EVALUATING THE ROLE OF EDUCATION AND HUMAN CAPITAL IN POVERTY REDUCTION AND INCLUSIVE GROWTH IN SOUTH ASIA

2021 ◽  
pp. 1-22
Author(s):  
SICHENG LI ◽  
CEMEI LI ◽  
MOHAMMAD MARUF HASAN ◽  
SYED MOUDUD-UL-HUQ ◽  
ROBINA IRAM
Keyword(s):  
Human Capital ◽  
Financial Development ◽  
Poverty Reduction ◽  
Regional Cooperation ◽  
Least Square ◽  
Critical Determinant ◽  
Pay Disparity ◽  
Dynamic Ols ◽  
The Government ◽  
The Impact

Economic growth necessitates the development of human capital and education. It plays a critical and necessary role in the formulation of income distribution policies and alleviating poverty. This study investigates the relationship through ordinary least square (OLS), fully-modified OLS and dynamic OLS models using panel data from the South Asian Association for Regional Cooperation (SAARC) countries from 1990 to 2018. According to the findings, imbalance plays an important role in influencing poverty and concludes that the government should embrace procedures that help improve pay distribution to reduce poverty at the strategy level. Furthermore, the findings state that a bi-directional Granger causality exists between schooling and poverty. In terms of strategy, SAARC countries should continue to increase the proportion of sustainable energy used for financial development, thereby decreasing the use of fossil energy for environmental improvements. Additionally, this study shows that the association of pay disparity hoses the positive effect of financial development on poverty, and it supports the contention that the degree of imbalance reduces the impact of comprehensiveness. Pay disparity is now a critical determinant of poverty.

scholarly journals Role of agricultural cooperatives in poverty reduction in Nepal : an empirical analysis

2021 ◽  
Author(s):  
◽  
Dinesh Dhakal
Keyword(s):  
Poverty Reduction ◽  
Family Income ◽  
Developing Economies ◽  
Least Square ◽  
Farm Income ◽  
Agricultural Cooperatives ◽  
Local Market ◽  
The Government ◽  
Crop Income ◽  
The Impact

Cooperatives refer to producer-owned and controlled organizations that improve farmers' livelihoods by correcting market failure. Policy makers consider cooperatives as an appropriate development approach for poverty alleviation of poor farmers for developing economies; therefore, the government of Nepal has been investing economic resources in this sector, prioritizing it as part of a strategy for poverty reduction. The number of coopertives have been increased substantially since 2007 and almost half of the coopertives are involved in agricultural sector. This dissertation research examines poor farmers' access to agricultural cooperatives and the impact of membership on their crop income in Nepal. This study is based on a household survey of 573 rural farm families and Key Informant Interviews of 37 managers of agricultural cooperatives. In order to make the inferences on access and income gain, probit regression, matching, ordinary least square and two-stage least squares techniqpropriate identification strategies for a cross-sectional data. This study predicts cooperative membership with household characteristics (including demographic and geographic information) and village characteristics. In addition, some of our models use village location dummies rather than village characteristics. The analysis identifies some key determinants that influence cooperative membership. Those determinants are the ethnicity of a family, the ethnicity of a neighborhood, smallholder land size, distance to agricultural cooperatives, distance to the nearest local market, and distance to a motorable road. For the second research question, our estimates imply that cooperative membership may significantly impact family net crop income but not the rotal family income. Indeed, currently, agricultural cooperatives appear to be focused on financial services like savings and credit activities but are less concerned with agricultural production, and engage in almost no marketing activities. In addition to analyses based on our sample, this study weights the sample to adjust our survey to reflect population estimates; however, there were no important changes in the direction or significance of the variables in weighted specifications compared to unweighted sample specifications. Finally, we conclude it will take some years for members to understand the cooperative guidelines thoroughly and the potential of the cooperative approach to improve economic conditions. Also, there should be a serious attempt from the government to develop the agricultural infrastructure and industry, and to execute a cooperative policy to reduce smallholders' poverty. Keywords: collective action, cooperatives, poverty reduction, net farm income

