scholarly journals Governance and economic welfare: A BRICS panel analysis

2021 ◽  
Vol 10 (2, special issue) ◽  
pp. 290-299
Author(s):  
Adrino Mazenda ◽  
Priviledge Cheteni
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Income Inequality ◽  
Income Distribution ◽  
Good Governance ◽  
Governance Structure ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Economic Welfare ◽  
Brics Countries

An effective governance structure is central to growth, sustainable development and equal income distribution (economic welfare) (Glass & Newig, 2020). Brazil-Russia-India-China-South Africa (BRICS) countries differ in governance structure with varying outcomes on economic welfare. This article explores the extent to which governance impacts economic welfare in BRICS countries viewed as an emerging powerhouse, with significant growth prospects — yet distinct in their governance systems, and income variability amongst its population. The article utilised panel static models (pooled ordinary least squares (OLS) and fixed effects (FEs) estimator) from 1996 to 2019 to investigate the effects of governance proxied by the World Bank World Governance Indicators (WGI) on economic welfare (proxied from two channels): quantitative (output stock/economic growth) and qualitative (reduced income inequality). The two channels combine the ordinary measure of welfare: gross domestic product (GDP), a proxy for economic growth, household and income distribution, and a proxy for income inequality drawing (Heys, 2019). The findings revealed that governance produced varying results on the economic welfare in BRICS. Democratic countries which practise good governance principles (South Africa and Brazil) had a negative economic welfare effect from both channels compared to one-party states, such as China and Russia. Therefore, the findings invalidate the null hypothesis that good governance is a catalyst for economic welfare. Sound policies, especially on structural change and equitable income distribution are necessary to enhance economic welfare in BRICS countries. The article is relevant and discloses iterations of the distinction between good governance and sound policy implications on developing nations’ economic welfare.

scholarly journals Economic Growth and Income Inequality in Developing Countries

2015 ◽  
Vol 9 (6) ◽  
pp. 79-82 ◽  
Author(s):  
Morteza Nemati ◽  
Ghasem Raisi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Income Distribution ◽  
Economic System ◽  
Development Strategy ◽  
Low Income ◽  
Poverty Eradication ◽  
The Relationship ◽  
Selection Of

Nowadays, improvement in income distribution and poverty eradication and hence low inequality are served as the main objectives of economic and social development strategy even prior than primary tasks of governments. to manifest importance of income distribution, some economists adopt income inequality and income distribution in society as criteria for economic system of the community, although these criteria and measures are theoretical for the economic system and this varies from the perspective of different people, however, it denotes on  importance of income distribution among individuals. The main objective of this study was to evaluate the effect of economic growth on income inequality in the selection of low-income developing countries.To this end, using panel data and data for 28 developing countries over the period 1990-2010 the relationship between GDP and the Gini coefficient was examined. The results indicate that as per hypothesis Kuznets in the early stages of growth, income inequality increases and then it declines in later stage.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

scholarly journals The Contribution of Foreign Direct Investment (FDI) To Domestic Employment Levels in South Africa: A Vector Autoregressive Approach

2019 ◽  
Vol 11 (1(J)) ◽  
pp. 110-121
Author(s):  
Bongumusa Prince Makhoba, ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Least Squares ◽  
South African ◽  
Empirical Analysis ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Series Data ◽  
The South ◽  
Vector Autoregressive

Several empirical works have yielded mixed and controversial results with regard to the effects of FDI on employment and economic growth. The primary focus of this study is to investigate the contribution of FDI to domestic employment levels in the context of the South African economy. The analyses of the study were carried out using the annual time series data from 1980 to 2015. The macroeconomic variables employed in the empirical investigation include employment, FDI, GDP, inflation, trade openness and unit labour costs. The study used secondary data from the South African Reserve Bank and Statistics South Africa database. The study estimated a Vector Autoregressive/ Vector Error Correction Mechanism (VAR/VECM) approach to conduct empirical analysis. However, the study also employed single equation estimation techniques, including the Ordinary Least Squares (OLS), Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS) and Canonical Cointegrating Regression (CCR) models as supporting tools to verify the VAR/VECM results. This study provides strong evidence of a significant negative relationship between FDI and employment levels in the South African economy. Empirical analysis of the study suggests that the effect of economic growth on employment is highly positive and significant in South Africa’s economy. The study recommends that policymakers ought to invest more in productive sectors that aim to promote economic growth and development to boost employment opportunities in South Africa.

scholarly journals PERTUMBUHAN EKONOMI, KETIMPANGAN PEDAPATAN DAN DESENTRALISASI DI INDONESIA

KINERJA ◽  
2016 ◽  
Vol 20 (1) ◽  
pp. 53
Author(s):  
Lestari Agusalim
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Linear Regression ◽  
Income Distribution ◽  
Gross Domestic Product ◽  
Gini Index ◽  
National Income ◽  
Secondary Data ◽  
Independent Variables ◽  
Regression Approach

