scholarly journals Open access renewable resources, urban unemployment, and the resolution of dual institutional failures

2021 ◽  
pp. 1-17
Author(s):  
Ichiroh Daitoh ◽  
Nori Tarui
Keyword(s):  
Open Access ◽  
Institutional Change ◽  
Poverty Reduction ◽  
Urban Migration ◽  
Wage Subsidy ◽  
Tax Rate ◽  
Urban Unemployment ◽  
Long Run ◽  
Export Tax ◽  
Short Run

Abstract This paper investigates how poverty reduction and natural resource preservation can be simultaneously achieved in a small open dual economy with urban wage rigidity, open access rural resources, and rural-urban migration. An increase in the export tax rate on the rural resource good increases urban unemployment in both the short run and the long run with resource dynamics. Given the institutional failures, the first-best policy is an urban wage subsidy combined with either a rural wage subsidy at a lower rate or, if the urban output price is sufficiently high, a rural tax. When the institutional failures can be resolved endogenously, an increase in the export tax on the resource good can induce rural institutional change away from open access. However, tariff protection of urban manufacturing hinders such a rural institutional change.

scholarly journals Financial Development, Economic Growth and Poverty Reduction in India: An Empirical Evidence

ETIKONOMI ◽  
2021 ◽  
Vol 20 (1) ◽  
pp. 13-22
Author(s):  
Md. Qaiser Alam ◽  
Md. Shabbir Alam
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Financial Development ◽  
Poverty Reduction ◽  
The Other ◽  
Development Economic ◽  
Impulse Response Functions ◽  
Response Functions ◽  
Long Run ◽  
Short Run

The paper examines the response of poverty reduction based on financial development and economic growth in India. The ARDL and ECM based model techniques analyze the long-run and short-run relationship among the variables in the model. The long-run estimates depict that financial development and economic growth have not significantly impacted poverty reduction and, on the other hand, resulted in injecting inequality and becoming attended to wealthier sections of the society. The short-run estimates show that financial development and economic growth have successfully tried to reduce poverty in India. The results flash a long-run nature of poverty in India and need to designs and formulations of policies that should be instrumental in reducing poverty. Impulse Response Functions' application indicates that poverty reduction will act as a catalyst for further poverty reduction in India.JEL Classification: I32, B26, O40, R15How to Cite:Alam, M. Q., & Alam, M. S. (2021). Financial Development, Economic Growth, and Poverty Reduction in India. Etikonomi: Jurnal Ekonomi, 20(1), 13 – 22. https://doi.org/10.15408/etk.v20i1.18417.

scholarly journals Poverty and Agriculture in Southern Africa Revisited: A Panel Causality Perspective

SAGE Open ◽  
2019 ◽  
Vol 9 (1) ◽  
pp. 215824401982885 ◽  
Author(s):  
Festus Victor Bekun ◽  
Seyi Saint Akadiri
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Southern Africa ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Agricultural Development ◽  
Value Added ◽  
Panel Causality ◽  
Long Run ◽  
Short Run

Agricultural advancement is considered a panacea for poverty reduction, particularly, in developing countries. This study empirically investigates the dynamic linkage between agricultural value added (AVA) and poverty reduction for a panel of nine countries in Southern Africa using a second-generation panel approach for the period 1990 to 2015. Empirical results show that agricultural development is necessary but not a sufficient policy to combat poverty as it is only viable in the short run. Thus, we suggest long-run economic programs and/or strategies that will complement agricultural development toward poverty alleviation to spur economic growth in the sampled region.

scholarly journals Export Tax Reform and the Competitiveness of Imported Soybeans in China

2019 ◽  
Vol 51 (3) ◽  
pp. 511-525 ◽  
Author(s):  
Andrew Muhammad ◽  
Constanza Valdes
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
Import Demand ◽  
Chinese Market ◽  
Long Run ◽  
Export Tax ◽  
Export Taxes ◽  
Short Run ◽  
Demand Changes

AbstractExport tax reform in Argentina could improve its competitiveness in China’s soybean market, displacing exports from competing countries like Brazil and the United States. We examined the factors that determine China’s demand for imported soybean products and how export taxes could affect exporting countries. Using import demand and vector autoregression estimates, we conducted simulations of China’s import demand assuming the elimination of export taxes in Argentina. Results indicated that Argentine soybean products could realize gains in the Chinese market, but only in the short run. Projected import demand changes in the long run were insignificant for all exporting countries.

scholarly journals Frequency Domain Causality Relationship Analysis Between Poverty, Economic Growth and Financial Development in Algeria

