scholarly journals The Effect of Financial Deepening on Economic Growth, Inequality, and Poverty: Evidence from 73 Countries

2020 ◽  
Vol 15 (2) ◽  
pp. 15-27
Author(s):  
Catur Sugiyanto ◽  
Zefania Yolanda

AbstractThis study aims to analyze the effect of financial deepening on economic growth, income inequality, and poverty rates in 73 countries during the period 1991–2015. Panel data regression and the interaction of dummy variables are used to measure the effect. The results indicate that financial deepening has positive effects on economic growth, but negative effects on income inequality and poverty rates; has significant effect on economic growth in advanced economies (AEs) and significant effect on income equality and poverty rates in emerging markets and developing economies (EMDEs). These findings show that countries have to be selective in developing their financial sectors as it either can have positive or negative effect.

2018 ◽  
Vol 73 ◽  
pp. 10003
Author(s):  
Rofiuddin Mohammad ◽  
Firmansyah

Income inequality is the difference in the ability of people to have goods or services, and more broadly, it is the problem of community welfare. Income inequality can be measured at regional, national and global level. Income inequality in Indonesia,, which representing by Gini index, is still relatively high, even though the number tends to decline. The high level of income inequality is influenced by various factors. This study aims to analyze the influence of economic growth, population and provincial minimum wage toward income inequality in Indonesia. By applying a fixed-effect of panel data regression model of the 34 provinces along 2014-2016, the study finds that economic growth and population do not affect the income inequality, while provincial minimum wage has the negative effect.


2015 ◽  
Vol 12 (1) ◽  
pp. 129-159 ◽  
Author(s):  
MITJA KOVAČ ◽  
ROK SPRUK

Abstract:This paper seeks to quantify the impact of transaction costs on cross-country economic growth. Our evidence from a cross-country panel data regression analysis reveals a persistent and robust negative effect of increasing transaction costs on the path of economic growth. The growth-enhancing effects of lower transaction costs are confirmed after controlling for the set of conditioning variables and further demonstrated in a cross-country growth model calibration. The results provide evidence that transaction costs might indeed be central to the study of cross-country productivity differences, suggest the importance of contractual relations and indicate their significant impact on cross-country economic performance over time.


2021 ◽  
Vol 10 (2) ◽  
pp. 95-104
Author(s):  
Widyastuti Dias ◽  
Lucia Rita Indrawati

This study aims to analyze the factors that influence income inequality in the province of West Java. The data used is in the form of a cross-section of 28 districts or cities in the area of West Java and a time series for a period of 6 years, namely from 2015-2020. This study uses panel data regression analysis using a fixed-effect model and is processed with the help of Eviews 10. The results showed that the Human Development Index had a significant positive effect on income inequality. The population had an insignificant negative effect on income inequality. The open unemployment rate had a positive and minor impact on income inequality.


2021 ◽  
Vol 1 (7) ◽  
pp. 670-685
Author(s):  
Niken Ningtiyas ◽  
Inayati Nuraini Dwiputri

Abstract Income disparity is a problem in many countries that can cause economic inefficiency, weaken social stability and solidarity, and inequality in long-term well-being. This study describes the income disparity in the provinces in Indonesia using the Williamson Index. The purpose of this study is to find out how the conditions of income disparity in Indonesia are and what are the variables that influence it. This study analyzes panel data regression from 32 provinces in Indonesia for 5 years through Eviews10. From the Williamson index calculation, East Java Province has the highest level of disparity while Gorontalo Province has the lowest disparity. Economic growth, investment, APBD, and Unemployment have a positive effect on income disparity while HDI has a negative effect. Variables that have a significant effect on the 5 percent alpha level are HDI, Government Spending, and Unemployment. While the variable of economic growth has a prob of 0.1558 so that it has a significant effect on income disparities at the alpha level of 0.2 or 20 percent, and investment has a prob of 0.4570 so that it has a significant effect on the alpha level of 0.5 or 50 percent. Abstrak Disparitas pendapatan merupakan suatu permasalahan di banyak negara yang dapat menyebabkan inefisiensi ekonomi, melemahkan stabilitas sosial dan solidaritas, serta ketidakadilan dalam kesejahteraan dalam jangka panjang. Penelitian ini menggambarkan disparitas pendapatan di provinsi-provinsi di Indonesia dengan Indeks Williamson. Tujuan dari penelitian ini adalah untuk mengetahui bagaimana kondisi disparitas pendapatan di Indonesia dan apa saja variabel-variabel yang mempengaruhinya. Penelitian ini menganalisis regresi data panel dari 32 provinsi di Indonesia selama 5 tahun melalui Eviews10. Dari perhitungan indeks williamson, Provinsi jawa timur memiliki tingkat disparitas tertinggi sementara Provinsi Gorontalo memiliki disparitas terendah. Pertumbuhan ekonomi, investasi, APBD, dan TPT berpengaruh positif terhadap disparitas pendapatan sedangkan IPM berpengaruh negatif. Variabel yang berpengaruh signifikan pada tingkat alpha 5 persen yakni IPM, APBD, dan TPT. Sedangkan variabel pertumbuhan ekonomi memiliki prob sebesar 0.1558 sehingga berpengaruh signifikan terhadap disparitas pendapatan pada tingkat alpha 0.2 atau 20 persen, dan investasi memiliki prob sebesar 0.4570 sehingga berpengaruh signifikan pada tingkat alpha 0.5 atau 50 persen.


