IMPACT OF INCOME INEQUALITY AND DEFENCE BURDEN ON ECONOMIC GROWTH

2012 ◽  
Vol 57 (03) ◽  
pp. 1250014 ◽  
Author(s):  
ZAINAB IFTIKHAR ◽  
AMANAT ALI
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Endogenous Growth ◽  
Growth Model ◽  
Negative Relationship ◽  
The World ◽  
Endogenous Growth Model ◽  
Relationship Of ◽  
Different Parts

This study explores how income inequality and defence burden affects economic growth in different parts of the world. We follow an endogenous growth model that proposes a negative relationship of growth with income inequality and defence burden. The implications of the model are tested using panel data. The results suggest a negative relationship of growth with income inequality and defence burden. A by-product of this analysis is the conclusion regarding convergence. Our study finds no support for convergence across the world.

A NOTE ON INFLATION, ECONOMIC GROWTH, AND INCOME INEQUALITY

2009 ◽  
Vol 13 (1) ◽  
pp. 138-147 ◽  
Author(s):  
Yi Jin
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Income Inequality ◽  
Endogenous Growth ◽  
Money Growth ◽  
Relative Importance ◽  
Long Run ◽  
Endogenous Growth Model ◽  
The Relationship ◽  
Negative Growth

This paper develops a monetary endogenous growth model with capital and skill heterogeneity to analyze the relationship among inflation, growth, and income inequality. In the model inflation, growth, and inequality are jointly determined. We show that an increase in the long-run money growth rate raises inflation and reduces growth, but its effect on income inequality depends on the relative importance of the two types of heterogeneity. Inequality shrinks with the rise of inflation when capital heterogeneity dominates and enlarges when skill heterogeneity dominates. Therefore, our model supports a negative (positive) inflation–inequality relationship and a positive (negative) growth–inequality relationship when capital (skill) heterogeneity dominates. In any event, inflation and growth are negatively related.

scholarly journals Semi-Endogenous Growth Model for Developing Countries: A Modification to Jones Model

2019 ◽  
Vol 8 (1) ◽  
pp. 121-134
Author(s):  
Hari Nugroho ◽  
N. Haidy Ahmad Pasay ◽  
Arie Damayanti ◽  
Maddaremmeng A Panennungi
Keyword(s):  
Human Capital ◽  
Endogenous Growth ◽  
Growth Model ◽  
General Model ◽  
Capital Accumulation ◽  
Technological Advances ◽  
The World ◽  
Jones Model ◽  
Endogenous Growth Model ◽  
Developed Nations

Semi-endogenous growth model emphasizes human capital accumulation and technological advances in supporting economic growth. While most countries in the world lack the ability to accumulate their human capital and advance in technology, the privilege of research and development lies on part of developed nations. The increase in the stock of knowledge can come from different interactions with other countries in the world. But the crucial point to make is what underlies these differences among nations in the world. This study modifies Jones model by embedding characteristics that different countries in the world. Such an attempt is directed to produce a more general model of semi-endogenous growth to be applicable to all countries in the world. The end result of this study is to present a more general model that will be easily applicable to different countries in the world.

scholarly journals The Effect Of Polity On The Economic Growth And The Income Inequality: Panel Data Methodology

2019 ◽  
Author(s):  
Rıdvan Karacan ◽  
Zişan Kılıçkan
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Data Model ◽  
Global Economy ◽  
Human Life ◽  
Panel Data Model ◽  
The Social ◽  
The World ◽  
The Subject

<p></p><p>Despite the fact that the global economy grows, the income inequality increases. The Income Inequality is an important factor which affects the human life negatively both in the financial and the social manner. It has been made lots of investigations whose topic is the economic growth and the income inequality. In this paper, it has been compared the connection between the economic growth and the income inequality in terms of the polity in the countries. Therefore, it has been desired to be brought a different perspective into the literature on the subject of the economic growth and the income inequality. It has been given information about the situation in the world especially aimed at the income inequality. The correlation of “Gini Coefficient” and “Economic Growth” belonging to the democratic countries (USA, United Kingdom and Germany) and the autocratic countries (Ethiopia, Nigeria and Gabon) in terms of their polities has been tested with the Panel Data Methodology. Empirical analysis involves the period of 1995-2015. In the results obtained by making Panel Data Model, it has been ascertained a negative correlation between the Economic Growth and the Income Inequality for the democratic countries. However in the autocratic countries, it has been seen that this correlation is very weak.</p><br><p></p>

scholarly journals Islamic finance and economic growth: the Turkish experiment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Ayoub Ledhem ◽  
Mohammed Mekidiche
Keyword(s):  
Economic Growth ◽  
Endogenous Growth ◽  
Growth Model ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Global Market ◽  
Islamic Finance ◽  
Content Type ◽  
Endogenous Growth Model

