scholarly journals Inequality of opportunities: Interpretation, methods and problems of estimation

2020 ◽  
Vol 36 (4) ◽  
pp. 624-652
Author(s):  
Zulfiya Ibragimova ◽  
◽  
Marina Frants ◽  
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Empirical Studies ◽  
Inequality Of Opportunity ◽  
Equal Opportunities ◽  
Main Hypothesis ◽  
Current State ◽  
The Relationship ◽  
Core Part

The topic of this research is the theory of equal opportunities and its application to the relationship between inequality and economic development. The relevance of the work is due, first, to the fact that inequality grows throughout the world, creating conditions for the growth of social tension; second, to the lack of general consensus on the direction of the relationship between inequality and economic growth; and third, to contradictory results of empirical studies on this issue. The main hypothesis of the study is that these theoretical and empirical contradictions can be resolved by dividing inequality into two components —inequality of opportunity and inequality of effort — and studying their impact on economic growth separately. The idea of distinguishing between inequality of opportunity and inequality of effort is a core part of the theory of equal opportunities. The paper briefly reviews the roots, development, and current state of the theory. Methods for measuring inequality of opportunities have been developed and tested on microdata from many countries, including Russia. Also, at the theoretical level, mechanisms of the negative impact of inequality of opportunities and the positive impact of inequality of efforts on economic growth have been identified. At the same time, there are very few empirical studies dealing with the relationship between inequality of opportunity, inequality of effort, and economic growth. In practical terms, studies of the inequality of opportunity are important because they shift the goals and priorities of public policy from equalizing outcomes to equalizing opportunities. This makes it possible to move towards a more just and rapidly developing society.

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 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.

scholarly journals Relationship between Economic Growth, Unemployment and Poverty: Analysis at Provincial Level in Vietnam

2016 ◽  
Vol 8 (12) ◽  
pp. 113 ◽  
Author(s):  
Nguyen Hoang Quy
Keyword(s):  
Economic Growth ◽  
Empirical Study ◽  
Poverty Reduction ◽  
Negative Impact ◽  
Positive Impact ◽  
Public Investment ◽  
Research Results ◽  
Provincial Level ◽  
Sustainable Economic Growth ◽  
The Relationship

This empirical study analyzes the relationship between economic growth, unemployment and poverty at provincial level in Vietnam. The study is conducted on a sample of 245 year observations in 63 Vietnam provinces for the period of 2012-2015. The research results show that: Firstly, public investment has a positive impact on economic growth. Secondly, poverty, and export & import have a negative impact on unemployment. Thirdly, public investment has a significant and positive impact on unemployment. Fourthly, unemployment; export & import; and public investment have a negative impact on poverty. On the basis of our findings, we suggest 03 groups of recommendations for sustainable economic growth, poverty reduction, and unemployment reduction of Vietnam provinces.

scholarly journals The Relationship between Democracy and Economic Growth in Tunisia: An Application of Autoregressive Distributed Lag Model

2016 ◽  
Vol 4 (1) ◽  
pp. 137
Author(s):  
Lamia Arfaoui ◽  
Azza Ziadi ◽  
Sonia Manai
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Empirical Studies ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Lag Model ◽  
The Relationship

This paper aims to identify the nature of the relationship between democracy and economic growth. We will answer the question: Does democracy improve economic growth? We study the case of Tunisia during the period from 1980 until 2014; this country has experienced a democratic transition after the revolution of 14 th January 2011. Our study is divided into two parts. The first part is a literature review of overview on the causality between democracy and economic growth. The second part as an application uses the Autoregressive Distributed Lag Model (ARDL). The choice of the technical SARL aimed the study of the existence of a long-run equilibrium relationship between two variables in level, a procedure co-integration has been proposed by Pesaran et al (2001). The results of different empirical studies were inconclusive. Some generated a negative impact of democracy on growth while others showed the opposite. The empirical results of our work have shown that in a nascent democracy such is the case of Tunisia; democracy has no effect on economic growth in the short term.  It is to add an observation rate of GDP during the period post -revolution generated a sawtooth trend which demonstrates the unstable economic situation in the country.