2021 ◽  
Vol 16 (2) ◽  
pp. 379-390
Author(s):  
Candra Mustika ◽  
Erni Achmad

The purpose of this study was to determine and analyze the development of exchange rates, labor, and economic growth, and exports of Indonesia and Malaysia to China from 1993 to 2015 and to analyze the effect of exchange rates, labor, and economic growth on Indonesian and Malaysian exports to China from 1993 to 2015 Based on the results of research The development of Indonesian exports to China fluctuated or fluctuated during the period 1993 to 2015 with an average of 13.95%, while the rupiah exchange rate against the United States dollar and economic growth also fluctuated the average growth the rupiah exchange rate against the United States dollar was 14.52%, and the average economic growth of 4.69% labor also fluctuated with an average growth of 1.72%. Based on the results of the panel data regression shows the exchange rate variable has a significant negative effect on exports to China, the labor variable has a positive and significant effect on exports to China, while the economic growth variable has no significant effect on exports to China.  


Author(s):  
Zulfikar Bagus Pambuko

The study aims to analyse the spin-off policies’ impact on the Islamic banks’ efficiency in Indonesia. The study was conducted on five spin-off Islamic banks and efficiency were measured by the BOPO ratio. The research variables used were dummy spin-off, ROA, FDR, and economic growth. Data analysis used panel data regression on annual data from 2008 to 2018. The results suggest that, first, the implementation of spin-off policy significantly increased the operational efficiency of Islamic banking. Second, ROA also has a negative effect on efficiency. Third, FDR and economic growth have no significant effect on the Islamic banks’ efficiency in Indonesia.


Author(s):  
Wahyu Dwi Artaningtyas ◽  
Asih Sri Winarti ◽  
Jamzani Sodik

The economic growth of the Special Region of Yogyakarta (Daerah Istimewa Yogyakarta or DIY) surrounding areas is naturally originated from agglomeration which was driven by the spatial concentration of economic activities including the aspects of space, community level, city scale, and region. This study aims to determine the development and linkages between production agglomeration and population agglomeration to the economic growth that occurs in DIY. The approach used is the estimation method of fixed effect panel data regression using DIY city/regency administration data in 2005-2016.The results showed that population agglomeration had a significant and positive effect on economic growth, while production agglomeration had no effect on economic growth in model I. Whereas in model II, it is known that production and population agglomeration affected economic growth, labor force negatively affected growth, and unemployment positively and significantly affected economic growth. On the other hand, the poverty level and HDI variables have a negative effect on economic growth. Cities/regencies that have a positive fixed cross effect on economic growth are Sleman, Gunungkidul, and Kulonprogo Regency, while Yogya City and Bantul Regency show a negative sign.


2021 ◽  
Author(s):  
◽  
Juan Carlos Peña

Economic inequality has moved into the focus of academic debate in the last decade as it gained increasing public attention in the aftermath of the financial crisis in 2007. The present dissertation contributes to the growing and existing literature on income inequality by presenting three contributions that empirically analyze the economic, political and social consequences of income inequality. Chapter 1 explores the dynamic relationship between economic growth and the different metrics of income inequality using a compiled dataset covering 110 advanced and developing economies from 1980 to 2016. Chapter 2 examines the macroeconomic and social determinants of voting behavior, and especially of political polarization, using a compiled dataset for 20 advanced economies from 1980 to 2016 which covers 291 parliamentary elections. Finally, chapter 3 investigates the effects of group identity and income inequality on social preferences and polarization by means of a laboratory experiment.


2020 ◽  
Vol 15 (2) ◽  
pp. 183-196
Author(s):  
Budi Setiawan ◽  
M. Rachmad R ◽  
Arman Delis

This study aims to analyze the determinants of PBB-P2 revenue, to determine the effect of PBB-P2 revenue on regional revenue and to formulate strategies for increasing PBB-P2 revenue in Jambi Province. The data used in this study is secondary data with the type of Time series 2014-2018 data and Cross Section 11 districts/cities that come from the Central Statistics Agency and Regency / City BPPRD. This study uses Panel Data Regression Analysis and uses Simple Linear Regression using the E-Views 8.0 tool. The results of this study indicate that PBB-P2 always increases every year. From the results of panel data regression analysis, the results show that investment, economic growth, and taxpayers together have a significant effect on PBB-P2 with an R square value of 0.924, the Prob value (F- statistic) 0,000 and the F-statistic value is 26,556. The effect of investment on PBB-P2 has a positive effect, which means that if investment increases, PBB-P2 will also experience an increase. Economic growth and taxpayers will have a negative effect on PBB-P2 which means that the increase in PBB-P2 will decrease the economic growth and taxpayers.


2021 ◽  
Vol 2 (2) ◽  
pp. 118-132
Author(s):  
Barika Barika ◽  
Armelly Armelly ◽  
Benardin Benardin

The aims of this research are to determine the statistical causality between poverty, education level, economic growth, investment and income inequality in Bengkulu province. To analyze how the influence of education level, economic growth, investment and income inequality on poverty in Bengkulu province. This research are use granger causality test method and Panel Multiple regression. The result shows the variables have causal relations are income inequality with economic growth, income inequality with investment. Panel data regression results show that education, economic growth, and investment variables significantly influence poverty in Bengkulu province. Keywords :  Granger Causality1, Education2, Economic Growth3, Invesment 4, Poverty 5


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