scholarly journals Inequality and Growth: A Heterogeneous Approach

2019 ◽  
pp. 18-49
Author(s):  
Francesco Grigoli ◽  
Evelio Paredes ◽  
Gabriel Di Bella
Keyword(s):  
Income Inequality ◽  
Capita Gross Domestic Product ◽  
Median Response ◽  
Negative Effect ◽  
Autoregression Model ◽  
Per Capita ◽  
Cross Country ◽  
Heterogeneous Panel ◽  
Positive Effect ◽  
Structural Vector

This article tests for cross-country convergence in income inequality and estimates its impact on growth with a heterogeneous Panel Structural Vector AutoRegression model, which addresses some empirical challenges plaguing the literature. We find that income inequality is converging across countries, and that its impact on growth is heterogeneous. While the median response of real per capita Gross Domestic Product (GDP) growth to income inequality shocks is negative and significant, at least one fourth of the sample presents a positive effect. Also, we find evidence that improved institutional frameworks can reduce the negative effect of income inequality on growth.

scholarly journals Spatial Analysis of Fiscal Balance Fund on Income Inequality in West Kalimantan

2021 ◽  
Vol 17 (1) ◽  
pp. 1-19
Author(s):  
Amelia Amelia ◽  
Tri Diana
Keyword(s):  
Income Inequality ◽  
Spatial Dependence ◽  
Medical Personnel ◽  
Spatial Autoregression ◽  
West Kalimantan ◽  
Income Disparities ◽  
Spatial Aspect ◽  
Negative Effect ◽  
Fiscal Balance ◽  
Autoregression Model

Abstract: The research aims to analyze the effect of fiscal balance fund on income inequality in West Kalimantan by considering spatial inter-relationships between existing districts/cities. The study showed that the Spatial Durbin Model with fixed effect was empirically suitable. A variant of spatial autoregression model using Gini Ratio during the period of 2010 – 2018 in 14 districts/cities of West Kalimantan. The study concludes that income disparities between districts/cities were low and constant or the income was relatively distributed per capita. Spatial interactions between districts/cities and their neighbors are also relatively low. Spatial aspect, fiscal balance fund and regional minimum wage have a significant negative effect. On the contrary, the industrial workforce, educated workforce and medical personnel do not affect income inequality in West Kalimantan. This study provides academics with the understanding of the importance of spatial dependence in income inequality model because the economic activity is always related to the neighbor.Keywords: fiscal balance fund, income inequality, spatial aspect Analisis Spasial Dana Perimbangan Terhadap Disparitas Pendapatan Kalimantan BaratAbstrak: Penelitian ini bertujuan menganalisis pengaruh dana perimbangan terhadap disparitas pendapatan di Kalimantan Barat dengan mempertimbangkan keterkaitan spasial antar kabupaten/kota yang ada. Studi ini menghasilkan pemilihan model spasial durbin dengan efek tetap secara empiris sudah tepat. Variansi dari model autoregresif spasial menggunakan Indeks Gini kurun waktu 2010–2018 silang tempat dari 14 kabupaten/kota di Kalimantan Barat. Hasil penelitian menyimpulkan disparitas pendapatan antar kabupaten/kota rendah dan konstan atau relatif merata dalam pendapatan per kapita. Interaksi spasial antar kabupaten/kota dengan tetangganya juga relatif rendah. Aspek spasial, dana perimbangan dan UMR secara negatif signifikan mempengaruhi disparitas pendapatan. Sedangkan tenaga kerja industri, tenaga kerja terdidik dan tenaga medis tidak mempengaruhi disparitas pendapatan di Kalimantan Barat. Penelitian ini memberikan wawasan bagi kalangan akademisi tentang pentingnya memasukkan spatial dependence kedalam model ketimpangan pendapatan karena proses kegiatan ekonomi selalu berkaitan dengan wilayah tetangga.Kata kunci: dana perimbangan, disparitas pendapatan, aspek spatial

The Optimum Level of Income Inequality in South Asia: An Econometric Analysis

2021 ◽  
pp. 139156142110390
Author(s):  
Fahmida Khatun ◽  
Syed Yusuf Saadat
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Gross Domestic Product ◽  
South Asia ◽  
Gini Coefficient ◽  
Econometric Analysis ◽  
Domestic Product ◽  
Optimum Level ◽  
Capita Gross Domestic Product ◽  
Per Capita