2019 ◽  
Vol 12 (2) ◽  
pp. 93-111
Author(s):  
Ayad Hicham ◽  
Belmokaddem Mostefa ◽  
Sari Hassoun Salah Eddin
Keyword(s):  
Economic Growth ◽  
Frequency Domain ◽  
Financial Development ◽  
Poverty Reduction ◽  
Financial Sector ◽  
Real Sector ◽  
Relationship Analysis ◽  
Long Run ◽  
Short Run ◽  
The Time Domain

AbstractSince the previous periods, poverty reduction has been a big concern for many countries especially in developing countries like Algeria; in this paper, we shall explore the causal relationship between poverty reduction, economic growth and financial development in Algeria during the period of 1970-2017, the aim of this research is to answer the question which sector causes the poverty reduction: real sector or financial sector? Therefore, we employed the modern frequency domain causality presented by Breitung and Candelon (2006) with a comparison with the time domain causality under Lutkepohl (2006) procedure, the results suggest that there is unidirectional causality running from the real sector (economic growth) to poverty rates in the short and long run terms, also, we found that there is an unidirectional causality running from the financial sector to poverty rates only in the long run term, while another causality running from poverty rates to the financial sector but in the short run term. This article aims at contributing to enlarge the literature review by utilizing the frequency domain causality in the field of poverty studies because of its effectiveness to test the causalities in different frequencies.

The Economic Growth–Income Inequality–Poverty Nexus and Its Impact on Environmental Degradation: Empirical Evidence from India

2021 ◽  
pp. 097639962110238
Author(s):  
Geetilaxmi Mohapatra ◽  
Arun Kumar Giri
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Environmental Degradation ◽  
Poverty Reduction ◽  
Positive Impact ◽  
Universal Access ◽  
Causality Test ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to examine the main forces affecting short-run and long-run carbon emission patterns due to changes in economic growth, income inequality and poverty in India over the period 1982–2018. For this purpose, it uses the autoregressive distributed lag (ARDL) cointegration technique and the vector error correction model (VECM) based on Granger causality tests. The stationary properties of the variables are checked using the Ng–Perron test. The results of the ARDL bounds test confirm the long-run relationship among the variables. Further, the ARDL coefficient confirms that economic growth and poverty increase carbon emissions in both the short and long run. The empirical findings of the causality test indicate the presence of short-run causality running from economic growth and poverty reduction to environmental degradation. Hence, the study recommends that policymakers must devote more attention to alleviating poverty and reducing income inequalities through redistributing transfers, investing on universal access to health and education, implementing progressive taxation policies, empowering women and enforcing the Clean India mission, which will have a positive impact on reducing environmental degradation in India. Further, the study also recommends appropriate environmental regulations that can substantially stimulate innovations to increase energy efficiency and thereby reduce carbon dioxide (CO2) emissions.

An Escape from the Malthus Rectangle? Poverty, and Conversion Efficiency (Distinguishedl Lecture)

1994 ◽  
Vol 33 (4I) ◽  
pp. 433-461
Author(s):  
Michael Lipton
Keyword(s):  
Poverty Reduction ◽  
Industrial Revolution ◽  
Well Being ◽  
Real Income ◽  
The Poor ◽  
Long Run ◽  
Short Run ◽  
Marginal Returns ◽  
Central Claim

Malthus (1798, 1803, 1824) wrote during the world's first period of sustained and widespread growth in real income per person: the "Northern" agro-industrial revolution of 1740-1970. When he wrote, it was widely believed that not only growth, but also poverty reduction, depended substantially on what he called "schemes of improvement". Malthus's central claim is that these could not reduce poverty in the long run, unless fertility declined. This, he believed, was because any short-run success of "schemes of improvement" in reducing poverty would increase the rate of population growth among the poor. This would raise the supply of labour and the demand for food. Owing to diminishing marginal returns to extra hectares-plus-persons as new, inferior land was brought into cultivation, "the proportion between the price of labour and the price of provisions" would then fall, thus returning the poor to poverty. Unless fertility fell, the long-term well-being of the poor could not improve much. Being largely dependent on the real wage, it was boxed in by the Malthus rectangle (Figure 1) of population, labour supply, land, and food, and the interactions among them.

Specific Taxes, Product Quality, and Rate-Revenue Analysis

1984 ◽  
Vol 12 (4) ◽  
pp. 500-511 ◽  
Author(s):  
Cecil E. Bohanon ◽  
T. Norman Van Cott
Keyword(s):  
Product Quality ◽  
Supply And Demand ◽  
Time Frame ◽  
Tax Revenue ◽  
Temporal Dimension ◽  
Tax Rate ◽  
Goods And Services ◽  
Quality Adjustment ◽  
Long Run ◽  
Short Run

The effect that specific taxes have on product quality has been a question of interest to economists over the last few years. The problem arises because while goods and services are multidimensional in terms of utility generating characteristics, specific taxes are almost always levied on just one of the characteristics. The effect of quality adjustment on tax revenue has not yet been examined in any detail. Quality adjustment is no doubt a change that occurs over a longer-run time frame. Heretofore, the only attempts at adding a temporal dimension to rate-revenue analysis distinguish between the short run and long run in terms of supply and demand elasticities. In the previous analysis the tax rate at which revenue is maximized and the tax rate at which revenue reaches zero are both lower in the long run. What makes the analysis presented here interesting is that when product quality accounts for the intertemporal distinction, the revenue maximizing tax rate and the tax rate that yields zero revenue are both higher in the long run.

