Growth quality and income inequality: cross-country analysis

2021 ◽  
Vol 17 (4) ◽  
pp. 454-461
Author(s):  
Bulat Khusainov ◽  
Asset Nussupov
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Negative Impact ◽  
Time Lag ◽  
National Income ◽  
Income Levels ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

The article is devoted to the construction and implementation of an econometric model for quantitative assessment of the impact of cross-country, international, and national income inequality on the dynamics and quality of growth of four groups of countries with different levels of development. A substantial analysis of numerous Russian and foreign research that discover the dynamics and quality of growth was carried out. On this basis, we conclude that income inequality is an important characteristic of the quality of growth of both the national and global economies. To study the relationship between inequality and economic growth, the research uses two concepts proposed by the World Bank – cross-country and international inequality. The distinction of this study from all other known works is not in identifying the genesis of the phenomenon of «inequality», but in focusing on the development of concepts of inequality between countries and quantity assessment of their impact on the growth of economies with different income levels (high, above average, below average and low). This development contributes to the expansion of the research landscape that analyses the relationship between economic growth and inequality. The implementation of the constructed model of cross-country regression confirmed the assumption on the negative impact of three types of inequality on countries with different income levels. At that, the degree of their influence for four groups of countries is shown with a different time lag. The statistically significant empirical results are the convincing scientific basis for evidence-based policy while developing an adequate economic policy by national governments, especially in modern conditions

scholarly journals COVID-19 Pandemic and Quality of Life among Romanian Athletes

2021 ◽  
Vol 18 (8) ◽  
pp. 4065
Author(s):  
Germina-Alina Cosma ◽  
Alina Chiracu ◽  
Amalia Raluca Stepan ◽  
Marian Alexandru Cosma ◽  
Marian Costin Nanu ◽  
...  
Keyword(s):  
Quality Of Life ◽  
Trait Anxiety ◽  
Negative Impact ◽  
Well Being ◽  
Quality Of Life Scale ◽  
Life Scale ◽  
Personality Item ◽  
The Impact ◽  
The Relationship

The aim of this study was to analyze athletes’ quality of life during the COVID-19 pandemic. The study involved 249 athletes between 15 and 35 of age, M = 21.22, SD = 5.12. The sample was composed of eight Olympic Games medalists, three European medalists, 67 international medalists, and 63 national medalists. The instruments used were: (1) COVID-19 Anxiety Scale, (2) Athlete Quality of Life Scale, (3) Impact of Pandemic on Athletes Questionnaire, and (4) International Personality Item Pool (IPIP Anxiety, Depression, and Vulnerability Scales). The results indicate significant differences in COVID-19 anxiety depending on the sport practiced, F (9239) = 3.81, p < 0.01, showing that there were significant differences between sports. The negative impact of the COVID-19 pandemic mediates the relationship between trait anxiety and the athletes’ quality of life. The percentage of mediation was 33.9%, and the indirect effect was −0.11, CI 95% (−0.18, −0.03), Z = −2.82, p < 0.01. Trait anxiety has an increasing effect on the intensity of the negative impact of the COVID-19 pandemic, 0.23, CI 95% (.10, 0.35), Z = 3.56, p < 0.01, and the negative impact of the COVID-19 pandemic has a decreasing effect on quality of life, −0.47, CI 95% (−0.67, −0.27), Z = −4.62, p < 0.01. Gender and age did not moderate the relationship between the negative impact of COVID-19 and athletes’ quality of life. The results of the study highlighted the impact that social isolation and quarantine have on athletes’ affective well-being.

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

scholarly journals Can Reducing Income Inequality Decouple Economic Growth from CO2 Emissions?

2018 ◽  
Vol 4 ◽  
pp. 237802311877271 ◽  
Author(s):  
Julius Alexander McGee ◽  
Patrick Trent Greiner
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
National Income ◽  
Recent Period ◽  
The Past ◽  
Socioeconomic Drivers ◽  
Advance Research ◽  
Developed Nations ◽  
The Relationship ◽  
Distribution Of Income

In the past two decades, income inequality has steadily increased in most developed nations. During this same period, the growth rate of CO2 emissions has declined in many developed nations, cumulating to a recent period of decoupling between economic growth and CO2 emissions. The aim of the present study is to advance research on socioeconomic drivers of CO2 emissions by assessing how the distribution of income affects the relationship between economic growth and CO2 emissions. The authors find that from 1985 to 2011, rising income inequality leads to a tighter coupling between economic growth and CO2 emissions in developed nations. Additionally, the authors find that increases in the top 20 percent of income earners’ share of national income have resulted in a larger association between economic growth and CO2 emissions, while increases in the bottom 20 percent of income earners’ share of national income reduced the association between economic growth and CO2 emissions.

