scholarly journals Innovations in achieving sustainable economic performance under income inequality

2021 ◽  
Vol 5 (2) ◽  
pp. 146-154
Author(s):  
Inna Cabelkova ◽  
Manuela Tvaronaviciene ◽  
Wadim Strielkowski
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Income Inequality ◽  
Economic Performance ◽  
Financial Services ◽  
Developing Economies ◽  
Well Being ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Impact

The negative effect of income inequality on economic growth represents a topic that constitutes a broad topic of research in the standard economic theory. One of the immediate consequences of income inequality is diminished consumption. Many «poor» customers cannot provide sufficient demand for the producers, causing overproduction that might lead to an economic crisis. It constitutes a problem because sustainable economic performance needs to be achieved under the conditions of income inequality. Reducing social and economic inequality in countries is an essential step towards ensuring that no one is left behind. It is also part of the 10th Sustainable Development Goal aimed to reduce it by 2030. Inequality is based on the income distribution between the top 1% and the bottom 99% of households in any given country. The degree of inequality could play a beneficial role if it is driven by market forces and is associated with incentives to increase growth. In developing and emerging countries, greater equality and improvements in living standards are needed to enable populations to flourish. Inequality reduction is one of the most critical steps a government could take to improve the well-being of its population. The income inequality growth increases human capital in poor countries and reduces it in high and middle-income countries. In poorer countries, it increases them, but in higher – and middle-income countries, it reduces them. Income inequality could be reduced by improving human capital and general skill levels, correcting labor-market policies, and making better use of financial services. In turn, sustainable economic growth could reverse the negative effects of inequality, reducing the need for high-wage and higher-earning households. Thus, it provides higher economic growth. This paper discusses three ways to circumvent the impact of decreasing consumption on economic growth adopted in developing economies over the last fifty years, such as increasing exports, providing loans for consumption, and printing new money. The findings showed that none of these methods seem to be sustainable in the long run. Thus novel and innovative mechanisms that would allow our economy to reduce inequality are necessary and need to be put into place.

scholarly journals Eradicating Income Inequality in Lower Middle-Income Countries

2020 ◽  
Vol 20 (2) ◽  
pp. 222-231
Author(s):  
Tangguh Pratysto ◽  
Ingrid Panjaitan
Keyword(s):  
Human Capital ◽  
Income Inequality ◽  
Income Distribution ◽  
Physical Capital ◽  
School Enrollment ◽  
Middle Income ◽  
Middle Income Countries ◽  
Long Run ◽  
The Rich ◽  
The Impact

Studying the distribution of income is an important issue to know what factors which affect to make income distribution more equitable, what factors can be the key to resolving the problem of income inequality, and shortening the distance between the poor and the rich. This paper studies the relationship between human capital, inflation rate, unemployment rate, physical capital, fiscal expenditure, gross domestic product growth, and urbanization on income inequality in 52 Lower Middle-Income Countries throughout 1990-2014. The authors estimate the impact of seven independent variables on income inequality as a dependent using Prais-Winsten with the robust model over period 1990-2014 at 52 Lower Middle-Income Countries. The results indicate an increase in human capital (gross school enrollment tertiary) can make the income distribution more even in the long run. The writers conclude that increases in human capital can reduce Gini coefficient and hence make income distribution fairer.

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 Capital account opening and economic growth——an empirical test based on systematic GMM

2021 ◽  
Vol 235 ◽  
pp. 01019
Author(s):  
Siming Jia
Keyword(s):  
Economic Growth ◽  
Empirical Test ◽  
Statistical Significance ◽  
High Income ◽  
Capital Account ◽  
Middle Income ◽  
Middle Income Countries ◽  
National Differences ◽  
The Impact ◽  
Low And Middle Income

This paper collected panel data of 74 countries from 1990 to 2017, and based on the Chinn-It index to depict the degree of capital account opening. Under the framework of the neoclassical economic growth model, the impact of capital account opening on economic growth was empirically tested by systematic GMM. The results show that: first, taking the overall capital account openness as the explanatory variable, the coefficient of the capital account openness of the whole sample is significantly positive. Further, considering the national differences found that high income countries capital account openness coefficient is significantly positive, but in low and middle-income countries capital account openness coefficient on economic and statistical significance were not significant, indicating that high income countries made open dividends, while in low and middle-income countries and earnings in the capital account liberalization. Finally, it proposes to open the capital account sub-projects step by step, strengthen prudent supervision in the process of further opening the capital account, and improve the regulatory legal system.