ON THE CONTINGENT VICE OF CORRUPTION

2018 ◽  
Vol 35 (02) ◽  
pp. 158-181 ◽  
Author(s):  
Michael C. Munger
Keyword(s):  
Open Access ◽  
The North ◽  
Long Run ◽  
Short Run

Abstract:This essay develops a notion of “functional corruption,” adapted from sociology, to note that the harm of corruption appears to be contingent. In a system of dysfunctional institutions, corruption can improve the efficiency and speed of allocative mechanisms of the bureaucracy, possibly quite substantially. The problem is that this “short run” benefit locks in the long run harm of corruption by making institutions much more difficult to reform. In particular, a nation with bad institutions but without bureaucracy may be much more open to reform than a nation with similarly bad institutions but with “efficiently corrupt” bureaucrats. The idea of a “long run” is developed using the North, Wallis, and Weingast conception of open access orders. Corrupt systems are likely to be locked into closed access orders indefinitely, even though everyone knows there are better institutions available.

Financial development and poverty reduction in India: an empirical investigation

2016 ◽  
Vol 43 (2) ◽  
pp. 106-122 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri
Keyword(s):  
Financial Development ◽  
Poverty Reduction ◽  
Financial Sector ◽  
Annual Data ◽  
Causality Test ◽  
Content Type ◽  
Financial Sector Development ◽  
Long Run ◽  
Integration Test ◽  
Short Run

Purpose – The purpose of this paper is to examine the relationship between financial sector development and poverty reduction in India using annual data from 1970 to 2012. The paper attempts to answer the critical question: does financial sector development lead to poverty reduction? Design/methodology/approach – Stationarity properties of the series are checked by using Ng-Perron unit root test. The paper uses the Auto Regressive Distributed Lag (ARDL) bound testing approach to co-integration to examine the existence of long-run relationship; error-correction mechanism for the short-run dynamics and Granger non-causality test to test the direction of causality. Findings – The co-integration test confirms a long-run relationship between financial development and poverty reduction for India. The ARDL test results suggest that financial development and economic growth reduces poverty in both long run and short run. The causality test confirms that there is a positive and unidirectional causality running from financial development to poverty reduction. Research limitations/implications – This study implies that poverty in India can be reduced by financial inclusion and financial accessibility to the poor. For a fast growing economy with respect to financial sector development this may have far-reaching implication toward inclusive growth. Originality/value – This paper is the first of its kind to empirically examine the causal relationship between financial sector development and poverty reduction in India using modern econometric techniques.

An empirical investigation of the link between infrastructure development and poverty reduction

2017 ◽  
Vol 44 (12) ◽  
pp. 1906-1918 ◽  
Author(s):  
Varun Chotia ◽  
N.V.M. Rao
Keyword(s):  
Poverty Reduction ◽  
Principal Component ◽  
Vital Role ◽  
Infrastructure Development ◽  
Indian Government ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

Purpose India is a developing nation where the marginal benefit of infrastructure development is tremendous. The purpose of this paper is to analyze the relationship between infrastructure development and poverty reduction for India using the yearly data from 1991 to 2015. Design/methodology/approach The authors use the principal component analysis to construct indices for four major sub-sectors, namely, transport, water and sanitation, telecommunications and energy, falling under the broad infrastructure sector and then using these sectorwise indices, the authors construct an overall index which represents infrastructure development. The authors provide evidence on the link between infrastructure development and poverty reduction by using the auto regressive distributed lag (ARDL) bound testing approach. Findings The ARDL test results suggest that infrastructure development and economic growth reduce poverty in both long run and short run. The causality test confirms that there is a positive and unidirectional causality running from infrastructure development to poverty reduction. Research limitations/implications The study confirms that India’s Infrastructure development plays a vital role in reducing poverty and calls for the Indian Government to adopt economic policies which are aimed at developing and strengthening the infrastructure levels and bringing in more investment in the infrastructure sector in order to help the poor population by making them exposed to better opportunities of employment and income growth, thereby achieving the goal of poverty reduction. Originality/value This paper is a fresh and unique attempt of its kind to empirically investigate the causal relationship between infrastructure development and poverty reduction in India using modern econometric techniques.

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