AbstrakPenelitian ini bertujuan untuk mengkaji pengaruh desentralisasi dalam mendistribusikan pendapatan nasional untuk mengurangi ketimpangan pendapatan di Indonesia. Data yang digunakan adalah data sekunder, yaitu PDB sebagai representasi pendapatan nasional dan data indeks gini sebagai representasi tingkat ketimpangan pendapatan dengan rentang waktu 1978-2015. Metode analisis menggunakan regresi linear dengan pendekatan OLS dimana Indeks gini digunakan sebagai variabel dependen, dan PDB sebagai variabel independen. Selain itu, terdapat variabel independen lainnya, yaitu variabel dummy desentralisasi yang berguna untuk mengetahui pengaruh desentralisasi terhadap ketimpangan pendapatan. Hasil analisis menunjukkan bahwa dari aspek ekonomi, desentralisasi belum mampu mendistribusikan pertumbuhan ekonomi untuk memperkecil ketimpangan pendapatan masyarakat.Kata Kunci: Pertumbuhan Ekonomi, Ketimpangan Pendapatan, DesentralisasiAbstractThis research aims to analyze the effect of decentralization on national income distribution and the reduce of income Inequality in Indonesia. This research used secondary data with gross domestic product (GDP) representing national income and gini index data representing income inequality from 1978 to 2015. An OLS Linear Regression approach was employed where the gini index was the dependent variable, and the independent variables were GDP and the Dummy for decentralization implementation. The result revealed that decentralization had not been able to distribute economic growth to minimize income Inequality.Keywords: Economic Growth, Income Inequality, Decentralization

On the Impact of Government Institutions on Economic Growth and Income Inequality in Russia

2019 ◽  
Vol 7 (3) ◽  
pp. 14-17
Author(s):  
Леонид Басовский ◽  
Leonid Basovskiy ◽  
В. Бабанов ◽  
V. Babanov ◽  
Елена Басовская ◽  
...  
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Income Distribution ◽  
Local Governments ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Government Officials ◽  
Government Institutions ◽  
State And Local ◽  
The Impact

In order to assess the extent to which the institutions of government in the current conditions in recent years in Russia — the activity of government officials and local governments affected economic growth, the correlation of the number of this category of workers with the growth rates of the economy was evaluated. The results show that by 2002 the positive correlation between the number of employees of state bodies and local self-government and the rate of economic growth was a negative one. The activities of employees of state and local governments began to slow down economic growth in the country. In order to assess how the change in the level of inequality of income distribution in modern Russia is due to the activities of employees of state-shock authorities and local self-government, its relation to the number of employees in this category of funds, which reflects the degree of income inequality, was evaluated. The results show that by 2011 the negative relationship between the number of employees of state bodies and local governments and the level of inequality of income distribution of growth replaced by a positive relationship. The activities of employees of state and local governments began to contribute to reducing the level of inequality of income distribution in the country.

A CONTEMPORARY RE-EXAMINATION OF MALAYSIA’S ECONOMIC GROWTH: THE ISSUES OF EQUITY, EFFICIENCY AND LIBERALIZATION

2017 ◽  
Vol 62 (02) ◽  
pp. 509-530 ◽  
Author(s):  
AZFAR HILMI BAHARUDIN ◽  
YAP SU FEI
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Least Squares ◽  
Financial Development ◽  
Direct Investment ◽  
Positive Relationship ◽  
Empirical Investigation ◽  
Ordinary Least Squares ◽  
Statistical Relationship ◽  
Long Run

This paper is an empirical investigation on economic growth for Malaysia, with focus on income inequality, foreign direct investment (FDI), financial development and trade. Co-integrating regression procedures namely, fully modified ordinary least squares (FMOLS), canonical co-integrating regression (CCR) and dynamic ordinary least squares (DOLS) were employed. Positive relationship between growth with financial development and trade are found to be consistent across all estimations. Income inequality on the other hand though negative, does not seem to exhibit robust significant statistical relationship with growth. The orders of integration for variables used have been demonstrated to be governed such that a long-run relationship prevails.

scholarly journals Income Inequality: Do Different Inequality Measures Show Different Impacts on Economic Growth, at the State Level? An Analysis of the State of New Jersey

2016 ◽  
Vol 5 (12) ◽  
pp. 40
Author(s):  
Bertram Chukwudum Ifeanyi Okpokwasili
Keyword(s):  
Economic Growth ◽  
New Jersey ◽  
Income Inequality ◽  
Income Distribution ◽  
State Level ◽  
The State ◽  
Inequality Measure ◽  
Inequality Measures ◽  
Real Gdp ◽  
Different Levels