Financial and monetary policy of the State and its impact on the income level and poverty reduction in Russia

2020 ◽  
Vol 26 (5) ◽  
pp. 964-990
Author(s):  
N.I. Kulikov ◽  
V.L. Parkhomenko ◽  
Akun Anna Stefani Rozi Mobio
Keyword(s):  
Monetary Policy ◽  
Household Income ◽  
Poverty Reduction ◽  
The State ◽  
Financial Policy ◽  
Gdp Growth ◽  
Tax Rate ◽  
Gdp Growth Rate ◽  
The Government ◽  
The Impact

Subject. We assess the impact of tight financial and monetary policy of the government of the Russian Federation and the Bank of Russia on the level of household income and poverty reduction in Russia. Objectives. The purpose of the study is to analyze the results of financial and monetary policy in Russia and determine why the situation with household income and poverty has not changed for the recent six years, and the GDP growth rate in Russia is significantly lagging behind the global average. Methods. The study employs methods of analysis of scientific and information base, and synthesis of obtained data. The methodology and theoretical framework draw upon works of domestic and foreign scientists on economic and financial support to economy and population’s income. Results. We offer measures for liberalization of the financial and monetary policy of the government and the Central Bank to ensure changes in the structure of the Russian economy. The proposed alternative economic and financial policy of the State will enable the growth of real incomes of the population, poverty reduction by half by 2024, and annual GDP growth up to 6 per cent. Conclusions. It is crucial to change budget priorities, increase the salaries of public employees, introduce a progressive tax rate for individuals; to reduce the key rate to the value of annual inflation and limit the bank margin. The country needs a phased program to increase the population's income, which will ensure consumer demand.

Remittances, Economic Growth and Poverty: A Case of African OIC Member Countries

2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Annual Data ◽  
Simultaneous Equation Model ◽  
African Countries ◽  
Alternative Source ◽  
The Impact

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model

Cuba's “Equity without Growth” Dilemma and the 2011 Lineamientos

2012 ◽  
Vol 54 (03) ◽  
pp. 157-184 ◽  
Author(s):  
Javier Corrales
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Internet Access ◽  
Economic Reforms ◽  
Political Rights ◽  
Bicycle Industry ◽  
The Government ◽  
The Impact ◽  
Two Sectors

Abstract Cuba faces a development dilemma: it promotes equity and human capital while failing to deliver economic growth. For the government, the country's equity and human capital achievements are a source of pride, a sign that its priorities are right. This essay argues instead that this “equity without growth” dilemma is a sign of malaise. Theory and evidence suggest that high levels of equity and human capital should produce high levels of economic growth. Because growth is often weak or negative, some onerous barriers to development must be present. These barriers, it is argued, are restrictions on property and political rights. By comparing Cuba and China across two sectors, the bicycle industry and Internet access, this article shows how these restrictions have hindered growth. It also assesses how Cuba's latest economic reforms, the so-called Lineamientos, will address Cuba's development dilemma. The impact may be minimal, but perhaps more lasting than previous reforms.

SOCIO-ECONOMIC EMPOWERMENT OF WOMEN THROUGH MICRO CREDIT: AN EMPIRICAL STUDY

2021 ◽  
pp. 58-60
Author(s):  
T. Indumathi ◽  
G. Savaraiah
Keyword(s):  
Rural Women ◽  
Poverty Reduction ◽  
Rural Poverty ◽  
Poverty Line ◽  
Economic Empowerment ◽  
Political Empowerment ◽  
The Poor ◽  
The Government ◽  
The Impact ◽  
Micro Credit

