scholarly journals THE ROLE OF INTEGRATED ISLAMIC COMMERCIAL AND SOCIAL FINANCE IN REDUCING INCOME INEQUALITY IN INDONESIA

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Arif Widodo
Keyword(s):  
Income Inequality ◽  
Method Of Moments ◽  
Wealth Distribution ◽  
Generalized Method Of Moments ◽  
Advanced Economies ◽  
The Social ◽  
Microfinance Institution ◽  
Islamic Microfinance ◽  
Commercial Finance

Recent years saw the heated debates among prominent economists on the growinginequality in advanced economies, and accordingly, many solutions to this seriousproblem have been put forward. Among the practical-cum-workable solution isprogressive taxation for wealth and income, especially the top one percent. Such asolution, however, has been implemented in Islamic perspective what so-called, zakahwhich is now referred to as social finance. In this paper, using the Gini coefficient datacovering 34 provinces in Indonesia over a decade, we examine whether the role ofsocial finance in tandem with commercial finance can adequately solve the problemof wealth distribution in Indonesia, one of the largest Democratic-Muslim countriesin the world. Using the Generalized Method of Moments (GMM) model, the resultsdemonstrated that Islamic commercial finance solely is proven statistically incapable oftackling inequality while the social finance (zakah) is performing very well in this matterover all specifications. Most importantly, when both are incorporated in a model, theresult showed a significant reduction in income inequality implying that the integratedIslamic finance which can be implemented in both Islamic microfinance institution andIslamic banking is more capable, as opposed to when both are separated, of helpingaddress the income inequality problem in Indonesia.

scholarly journals Credit composition and income inequality in Vietnam: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Quoc Hoi ◽  
Hương Lan Trần
Keyword(s):  
Income Inequality ◽  
Educational Level ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Primary Data ◽  
Data Set ◽  
Content Type ◽  
Private Credit ◽  
The Impact

PurposeThis paper aims to examine the credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit had adverse effects on income inequality. The authors also examine whether the impact of policy credit on income inequality is conditioned by the educational level and institutional quality.Design/methodology/approachThe authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem.FindingsThe authors show that while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality, due to the asymmetric effects of different types of credit.Originality/valueThis is the first study that examines the links between the two components of credit and income inequality as well as constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.

Higher Education, Social Welfare, and Corruption

2019 ◽  
pp. 54-78
Author(s):  
Marlene M. Mendoza-Macías
Keyword(s):  
Higher Education ◽  
Human Development ◽  
Wealth Distribution ◽  
Sustainable Human Development ◽  
The Social ◽  
The World ◽  
Primary Focus ◽  
The University ◽  
Social Management

The world is facing multiple changes and challenges; the environment shows inequalities, poverty, and corruption. Ecuador is not the exception. The man is declared the primary focus of the Ecuadorian Constitution to meet such changes. The objective of decreasing poverty, improving wealth distribution, and contributing to sustainable human development is unavoidable. In that context, the university has the pivotal role in generating interaction with society and its reality, to train professionals social and humanly responsible towards such facts, to promote the social management of knowledge from different action fields. The goal of this chapter is to specify the role of higher education institutions (HEIs) in a society where they take part, to draw up social responsibility of universities in Guayaquil and the challenges they face, as well as actions that contribute to the eradication of corruption and greater wellbeing of the society.

Profit as Social Rent: Embeddedness and Stratification in Markets

2019 ◽  
Vol 37 (2) ◽  
pp. 162-183 ◽  
Author(s):  
Sascha Muennich
Keyword(s):  
Economic Theory ◽  
Income Inequality ◽  
Social Structure ◽  
Social Stratification ◽  
Main Part ◽  
Social Structures ◽  
Rent Extraction ◽  
Free Competition ◽  
The Social

This article shows how research on the social structure of markets may contribute to the analysis the growing income inequality in contemporary capitalist economies. The author proposes a theoretical link between embeddedness and social stratification by discussing the role of institutions and networks in markets for the distribution of economic profits between firms. The author claims that we must understand profit and free competition as opposites, as economic theory does. In the main part of the article the author illustrates six typical mechanisms of rent extraction from networks or formal and symbolic rules that embed markets. They emerge from material as well as symbolical access to and influence on the orientation of other market actors. Social structures in markets lead to unequal chances for rent extraction, even if actors produce them for coordination rather than for accumulation purposes. This is how market sociology and theory of capitalism can be linked more closely.

scholarly journals The value of political independent supervisory boards: Evidence from Indonesian dual board setting