Inequality in the distribution of income can be beneficial or detrimental for economic growth depending on the level of inequality. This study advocates that when income inequality is low, increase in income inequality increases economic growth, whereas when income inequality is high, increase in income inequality decreases economic growth. The level of inequality that maximizes economic growth is defined as the optimum level of income inequality. This article attempts to determine the optimum level of income inequality for South Asia through an econometric analysis. It uses panel data from Bangladesh, India, Nepal, Pakistan and Sri Lanka, over a 34-year period to undertake a systematic investigation using panel instrumental variables techniques. The results of this study confirm that an optimum level of income inequality does exist, and occurs at a Gini coefficient value of 0.4492. Thus, this research empirically confirms that the relationship between income inequality and economic growth is non-linear. Further calculations show that for an economy that is at the optimum level of income inequality, the per capita gross domestic product can be expected to double within approximately 13 years, provided all other factors are held constant. However, a change in the Gini coefficient by 0.10 units in either direction—higher or lower—away from the optimum level, can increase the number of years for the per capita gross domestic product to double by 55 to 57 years, depending on the method of approximation. JEL: D31, D63, O15, O40

scholarly journals Growth and Income Inequality: A Comparative Analysis

2012 ◽  
Vol 2012 ◽  
pp. 1-7 ◽  
Author(s):  
Ayla Ogus Binatli
Keyword(s):  
Comparative Analysis ◽  
Income Inequality ◽  
Time Period ◽  
Negative Effect ◽  
Time Periods ◽  
Growth Changes ◽  
Changes Over Time ◽  
The Relationship ◽  
Positive Effect ◽  
Over Time

This paper investigates whether the relationship between income inequality and growth changes over time. Two time periods, covering 1970–1985 and 1985–1999, are analyzed and compared. A statistically significant relationship between inequality and growth in either time period fails to emerge. However, there are indications that effect of inequality on growth may be different in the nineties when compared to the seventies. In the literature, a consistent negative effect of inequality on growth is documented although the significance of the effect is open to debate. This paper also finds a negative effect of income inequality on growth in the seventies but, although statistically insignificant, a consistently positive effect in the nineties.

scholarly journals DOES PUBLIC DEBT HAMPER ECONOMIC GROWTH: EVIDENCE FROM EUROPEAN TRANSITIONAL COUNTRIES

2019 ◽  
Vol 34 (5) ◽  
pp. 1223-1228
Author(s):  
Liza Alili Sulejmani ◽  
Armend Ademi
Keyword(s):  
Economic Growth ◽  
Transition Economies ◽  
Public Debt ◽  
Fixed Effects ◽  
Global Financial Crisis ◽  
Fixed Capital Formation ◽  
Negative Effect ◽  
Per Capita ◽  
The Impact ◽  
Positive Effect

Lately, there has been an increased interest among policy makers and scholars regarding the nexus between public debt and economic growth, with emphasizes on its effects on transition economies, particularly after the last global financial crisis. This paper tries to investigate the impact of public debt on economic growth in the European transition economies, for the time spin 2000-2016, by using Pooled OLS, Fixed effects, Random effects and Hausman – Taylor Instrumental variable (IV). In addition, results reveal that public debt although has positive effect on per capita growth still is statistically insignificant, whereas debt square has negative effect on per capita GDP growth. Further, gross savings, final consumption and fixed capital formation have positive effect on per capita growth, while government expenditures do not show significant impact. Moreover, such results highlight important implications for fiscal policymakers in these countries in order to foster the economic growth in the context of public debt level.

scholarly journals Factors That Influence Water Demand in Special Region Yogyakarta

2020 ◽  
Vol 9 (4) ◽  
pp. 391-401
Author(s):  
Auladina Rizqina ◽  
Deky Aji Suseno
Keyword(s):  
Water Demand ◽  
Secondary Data ◽  
Significant Positive Effect ◽  
Operational Costs ◽  
Modeling Analysis ◽  
Analysis Technique ◽  
Negative Effect ◽  
Per Capita ◽  
Positive Effect ◽  
Special Region

