scholarly journals Financial development, income inequality and carbon emissions in sub-Saharan African countries: A panel data analysis

2020 ◽  
Vol 38 (5) ◽  
pp. 1914-1931 ◽  
Author(s):  
Nicholas M Odhiambo
Keyword(s):  
Income Inequality ◽  
Financial Development ◽  
Gini Coefficient ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Policy Implications ◽  
Atkinson Index ◽  
The Gini Coefficient ◽  
Sub Saharan ◽  
Ssa Countries

This paper examines the dynamic relationship between financial development, income inequality and carbon dioxide (CO2) emissions in a step-wise fashion, using data from 39 sub-Saharan African (SSA) countries during the period 2004–2014. The study uses three income inequality indicators – the Gini coefficient, the Atkinson index and the Palma ratio – to examine these linkages. The study employs the generalised method of moments as the estimation technique. The empirical findings show that financial development unconditionally reduces CO2 emissions in SSA countries. The findings also show that there are threshold levels of income inequality that should not be exceeded in order for the negative impact of financial development on CO2 emissions to be sustained. Specifically, the study finds that the negative impact of financial development on CO2 emissions is likely to change to positive if the following inequality levels are exceeded: 0.591, 0.662 and 5.59, respectively, for the Gini coefficient, the Atkinson index and the Palma ratio. The findings of this study have far-reaching policy implications not only for SSA countries but also for developing countries as a whole. Policy implications are discussed.

scholarly journals The Comparison between Consumption and Production-based Zakat Distribution Programs for Poverty Alleviation and Income Inequality Reduction

2017 ◽  
Vol 2 (2) ◽  
pp. 11-28
Author(s):  
Qurroh Ayuniyyah ◽  
Ataul Huq Pramanik ◽  
Norma Md Saad ◽  
Muhammad Irwan Ariffin
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Poverty Alleviation ◽  
Atkinson Index ◽  
Percentage Points ◽  
The Gini Coefficient ◽  
One Year ◽  
Economic Studies

This study attempts to analyze the effect of consumption and production-based zakat distribution programs in eradicating poverty and reducing income inequality of the zakat beneficiaries by using the modification of the Center of Islamic Business and Economic Studies (abbreviated as CIBEST) model, Deciles method, Gini coefficient and Atkinson index. It takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (abbreviated as BAZNAS) in three different cities and regencies including Bogor, Depok and Sukabumi. It suggests that the present zakat distribution programs conducted by BAZNAS can significantly alleviate poverty and reduce income inequality among zakat beneficiaries. It is observed that one year after receiving zakat programs, production-based programs have higher increase of the material and spiritual condition (represented by falah index) by 300 percentage points while households who obtained consumption-based programs rise by only 20 percentage points. It is also found that the Gini coefficient decreases by 0.017 points while Atkinson index falls by 0.042 points indicating that the income inequality among observed zakat beneficiaries are improved. This study has substantiated the role of zakat for poverty alleviation and income inequality reduction that can benefit development in general. Keywords: Zakat Distribution Programs, Poverty, Income Inequality

scholarly journals The Role of Institutions in the Finance-Inequality Nexus in Sub-Saharan Africa

2017 ◽  
Vol 137 (1-2) ◽  
pp. 173-192
Author(s):  
Ngozi Adeleye ◽  
Evans Osabuohien ◽  
Ebenezer Bowale
Keyword(s):  
Income Inequality ◽  
Financial Development ◽  
Sub Saharan Africa ◽  
Jel Codes ◽  
Domestic Credit ◽  
Sub Saharan ◽  
Generalised Method Of Moments ◽  
Control Of Corruption ◽  
Ssa Countries

This study contributes to the literature on income inequality by providing evidence that financial development not only impacts income distribution, but the effects can improve when there is a strong institutional framework. Using the system-generalised method of moments (sys-GMM) technique on a sample of 42 Sub-Saharan African (SSA) countries from 1996 to 2015, our major findings are summarised as follows: (1) inequality is persistent in the region (2) financial development does not significantly reduce income inequality; and (3) the control of corruption and its interaction with domestic credit exhibit an inverted-U relation with income inequality. Thus, policies that will reduce income inequality require that corruption be controlled given increase in domestic credit. JEL Codes: F36; G21; O15

scholarly journals COVID-19 and income inequality in OECD countries

2021 ◽  
Vol 22 (3) ◽  
pp. 455-462 ◽  
Author(s):  
John Wildman
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Positive Association ◽  
Oecd Countries ◽  
Policy Implications ◽  
Vulnerable Groups ◽  
Significant Positive Association ◽  
Cross Sectional ◽  
Regression Methods ◽  
The Gini Coefficient

