  
Vol 7 (1) ◽  
pp. 1-14
Author(s):  
Lestari Agusalim ◽  
Fanny Suzuda Pohan
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Negative Impact ◽  
Forecast Error ◽  
Trade Openness ◽  
Impulse Response Function ◽  
Secondary Data ◽  
Error Variance ◽  
Long Run ◽  
Forecast Error Variance

This research analyzed the effect of international trade openness to income inequality in Indonesia using Vector Error Correction Model (VECM). The data used is the secondary data, which are the export-import value, gross domestic product (GDP), GDP per capita, open unemployment rate, and Gini index. The results of this study indicate that in the short term the trade openness has negative impact significantly on the income inequality. However, in the long-run, it does not show any significant effect in decreasing the income inequality rate. The impulse response function (IRF) concluded that income inequality gives a positive response, except on the third year. Based on the forecast error variance decomposition (FEDV), the trade openness does not provide any significant contribution in effecting the income inequality in Indonesia, but economic growth does. Nevertheless, in long-term, the economic growth makes the income inequality getting worse than in the short-term.DOI: 10.15408/sjie.v7i1.5527

scholarly journals Analysis of Indonesia Inequality Income Distribution

2020 ◽  
Author(s):  
Fakhruddin . ◽  
Raudhatil Wirda. Z ◽  
Muhammad Ilhamsyah Siregar ◽  
Fitriyani .
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Income Distribution ◽  
Negative Impact ◽  
Annual Data ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run ◽  
The Relationship ◽  
The Ideal

The relationship between income distribution inequality and inflation is widely discussed in economics. The different concepts of macroeconomic management in various countries have different implications for each country. This paper aims to examine the relationship between inequality in income distribution and inflation. Panel ARDL with semi-annual data from 33 provinces in Indonesia for the period of 2012-2018 is used in this model. The results show that changes in poverty and economic growth are not statistically significant in affecting the changes of income disparity in short run. Inflation is too low, thus it is less effective at encouraging income inequality in Indonesia. In addition, in the long run, inflation does not affect the inequality of income distribution, it is assumed that the benefits of inflation are concentrated in groups of people with high-income levels. Moreover, economic growth has a negative impact on income inequality and poverty that eventually will aggravate the imbalance in income distribution. Therefore, its is recommended for Indonesia’s economy to be directed at increasing inflation to reach the ideal level in order to be able to reduce the imbalance in income distribution. Keywords: Inequality, inflation, poverty, growth, Panel ARDL

scholarly journals ANALISIS PENGARUH FAKTOR PERTUMBUHAN EKONOMI, PENDIDIKAN, DAN PENGANGGURAN TERHADAP KETIMPANGAN DISTRIBUSI PENDAPATAN DI INDONESIA

Media Ekonomi ◽  
2019 ◽  
Vol 27 (1) ◽  
pp. 37
Author(s):  
Aufa Nadya ◽  
Syafri Syafri
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Regression Analysis ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Analysis Tool ◽  
Panel Regression ◽  
School Duration ◽  
The Impact

<em>This study is analyze the impact of economic growth, education and unemployment on the inequality of income distribution and see which provinces contribute the most to income inequality in Indonesia</em>. <em>This study used Panel regression analysis with the Eviews 8 analysis tool. The data used in this research are Gini ratio, GDRP growth rate, mean of school duration, and open unemployment rate from 33 Provinces within 2007 to 2016 (330 observations).</em> <em>The results show that economic growth has no impact on income inequality, at the same time education has a positive impact and unemployment has a negative impact on income inequality in Indonesia. The results show that Banten is a province with the highest level of income inequality.</em>

Growth quality and income inequality: cross-country analysis

2021 ◽  
Vol 17 (4) ◽  
pp. 454-461
Author(s):  
Bulat Khusainov ◽  
Asset Nussupov
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Negative Impact ◽  
Time Lag ◽  
National Income ◽  
Income Levels ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