The demand for water in Special Region Yogyakarta, which is increasing every year, is not matched by the quality and effectiveness of water production. The distribution of PDAM water is uneven in every region in the Special Province of Yogyakarta. The purpose of this study is to determine the effect of water prices, the number of hotels, the number of industries, and the GRDP per capita of the population, also, in order to determine the effect of employee retribution and operational costs of the PDAM on PDAM water prices. The study uses secondary data analysis technique used is descriptive statistical analysis and SEM structural modeling analysis. The results showed that the number of employees had a significant positive effect on remuneration for PDAM employees. Reply to PDAM employee services and PDAM operational costs affect water prices. At the same time, the price of PDAM water and GDRP per capita of the population has a significant positive effect on PDAM water demand. The number of hotels and industries that subscribe to water in PDAMs has a significant negative effect on water demand.

scholarly journals Is There Cross-Country Income Convergence Among the BRICS Nations? An Examination

2019 ◽  
Vol 11 (1-2) ◽  
pp. 121-135
Author(s):  
Ramesh Chandra Das
Keyword(s):  
Steady State ◽  
Direct Investment ◽  
Poor Country ◽  
Jel Classification ◽  
Income Convergence ◽  
Working Population ◽  
Capita Gross Domestic Product ◽  
Per Capita Gdp ◽  
Per Capita ◽  
Cross Country

Narrowing the developmental gaps of a relatively poor country with a relatively rich one is one of the priorities to the policymakers of the former. One way to reduce the developmental gaps is making different countries in a group to converge to a single steady-state value. Under this background, this study aims to examine whether the BRICS nations are converging in per capita GDP for the period 1990–2016. Applying the neoclassical methodology of β convergence and σ convergence, the study observes that the countries are not unconditionally β converging but converging in conditional terms with the variables such as foreign direct investment (FDI) flow and working population acting as the deciding factor. Furthermore, the study shows that the countries are converging in σ definition meaning the cross-country dispersion in per capita gross domestic product (GDP) has fallen significantly. Hence, formation of BRICS has made the countries relatively better off compared to pre-BRICS phase. JEL Classification: E01, O4, J21

DETERMINANTS OF TOURISM DEMAND IN INDONESIA: A PANEL DATA ANALYSIS

2020 ◽  
Author(s):  
Muryani Muryani ◽  
Mia Fauzia Permatasari ◽  
Miguel Angel Esquivias Padilla
Keyword(s):  
Global Financial Crisis ◽  
Panel Data Analysis ◽  
Real Income ◽  
Relative Price ◽  
Tourism Demand ◽  
Substantial Impact ◽  
Negative Effect ◽  
Per Capita ◽  
The Impact ◽  
Positive Effect

By 2014 Indonesia registered 11.6 million inbound foreign tourists, 135% higher than the year 2000. Since then, government policies to promote tourism flourished. This paper investigates the determinants of inbound tourism from the top nine mayor tourist origin countries into Indonesia covering the period of 2000 to 2014. This research employs a dynamic panel dataset to estimate the impact of per capita real income, relative prices, accommodation capacity, distance and public infrastructure investment on international tourism demand in Indonesia, capturing demand and supply-side effects. The results show that per capita income of tourist, relative price, and available rooms have a positive effect on tourism expenditure in Indonesia, while distance has a negative effect. Dummy variables capture large negative shocks in tourism arising from two terrorist attacks in 2002 and 2005, as well as from the global financial crisis in 2008. Income plays a positive but low impact on tourism demand compared to other nations. The positive effect of prices suggests an advantage of Indonesia in competitive tourism prices. Nevertheless, low prices also denote low value in tourism services. The substantial impact of accommodation may indicate that significant effects of tourism are allocated in lodging, minimizing the impact on other sectors.

scholarly journals Growth effect of income inequality in sub-Saharan Africa: exploring the transmission channels

2020 ◽  
Vol 56 (2) ◽  
pp. 176-190
Author(s):  
Ibrahim Abidemi Odusanya ◽  
Anthony Enisan Akinlo
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Growth Effect ◽  
Credit Market Imperfection ◽  
Negative Effect ◽  
Sub Saharan ◽  
Positive Effect ◽  
Ssa Countries

AbstractSub-Saharan Africa (SSA) ranks as the second most unequal region globally (in terms of income distribution), harboring 10 of the 19 most unequal countries in the world. This paper explores the channels through which income inequality exerts its effects on economic growth in SSA. The study spans the period 1995–2015, focusing on 31 SSA countries. Findings from the two-step system generalized method of moments suggest that income inequality exerts a significant positive effect on economic growth via the saving transmission channel, while it has a statistically significant negative effect on economic growth in the region through the channels of fertility, credit market imperfection, and fiscal policy.