<p>This paper investigates whether the use of different inequality measures is instrumental in determining impact on economic growth at the State level. We find that different measures show different levels of significance with respect to economic health. We study New Jersey income distribution and shares from 1964 to 2014, using graphs and statistics. The dual analyses approach and the use of different inequality measures enabled conclusions to be reached, that only one view and one inequality measure would have made difficult, if not misleading. New Jersey Real GDP/Capita (RGC) was going up, whether or not the inequality measure was getting better. Inequality had little or no effect on the direction of the RGC. Economic Growth is not a good measure of the effects of inequality.</p>

scholarly journals Symmetric and Asymmetric Impact of Poverty, Income Inequality, and Population on Carbon Emission in Pakistan: New Evidence From ARDL and NARDL Co-Integration

2021 ◽  
Vol 9 ◽  
Author(s):  
Salim Khan ◽  
Wang Yahong
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Environmental Degradation ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Policy Implications ◽  
Gdp Per Capita ◽  
Long Run ◽  
Asymmetric Impact ◽  
Per Capita

Several researchers have studied the relationship between poverty and environmental degradation, as these concerns are remained at top priority in achieving Sustainable Development Goals (SDGs). However, the symmetric and asymmetric impact of poverty and income inequality along with population and economic growth on carbon emissions (CO2e) has not been studied in the case of Pakistan. For this purpose, the short and long-run impact of poverty, income inequality, population, and GDP per capita on CO2e investigated by applying the Autoregressive Distributive Lag (ARDL) along with Non-linear Autoregressive Distributive Lag (NARDL) co-integration approach in the context of Pakistan for period 1971–2015. The symmetric results of the current study show poverty and population density along with GDP per capita increase carbon emissions in both the short and long-run, while income inequality has no impact on carbon emissions in the short-run. While in the long-run the symmetric results show that income inequality weakens environmental degradation in terms of carbon emissions. The analysis of NARDL also supports the results obtained from ARDL and suggests a positive effect of poverty, population, and economic growth on carbon emission in Pakistan. The empirical findings of the current study provide policy implications in light of the United Nation's SDGs for the development of Pakistan.

scholarly journals Technology Innovation, Economic Growth and Carbon Emissions in the Context of Carbon Neutrality: Evidence from BRICS

2021 ◽  
Vol 13 (20) ◽  
pp. 11138
Author(s):  
Huan Zhang
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Test Results ◽  
Stirpat Model ◽  
Causality Test ◽  
Carbon Neutrality ◽  
Brics Countries ◽  
The Impact

This study selects the panel data of five BRICS nations (Brazil, Russia, India, China, South Africa) from 1990 to 2019 to empirically explore the impact of technological innovation and economic growth on carbon emissions under the context of carbon neutrality. Granger causality test results signify that there exists a one-way causality from technology patent to carbon emission and from economic growth to carbon emission. We also constructed an improved Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model. The regression results manifest that technology patents contribute to the realization of carbon emission reduction and carbon neutralization, while the economic growth of emerging economies represented by BRICS countries significantly improves carbon emissions, but every single BRICS country shows differentiated carbon emissions conditions with their economic development stages. The impact of the interaction term on carbon emissions for the five BRICS countries also presents country-specific heterogeneity. Moreover, the Environmental Kuznets Curve (EKC) test results show that only Russia and South Africa have an inverted U-shaped curve relationship between economic growth and carbon emissions, whereas Brazil, India and China have a U-shaped curve relationship. There exists no EKC relationship when considering BRICS nations as a whole. Further robustness tests also verify that the conclusions obtained in this paper are consistent and stable. Finally, the paper puts forward relevant policy suggestions based on the research findings.

scholarly journals The Determinants of Economic Growth in CEMAC through a Panel Data Approach

2016 ◽  
Vol 4 (2) ◽  
pp. 483
Author(s):  
Nzingoula Gildas Crepin
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Good Governance ◽  
Generalized Method Of Moments ◽  
Central Africa ◽  
Ordinary Least Squares ◽  
Fixed Effects Model ◽  
Main Determinants ◽  
Determinants Of Economic Growth

<div><p><em>This article highlights through a panel data approach the determinants of economic growth; observed over the last decade in the Economic and Monetary Community of Central Africa (CEMAC) and necessary to reach emerging economies stage. To do this, we essentially used Stata 12 software to come up with the results, and a panel data sample comprising six CEMAC member states, namely Congo, Cameroon, Gabon, Equatorial Guinea, Central African Republic and Chad, for the period ranging from 2000 to 2013. The results obtained after estimating ordinary least squares, fixed effects model, random effects model, generalized method of moments (GMM) and specification tests show that the best model to estimate these types of data is the fixed effects model. Besides, the main determinants of economic growth in CEMAC over that period are Foreign Direct Investment (FDI) and loans lending to the economy (LOAN). After estimation, FDI is found positive and significant on economic growth, while LOAN is significant and found negative maybe due to lack of good governance.</em></p></div>

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