The article is devoted to the construction and implementation of an econometric model for quantitative assessment of the impact of cross-country, international, and national income inequality on the dynamics and quality of growth of four groups of countries with different levels of development. A substantial analysis of numerous Russian and foreign research that discover the dynamics and quality of growth was carried out. On this basis, we conclude that income inequality is an important characteristic of the quality of growth of both the national and global economies. To study the relationship between inequality and economic growth, the research uses two concepts proposed by the World Bank – cross-country and international inequality. The distinction of this study from all other known works is not in identifying the genesis of the phenomenon of «inequality», but in focusing on the development of concepts of inequality between countries and quantity assessment of their impact on the growth of economies with different income levels (high, above average, below average and low). This development contributes to the expansion of the research landscape that analyses the relationship between economic growth and inequality. The implementation of the constructed model of cross-country regression confirmed the assumption on the negative impact of three types of inequality on countries with different income levels. At that, the degree of their influence for four groups of countries is shown with a different time lag. The statistically significant empirical results are the convincing scientific basis for evidence-based policy while developing an adequate economic policy by national governments, especially in modern conditions

scholarly journals PENGARUH FLUKTUASI HARGA MINYAK DUNIA, BELANJA MODAL, DAN PERTUMBUHAN EKONOMI TERHADAP KETIMPANGAN PENDAPATAN DI INDONESIA

2017 ◽  
Vol 6 (1) ◽  
pp. 47
Author(s):  
Wita Musfetriyeti
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Capital Expenditure ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Study Data ◽  
Literature Study ◽  
Inductive Analysis

This study aims to analyze the effect of world oil price (X1), capital expenditure (X2), economic growth (X3), to income inequality (Y) in Indonesia. This type of research is descriptive and associative. The data used is secondary data the time period 1985-2015. with data collection techniques documentation and literature study. Data analysis used is descriptive analysis and inductive analysis. In the inductive analysis there are several tests: (1) Multiple Linear Regression Test; (2) Analysis of Classical Assumptions; (3) Test t and Test F. Research results show that world oil prices have a significant and positive impact on inequality in Indonesia, capital expenditure have a significant and negative impact on inequality in Indonesia, and economic growth has no significant and negative impact on income inequality in Indonesia  α = 0.05.

scholarly journals Pengaruh Kekayaan Sumberdaya Alam Batubara Terhadap Ketimpangan Pendapatan di Provinsi Kalimantan Timur

2018 ◽  
Vol 13 (2) ◽  
pp. 111-130
Author(s):  
Ahmad Zaini
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Local Government ◽  
Income Inequality ◽  
Natural Resources ◽  
Agricultural Sector ◽  
Government Expenditure ◽  
Least Square ◽  
East Kalimantan ◽  
Local Government Expenditure

