scholarly journals Does Financial Technology Affect Income Inequality in Indonesia?

2020 ◽  
Author(s):  
Birgitta Dian Saraswati ◽  
Ghozali Maski ◽  
David Kalug ◽  
Rachmad Kresna Sakti
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Partial Adjustment ◽  
Adjustment Model ◽  
Partial Adjustment Model ◽  
Determining Factors ◽  
Equal Income ◽  
Sustainable Economic Growth ◽  
The Impact ◽  
Financial Technology

Economic growth is insufficient to be a sole indicator of the population’s welfare. Specifically, high economic growth does not necessarily imply that the population is generally prosperous. Equal income distribution is crucial to achieving sustainable economic growth. Since 2000, the Gini index as a measure of income inequality in Indonesia showed an increasing trend. On the other side, financial technology 3.0 started to develop. This paper seeks to investigate the impact of fintech 3.0 development on income inequality in Indonesia and to identify the determining factors of income inequality in Indonesia. By using the partial adjustment model (PAM) with the observation period of 1990-2017, the study empirically shows that fintech 3.0 development that started in 2000 had a significant impact on income inequality in Indonesia. Besides, the investment variable also positively affect income inequality in Indonesia. Thus, the findings indicate that the Indonesian population did not equally utilize fintech development. Keywords: income inequality, financial technology, Indonesia, partial adjustment model

scholarly journals Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Services ◽  
Sub Saharan Africa ◽  
Kuznets Curve ◽  
African Countries ◽  
Financial Access ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

scholarly journals PENGARUH LIBERALISASI ARUS MODAL TERHADAP PERTUMBUHAN EKONOMI ASEAN-5

2020 ◽  
Vol 3 (2) ◽  
pp. 345-354
Author(s):  
Devilia Sitorus ◽  
Crisanty Sutristyaningtyas Titik
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Capital Flows ◽  
The Philippines ◽  
Financial Openness ◽  
Partial Adjustment ◽  
Adjustment Model ◽  
Partial Adjustment Model ◽  
Short And Long Term

This study aims to examine the relationship between capital flow liberalization and economic growth in ASEAN-5. This research is a quantitative study that uses data: GDP, Gross Capital Formation, financial disclosure seen from the Chinn-Ito index for the period 2000-2017 in 5 ASEAN countries namely Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Data were processed using panel data regression analysis and specifically for Indonesia, Partial Adjustment Model (PAM) regression was performed. The results of this study indicate that financial openness seen from the Chinn-Ito index has a negative and significant influence on the economic growth of ASEAN-5 countries. Capital flows have a positive and significant impact on the economic growth of ASEAN-5 countries. Meanwhile, the PAM (Partial Adjustment Model) regression model shows that capital flows have a positive and significant influence on Indonesia's economic growth both in the short and long term, while financial openness has a negative and significant impact on Indonesia's economic growth both in the short and long term.

scholarly journals Higher Education Funding and Economic Growth: Empirical Evidence from Croatia

2020 ◽  
Vol 67 (3) ◽  
pp. 409-421
Author(s):  
Maja Nikšić Radić ◽  
Hana Paleka
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Structure Model ◽  
Higher Education Funding ◽  
Causality Test ◽  
Economic Growth And Development ◽  
Social And Economic Development ◽  
Sustainable Economic Growth ◽  
The Impact ◽  
Growth Hypothesis

Deprived of investment in education, no country can expect sustainable economic growth and development. Higher education is particularly a priceless tool in today's era of globalization that requires continuous education to keep up with new knowledge. According to UNESCO (2014), higher education is no longer a luxury; it is essential to national, social and economic development. The impact of education on economic growth is possible to observe within the so-called ‘education led growth hypothesis’. The main aim of this paper it to analyse the higher education size and structure, model and financing sources in Croatia and to test the ‘education led growth hypothesis’ on the example of Croatia. The study will apply the Granger causality test to evaluate if there is any causal relationship between investment in higher education and economic growth in Croatia.

scholarly journals The Impact of Educational Investment on Sustainable Economic Growth in Guangdong, China: A Cointegration and Causality Analysis

2019 ◽  
Vol 11 (3) ◽  
pp. 766 ◽  
Author(s):  
Liping Liao ◽  
Minzhe Du ◽  
Bing Wang ◽  
Yanni Yu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Data Model ◽  
Educational Investment ◽  
Causality Analysis ◽  
Pearl River Delta Region ◽  
Financial Investment ◽  
The Pearl River ◽  
Sustainable Economic Growth ◽  
The Impact

Education, as an investment in human capital, is regarded as an important determinant of sustainable economic growth [1,2]. The purpose of this study is to explore the cointegration and causality between the investment in education and sustainable economic growth in Guangdong province by using the panel data of 21 cities from 2000 to 2016. We construct a variable intercept panel data model with an individual fixed effect based on the Cobb-Douglas production function, estimating the contribution of the investment in education to economic growth by introducing lags. The findings show the existence of the feedback causality between education and sustainable economic growth. Also, the results reveal that the local financial investment in education plays a positive and statistically significant role in promoting sustainable economic growth. However, the contribution of the local financial investment in education to economic growth varies in different areas. The investment in education in the Pearl River Delta region have the most obvious pull effects on its regional economy, whereas the Western region takes the second place. Meanwhile, the local financial investment in education for its role in promoting economic growth obviously has a two-year hysteresis effect. These findings have important implications for Guangdong’s solution to the imbalance between regional educational investment and sustainable economic growth.

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