PurposeThis study aims to empirically investigate the connection between Islamic finance and economic growth in Turkey using the endogenous growth model.Design/methodology/approachIt applies quantile regression with the Markov chain marginal bootstrap resampling technique by adopting total Islamic financing as the main exogenous explanatory factor in the endogenous growth model, while the gross domestic product (GDP) is employed as a measure of economic growth. The sample consists of all full-fledged participation (Islamic) banks operating in Turkey spanning from 2013Q4 until 2019Q4. The study uses academic literature, official financial reports from the Participation Banks Association of Turkey, REDmoney Group, Islamic Financial Services Board (IFSB) and the International Monetary Fund (IMF) database.FindingsThe results show that Islamic finance is promoting economic growth in Turkey, which mirrors the success of the New Turkish Economy Program (2019–2021) which aims at boosting economic growth by enhancing the Islamic finance share in the Turkish banking sector and the global market.Research limitations/implicationsTurkey has a dual banking system (conventional and participation (Islamic)) and both can influence the country's real economy. This study is limited to the influence of Islamic banking on Turkish economic growth. The study also restricts its size and coverage from 2013Q4 to 2019Q4, to cover the years over which data for all variables included in the research are available.Practical implicationsThis paper suggests the adoption of the Turkish successful experiment as a path to reach economic growth by increasing the Islamic finance share in the banking industry for countries that seek to promote economic growth by Islamic finance, as the findings of this paper support.Originality/valueThis study is the first that examines the influence of Islamic finance on economic growth under a new theoretical framework of the endogenous growth model in Turkey using a robust non-parametric approach.

Islamic finance and economic growth nexus: an empirical evidence from Southeast Asia using dynamic panel one-step system GMM analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Ayoub Ledhem ◽  
Mohammed Mekidiche
Keyword(s):  
Economic Growth ◽  
Southeast Asia ◽  
Endogenous Growth ◽  
Growth Model ◽  
Islamic Finance ◽  
Dynamic Panel ◽  
System Gmm ◽  
Content Type ◽  
Endogenous Growth Model ◽  
One Step

Purpose This paper aims to empirically explore the nexus between Islamic finance and economic growth across Southeast Asia based on the perception of the endogenous growth model. Design/methodology/approach This paper applied the dynamic panel one-step system GMM as an optimum estimation approach to study the influence of Islamic finance on economic growth in Southeast Asia from 2013Q4 to 2019Q4. This paper used total Islamic financing as the major exogenous explanatory factor inside the endogenous growth model, whereas the gross domestic product was used as the measurement of economic growth. The sample consisted of all complete Islamic banks operating in Southeast Asia (Malaysia, Brunei Darussalam and Indonesia). Findings The findings demonstrated that Islamic finance is promoting economic growth in Southeast Asia, which reflects the weighty role of Islamic finance as an energetic contributor to economic growth. Practical implications This paper would enrich the literature by studying the nexus between Islamic finance and economic growth in Southeast Asia based on the perception of endogenous growth model, as the results of this paper assist as an attendant for financial scholars, decision-makers and policymakers to expand Islamic finance globally as an alternative funding source for the best involvement to economic growth. Originality/value Despite the existing studies on the nexus between Islamic finance and economic growth, this paper is the first that explores empirically the nexus between Islamic finance and economic growth in Southeast Asia based on the theoretical background of the endogenous growth model to obtain solid information on this nexus.

scholarly journals Factor accumulation and economic growth in Pakistan: incorporating human capital

2018 ◽  
Vol 45 (3) ◽  
pp. 480-491 ◽  
Author(s):  
Kashif Munir ◽  
Shahzad Arshad
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Endogenous Growth ◽  
Growth Model ◽  
Physical Capital ◽  
Content Type ◽  
Long Run ◽  
Endogenous Growth Model ◽  
Factor Accumulation

Purpose The purpose of this paper is to examine the long-run and short-run relationship between factor accumulation (i.e. physical capital and human capital) and economic growth by calculating the stocks of human capital and real physical capital. Design/methodology/approach The study uses endogenous growth model, where GDP per worker is the dependent variable and factor accumulation (real physical capital per worker and human capital) is the explanatory variable under the autoregressive distributive lag framework from 1973 to 2014 for Pakistan. Findings The results suggest that there is a long-run relationship between factor accumulation and GDP per worker in Pakistan. Findings of the study are consistent with the endogenous growth model suggesting that accumulation of human capital increases labor productivity, employment level and per capita income, and causes economic growth. Practical implications Developing countries like Pakistan should increase share of human capital for economic development. Government should invest in the education sector because investment in human capital has a large potential of productivity growth and welfare increase in developing countries. Originality/value This study challenges the notion of human capital and real physical capital stock used by different researchers. Considering human capital as a core factor of production, a series of human capital as average year of schooling is calculated by utilizing the perpetual inventory method.

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