scholarly journals Where does Pro-Poor Growth Occur in Vietnam?

2015 ◽  
Vol 22 (1) ◽  
pp. 20-41
Author(s):  
Bao Nguyen Hoang

Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient.

2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model


2018 ◽  
Vol 8 (2) ◽  
pp. 400
Author(s):  
Mursal Harahap ◽  
Bonar M Sinaga ◽  
Adler H Manurung ◽  
Tubagus Nur Ahmad Maulana

Abstract. The purpose of this research is to analyse the impact of policy and macroeconomic change on tax revenue and its effectiveness in Consumer Goods Industry sector (CGI) and Infrastructure, Utilities and Transport (IUT) sector. The analysis employed simultaneous equation system model estimated with 2SLS and simulation with Seidel method. Data was collected from annual report of the companies which listed on Indonesia Stock Exchange. The results showed that the change of tax receipts and effective tax rate (ETR) happened due to changing in policy and macroeconomics in the CGI sector which is greater than the IUT sector. Furthermore, if the rupiah exchange rate depreciates, the policy regarding tax rate increment could increase tax revenue and ETR which is greater than the BI rate reduction policy in both sectors.


2015 ◽  
Vol 54 (4I-II) ◽  
pp. 931-944
Author(s):  
Syed Kalim Hyder ◽  
Qazi Masood Ahmed ◽  
Haroon Jamal

The traditional notion that has influenced the development thinking for almost half a century is that economic growth is fundamental to the development process, and that the objective of poverty reduction can only be achieved by allowing the benefits of growth to ultimately trickle down to the poor. The „primacy of growth‟ paradigm is based on the premise that high growth, through high investment, would lead to higher employment and higher wages, and thereby reducing poverty. The „trickle-down‟ paradigm assumes that the benefits of economic growth would, in the first round, accrue to the upper income groups, and the ensuing consumption expenditures of these households would, in subsequent rounds, accrue incomes to relatively lower income households. Importance of equity consideration in poverty alleviation efforts has been brought out of the cold and now has re-entered the mainstream development policy agenda in many developing countries. This is the consequence of a deep-rooted disillusionment with the development paradigm which placed exclusive emphasis on the pursuit of growth. During 1990s, the proliferation of quality data on income distribution from a number of countries has allowed rigorous empirical testing of standing debates on the relative importance of growth and redistribution in poverty reduction. While the debate is still inconclusive, the majority of development economists emphasised, based on empirical cross-country data, that an unequal income distribution is a serious impediment to effective poverty alleviation [Ravallion (1997, 2001)]. Many researchers suggested that growth is, in practice the main tool for fighting poverty. However, they also reiterated that the imperative of growth for combating poverty should not be misinterpreted to mean that “growth is all that matters”. Growth is a necessary condition for poverty alleviation, no doubt, but inequality also matters and should also be on the development agenda


2017 ◽  
Vol 55 (8) ◽  
pp. 1613-1628 ◽  
Author(s):  
Vittorio D’Aleo ◽  
Bruno S. Sergi

Purpose The purpose of this paper is to set forth a new economic model that includes variables that take account the mediator effect of global competitiveness index to better identify the whole phenomenon behind the relationship between GDP and competition in Europe. Design/methodology/approach The authors test the consistency of the Baron and Kenny mediator model through an explanatory linear regression model, then the authors deploy a panel analysis and a simultaneous equation system to assess the model consistency to bypass much of the endogeneity problem. Findings This paper’s findings show a positive influence of global competitiveness index on GDP and this effect is by far more evident when other variables (e.g. the logistics performance index) interact simultaneously. Research limitations/implications The GCI is a correct variable to assess growth. The study shows how the recent economic crisis has increased the importance of competitiveness for economic recovery as well as key strategic decisions aimed at strengthening growth and competitiveness. Originality/value This paper’s theoretical construct is a unique methodology applied to disentangle the role of a new model that takes account of global competitiveness index as a mediator variable to economic growth.