scholarly journals Conditional Efficiency of Official Development Assistance (ODA) on Economic Growth in Sub-Saharan Africa

2020 ◽  
Vol 16 (1) ◽  
pp. 1
Author(s):  
Ladifatou GACHILI NDI GBAMBIE ◽  
Ousseni MONGBET
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Negative Impact ◽  
Social Situation ◽  
Sub Saharan Africa ◽  
Method Of Moment ◽  
Sub Saharan ◽  
The Impact ◽  
Ssa Countries

<p>Sub-Saharan Africa (SSA) countries have benefited for more than fifty years from international aid in the form of loans and/or donations. Nevertheless, they seem not to benefit from these massive financial resources (ODA) they receive because their economic and social situation is not very good. This study aims to assess the impact of ODA on economic growth in SSA and to see if its effect on growth is conditioned by the quality of the economic policy. The estimates are conducted on a dynamic panel of twenty-three SSA countries running from 1985 to 2014. With macroeconomic data from the World Bank's CD-ROM (World Development Indicators, 2015), the Generalized Method of Moment (GMM) system from Blundel and Bond (1998) was used. The results show that the impact of ODA on growth is not significant. Subsequently, when squared aid (ODA2) is included in the estimate, ODA becomes significant, meaning that a substantial amount of assistance is required to be effective in raising the economic growth rate of the SSA countries. In addition, the effectiveness of ODA is conditioned by the quality of the economic policy. This seems to be bad in SSA, hence the negative impact of the aid on economic growth.</p>

scholarly journals The Impact of Public Expenditure on Economic Growth: A Review of International Literature

2019 ◽  
Vol 19 (2) ◽  
pp. 81-101
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Government Spending ◽  
Public Expenditure ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Empirical Literature ◽  
The Impact ◽  
The Relationship

Abstract Research background: Although a number of studies have been conducted on the relationship between public expenditure and economic growth, it is difficult to tell with certainty whether or not an increase in public expenditure is good for economic growth. This lack of consensus on the results of the previous empirical findings makes this study of paramount importance as we take stock of the available empirical evidence from the 1980s to date. Purpose: In this paper, theoretical and empirical literature on the relationship between government expenditure and economic growth has been reviewed in detail. Focus was placed on the review of literature that assessed the impact of government spending on economic growth. Research Methodology: This study grouped studies on the impact of public expenditure on economic growth based on their results. Three groups emerged – positive impact, negative impact and no impact. This was followed by a review of each relevant study and an evaluation of which outcome was more prevalent among the existing studies on the subject. Results: The literature reviewed has shown that the impact of government spending on economic growth is not clear cut. It varies from positive to negative; with some studies even finding no impact. Although the impact of government spending on economic growth was found to be inconclusive, the scale tilts towards a positive impact. Novelty: The study provides an insight into the relationship between public expenditure and economic growth based on a comprehensive review of previous empirical evidence across various countries since the 1980s.

At what level of corruption does economic growth decrease?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Ali Trabelsi ◽  
Hédi Trabelsi
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Optimal Threshold ◽  
Cross Sectional ◽  
Content Type ◽  
Marginal Costs ◽  
Marginal Change ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear and by assessing the veracity of the assumption that corruption is always detrimental to economic growth. Several cross-country studies have treated this question but the findings are not universally robust. Design/methodology/approach In this paper, a panel data analysis has been used to examine 88 countries over the 1984-2011 period. A cross-sectional framework is used in which growth rate and the International Country Risk Guide (ICRG) index are observed only once for each country. Findings The findings indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth. Originality/value This paper shows that the threshold would be a corruption level between 2.5 and 3, which represents the “acceptable corruption level”. This result is conforming to one of the ten principles of economics: “Rational people think at the marginal change”. This threshold represents the point where the marginal benefits of corruption are equal to marginal costs incurred by corruption. Conversely, lack of corruption may be a mechanism that slows down growth.

Assessing the Impact of Income Inequality on Economic Growth

2017 ◽  
Vol 65 (1-4) ◽  
pp. 1-26 ◽  
Author(s):  
Rohan Joshi
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Positive Impact ◽  
Negative Influence ◽  
Jel Classification ◽  
Indian States ◽  
Simon Kuznets ◽  
The Impact ◽  
The Relationship ◽  
Modern Perspective