2021 ◽  
Vol 10 (1) ◽  
pp. 128-138
Author(s):  
Joni Joni ◽  
Jahja Hamdani Widjaja ◽  
Maria Natalia ◽  
Ivan Junius Salim
Keyword(s):  
Risk Analysis ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Market Risks ◽  
Moments Method ◽  
Strategic Role ◽  
Supervisory Boards ◽  
Two Measures ◽  
Board System

We investigate whether political independent supervisory boards (political I-SBs) help companies to reduce their corporate risks in the setting of Indonesian two-tier board system. This study is different from other studies in several ways. First, while most prior studies examine the effectiveness of independent boards in one-tier board setting, we use dual board system. This system promotes the strategic role of political I-SBs. Second, we use two measures of corporate risks: operating and market risks. Based on 1,176 firm-year observations for operating risk analysis and 1,254 firm-year observations for market risk analysis, we find that firms with political I-SBs have lower operating and market risks than firms with non- politically connected independent SBs. We also control for endogeneity problem using GMM (Generalized Method of Moments) method, and the results are still consistent.

FINANCIAL INCLUSION, INSTITUTIONAL QUALITY AND FINANCIAL DEVELOPMENT: EMPIRICAL EVIDENCE FROM OIC COUNTRIES

2021 ◽  
pp. 1-28
Author(s):  
MINHAJ ALI ◽  
MUHAMMAD IMRAN NAZIR ◽  
SHUJAHAT HAIDER HASHMI ◽  
WAJEEH ULLAH
Keyword(s):  
Financial Development ◽  
Method Of Moments ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Financial Inclusion ◽  
Moderation Effect ◽  
The Relationship ◽  
Unique Study

This unique study examines the moderation effect of institutional quality (IQ) on the relationship between financial inclusion (FI) and financial development (FD) of 45 Organization of Islamic Cooperation (OIC) countries. For empirical analysis, panel data are used for the period 2000–2016. We use the Arellano–Bond generalized method of moments (GMM) and two-stage least-squares (2SLS) method in our estimations to draw multidimensional results. The empirical results confirm the significant positive relationship between FI, IQ and FD. Interestingly, we find that IQ moderates FI and has a significant positive impact on FD. Our findings are robust to alternative econometric specifications of FI, IQ and FD. Therefore, policymakers must sensibly understand the pivotal role of FI and IQ in establishing sustainable future development of OIC countries.

DOES GOVERNMENT SPENDING ON EDUCATION AFFECT PROVINCIAL INCOME INEQUALITY IN VIETNAM?

2020 ◽  
pp. 1-19
Author(s):  
CHI MINH HO ◽  
QUAN THAI-THUONG LE ◽  
ANH THE VO ◽  
DUC HONG VO ◽  
DAO THI-THIEU HA
Keyword(s):  
Income Inequality ◽  
Method Of Moments ◽  
Government Spending ◽  
Generalized Method Of Moments ◽  
Theil Index ◽  
Substantial Portion ◽  
Education Spending ◽  
Effective Mechanism ◽  
Inequality In Education ◽  
Total Inequality

This study is conducted to examine the effect on income inequality of government spending on education across 63 provinces in Vietnam. The generalized method of moments (GMM) regression technique is used to address potential endogeneity in the model caused by income inequality and inequality in government spending on education. Income inequality is proxied by both the Gini coefficient and the Theil index. Inequality in government spending on education in Vietnam is estimated using a novel entropic approach, which decomposes the inequality into two components: “within-province” inequality and “between-province” inequality. Data for the period from 2010 to 2016 are used. Our empirical findings are summarized as follows. First, “within-province” inequality accounts for a substantial portion of inequality in government spending on education. This means that although the Vietnamese national government has done well in terms of allocating spending on education across 63 provinces, inequality in education spending appears across districts within provinces. Second, both total inequality of government spending on education and its two components are positively associated with income inequality across provinces. As such, reducing differences in government spending on education across provinces and across districts within provinces is an effective mechanism for reducing income inequality across provinces and across districts within provinces in Vietnam.

scholarly journals Innovation, Productivity and Environmental Performance of Technology Spillovers Effects: Evidence from European Patents within the Triad

2017 ◽  
Vol 10 (5) ◽  
pp. 123 ◽  
Author(s):  
Luigi Aldieri ◽  
Concetto Paolo Vinci
Keyword(s):  
Method Of Moments ◽  
Environmental Performance ◽  
Unobserved Heterogeneity ◽  
Generalized Method Of Moments ◽  
The United States ◽  
Policy Implications ◽  
International Firms ◽  
Weak Exogeneity ◽  
Environmental Activities