scholarly journals Determinan Kemiskinan dan Tingkat Kesejahteraan Masyarakat di Provinsi Bali

2020 ◽  
Vol 9 (1) ◽  
pp. 24-36
Author(s):  
Gek Ayu Nina ◽  
Surya Dewi Rustariyuni
Keyword(s):  
Economic Development ◽  
Path Analysis ◽  
Human Development ◽  
Variable Ratio ◽  
Analysis Technique ◽  
Negative Effect ◽  
Food Expenditure ◽  
Per Capita ◽  
Human Quality ◽  
Positive Effect

Abstrak Paradigma pembangunaan manusia saat ini telah menjadikan manusia sebagai subjek dalam pembangunan ekonomi. Perubahan tersebut akan meningkatkan kualitas manusia, sehingga manusia dapat menjadi modal dalam pembangunan ekonomi yang bertujuan untuk meningkatkan kesejahteraan masyarakat. Kesejahteraan masyarakat sebagai point penting yang ingin dicapai dalam SDGs, dapat diukur melalui IPM. IPM Bali secara nasional pada tahun 2016 IPM bali berada pada kategori menengah yaitu sebesar 73,65 persen, namun setelah dilihat di setiap kabupaten/kotanya ternyata terdapat lima kabupaten yang memiliki rata-rata IPM dibawah rata-rata provinsi. Tujuan penelitian yang hendak dicapai : 1) untuk menganalisis pengaruh gini rasio dan pengeluaran non makanan per kapita terhadap kemiskinan di kabupaten/kota Provinsi Bali; 2) Untuk menganalisis pengaruh gini rasio, pengeluaran non makanan per kapita dan kemiskinan terhadap kesejahteraan masyarakat di kabupaten/kota Provinsi Bali; dan 3) Untuk menganalisis pengaruh gini rasio dan pengeluaran non makanan per kapita melalui kemiskinan terhadap kesejahteraan masyarakat di kabupaten/kota Provinsi Bali. Teknik analisis menggunakan analisis jalur dan hasil penelitian Gini Rasio berpengaruh positif terhadap kemiskinan dan pengeluaran non makanan berpengaruh negatif signifikan terhadap kemiskinan. Hasil pengujian variabel Gini Rasio terhadap kesejahteraan masyarakat, gini rasio tidak berpengaruh, sedangkan pengeluaran non makanan berpengaruh positif dan kemiskinan berpengaruh negatif dan signifikan terhadap kesejahteraan masyarakat. Kata kunci: gini rasio, IPM, kemiskinan   Abstrac                  The paradigm of human development has made humans as subjects in economic development. These changes will improve human quality, so that humans can become capital in economic development that aims to improve people's welfare. Community welfare as an important point to be achieved in the SDGs, can be measured through HDI. National HDI Bali in 2016 Bali HDI is in the middle category, which is equal to 73.65 percent, but after being seen in each regency / city it turns out there are five districts which have an average HDI below the provincial average. The objectives of the study were to be achieved: 1) to analyze the influence of the gini ratio and non-food expenditure per capita on poverty in the regency / city of Bali Province; 2) To analyze the influence of the gini ratio, non-food expenditure per capita and poverty on the welfare of the community in the regency / city of Bali Province; and 3) To analyze the influence of the gini ratio and non-food expenditure per capita through poverty on the welfare of the community in the regency / city of the Province of Bali. The analysis technique uses path analysis and Gini research results. Ratio has a positive effect on poverty and non-food expenditure has a significant negative effect on poverty. The results of testing the Gini variable ratio on community welfare, the gini ratio has no effect, while non-food expenditure has a positive effect and poverty has a negative and significant effect on people's welfare Keywords: gini ratio, HDI, poverty

scholarly journals Analisis Determinan Ketimpangan Pendapatan Di Provinsi Jawa Barat Tahun 2015-2020

2021 ◽  
Vol 10 (2) ◽  
pp. 95-104
Author(s):  
Widyastuti Dias ◽  
Lucia Rita Indrawati
Keyword(s):  
Income Inequality ◽  
Cross Section ◽  
Human Development Index ◽  
Fixed Effect Model ◽  
West Java ◽  
Effect Model ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect ◽  
Positive Effect

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.

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