Abstract Objective To determine the association between income inequality and COVID-19 cases and deaths per million in OECD countries. Methods Cross-sectional regression methods are used to model the relationship between income inequality, as measured by the Gini coefficient, and COVID-19 reported cases and deaths per-million. Results The results demonstrate a significant positive association between income inequality and COVID-19 cases and death per million in all estimated models. A 1% increase in the Gini coefficient is associated with an approximately 4% increase in cases per-million and an approximately 5% increase in deaths per-million. Conclusions The results demonstrate that countries with high levels of income inequality have performed significantly worse when dealing with the COVID-19 outbreak in terms cases and deaths. Income inequality is a proxy for many elements of socioeconomic disadvantage that may contribute to the spread of, and deaths from, COVID-19. These include poor housing, smoking, obesity and pollution. Policy Implications The findings suggest the importance of closing the gap in income inequality and improving the health and incomes of the poorest and most vulnerable groups.

Credit Market Depth and Income Inequality in Vietnam: A Panel-Data Analysis

2016 ◽  
pp. 5-18
Author(s):  
Hoi Le Quoc ◽  
Hoi Chu Minh
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Income Inequality ◽  
Financial Development ◽  
Inflection Point ◽  
Panel Data Analysis ◽  
Credit Market ◽  
Method Of Moment ◽  
Market Depth ◽  
Generalized Method Of Moment

Financial development could exert various effects on income distribution of a country. By employing Generalized Method of Moment, this paper aims at examining the impacts of credit market depth, one of most used financial development barometers, on income inequality in Vietnam. The empirical findings show that expanding credit market in the country could lead to higher income inequality. We have not found evidence that supports the hypothesis of an inverted U-shaped relation ever introduced by Greenwood and Jovanovich, although this hypothesis may still hold in a sense that Vietnam has not reached to the inflection point to generate such a curve alike.

scholarly journals Financialization and Income Inequality in Selected European Countries, 2004–2013

e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 20-32
Author(s):  
Grzegorz Golebiowski ◽  
Piotr Szczepankowski ◽  
Dorota Wisniewska
Keyword(s):  
Income Inequality ◽  
Eastern Europe ◽  
Gini Coefficient ◽  
Central And Eastern Europe ◽  
Value Added ◽  
European Countries ◽  
Total Employment ◽  
The Gini Coefficient ◽  
Synthetic Indicator ◽  
The Impact

Abstract The article examines the impact of financialization on income inequality between 2004 and 2013, through a panel analysis of seven European countries. Moreover, it attempts to examine differences in the perception of the phenomenon between the selected European countries belonging to the G-7 and countries from Central and Eastern Europe. The results demonstrate the existence of individual effects, which means that the level of inequality under examination is influenced predominantly by country-specific factors. The most significant correlation is noticeable between the level of unemployment and the degree of income inequality. An increase in unemployment is accompanied by a rise in the disproportions in the level of income that individual citizens have at their disposal whereas a decrease in the unemployment level contributes to an improvement of the GINI coefficient. Simultaneously, the results confirm the existence of significant correlations between the level of the GINI coefficient and such financialization indicators as the share of employment in finance in total employment and the contribution of the financial sector to total value added creation. The most prominent dependency was discovered when a constructed synthetic indicator was adopted as an indicator of financialization. At the same time, analysis of the synthetic country financialization indicator points to a conclusion that the level of financialization is higher in European countries belonging to the G-7 (especially Great Britain) than in countries from Central and Eastern Europe.

The Problem of Income Inequality

2019 ◽  
pp. 42-44
Author(s):  
Andrew Smithers
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Living Standards ◽  
Living Standard ◽  
The Gini Coefficient ◽  
The Us ◽  
The Uk ◽  
Distribution Of Income

Living standards change in line with GDP per head only if the distribution of incomes is unchanged. If incomes become less equally distributed the living standards of most people will fall even if GDP per head is stable. The Gini Coefficient is the most widely used indicator designed to measure the distribution of income. UK inequality, on this measure, has risen since 1977, stabilized since 1987, and fallen in recent years. In the US there has been a long-term increase in income inequality. Unless this US trend for increased income inequality halts, it is quite likely that even if GDP per head rises in the US, the living standard of the average voter will fall. The recent data suggest that changes in income inequality pose less of a threat to living standards in the UK then they do to those in the US.