Innovations in human resources management: impact on economic growth

2021 ◽  
Vol 5 (3) ◽  
pp. 53-65
Author(s):  
Monika Danova ◽  
Ivana Kravcakova Vozarova ◽  
Elena Sira
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Economic Performance ◽  
Human Resources Management ◽  
Precise Determination ◽  
P Value ◽  
Strong Impact ◽  
Literary Sources ◽  
The Impact

In recent years, human capital has become increasingly emphasized as a factor of economic growth. Managing human capital could stimulate the whole economy to better performance in competitiveness. Although these indicators include several variables, there is no precise determination of which indicator mostly affects the country's economic growth. This paper summarizes the knowledge and approaches of several authors in the field of economic growth, knowledge economy, competitiveness, innovations and individual elements affecting these areas. It outlines the findings and provides some insight into the impact of individual factors on economic growth across recent studies. The main goal is to obtain information about the impact of education, its support, and its influence on economic performance on the example of empirical data documenting the qualitative parameters of the workforce. The use of selected indicators indicated their impact on the change in economic performance. The partial objective is to identify an indicator or set of indicators that could express the impact of human capital on economic growth. The study involved research methods such as analyzes, statistical methods such as correlation and p-value, and prediction for the next period based on past developments. The research object is the V4 countries – the Czech Republic, Slovakia, Hungary, and Poland. The findings pointed to the strong impact of the analyzed factors on economic growth. Besides, they showed which of the known ways to increase the efficiency of the labor factor were actually or little used in the sample countries. Undoubtedly, there is also an indicative and interesting comparison within a group or with other economies at a comparable economic and social development level. Finally, improvements to the current situation were proposed. The systematization of literary sources and approaches to economic growth helps identify possible proposals for improving competitiveness in the future, using innovative approaches.

scholarly journals Older People, Mobility and Transport in Low- and Middle-Income Countries: A Review of the Research

2019 ◽  
Vol 11 (21) ◽  
pp. 6157 ◽  
Author(s):  
Mark Gorman ◽  
Sion Jones ◽  
Jeffrey Turner
Keyword(s):  
Older People ◽  
Low Income ◽  
Well Being ◽  
The State ◽  
Small Scale ◽  
Knowledge Gaps ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Impact ◽  
Low And Middle Income

Older populations are rising globally, which in high-income countries has helped to generate a growing literature on the impact of ageing on travel requirements and transport policy. This article aims to provide an initial assessment of the state of knowledge on the impact on transportation policy and usage of the increasing numbers of older people in low- and middle-income countries (LAMICs), through a review of the literature relating to older people and transportation. As both the academic and policy/practice-related literature specifically addressing ageing and transport in LAMICs is limited, the study looks beyond transportation to assess the state of knowledge regarding the ways in which older people’s mobility is affected by issues, such as health, well-being, social (dis)engagement and gender. We find significant knowledge gaps, resulting in an evidence base to support the implementation of policy is lacking. Most research in low-income countries (LICs) is either broad quantitative analysis based on national survey data or small-scale qualitative studies. We conclude that, although study of the differing contexts of ageing in LAMICs as they relate to older people’s mobilities and transport use has barely begun, institutions which both make and influence policymaking recognise the existence of significant knowledge gaps. This should provide the context in which research agendas can be established.

scholarly journals 407 - Living through the pandemic as an older person: Long-term psychological impacts in low- and middle-income countries

2021 ◽  
Vol 33 (S1) ◽  
pp. 33-33
Author(s):  
Clarissa Giebel ◽  
Bwire Ivan ◽  
Maria Isabel Zuluaga ◽  
Suresh Kumar ◽  
Mark Gabbay ◽  
...  
Keyword(s):  
Mental Health ◽  
Older Adults ◽  
Well Being ◽  
Middle Income ◽  
Middle Income Countries ◽  
Health And Social Care ◽  
The Impact ◽  
Low And Middle Income

Background:The pandemic has put a huge strain on people’s mental health, with varying restrictions affecting people’s lives. Little is known how the pandemic affects older adults’ mental health, particularly those living in low- and middle-income countries (LMICs) where restrictions are affecting people’s access to basic necessities. Thus, the aim of this 3-country study was to understand the long- term impacts of the pandemic on the mental well-being of older adults with and without dementia in LMICs.Methods:We are collecting 30 baseline and 15 follow-up interviews with older adults (aged 60+), people with dementia, and family carers in Colombia, India, and Uganda, as well as a baseline and follow-up focus group with health and social are professionals in each country. Interviews are conducted remotely over the phone due to pandemic restrictions, with data collection taking place between March and July 2021. Transcripts are translated into English before being analysed using thematic analysis.Results:To date, we have completed close to 90 baseline interviews and 3 focus groups with health and social care professionals. Analysis is ongoing, but findings are capturing the detrimental second wave in India and follow-up interviews will capture the longitudinal impacts on mental health.Conclusions:Whilst vaccines are starting to be rolled out in LMICs, albeit at different rates, the virus will likely take much longer to be somewhat managed in LMICs. This leaves more room for people’s physical as well as mental health to be impacted by the restrictions, and with often limited mental health service coverage, it is all the more important o understand the impact of the pandemic on older people’s mental health.