The World Bank's Andhra Pradesh Rural Poverty Reduction Project supports the self helf groups of the women members. It promotes women's social, economic, legal and political empowerment to reduce poverty among the poor and the poorest of the poor. The important object of this article is to examine the impact of micronance on the socio economic empowerment of the rural women supported by the national reputed NGO- Rashtriya Seva Samithi (RASS). 184 women members of the SHGs promoted by Rasthriya Seva Samathi (RASS) an NGO which located in Tirupati town. 184 samples are selected randomly from 15 SHGs scattered throughout the Tirupati rural mandal (Taluk) from the area of the study have been considered to conduct the present research study. The study reveals that 87.71 percent of the sample women were below the poverty line before joining the SHGs. As a result of SHG, about 40 percent of the sample women crossed the poverty line. The highest intensive value indicates that more women have participated in social agitations for the welfare of the children and the society. The second highest intensity reveals that considerable numbers of women of SHGs have participated in the government sponsored schemes. The 1st point secured 3rd rank with total intensity value of 605 which status that the micro credit has resulted in increased social status and empowerment.

scholarly journals Government Expenditure and Economic Growth Nexus: Evidence from Nigeria

2016 ◽  
Vol 5 (4) ◽  
pp. 56
Author(s):  
Oyediran, Leye Sherifdeen ◽  
Sanni, Ibrahim ◽  
Adedoyin, Lukman ◽  
Oyewole Olabode Michael
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Least Square ◽  
National Bureau ◽  
Fiscal Discipline ◽  
Secondary Sources ◽  
Economic Development And Growth ◽  
The Government ◽  
The Impact

The need to better the lots of citizens through government expenditure has raised questions on the impact of government expenditure on the economic development and growth of nations. It is against this background that this paper examined the antecedent effect of government spending on the Nigerian economic growth. The general objective of the study is to ascertain the relationship between government expenditure and economic growth in Nigeria; specifically, the study examined: (i) the significance influence of government capital expenditure on economic growth in Nigeria and (ii) the significance influence of government recurrent expenditure on economic growth in Nigeria. The study employed ordinary least square (OLS) multiple regression analysis in estimating the specified model, with the Gross Domestic Product (GDP) as the dependent variable, while Capital Expenditure (CAPEXP) and Recurrent Expenditure (REXP) are the independent variables. Data between 1980 – 2013 were collected from secondary sources through the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN). Results showed that in Nigeria, there exist a significant relationship between the government expenditure and economic growth. The study therefore recommends instilling fiscal discipline in government expenditures, and putting in place structural mechanisms to act as surveillance on capital spending so as to boost the nation’s human and social capital.

Macroeconomic determinants of trade openness: empirical investigation of SAARC region

2018 ◽  
Vol 12 (2) ◽  
pp. 151-161 ◽  
Author(s):  
Muhammad Tahir ◽  
SAF Hasnu ◽  
Mario Ruiz Estrada
Keyword(s):  
Regional Cooperation ◽  
Labour Force ◽  
Trade Openness ◽  
Least Square Method ◽  
Least Square ◽  
Content Type ◽  
Currency Exchange ◽  
Long Run ◽  
Macroeconomic Determinants ◽  
The Impact

Purpose Trade openness plays a significant role in the growth process of countries. The purpose of this paper is to examine the impact of macroeconomic determinants on the trade openness of countries. Design/methodology/approach The study focuses on the South Asian Association for Regional Cooperation (SAARC) member countries and the data used were from 1971 to 2011. Panel data econometrics techniques and two stages least square method (TSLS) are used to carry out empirical analysis and robustness testing. Findings The main finding of the paper is that macroeconomic determinants such as investment both in physical and human capital and per capita gross domestic product (GDP) positively affect trade openness. Further, the size of labour force and currency exchange rate has also impacted trade openness negatively and significantly. Practical implications It implies that efficient macroeconomic management matters for higher trade openness. The sampled developing countries are suggested to pay favourable attention to macroeconomic variables if they want to grow in the long run through outward-oriented policies. Originality/value This paper is an original contribution in the context of SAARC countries by focusing on the relationship between macroeconomic determinants and trade openness.

scholarly journals Pengaruh Penyesuaian Harga Jual Bahan Bakar Minyak (BBM) Tehadap Konsumsi BBM dan Inflasi

