scholarly journals Factor Misallocation and Declining Labor Income-Share in China

2017 ◽  
Vol 3 (2) ◽  
pp. 188
Author(s):  
Songtao Wang ◽  
Tristan Kenderdine ◽  
Qishui Chi
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Panel Data ◽  
Low Income ◽  
Empirical Studies ◽  
Theoretical Modeling ◽  
Labor Income ◽  
Labor Share ◽  
Income Share ◽  
Development Factor

<p><em>In China’s present economic development, factor misallocation and labor’s low income-share both are important and interrelated, with factor misallocation being an important reason for the decline in China’s labor income-share. Theoretical modeling demonstrates that if capital-labor is substitutable, the factor misallocation will lead to a decline in labor income-share. Empirical studies, using 2001-2013 provincial panel data show that factor misallocation significantly reduces labor income-share, even after controlling for other factors that affect the labor-share. The conclusion is both significant and robust. Therefore, economic policy which optimizes factor allocation will improve labor’s income-share.</em></p>

scholarly journals Convergence of electricity consumption in Turkey: Spatial panel data analysis

2020 ◽  
Vol 67 (2) ◽  
pp. 241-256 ◽  
Author(s):  
Gülsüm Akarsu ◽  
Burcu Berke
Keyword(s):  
Economic Development ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Empirical Studies ◽  
Electricity Consumption ◽  
Spatial Panel ◽  
Spatial Panel Data ◽  
Per Capita ◽  
Conditional Beta ◽  
Beta Convergence

The issue of convergence has been discussed in many theoretical and empirical studies. Because per capita electricity consumption is considered as an indication of economic development, this study aims to determine the presence of ?absolute and conditional beta (?) convergence? of per capita total electricity consumption across the provinces of Turkey between 1986 and 2013. This work is the first investigation of electricity consumption convergence in Turkey. Based on the annual balanced panel data and the spatial panel data model, our findings indicate absolute ? convergence of per capita electricity consumption across the provinces of Turkey. We conclude that regional policies are successful in reducing regional disparities in per capita electricity consumption among the provinces of Turkey. However, other indicators of economic development should be examined to determine the overall convergence.

THE IMPACTS OF GLOBALIZATION ON THE LABOR SHARE: EVIDENCE FROM ASIA

2020 ◽  
Vol 65 (supp01) ◽  
pp. 57-73
Author(s):  
XIAOSHAN HU ◽  
GUANGHUA WAN ◽  
JING WANG
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
World Wide ◽  
Trade Openness ◽  
Labor Income ◽  
Significant Determinant ◽  
Outward Fdi ◽  
Labor Share ◽  
The Impact

The decline in the share of labor income — an indicator of functional income distribution — has contributed to rising income inequality world-wide. Despite a growing literature, little is known about the effects of globalization on the labor share or inequality in Asia where some of the economies are most globalized. Applying fixed-effect regressions to panel data from 29 Asian economies over the period from 1980 to 2014, we focus on the impacts of globalization on the labor share in Asia where globalization is measured by trade openness and FDI. The modeling results show that trade openness is a significant determinant of the labor share. More specifically, the impact of export is significantly negative and the impact of import is positive. In terms of FDI, the coefficient of the inward FDI is significantly positive and that of the outward FDI is significantly negative in developing countries only.

scholarly journals The labor share and income inequality: some empirical evidence for the period 1990-2015

2020 ◽  
Vol 28 (84) ◽  
pp. 173-195
Author(s):  
Iñaki Erauskin
Keyword(s):  
Labor Market ◽  
Panel Data ◽  
Income Inequality ◽  
Gini Coefficient ◽  
Content Type ◽  
Labor Share ◽  
Income Share ◽  
The Gini Coefficient ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyze empirically the relationship between the labor share and income inequality, as measured by the Gini coefficient and by the income shares for different quintiles, during the period 1990–2015 for 62 developed and developing countries. Design/methodology/approach This study uses panel data techniques to analyze empirically the relationship between the labor share and income inequality. Findings This paper finds that a lower labor share is associated with a higher Gini coefficient. A lower labor share is found to be strongly associated with a smaller income share for the lowest two quintiles and larger income share for the highest quintile and weakly associated with a smaller income share for the third and fourth quintiles. Moreover, this paper finds that the lower the quintile, the stronger the impact of the labor share on the income share of the quintile. Social implications Policymakers should take into account the evolution of the labor share. Public policies that improve labor market outcomes, such as those aimed to promote participation in the labor market and strengthen the human capital of low-income groups, seem necessary to prevent the rise in economic inequalities. Moreover, as the digital transformation of society progresses, policies to promote skill deepening may have an important role in reversing excessive inequalities. Originality/value How changes in the labor share are associated with changes in the Gini coefficient, and how this is driven by income shares for different quintiles, for a broad range of countries during the most recent period, has not been comprehensively studied using panel data techniques.