2014 ◽  
Vol 221 ◽  
pp. 42-64
Author(s):  
Bảo Nguyễn Hoàng

The paper discusses how internal and external factors affect economic growth in the economic literature and explores the economic mechanisms through which the macroeconomic variables might impact economic growth directly and indirectly. The simultaneous equation system is employed in order to introduce the key macroeconomic behavior functions using the Vietnamese data for the period 1986 – 2013. The findings are: (1) the major contribution to economic growth is the quantity of investment instead of the quality of investment; (2) the optimal macroeconomic stability has positively affected economic growth; (3) exports have positively impacted on economic growth; (4) the public investment crowds in the private investment generally; and (5) the income, capacity utilization, and the optimal inflation have positively impacted consumption. The paper also shows that the GDP growth rate does not capture well the economic performance of the country because it does not take into account the net factor payment from abroad, natural resource depletion, and the inefficient intra-industry trade.


Author(s):  
Yudistira Andi Permadi

In the concept of pro-poor growth, economic growth accompanied by fair income distribution will accelerate the rate of poverty reduction. By employing extensive data of household expenditures and other economic indicators, the study will examine the performance of economic growth in Indonesia whether it has been pro-poor over the period 2005-2013. We employ two methods in this article, Growth Incidence Curve (GIC) method, and Pro-Poor Growth Index (PPGI) method. By applying the GIC method, our empirical results indicate that economic growth in Indonesia has not been pro-poor during the observed period. The curve shows that the highest income population enjoys increased consumption more than the poorest population. Furthermore, PPGI method has revealed that economic growth, inequality, and an interaction term between economic growth and inequality have been significant to influence poverty incidence in Indonesia. Our empirical result also reveals that among manufacturing, agriculture, and services sector; it was manufacturing that has successfully reduced the number of the poor, while agriculture unexpectedly had a devastating impact on the number of poor people. The services sector, meanwhile, had not contributed to poverty alleviation. Furthermore, none of the government spending in education and health that significantly contributes to poverty alleviation.  


2013 ◽  
Vol 12 (11) ◽  
pp. 1389 ◽  
Author(s):  
Hem C. Basnet

The role of foreign aid in promoting growth by complimenting domestic savings has been an issue of considerable controversy. This study examines the role of foreign aid on domestic savings and economic growth in South Asian countries - Bangladesh, India, Nepal, Pakistan, and Sri-Lanka - by using simultaneous equation system in which growth and savings are jointly determined. The results indicate that aid has a positive and significant effect on the growth rates of the five nations studied during 1960 to 2008. However, foreign aid appears to crowd out domestic savings rather than complementing it.


GIS Business ◽  
2016 ◽  
Vol 11 (6) ◽  
pp. 28-38
Author(s):  
Dinis Daniel Santos ◽  
Elias Soukiazis

This work uses a simultaneous equation system approach to analyze the relationship between the management and business quality of companies and their market price quality. Using panel data we found that both the management and the business quality of companies positively influence the market price quality of the studied American companies. Additionally, variables like the actual position of the company price quality compared to the industry average, being on the top or the bottom, or the beta value of a company, also influence the market price quality of the respective company. It is shown that the system equation approach is the most appropriate to explain the linkages between price, business, and management quality providing consistent estimates. Also, using ratings to express the three core variables in the system is the most adequate way to define the quality characteristics in terms of price, management, and business performance of the companies considered in this study.


2021 ◽  
Vol 1 (1) ◽  
pp. 124-127
Author(s):  
Novi Firmawati ◽  
◽  
Budi Sasongko

This study examines the role of education in improving technology adoption as reflected in technology inclusion, poverty alleviation and efforts to increase community income which is reflected in economic growth. This study uses secondary data from world banks and processed regression using the moving average autoregression method. We found that education investment and technology inclusion were positively related to economic growth. And,negatively related to probability. This indicates that education plays a role in encouraging technological inclusion which reflects technological adaptation and encourages economic growth which is an indicator of the prosperity of the people in Indonesia which is strengthened by a negative relationship with poverty which indicates that education plays an important role in poverty alleviation


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