scholarly journals TRADE-OFF ANALYSIS OF ECONOMIC GROWTH AND AIR POLLUTION EFFECTING DECREASE OF POOR ENVIRONMENTAL QUALITY IN SUMATERA UTARA PROVINCE

2020 ◽  
Vol 8 (1) ◽  
Author(s):  
Benni Sinaga
Keyword(s):  
Water Pollution ◽  
Economic Growth ◽  
Air Pollution ◽  
Soil Contamination ◽  
Environmental Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Series Data ◽  
The Relationship

The development of economic activities will certainly have a positive impact on increasing economic growth and also have a negative impact on pollution each year, will certainly affect the quality of the environment in the province of North Sumatera . This study aims to analyze the relationship and influence of the GDP, water pollution, air pollution and soil contamination on environmental quality in North Sumatera  province both simultaneously and partially. The data used are secondary data from BPS Sumatera  and North Sumatera  Environmental Agency in the form of time series data from 2004 to 2014. Correlation analysis using correlation with SPSS version 20. Results of correlation coefficient analysis in this study explains that economic growth (0.945), water pollution (0.969), air pollution (0.903) have the relationship is very strong, while soil contamination ( 0.803) have a strong closeness with the quality of the environment in the province of North Sumatera . The results also showed that the variables of economic growth, pollution of water, air and soil are able to explain a model of environmental quality in North Sumatera  province at 96.8 percent.

scholarly journals INVESTIGATING OF THE INCLUSIVENESS IN THE ECONOMIC GROWTH OF PAKISTAN

2019 ◽  
Vol 17 (1) ◽  
Author(s):  
Muhammad Masood Anwar ◽  
Ghulam Yahya Khan ◽  
Sardar Javaid Iqbal Khan
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Growth Index ◽  
Series Data ◽  
Inclusive Growth ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
The Relationship

Inclusive growth is a type of economic growth which is sustained over decades and provides benefits to the entire society. The main objective of the paper is to examine the relationship between economic and inclusive growth. For this purpose, inclusive growth index is constructed by four variables inequality, poverty, employment rate, and enrolment rate. To explore the relationship between economic growth with inclusive growth in Pakistan, time series data from 1971 to 2014 is used. Stationarity of the data is checked through augmented Dickey-Fuller test and on the basis of the different order of integration. Autoregressive distributed lag model is employed. The results of the study show that the growth in Pakistan is not fully inclusive. There is a half-portion of the growth share in the society. Other control variables such as investment have a positive impact, whereas inflation has a negative impact on inclusive growth.

Effectiveness of bilateral and multilateral concessional debts on economic growth in Africa

2019 ◽  
Vol 15 (2) ◽  
pp. 344-361 ◽  
Author(s):  
Hillary Chijindu Ezeaku ◽  
Obiamaka P. Egbo ◽  
Ifeoma Nwakoby ◽  
Josaphat U.J. Onwumere
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Empirical Studies ◽  
Relative Effectiveness ◽  
Equilibrium Path ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Long Run Equilibrium

Purpose The purpose of this paper is to assess the relative effectiveness of bilateral and multilateral concessional debts on economic growth in 32 sub-Saharan African (SSA) countries over the period 1985–2016. Design/methodology/approach The recently developed dynamic panel autoregressive distributed lag models which comprise three different estimators, the mean group, pooled mean group (PMG) estimator and dynamic fixed effect, were applied to estimate the model. Following these estimators, the Hausman test was employed to determine the efficient and consistent estimator. Findings The results showed that bilateral concessional debts had a negative impact on growth. From the findings, a 1 percent increase in bilateral concessional debts induced economic growth to decline by 38.1 percent points in the short run, and by 7.1 percent points in the long run; convergence to long-run equilibrium adjusted at the speed of 90 percent on an annual basis. Multilateral concessional debts were found to have a positive impact on growth both in the short and long run. The coefficient of the error term was negatively signed and indicates that deviations from the long-run equilibrium path were being corrected at the speed of 89.4 percent annually. Originality/value To the authors’ best knowledge, empirical studies that specifically seek to examine how bilateral and multilateral concessional debts impacted on growth are yet to attract the attention of researchers. As a result, this study will complement related extant growth studies, especially in the case of SSA.