2020 ◽  
Vol 4 (2) ◽  
pp. 165-182
Author(s):  
Aep soleh Soleh
Keyword(s):  
Inflation Rate ◽  
Secondary Data ◽  
Mineral Resources ◽  
Substitution Effect ◽  
Least Square ◽  
Fuel Price ◽  
Ordinary Least Square ◽  
Price Increases ◽  
The Government ◽  
The Impact

This study investigates the impact of fuel price adjusment on changes in fuel consumption and inflation in Indonesia. This study uses secondary data obtained from the Ministry of Energy and Mineral Resources, the Ministry of Finance, the Ministry of Trade, Bank Indonesia, the Central Bureau of Statistics (BPS), and PT Pertamina (Persero) from 2006 to 2016 and analyzed by using Ordinary Least Square (OLS) method. Research showed, if the government increases Premium Gasoline's price by 10%, in average its consumption would decrease around 2,99 %. However, if the Pertamax Gasoline's price increases, the consumption of Premium Gasoline would also increase due to substitution effect. Every 10% increase in Subsidized Diesel's price, in average its consumption would decrease around 4,80 % and vice versa. However, if the Pertamina dex's price increases, the consumption of Subsidized Diesel would also increase due to substitution effect. Moreover, IDR1.000/L increase in Premium Gasoline's Price would contribute 1,10 % to the inflation rate. On the other hand, increase in Subsidized Diesel's price does not contribute to the inflation rate.

scholarly journals Analysis of financial development and industrial structure transformation

2021 ◽  
Vol 235 ◽  
pp. 02080
Author(s):  
Shuwei Harold Sun ◽  
Allen Wang ◽  
Huan Yu
Keyword(s):  
Financial Development ◽  
Industrial Structure ◽  
High Tech ◽  
Financial Industry ◽  
Estimation Model ◽  
Moment Estimation ◽  
Investment Structure ◽  
The Government ◽  
Role Of The Government ◽  
The Impact

This paper uses the relevant data from 2008 to 2017 to construct a multiple linear regression equation, and uses the generalized moment estimation model to explore the impact of financial development on industrial structure adjustment from the perspective of financial scale and efficiency. The results show that financial efficiency can promote the rationalization and upgrading of industrial structure, but the impact of financial scale on industrial structure is two-sided. Increasing financial scale can increase the amount of industrial financing and accelerate the process of industrial structure upgrading. However, blindly increasing the supply of loans will lead to the birth of bad investment, thus failing to promote the rationalization of industrial structure. Based on this, this paper puts forward some policy suggestions, such as promoting the diversified development of the financial industry, improving the imbalance of financial development in various provinces, promoting the reasonable investment structure and the development of high-tech industry, and giving full play to the role of the government.

scholarly journals The impact of education tax and investment in human capital on economic growth in Nigeria

2020 ◽  
Vol 3 (2) ◽  
pp. 77-86
Author(s):  
Abubakar Aminu ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Tertiary Education ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Lag Model ◽  
The Government ◽  
Capital Development ◽  
The Impact

This paper investigated the impact of education tax and investment in human capital on economic growth in Nigeria utilizing the Non-Linear Autoregressive Distributed Lag Model of cointegration covering the period of 25 years from 1995 to 2019. The findings reveal that education tax and investment in human capital have positive and significant effect on the growth of the Nigerian economy over the sampled period. The paper recommends that in order to boost the economy, Nigeria would need to, among other policy frameworks, provide a suitable environment for ensuring macro-economic stability through effective utilization of income from education tax that will encourage increased investment in human capital in the public sector. In addition to income from education tax, for effective and speedy economic growth and development in Nigeria, the government, beneficiaries (students/parents), employers of labor and other stakeholders in the society should share the responsibility for financing primary, secondary and tertiary education, so as to provide a solid foundation for human capital development. However, as revealed in this paper, the contribution of education tax and investment in human capital is most likely to be realized over a long-run period than in the short term. Keywords: Education Tax; Investment; Human capital; Economic growth

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