Trade openness and horizontal agricultural income inequality in Korea: focusing on sectoral income differences

2021 ◽  
pp. 1-21
Author(s):  
Soo-Eun Kim ◽  
Jun Ho Seok
Keyword(s):  
Income Inequality ◽  
Trade Openness ◽  
Income Differences ◽  
Agricultural Income

IMPACTS OF FINANCIAL INCLUSION ON POVERTY AND INCOME INEQUALITY IN DEVELOPING ASIA

2021 ◽  
pp. 1-17
Author(s):  
WARATTAYA CHINNAKUM
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Low Income ◽  
Financial Services ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Principal Component ◽  
Financial Inclusion ◽  
Poor Households ◽  
Low Income Groups

This study investigates the impacts of financial inclusion on poverty and income inequality in 27 developing countries in Asia during 2004–2019 based on a composite financial inclusion index (FII) constructed using principal component analysis (PCA). The generalized method of moments (GMM) was employed for the estimation. The results show that financial inclusion can influence the reduction in both poverty and income inequality. The empirical findings also reveal the contribution of such control variables as economic growth in decreasing income disparity and trade openness in helping improve the standard of living of poor households despite its tendency to co-vary with income inequality. The present empirical evidence supporting the role of financial inclusion in reducing poverty and income inequality in developing countries has led to a policy implication that financial sector development should focus on the availability, usage, and depth of credit to cover all poor households or low-income groups to help improve their access to financial services, enable them to increase their income, and reduce the income gap between poor and rich households.

Income Inequality Influences Perceptions of Legitimate Income Differences

2017 ◽  
Vol 48 (4) ◽  
pp. 929-952 ◽  
Author(s):  
Kris-Stella Trump
Keyword(s):  
Public Opinion ◽  
Income Inequality ◽  
National Level ◽  
System Justification ◽  
Psychological Processes ◽  
Income Differences ◽  
Future Studies ◽  
The Public ◽  
Personal Experiences ◽  
Fourth Experiment

This article argues that public opinion regarding the legitimacy of income differences is influenced by actual income inequality. When income differences are perceived to be high, the public thinks of larger income inequality as legitimate. The phenomenon is explained by the system justification motivation and other psychological processes that favor existing social arrangements. Three experiments show that personal experiences of inequality as well as information regarding national-level income inequality can affect which income differences are thought of as legitimate. A fourth experiment shows that the system justification motivation is a cause of this effect. These results can provide an empirical basis for future studies to assume that the public reacts to inequality with adapted expectations, not increased demands for redistribution.

Inequality, Protests, and the Progressive Allocation of Cash Transfers in the Argentine Provinces

2017 ◽  
Vol 59 (2) ◽  
pp. 3-26 ◽  
Author(s):  
Ernesto Calvo ◽  
Lorena Moscovich
Keyword(s):  
Income Inequality ◽  
Median Voter ◽  
Cash Transfers ◽  
Resource Theory ◽  
Average Income ◽  
Income Differences ◽  
Democratic Regimes ◽  
Power Inequality ◽  
Power Resource Theory ◽  
The Relationship

AbstractIn the last 20 years, two broadly defined theories have sought to explain the relationship between economic inequality and redistribution. The well-known hypothesis set forth by Meltzer and Richard (1981) states that larger income differences between the median voter and the average income earner should increase redistributive pressures in democratic regimes. Power Resource Theory (PRT), by contrast, argues that income inequality breeds power inequality and should dampen redistribution. Critical to both theories is the translation of redistributive interest into policy signals. This article considers protests as signals that increase the salience of inequality among voters. Results provide evidence that protests facilitate more progressive cash transfers in highly unequal environments but have modest effects in more egalitarian ones.

scholarly journals Trade Openness and Cross-country Income Differences

2015 ◽  
Vol 23 (2) ◽  
pp. 271-302 ◽  
Author(s):  
Christian Hepenstrick ◽  
Alexander Tarasov
Keyword(s):  
Trade Openness ◽  
Income Differences ◽  
Cross Country

scholarly journals Effect of Globalization on Income Inequality in Ghana

2021 ◽  
Vol 13 (2) ◽  
pp. 15
Author(s):  
Christiana Manu
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Positive Impact ◽  
Trade Openness ◽  
Negative Relationship ◽  
Fdi Inflows ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Significant Negative Relationship

Available empirical evidence suggests that globalisation in recent years have had a significant positive impact on various sectors of most economies; however, significant evidence also exists suggesting that this economic process has also accentuated poverty and worsened income distribution in parts of some economies. This study examines the effects of foreign direct investment, trade openness and foreign remittance on income inequality in Ghana. The paper applied the vector error correction model in examining the effect of FDI inflow, foreign remittance and trade openness and income inequality in Ghana. The result indicates Foreign Remittance, FDI, Trade Openness and Gini index, are integrated of order one. Additionally, Johansen’s test for cointegration suggest a long-run relationship between the Gini coefficient (income distribution) and examined independent variables. The study also found out that foreign remittance has a significant negative relationship with Ghana’s income inequality and FDI inflows have no significant impact on Ghana’s income inequality.

Does Nominal Devaluation Improve Income Distribution? Evidence from Bangladesh

2012 ◽  
Vol 19 (1) ◽  
pp. 61-77
Author(s):  
Muhammad Shahbaz ◽  
Mohammad Mafizur Rahman
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Trade Openness ◽  
Bounds Testing ◽  
Correction Model ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

The article aims to investigate the impact of nominal devaluation on income distribution in Bangladesh both in short and long runs. In doing so, Auto Regressive Distributed Lag (ARDL) bounds testing has been employed for cointegration, and Error Correction Model (ECM) has been used for short-run dynamics. The empirical psychology has confirmed the existence of long-run relationship between the variables. Furthermore our estimated results reveal that nominal devaluation tends to decrease income inequality. Though economic growth appears to improve income distribution, non-linear link between both the variables, however, depicts Kuznets’ inverted-U curve (1955). Financial development causes further deterioration in income distribution. Trade openness contributes to income inequality as discussed in Leontief Paradox.

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

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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