East Kalimantan Province is the largest producer of natural resources in Indonesia. Due to the massive exploitation process and high value, the mining sector has the biggest contribution and thus dominates the economy sector in the region. Related to this conditions, this study aims to describe the effect the effect of coal as natural resource on income inequality in East Kalimantan Province. This study uses panel data from nine districts/municipalities in East Kalimantan during 2006 until 2014, which is then processed by a pooled least square model. The study concludes that the contribution of coal sub-sectors in the economy is positively related to income inequality. The higher the contribution of coal subsector in the economy, the higher the income inequality in East Kalimantan Province. In addition, this study also finds that local government expenditure is not significantly related to income inequality, which means that the local government has not succeeded in creating equal prosperity in that region. However, the economic growth and the contribution of agricultural sector have no significant effect on income inequality.  Keywords: income inequality, natural resources curse,government expenditure. Provinsi Kalimantan Timur merupakan provinsi penghasil sumber daya alam terbesar di Indonesia. Akibat proses eksploitasi yang massive dan nilai yang tinggi, sektor pertambangan sangat mendominasi perekonomian daerah tersebut. Dari sekian banyak sumber daya alam yang ada di Provinsi Kalimantan Timur, batubara adalah yang paling besar kontribusinya terhadap perekonomian. Terkait kondisi tersebut, penelitian ini bertujuan untuk menguji pengaruh kekayaan sumber daya alambatubara terhadap ketimpangan pendapatan di Provinsi Kalimantan Timur. Penelitian ini menggunakan data panel dari sembilan daerah kabupaten/kota di Provinsi Kalimantan Timur selama tahun 2006-2014, yang kemudian diolah menggunakan model pooled least square. Hasil penelitian menyimpulkan bahwa kontribusi subsektor batubara dalam perekonomian berhubungan positif dengan ketimpangan pendapatan. Semakin tinggi kontribusi subsektor batubara dalam perekonomian, semakin tinggi pula ketimpangan pendapatan di Provinsi Kalimantan Timur. Selain itu dalam penelitian ini ditemukan pula bahwa pengeluaran pemerintah berhubungan positifdengan ketimpangan pendapatan, yang berarti pemerintah daerah belum berhasil menciptakan pemerataan kesejahteraan di wilayahnya. Adapun pertumbuhan ekonomi dan kontribusi sektor pertanian dalam perekonomian Provinsi Kalimantan Timur terbukti tidak memiliki pengaruh yang signifikan terhadap ketimpangan pendapatan.  Kata kunci: ketimpangan pendapatan, kutukan sumber daya alam, pengeluaran pemerintah

scholarly journals Are Resource-Rich Regions Impacted More by Covid-19 Pandemic? Comparing Economic and Mobility Impact in Indonesia’s Provinces

2021 ◽  
Vol 9 ◽  
pp. 52-60
Author(s):  
Rian Hilmawan ◽  
Yesi Aprianti
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Palm Oil ◽  
Negative Impact ◽  
National Level ◽  
Gas Oil ◽  
Weak Evidence ◽  
Report Data ◽  
Almost All ◽  
Central Economic

The coronavirus pandemic has caused negative impact on economy as it limits people interactions from their normal life. This paper tries to compare the effects on economic growth and visits by locals to central economic places (retail and recreation, grocery and pharmacy stores, parks, and workplaces) of Covid-19 in Indonesia’s provinces as social restrictions applied. By using Google’s mobility report data combined with the second quarterly GRDP data across Indonesia’s sub-national level, we compare economic and mobility performances between “the treated provinces” located in Sumatra, Kalimantan and Papua Islands (SKP) who’s their economy has been dominated by natural resources-based sectors (e.g., palm oil, natural gas, oil and coal) and “the untreated provinces” in Java-Bali-and Eastern Regions (Sulawesi, Maluku, Nusa Tenggara), henceforth JBE. We visualize and provide scatterplots to depict relationships between selected variables. We also test whether each impact differs between SKP and JBE. Our study finds that while almost all provinces have been impacted negatively during the pandemic, its effects graphically differ among regions, while Java’s provinces have looked to be affected strongly. However, our statistical analyses based on Welch’s and Levene’s tests provide weak evidence that the pandemic harms regions disproportionately.

scholarly journals India’s Finance-Growth Nexus: Cointegration and Causality Analysis with Income Inequality and Globalization

2018 ◽  
Vol 5 (6) ◽  
pp. 12
Author(s):  
Takashi Fukuda
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Development ◽  
Negative Impact ◽  
Structural Break ◽  
Trade Openness ◽  
Cointegration Analysis ◽  
Causality Analysis ◽  
Causality Tests ◽  
Finance Growth Nexus

This paper investigates India’s finance-growth nexus―the relationship between financial development and economic growth―taking the weakly exogenous variables of income inequality, trade openness and financial openness together with the structural break dummy into the cointegration analysis of the vector error correction model. Implementing the Granger causality tests we have detected that both financial size and financial efficiency exhibit a negative impact on economic growth with no feedback from the latter to each of the former. It is important for policy makers to recognize that finance does not always promote economic growth, considering how to convert the effect of financial development from “growth-retarding” to “growth-enhancing”.

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