A Survey of the Role of Fiscal Policy in Addressing Income Inequality, Poverty Reduction and Inclusive Growth

AbstractBuilding upon institutional economics, we examine how social progress orientation (SPO) affects inclusive growth through innovative and opportunity entrepreneurship. Hypotheses about civic activism, voluntary spirit, and the inclusion of minorities as proxies of SPO that affect entrepreneurship directly and inclusive growth indirectly have been suggested. Using unbalanced panel data of 132 observations (63 countries) and the three-stage least-squares method (3SLS), we provide empirical evidence that these three measures of SPO significantly affect innovative and opportunity entrepreneurship. Interestingly, our endogenous measures of entrepreneurial activity have served to explain inclusive growth, which is observed through poverty reduction across countries. Public policies should focus on social values oriented to progress in order to stimulate valuable entrepreneurial activity and hence facilitate economic development that also embraces vulnerable communities.

Download Full-text

The Role of Fiscal Policy in Inclusive Growth in Malaysia

Issues and Challenges in the Malaysian Economy ◽

10.1108/978-1-83867-479-320191007 ◽

2019 ◽

pp. 95-108

Author(s):

Wan Farisan Wan Sulaiman

Keyword(s):

Fiscal Policy ◽

Inclusive Growth

Download Full-text

Falling Inequality in Latin America: The Role of Fiscal Policy

Journal of Latin American Studies ◽

10.1017/s0022216x20000334 ◽

2020 ◽

Vol 52 (2) ◽

pp. 317-341 ◽

Cited By ~ 1

Author(s):

Judith Clifton ◽

Daniel Díaz-Fuentes ◽

Julio Revuelta

Keyword(s):

Latin America ◽

Fiscal Policy ◽

Income Inequality ◽

Public Spending ◽

Income Taxes ◽

Personal Income ◽

Recent Scholarship ◽

Social Contributions ◽

Urban Level

AbstractLatin America is one of the world's only regions to have witnessed a fall in income inequality during the 2000s. This paper evaluates the role fiscal policy played in this change. Recent scholarship has examined this in individual countries; lacking is a regional perspective. We examine the effects of nine fiscal instruments on income inequality in 17 countries between 1990 and 2014. Fiscal policy had a positive – albeit small – effect in reducing income inequality, especially from 2003, working best at the urban level. Public spending on education, personal income taxes and social contributions were especially instrumental in reducing income inequality.

Download Full-text

The role of fiscal policy in the link between income inequality and banking crises

Applied Economics Letters ◽

10.1080/13504851.2020.1808570 ◽

2020 ◽

pp. 1-5

Author(s):

Nicholas Apergis

Keyword(s):

Fiscal Policy ◽

Income Inequality ◽

Banking Crises

Download Full-text

LITERATURE REVIEW IMPACT OF TAX AND SUBSIDY ON REDUCING INCOME INEQUALITY IN INDONESIA

JURNAL PAJAK INDONESIA (Indonesian Tax Review) ◽

10.31092/jpi.v1i1.165 ◽

2017 ◽

Vol 1 (1) ◽

pp. 118-123

Author(s):

Sakti Prabowo

Keyword(s):

Fiscal Policy ◽

Income Inequality ◽

Literature Review ◽

Income Taxes ◽

Social Spending ◽

The Government ◽

Direct Tax ◽

Neutral Effect

Many countries have used fiscal policy Tax and subsidy as a tool to reduce income inequality and many of them have succeeded to achieve it. In contrast, tax and subsidy in Indonesia tend to have a neutral effect on inequality today. This research aims to identify the factors caused Indonesia fiscal policy doesn't have a significant impact on income inequality reduction and what steps should be taken by the government to improve the role of fiscal policy in order to reduce income inequality. From the literature review, this paper finds that Indonesia should improve the quality of public spending. Indonesia government should Prioritize social spending and infrastructure to improve the fiscal policy role to reduce inequality. In addition, increasing direct tax such as personal income taxes should be done in order to make it more effective.

Download Full-text

Technology Access, Inclusive Growth and Poverty Reduction in Nigeria: Evidence from Error Correction Modeling Approach

Zagreb International Review of Economics and Business ◽

10.2478/zireb-2019-0017 ◽

2019 ◽

Vol 22 (2) ◽

pp. 1-21

Author(s):

Sebil Olalekan Oshota

Keyword(s):

Error Correction ◽

Poverty Reduction ◽

Transport Infrastructure ◽

Inclusive Growth ◽

Modeling Approach ◽

Information And Communication ◽

Error Correction Modeling ◽

The Relationship ◽

Role Of Information

Abstract This study examines the role of information and communication technology (ICT), access to electricity and transport infrastructure in reducing poverty and promoting inclusive growth in Nigeria for the period 1980-2014 using the error correction modeling approach (ECM). The results indicate that access to electricity and transport infrastructure is negative and statistically significant in both the incidence and the depth of poverty reduction and therefore conclude that this lead to inclusive growth. In particular, we show that access to ICT negatively influences the incidence of poverty, but the relationship is not robust when the measure of poverty is the poverty gap.

Download Full-text

Evaluation of Fiscal Policy Effect of China’s Photovoltaic Industry

Light & Engineering ◽

10.33383/2018-123 ◽

2018 ◽

pp. 111-116 ◽

Cited By ~ 1

Author(s):

Gang AN ◽

Hang WANG

Keyword(s):

Fiscal Policy ◽

Research And Development ◽

Operating Performance ◽

Fiscal Policies ◽

Micro Data ◽

Policy Effect ◽

Policy Suggestions ◽

Asset Size ◽

The Empirical Analysis

To explore the role of fiscal policies in promoting the development of photovoltaic industry, the effects of financial subsidies on the development of China’s photovoltaic industry were analyzed by using the micro data of listed companies. The empirical analysis results in this study indicate that the fiscal policies represented by financial subsidies play a remarkable positive impetus function and financial subsidies are positively correlated with the operating performance of Photovoltaic enterprises. With larger the asset size and higher the Research and Development (R&D) investments, the operating performance of Photovoltaic enterprises is the better. Based on the above results, this study puts forward some policy suggestions on optimizing fiscal policy tools and further promoting the development of photovoltaic industry.

Download Full-text