Economic complexity, scientific productivity and income inequality in developing economies

2021 ◽  
Author(s):  
Hamid Sepehrdoust ◽  
Mohsen Tartar ◽  
Aliakbar Gholizadeh
Keyword(s):  
Income Inequality ◽  
Developing Economies ◽  
Scientific Productivity ◽  
Economic Complexity

scholarly journals Economic Complexity and the Mediating Effects of Income Inequality: Reaching Sustainable Development in Developing Countries

2020 ◽  
Vol 12 (5) ◽  
pp. 2089 ◽  
Author(s):  
Emilie Le Caous ◽  
Fenghueih Huarng
Keyword(s):  
Sustainable Development ◽  
Developing Countries ◽  
Energy Consumption ◽  
Income Inequality ◽  
Human Development ◽  
Gender Inequality ◽  
Primary Concern ◽  
Mediating Effects ◽  
Economic Complexity ◽  
Country Level

According to the United Nations Development Program, sustainable development goals are fundamental for attaining a better and more sustainable future for all of us, and are a primary concern today. New indicators, such as the Economic Complexity Index (i.e., ECI), can be used to predict human development index (i.e., HDI). To be defined as a complex economy, a country, through a vast network of individuals, should be able to interlink extensive quantities of relevant knowledge to create diversified products. Political, cultural, and environmental factors should also be included in this model to improve the measurement of human development. This paper aimed to study the relationship between the ECI and HDI and the mediating effects of income inequality among developing countries. Hierarchical linear modeling was used as a statistical tool to analyze 87 developing countries from 1990 to 2017, which also studied the country-level effects of gender inequality and energy consumption. Different year lags were used for more robustness. The results show that human development increased with higher economic complexity. This relationship was, however, partially mediated by income inequality. Country-level predictors, gender inequality, and energy consumption also impacted sustainable development. Finally, it is essential to note that this model cannot be applied to developed economies.

scholarly journals Economic complexity to boost the selected sub-Saharan African economies

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Thobeka Ncanywa ◽  
Itumeleng P. Mongale ◽  
Ombeswa Ralarala ◽  
Thabiso E. Letsoalo ◽  
Brian S. Molele
Keyword(s):  
Income Inequality ◽  
African Region ◽  
African Countries ◽  
Data Set ◽  
Services Sector ◽  
Economic Complexity ◽  
Managerial Implications ◽  
African Context ◽  
Sub Saharan ◽  
Value Add

Orientation: Economic complexity is a measure of productive capabilities indirectly by looking at the mix of sophisticated products that countries export. The economic complexity index proposed a proxy for diversity and ubiquity of products in the export basket.Research purpose: This study seeks to determine if economic complexity can influence the inequality measured by the Gini index in some selected sub-Saharan African countries.Motivation for the study: The need for the study emanates from the notion that that economic complexity can reduce income inequality hence it is imperative to investigate this relationship in the sub-Saharan African region where most countries produce few sophisticated goods that are also labour-intensive. Inadequate literature within the African continent has also contributed to the formulation of this study.Research approach/design and method: This study employed the autoregressive distribution lag (ARDL) model to analyze a panel data set, which includes eight sub-Saharan African countries for the period 1994–2017.Main findings: We found that economic complexity can reduce income disparities.Practical/managerial implications: Sub-Saharan African countries should shift their productive capabilities and resources from primary to sophisticated products in the manufacturing and services sector to increase economic complexity and reduce inequality.Contribution/value-add: The study makes an important contribution to the debate about the relationship between economic complexity and income inequality in the sub-Saharan African context and it is envisaged that it will inform the actions of the decision-makers to drive future productivity and prosperity in the region.

scholarly journals Innovations in achieving sustainable economic performance under income inequality

2021 ◽  
Vol 5 (2) ◽  
pp. 146-154
Author(s):  
Inna Cabelkova ◽  
Manuela Tvaronaviciene ◽  
Wadim Strielkowski
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Income Inequality ◽  
Economic Performance ◽  
Financial Services ◽  
Developing Economies ◽  
Well Being ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Impact

The negative effect of income inequality on economic growth represents a topic that constitutes a broad topic of research in the standard economic theory. One of the immediate consequences of income inequality is diminished consumption. Many «poor» customers cannot provide sufficient demand for the producers, causing overproduction that might lead to an economic crisis. It constitutes a problem because sustainable economic performance needs to be achieved under the conditions of income inequality. Reducing social and economic inequality in countries is an essential step towards ensuring that no one is left behind. It is also part of the 10th Sustainable Development Goal aimed to reduce it by 2030. Inequality is based on the income distribution between the top 1% and the bottom 99% of households in any given country. The degree of inequality could play a beneficial role if it is driven by market forces and is associated with incentives to increase growth. In developing and emerging countries, greater equality and improvements in living standards are needed to enable populations to flourish. Inequality reduction is one of the most critical steps a government could take to improve the well-being of its population. The income inequality growth increases human capital in poor countries and reduces it in high and middle-income countries. In poorer countries, it increases them, but in higher – and middle-income countries, it reduces them. Income inequality could be reduced by improving human capital and general skill levels, correcting labor-market policies, and making better use of financial services. In turn, sustainable economic growth could reverse the negative effects of inequality, reducing the need for high-wage and higher-earning households. Thus, it provides higher economic growth. This paper discusses three ways to circumvent the impact of decreasing consumption on economic growth adopted in developing economies over the last fifty years, such as increasing exports, providing loans for consumption, and printing new money. The findings showed that none of these methods seem to be sustainable in the long run. Thus novel and innovative mechanisms that would allow our economy to reduce inequality are necessary and need to be put into place.

scholarly journals A Survey of Inclusive Growth Policy

Economies ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 65 ◽  
Author(s):  
Almas Heshmati ◽  
Jungsuk Kim ◽  
Jacob Wood
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Developing Economies ◽  
Methodological Approach ◽  
Inclusive Growth ◽  
Growth Policy ◽  
Biased Technological Change ◽  
Silver Bullet ◽  
Generous Welfare ◽  
Do So

Background: Since the latter part of the 20th Century, countries have been particularly challenged by the trade-off that exists between delivering generous welfare provisions and strong economic growth. Such dynamics have stimulated a need to better understand the causes of income inequality so as to better formulate policies that foster inclusive growth and reduce growing concerns surrounding income inequality. Method: Given its ability to succinctly summarize, analyze, and synthesize an extant body of literature from a certain genre of scholastic endeavor, this study utilizes a literature review as its proposed methodological approach. Results: From our assessment of the literature, we identified four key areas that contribute significantly to income inequality in both advanced and developing economies, these include: (i) pursuing skill-biased technological change; (ii) enhancing education systems; (iii) consolidation of globalization; and (iv) reform of the labor market and its relevant institutions. Conclusion: There is no silver bullet to achieving inclusive growth. Any policy manifesto must seek to offer a coordinated policy platform that looks to deal directly with the causes of inequality. In order to do so, consideration should be given to a range of policy areas including fiscal, education, trade liberalization, and labor market reforms.

scholarly journals Linking Economic Complexity, Institutions, and Income Inequality

2017 ◽  
Vol 93 ◽  
pp. 75-93 ◽  
Author(s):  
Dominik Hartmann ◽  
Miguel R. Guevara ◽  
Cristian Jara-Figueroa ◽  
Manuel Aristarán ◽  
César A. Hidalgo
Keyword(s):  
Income Inequality ◽  
Economic Complexity
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