Inequality and the economic participation of women in sub-Saharan Africa

2019 ◽  
Vol 11 (2) ◽  
pp. 193-206 ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas Odhiambo
Keyword(s):  
Gini Coefficient ◽  
Sub Saharan Africa ◽  
Female Employment ◽  
Content Type ◽  
The Gini Coefficient ◽  
Participation Of Women ◽  
Economic Participation ◽  
Gender Inclusion ◽  
Sub Saharan ◽  
Generalised Method Of Moments

Purpose The purpose of this paper is to investigate the effect of inequality on female employment in 42 countries in sub-Saharan Africa (SSA) for the period 2004–2014. Design/methodology/approach Three inequality indicators are used, namely, the: Gini coefficient, Atkinson index and Palma ratio. Two indicators of gender inclusion are also employed, namely: female employment and female unemployment rates. The empirical analysis is based on the generalised method of moments. Findings The following main findings are established. First, inequality increases female unemployment in regressions based on the Palma ratio. Second, from the robustness checks, inequality reduces female employment within the frameworks of the Gini coefficient and Palma ratio. Originality/value Studies on the relevance of income inequality on female economic participation in SSA are sparse.

More Finance or Better Finance in Feldstein–Horioka Puzzle: Evidence from SSA Countries

2017 ◽  
Vol 18 (1) ◽  
pp. 132-143 ◽  
Author(s):  
Ibrahim Dolapo Raheem
Keyword(s):  
Financial Development ◽  
Resource Mobilization ◽  
Financial Reforms ◽  
Retention Coefficient ◽  
Substantial Investment ◽  
Sub Saharan ◽  
Saving Retention ◽  
Ssa Countries ◽  
Domestic Resource

This study examined the role of financial development in the Feldstein–Horioka (FH) puzzle for 31 sub-Saharan African (SSA) countries for the period 1999–2011. Unlike previous studies that used traditional measures of finance (‘more finance’), we advocated for superior measures of financial development (‘better finance’). The baseline regression shows that ‘more finance’ increases the FH estimate, while ‘better finance’ serves as drag to the same retention coefficients. The reverse of these results was obtained when the baseline regression was extended to account for the interaction between savings and proxies for finance. The results obtained show a considerable improvement in the saving retention coefficient when ‘better finance’ was used as against ‘more finance’. This concretely reinforces the superior role of ‘better finance’ in mobilizing, distributing and utilizing savings for investment within these economies. Based on these findings, domestic resource mobilization can be a veritable vehicle for plugging the substantial investment gap in these SSA economies. However, such policy thrust must be complemented by far-reaching financial reforms.

scholarly journals Thresholds of income inequality that mitigate the role of gender inclusive education in promoting gender economic inclusion in sub-Saharan Africa

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas Odhiambo
Keyword(s):  
Income Inequality ◽  
Inclusive Education ◽  
Gini Coefficient ◽  
Tertiary Education ◽  
Labour Force ◽  
Sub Saharan Africa ◽  
Female Employment ◽  
Content Type ◽  
Economic Participation ◽  
Sub Saharan

Purpose This study aims to provide the thresholds of inequality that should not be exceeded if gender inclusive education is to enhance gender inclusive formal economic participation in sub-Saharan Africa. Design/methodology/approach The empirical evidence is based on the generalised method of moments and data from 42 countries during the period 2004-2014. Findings The following findings are established. First, inclusive tertiary education unconditionally promotes gender economic inclusion, while the interaction between tertiary education and inequality is unfavourable to gender economic inclusion. Second, a Gini coefficient that nullifies the positive incidence of inclusive tertiary education on female labour force participation is 0.562. Second, the Gini coefficient and Palma ratio that crowd-out the negative unconditional effects of inclusive tertiary education on female unemployment are 0.547 and 6.118, respectively. Third, a 0.578 Gini coefficient, a 0.680 Atkinson index and a 6.557 Palma ratio are critical masses that wipe out the positive unconditional effects of inclusive tertiary education on female employment. The findings associated with lower levels of education are not significant. Practical implications As the main policy implication, income inequality should not be tolerated above the established thresholds for gender inclusive education to promote gender inclusive formal economic participation. Other implications are discussed in the light of sustainable development goals. Originality/value This study complements the existing literature by providing inequality thresholds that should not be exceeded for gender inclusive education to promote the involvement of women in the formal economic sector.

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