The nature of the relationship between income inequality and economic growth, first formalised by Simon Kuznets in 1950, has come under much debate of late. At present, one understanding of this relationship is that given by what Oded Galor called the ‘modern perspective’, which, pointing the direction of causation from income inequality to economic growth asserts that the former imposes a significantly negative influence on the latter. To investigate the same in the context of India, subsequently, this study adopts the typical cross-country approach taken by other studies in this area and estimates the nature of the aforementioned relationship across a cross-section of Indian states. The results, however, disappointingly contrary to the ‘modern perspective’, show a strong significant positive impact of the existence of inequality on growth rates of Indian states, which, if anything, statistically asserts the existence of a trade-off between the two. JEL Classification: D63, O10, O40, O47

scholarly journals The Conditional Relationship between Inequality and Development

2009 ◽  
Vol 42 (04) ◽  
pp. 645-649 ◽  
Author(s):  
Carles Boix
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Income Distribution ◽  
Political Institutions ◽  
Growth And Development ◽  
Economic Stagnation ◽  
The Impact ◽  
The Relationship ◽  
Persistent Inequality ◽  
Do So

In recent years political scientists and economists have spent considerable efforts investigating the impact of income inequality both on political institutions and social conflict (Boix 2003, 2008; Acemoglu and Robinson 2006; Geddes 2007) and on growth and development (Atkinson and Bourguignon 2000). In this article I focus on the latter question: I discuss the extent to which (that is, the conditions under which) inequality may hinder economic growth. I do so by moving away from the current literature, which models the relationship between development and inequality in a linear fashion—with the latter unconditionally distorting (or boosting) the incentives to invest and therefore reducing (or increasing) the rate of growth. Instead, I claim that the potential correlation between inequality and development will be always conditional on the (mostly political and institutional) causes that generate the existing income distribution to start with. Hence it is not surprising to find instances in which growth and (mostly temporary) inequality come hand in hand as well as other periods and countries where there is both high and persistent inequality jointly with economic stagnation.

scholarly journals The Impact of Corruption On Economic Growth: A Nonlinear Evidence

2021 ◽  
Author(s):  
Mohamed Ali Trabelsi
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Detrimental Effect ◽  
Panel Data Analysis ◽  
Optimal Threshold ◽  
Cross Country ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect ◽  
Effect On Growth

Abstract Several cross-country studies have found that corruption slows growth, but these findings are not universally robust. Therefore, the questions to be addressed are to what extent corruption can be tolerated and at what threshold it has a detrimental effect on an economy.This article investigates the impact of corruption on economic growth by testing the hypothesis that the relationship between these two variables is nonlinear. In this article, a panel data analysis has been used to examine 65 countries over the 1987 to 2018 period. Our findings are that corruption can have a positive effect on growth. The results indicate that beyond an optimal threshold, both high and low corruption levels can decrease economic growth. Under this optimal threshold, a moderate level of corruption, defined by the point of reversal of the curve of the marginal corruption effect on growth, could have advantages for economic growth.JEL: B23, C51, D73, O47.

scholarly journals Employment and economic growth in the conditions of COVID-19 pandemics: Cross-country comparisons

2021 ◽  
Vol 21 (1) ◽  
pp. 30-37
Author(s):  
Tatiana I. Solodkaya ◽  
◽  
Maksim A. Industriev ◽  
Keyword(s):  
Economic Growth ◽  
Total Output ◽  
Industrial Enterprises ◽  
Real Gdp ◽  
The Usa ◽  
Coronavirus Infection ◽  
Cross Country ◽  
Almost All ◽  
The Impact ◽  
The Relationship

Introduction. The factor of a sharp slowdown in economic growth in almost all countries since the beginning of 2020 has been quite atypical. Whereas previously we had seen shocks mainly related to economic processes, this time the “black swan” was a public health emergency – the new coronavirus pandemic COVID-19. A feature of this crisis was the unprecedented measures of states to restrict the movement of citizens, as well as the suspension of the activities of both industrial enterprises and enterprises in the sphere of trade and services. The aim of this work is to make cross-country comparisons of the impact of increased unemployment caused by the COVID-19 pandemic on different countries’ economic growth. Theoretical analysis. The relationship between the actual output gap and potential and cyclical unemployment rates has traditionally been studied according to the well-known law of A. Okun. Okun’s Law can be viewed as a linear algebraic equation for the function of real gross domestic product (GDP). The essence of the law is that with an increase in cyclical unemployment, total output should decrease, since the number of people employed in GDP production falls. Empirical analysis. Cross-country comparisons of economic growth and characteristics of the labor market in Russia, the USA, China, Canada and Germany from 2000 to 2020, including the period of the new coronavirus infection pandemic, were carried out. Results. Based on the analysis of time series of GDP and the unemployment rate, it is shown that, depending on the depth and effectiveness of state support measures for business in terms of maintaining employment, deviations of the actual values of GDP from those calculated in accordance with Okun’s empirical law are observed. The largest and smallest deviations in real GDP changes from the predictions for the first half of 2020 have been recorded in Germany and Canada, respectively.

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