scholarly journals Impact of Development Zone Construction on Labor Share in China

2020 ◽  
Vol 12 (9) ◽  
pp. 3642
Author(s):  
Ziyu Liu ◽  
Yanlin Yang
Keyword(s):  
Economic Development ◽  
High Tech ◽  
Labor Income ◽  
Development Zone ◽  
Income Share ◽  
Policy Effect ◽  
Agglomeration Effect ◽  
National Economic ◽  
Effect Estimation ◽  
The Impact

The decline in the share of labor income is associated with rising income inequality, which raises a series of economic and social problems. These problems seriously threaten the sustainability of economic development. To maintain sustainable economic development, China’s government has invested hundreds of billions of dollars to build economic development zones by attracting high-tech enterprises into the zones. In our paper, we aim to analyze whether the construction of economic development zones can effectively increase the share of labor income. We use PSM-DID (Propensity Score Matching Difference-in-Difference) to evaluate the impact of establishing economic development zones in China on the labor income share of enterprises in economic development zones in 2006. We found that the establishment and construction of economic development zones increased the share of labor income through the “agglomeration effect” and “policy effect”. Estimation of the level of heterogeneity among economic development zones shows that, compared with provincial economic development zones, the construction of national economic development zones has a greater effect on increasing the labor income share of enterprises in those zones. Economic development zones in the eastern, central, and western regions should also increase their share of labor income areas.

scholarly journals Measuring Financial Inclusion in Developing Economies: A Multidimensional Index

2021 ◽  
Vol 16 (3) ◽  
pp. 237-262
Author(s):  
Nur Amirah Borhan ◽  
◽  
Ruhaini Muda ◽  
Saadiah Mohamad ◽  
◽  
...  
Keyword(s):  
Economic Development ◽  
Factor Analysis ◽  
Low Income ◽  
Developing Economies ◽  
Internet Banking ◽  
Financial Inclusion ◽  
African Countries ◽  
Middle Income ◽  
Developed Economies ◽  
Development Factor

Financial inclusion is a major policy concern especially in developing economies. However, an established measure of financial inclusion is still absent. This paper aims to fill this gap by measuring and examining the level of financial inclusion in 66 developing economies. A Financial Inclusion Index (FII) was constructed, incorporating five indicators (ATM, Bank, Other Financial Institutions, Deposits and Loans) for 2013 until 2019. Two-staged Factor Analysis was employed for weights assignment. The results showed that the average level of financial inclusion in developing economies was low but with significant variation among group of countries. A lower level of financial inclusion was observed among the African countries as well as the low-income and lower-middle income countries. The paper also analysed the relationship between financial inclusion and economic development. The findings showed that more developed economies had higher income and thus, higher financial inclusion. While the index is valid and reliable to be used for comparison among developing economies, the study was unable to include indicators of mobile and internet banking due to data constraints. Despite this caveat, the findings of this study will be useful for policymakers in shaping financial inclusion policies. Keywords: financial inclusion, financial inclusion index, economic development, factor analysis

scholarly journals Information, Communications and Media Technologies for Sustainability: Constructing Data-Driven Policy Narratives

2021 ◽  
Vol 13 (5) ◽  
pp. 2903
Author(s):  
Ravishankar Sharma ◽  
Aijaz A. Shaikh ◽  
Stephen Bekoe ◽  
Gautam Ramasubramanian
Keyword(s):  
Panel Data ◽  
Low Income ◽  
Empirical Studies ◽  
Good Practice ◽  
Lessons Learned ◽  
Sustainable Growth ◽  
Data Driven ◽  
Media Technologies ◽  
The North ◽  
Industry Standard