scholarly journals Volatility in Discretionary Public Spending and Economic Growth: A Cross Country Analysis

2020 ◽  
Vol 59 (1) ◽  
pp. 45-68
Author(s):  
Muhsin Ali ◽  
Karim Khan
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Developing Economies ◽  
Public Spending ◽  
Jel Classification ◽  
Developed Economies ◽  
Potential Control ◽  
Country Analysis ◽  
Cross Country ◽  
The Impact

Volatility in discretionary public spending has diverse implications for the overall economic performance of economies. In this study, we examine the impact of volatile non�systematic discretionary public spending on economic growth. By employing cross-country data of 74 developed and developing economies, we find that volatility in non-systematic discretionary public spending has an adverse impact on economic growth. In particular, such impact is severe in the case of less developed economies. Our findings are robust to the problem of endogeneity. In order to ensure the accuracy of the results, we conduct sufficient sensitivity analysis by incorporating a bunch of potential control variables. In most of the cases, the results with regard to the policy volatility remain intact. This suggests that effective spending rules, i.e. permanent numerical limits, should be imposed on budgetary aggregates to restrain governments from the volatile use of discretionary spending. JEL Classification: H3; H5 Keywords: Volatility in Discretionary Public Spending, Economic Growth, Effective Spending Rule

scholarly journals Assessment of the Impact of Environmental Pollution on Economic Growth

2017 ◽  
Vol 9 (3) ◽  
pp. 68-80
Author(s):  
Olga Kudryavtseva ◽  
E. . Ivanov ◽  
D. . Kolesnik ◽  
E. . Matveev ◽  
S. . Pechenkin ◽  
...  
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
World Bank ◽  
Turning Point ◽  
Middle Income ◽  
Middle Income Countries ◽  
Econometric Methods ◽  
The World Bank ◽  
High Level ◽  
The Impact

The work is devoted to testing the hypothesis of the existence of an inverted U-shaped dependence of economic growth on the level of environmental pollution, which was based on the concept of the ecological curve of Kuznets. The authors, using econometric methods and data from the World Bank, show that the hypothesis is correct: there is a turning point between the positive and negative nature of the dependence of economic growth on the level of CO2 emissions. The hypothesis is confirmed for low- and middle-income countries, and the dependence is linear negative for countries with a high level of income. Based on the results, the authors formulate recommendations on environmental regulation in accordance with the level of the country's economic development.

scholarly journals An Empirical Examination of the Impact of Economic Structural Change on Income Inequality: Dynamic Heterogeneous Panel Approach

2021 ◽  
Vol 10 (1) ◽  
pp. 136
Author(s):  
Maha Elhini ◽  
Rasha Hammam
Keyword(s):  
Structural Change ◽  
Income Inequality ◽  
Value Added ◽  
Least Squares Regression ◽  
Economic Sectors ◽  
Empirical Examination ◽  
Middle Income ◽  
Middle Income Countries ◽  
Long Run ◽  
The Impact

This paper employs structural growth perspective to the analysis of income inequality in 43 countries over the period 2003-2017.The study utilizes two different panel estimation techniques. First, the panel least squares regression examines the relevance of Kuznets effect of the different economic sectors; agriculture, manufacturing and services on income inequality. Second, the pooled mean group (PMG) estimation of dynamic heterogeneous panels gauges the long run impact of the change in sectoral value added as a proxy for structural change on inequality. PMG presents short run adjustments to be country-specific due to the widely different impacts of macroeconomic conditions and vulnerability of each country to income inequality. Empirical findings show that across all countries, sector growth had no to negligible impact on inequality indicating that no signs are evident of Kuznets effect. However, both inflation and unemployment have mixed impacts on inequality in Lower and Middle-Income countries. Results further reveal that unemployment has a relatively stronger influence on inequality than inflation for Upper-middle income countries, unlike in Lower-middle income countries, where unemployment shows a weaker correlation with inequality than inflation. Results for High-income countries show that the influence between inflation and unemployment are not as big as in Upper middle-income countries.

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