The Impact of Public Debt on Economic Growth: A Review of Contemporary Literature

2018 ◽  
Vol 45 (4) ◽  
pp. 339-357
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Positive Impact ◽  
Empirical Studies ◽  
Theoretical Models ◽  
Empirical Literature ◽  
Long Run ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

This article provides a detailed survey of existing theoretical and empirical literature on the impact of public debt on economic growth in both developing and developed economies. The aim of the article is to add to the existing debate on the relationship between public debt and economic growth in world economies. The survey finds diverse and, in some cases, inconsistent evidence on the relative impact of public debt on economic growth. Although the majority of the surveyed literature supports the negative effect of public debt on economic growth, several other studies have found a long-run positive impact of public debt on economic growth through the fiscal multiplier effect. The article also found that a few other studies support the Ricardian Equivalence Hypothesis (REH), which states that the relationship between public debt and economic growth is nonexistent. On balance, the article also found that there is a growing body of empirical evidence, which supports the presence of threshold effects in the relationship between public debt and economic growth. Overall, it concludes that theoretical models and empirical studies yield inconclusive results depending on a set of heterogeneous factors, including the level of development of the sampled countries, data coverage, methodology used, and the researchers’ choice of control variables, among other factors. This literature survey differs predominantly from other earlier studies in that it provides a comprehensive review of the linkage between government debt and economic growth, in addition to disentangling public debt into two components, domestic and foreign, and expounding on their relative effects on economic growth.

CAPITAL ACCOUNT, INSTITUTIONAL QUALITY, AND ECONOMIC GROWTH IN MENA COUNTRIES: A GMM APPROACH

2016 ◽  
Vol 11 (04) ◽  
pp. 1650016
Author(s):  
MOHAMED ILYES GRITLI ◽  
FATMA MARRAKCHI CHARFI
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Empirical Studies ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Capital Account ◽  
Financial Openness ◽  
Capital Account Liberalization ◽  
Mena Countries

Despite the diversity of theoretical and empirical studies, the question of capital account–economic growth relationship remains a controversial issue. The aim of the paper is to complete the existing evidence focusing on Middle East and North Africa (MENA) countries, while taking into account the institutional quality. In this context, various estimates were made by generalized method of moments (GMM) over the period of 1986–2012 for 11 countries. The results show that corruption and democratic accountability have a significant and negative impact on economic growth if capital account liberalization is enacted. However, the interaction term of bureaucracy quality and financial openness has a significant and positive impact on economic growth. These findings therefore show that the benefits of capital account liberalization are not unconditional, but are likely to depend upon the environment in which the liberalization occurs. Our paper contributes to the recent policy debates on the merits and demerits of capital account liberalization.

scholarly journals Significance of Tourism Budget, Inflation, and Interest Rate on Economic Growth in Indonesia for the Year of 2011-2020

2022 ◽  
Vol 9 (1) ◽  
pp. 167-174
Author(s):  
Zata Hasyyati
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Interest Rate ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Negative Impact ◽  
Positive Impact ◽  
Tourism Sector ◽  
Relationship Of ◽  
The Relationship

This study is aimed to investigate the relationship of tourism budget, inflation, interest rate on economic growth in Indonesia in 2011 – 2020. Data was gathered from Central Bureau of Statistics (Badan Pusat Statistik/BPS) and Ministry of Finance (Kementerian Keuangan/Kemenkeu). The data were analyzed using the multiple regression analysis after fulfilling all of the classical assumption tests. It showed that the inflation and interest rate have significant positive impact while tourism budget has insignificant negative impact on economic growth. In this case, monetary policy tends to be efficiently implemented at the level of promoting growth. However, Indonesia is still early on hoping significant contribution of tourism sector. Keywords: Tourism Budget, Inflation, Interest Rate, Economic Growth, GDP, Multiple Regression Analysis.

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