This paper introduces the idea of data-driven narratives to examine how the use of information, communications, and media technologies (ICMTs) impacts the sustainable growth of economies. While ICMTs have regularly been advocated as a policy tool for growth and development, there is a research gap in empirical studies validating how such policies may be effective. This analysis is based on historical panel data from 39 economies across the developed North (19) and developing South (20). The industry-standard Cross-Industry Standard Process for Data Mining (CRISP-DM) methodology was applied to construct narratives that weave extant theories with empirical data. The art of developing data-driven narratives is rarely addressed in previous research articles. In the narrative approach, prior research on how ICMTs and sustainable growth are quantitatively scored and measured is reviewed. Panel data from authoritative sources such as the United Nations, World Economic Forum, and Sustainable Society Index were collected, cleansed, and conglomerated for data analytics. This was followed by evidence-based reasoning to examine any possible relationships between ICMT development and the sustainable growth of economies across the “North” and “South”. The findings reveal that there are differentiated outcomes in sustainable growth in high- and low-income economies. This poses legitimate questions as to whether low-income economies will be able to meet the UN’s Sustainable Development Goals by 2030 through the intermediation of ICMTs. It is the intended contribution of this paper to exemplify how data-driven narratives using CRISP may construct rich stories about ICMT for sustainability for the purposes of sharing good practice as well as lessons learned.

Towards New Policy Incentives for Fixed Capital Investment and Technological Upgrades in Russia

2011 ◽  
pp. 43-56
Author(s):  
A. Apokin
Keyword(s):  
Economic Policy ◽  
Capital Investment ◽  
Empirical Studies ◽  
Fixed Capital ◽  
Policy Framework ◽  
Private Companies ◽  
Russian Economy ◽  
Technological Modernization ◽  
Fixed Capital Investment ◽  
Policy Incentives

The paper approaches the problem of private fixed capital underinvestment in Russia. The author uses empirical studies of the Russian economy and cases of successful technological modernization to outline several groups of disincentives for private companies to perform fixed capital investment in Russia. To counter these constraints, a certain incentive-based economic policy framework is developed.

Between Modernization and Stagnation: Economic Policy in 2012

2013 ◽  
pp. 4-23 ◽  
Author(s):  
V. Mau
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Russian Economic Development ◽  
Structural Transformation ◽  
Economic Performance ◽  
Historical Analysis ◽  
Oil Boom ◽  
The World

The paper deals with the trends in the world and Russian economies towards development of a new post-crisis system, including technological and structural transformation. Three main scenarios of Russian economic development (conservative, innovation and acceleration) are discussed basing on historical analysis of Russian economic performance since 1970-s when oil boom started. On this basis key challenges of economic policy in 2013 are discussed.

Waiting for a New Model of Growth: Russia’s Social and Economic Development in 2013

2014 ◽  
pp. 4-32 ◽  
Author(s):  
V. Mau
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Economic Performance ◽  
Growth Rates ◽  
Global Crisis ◽  
New Model ◽  
Social And Economic Development ◽  
Economic Risks

The paper deals with Russian social and economic development in 2013 and prospects for the next year or two. The author discusses the logic and trends of the global crisis started in 2008. This is the basis for further analysis of current Russian economic performance with special emphasis on the problem of growth rates deceleration. Special attention is paid to economic risks and priorities of economic policy.

Culture, names and economic development

2016 ◽  
pp. 81-106
Author(s):  
E. Borisova ◽  
A. Kulkova
Keyword(s):  
Economic Development ◽  
Cultural Identity ◽  
Empirical Studies ◽  
Economic Research ◽  
Cultural Norms ◽  
Individual Values ◽  
Personal Names ◽  
Economic Significance ◽  
And Behavior

Various components of culture have long been in the focus of economic research. Numerous empirical studies show that cultural norms, as well as religion and language, matter for economic development and have not only statistical but also economic significance. This paper considers various examples of how culture can affect individual values and behavior. It also deals with personal names as a key marker of one’s cultural identity. Overall, the paper contributes to the more profound understanding of a famous notion that "culture matters", and helps clarify the mechanisms through which culture exerts its influence.

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