The aim of this paper is that of investigating whether the integration process between environmental activities is important in the Spillovers flows analysis. For this reason, we explore the role of knowledge externalities for large international firms engaged both in environmental and in non-environmental activities. In particular, we develop a theoretical framework and an empirical analysis of the United States, Japan and Europe based upon a dataset composed of worldwide R&D-intensive firms. In order to deal with the firms’ unobserved heterogeneity and the weak exogeneity of the regressors, we implement the Generalized Method of Moments (GMM) method. The results show a differentiated impact of environmental spillovers on firms’ productivity and green performance, by suggesting some interesting policy implications in terms of actions to favor full sustainability of firms’ production.

scholarly journals Impact of Financial Development on Income Inequality in Vietnam

2016 ◽  
Vol 23 (02) ◽  
pp. 22-37
Author(s):  
Hoi Le Quoc ◽  
Hoi Chu Minh
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Financial Development ◽  
Financial Market ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Policy Recommendations ◽  
Present Evidence ◽  
Provincial Level ◽  
Market Expansion

Utilizing the approach of constructing indicators treated as representatives for degree of financial development at provincial level of Vietnam over the 2002–2012 period along with Generalized Method of Moments (GMM), this study inspects the nexus between financial development and income inequality. To a certain extent the empirical findings present evidence to show that financial market expansion in Vietnam widens income inequality, through which some policy recommendations are provided with regard to reducing the inequality of income distribution across the society.

scholarly journals THE ROLE OF INTEREST RATES AND PROVINCIAL MONETARY AGGREGATE IN MAINTAINING INFLATION IN INDONESIA

2017 ◽  
Vol 19 (3) ◽  
pp. 267-286
Author(s):  
Chandra Utama ◽  
Miryam B.L. Wijaya ◽  
Charvin Lim
Keyword(s):  
Interest Rates ◽  
Money Supply ◽  
Method Of Moments ◽  
Phillips Curve ◽  
Generalized Method Of Moments ◽  
New Keynesian ◽  
Monetary Aggregate ◽  
The Impact ◽  
The Relationship

Inflation is a regional phenomenon hence the use of provincial data might be more appropriateon explaining the relationship between monetary policy and inflation. This paper analyzes the impact of changes in provincial money supply, the policy rate, and the interbank rate on regional inflation, within the framework of Hybrid New Keynesian Phillips Curve (HNKPC). This paper employs Generalized Method of Moments (GMM) on panel data of 32 provinces from 2005-III to 2014-IV. The estimation result shows that provincial monetary aggregate influence inflation significantly only in Sumatera. Furthermore, the policy fate affects the inflation in Sumatera and Kalimantan-Sulawesi. Using the interbank money rate, the result shows this rate also affect the inflation in most of the region except Kalimantan-Sulawesi. These findings show the price-based policy is more significant on affecting the provincial inflation compared to the provincial money supply.

scholarly journals CONVERGENCE OF HUMAN DEVELOPMENT INDEX: CASE STUDY OF FOREIGN DIRECT INVESTMENT IN ASEAN

2021 ◽  
Vol 22 (1) ◽  
pp. 12-17
Author(s):  
M. Elfan Kaukab ◽  
Surwandono Surwandon
Keyword(s):  
Method Of Moments ◽  
Home Country ◽  
Index Case ◽  
Generalized Method Of Moments ◽  
Source Country ◽  
Income Convergence ◽  
Economic Community ◽  
Asean Economic Community

This article examines the role of bilateral FDI and income convergence in affecting HDI increase in countries with middle HDI in ASEAN. The ASEAN Economic Community has been developing and it is expected that the gaps between nations can be covered. This article explores how economic intervention through HDI and income convergence can boost HDI improvement. The writers examine the presence of a statistically significant causal relationship between source country’s GDP, home country’s GDP, source country’s FDI towards the home country, source country total FDI, home country total FDI, and the percentage of source country FDI towards source country total FDI with both countries HDI convergence. Measurement is carried out using the generalized method of moments. Based on yearly samples of high HDI countries (Malaysia, Thailand, Singapore) couple with medium HDI countries (Laos, Vietnam, Cambodia, Myanmar, Indonesia, and Philippine) during 2013–2017 period, the writers find statistically significant impact of home country GDP, source country FDI towards all countries, and FDI percentage of the home country compared to all countries.

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