Entrepreneurship and Income Inequality: A Spatial Econometric Approach

Author(s):  
Bebonchu Atems ◽  
Grayden Shand

This paper extends research on the link between entrepreneurship and income inequality by introducing spatial considerations. Following a battery of specification tests, we model the relationship between entrepreneurship and inequality using a dynamic spatial Durbin model. Using data from the 48 continental U.S. states, we obtain strong evidence that entrepreneurship within a state not only affects inequality within that state, but has cross-state effects, as well.

2018 ◽  
Vol 13 (4) ◽  
pp. 223-249
Author(s):  
Oluwasheyi Oladipo

 The wave of globalization is having far-reaching implications for the economic wellbeing of citizens in all regions and among all income groups. Using data from 1994q1 to 2012q4, the paper investigates the relationship between globalization and income inequality in South Africa. We find no evidence that globalization might have deepened income inequality in South Africa, particularly in the provinces. Rather, the paper found strong evidence indicating that income distribution is improving, and has become more so, in provinces that have stronger links to the world economy. Strengthening those links appears to result in reductions in inequality. 


2005 ◽  
Vol 4 (3-4) ◽  
pp. 261-284 ◽  
Author(s):  
Robert Andersen ◽  
Anthony Heath ◽  
David Weakliem

AbstractThis paper examines the relationship between public support for wage differentials and actual income inequality using data from the World Values Surveys. The distribution of income is more equal in nations where public opinion is more egalitarian. There is some evidence that the opinions of people with higher incomes are more influential than those of people with low incomes. Although the estimated relationship is stronger in democracies, it is present even under non-democratic governments, and the hypothesis that effects are equal cannot be rejected. We consider the possibility of reciprocal causation by means of an instrumental variables analysis, which yields no evidence that income distribution affects opinion.


Author(s):  
Suxia Liu ◽  
Yingming Zhu ◽  
Weiqiang Wang ◽  
Yu Pei ◽  
Kuanqi Du

To analyze the environmental pollution effects elicited by industrial agglomeration, a spatial econometric model is constructed based on the Green Solow model. Using data derived from 285 Chinese cities between 2003and 2014, the global Moran'I and local bivariate LISA agglomeration map demonstrates that there is significant correlation between industrial agglomeration and industrial pollution discharge. Then, the spatial Durbin model (SDM) is built and the empirical results are as follows. First, inter-city industrial pollution discharge has a demonstration effect. Cites in the same region should take measures to cooperate to lower industrial pollution discharge. Second, the relationship between the local cities' industrial agglomeration and the local cities' industrial pollution discharge fits the inverted “U” curve. While the neighboring cities' industrial agglomeration will decrease the local cities' industrial pollution discharge. So, measures should be taken to increase the industrial agglomeration degree in the long run.


2018 ◽  
Vol 33 (3) ◽  
pp. 357-385 ◽  
Author(s):  
Wade M Cole

The relationship between economic and political inequality has long concerned social scientists, but research remains limited in scope. Most studies focus on isolated cases, highly restricted subsamples, or subunits within countries. Using data for up to 136 countries between 1981 and 2011, this study analyzes whether and how income inequality affects the distribution of political power for, and respect for the civil liberties of, a society’s rich and poor people. When income inequality is high, do rich people command greater political power and enjoy stronger civil liberties than poor people do? To answer these questions, the study uses both pooled regression analyses and two-stage models with instrumental variables to identify causal effects. The results are decisive: income inequality is inimical to both political and civil equality. These findings hold for developed as well as developing countries and for democratic as well as nondemocratic countries.


2021 ◽  
pp. 001112872110647
Author(s):  
Jun Zhang ◽  
Guopeng Xiang

To determine the extent to which tourism development affects crime rate, this study uses a dynamic spatial Durbin model (DSDM) to examine the spatial effect of tourism on crime. Based on a panel data set of 21 cities in Sichuan Province, China, over the 2008 to 2018 period, and after controlling for the interactive effect, the results reveal that tourism exerts a significantly negative impact on crime. This implies that tourism development can reduce crime. Moreover, tourism has a negative spatial spillover effect; thus, increased tourist arrivals decrease crime in neighboring cities. Per capita GDP, wages, unemployment, population density, hotels, scenic spots, and travel agents generate various direct and spillover effects. Finally, we provide policy suggestions.


2020 ◽  
Vol 34 (3) ◽  
pp. 283-293
Author(s):  
Kwideok Han ◽  
Brian Whitacre ◽  
Inbae Ji

Evaluating the effectiveness of government programs is an important topic for economic developers. One popular example is the U.S. Economic Development Administration’s (EDA) Public Works Program, initially established in 1965. Haughwout (1999) found a significant positive impact of EDA public works projects completed in 1990 on county-level employment over the period 1990 to 1994. The authors reexamine whether this effect continues to hold 20 years later by replicating Haughwout’s specification using data from 2010 to 2014. The results are consistent with those originally reported by Haughwout. The authors then extend the analysis by incorporating a spatial econometric approach to examine the existence of potential spillover effects. The results indicate that EDA investments have a significant positive effect on both targeted and neighboring counties’ employment. The findings suggest that public infrastructure investments can be important tools for economic development by positively influencing employment in both the recipient county and neighboring counties.


2016 ◽  
Vol 43 (1) ◽  
pp. 122-140 ◽  
Author(s):  
Oliviero A. Carboni ◽  
Claudio Detotto

Purpose – The purpose of this paper is to employ provincial data to study the relationship between several crime typologies, namely murder, robbery, extortion and fraud and economic output in Italy. Design/methodology/approach – The authors propose a spatial econometric approach where the spatial proximity is defined by a measure of physical distance between locations, in order to take into account possible spill-over effects. Findings – The results of the spatial estimation suggest that criminal activities, namely murder and robbery, exhibit a negative impact on Italian gross domestic product while fraud and total crime do not affect economic output and that there are beneficial spill-overs from neighbouring provinces. Originality/value – The study empirically shows that only violent crimes have a crowding-out effect on economic output.


Author(s):  
Brynne D. Ovalle ◽  
Rahul Chakraborty

This article has two purposes: (a) to examine the relationship between intercultural power relations and the widespread practice of accent discrimination and (b) to underscore the ramifications of accent discrimination both for the individual and for global society as a whole. First, authors review social theory regarding language and group identity construction, and then go on to integrate more current studies linking accent bias to sociocultural variables. Authors discuss three examples of intercultural accent discrimination in order to illustrate how this link manifests itself in the broader context of international relations (i.e., how accent discrimination is generated in situations of unequal power) and, using a review of current research, assess the consequences of accent discrimination for the individual. Finally, the article highlights the impact that linguistic discrimination is having on linguistic diversity globally, partially using data from the United Nations Educational, Scientific and Cultural Organization (UNESCO) and partially by offering a potential context for interpreting the emergence of practices that seek to reduce or modify speaker accents.


2016 ◽  
Vol 15 (4) ◽  
pp. 143-151 ◽  
Author(s):  
Xiaoming Zheng ◽  
Jun Yang ◽  
Hang-Yue Ngo ◽  
Xiao-Yu Liu ◽  
Wengjuan Jiao

Abstract. Workplace ostracism, conceived as to being ignored or excluded by others, has attracted the attention of researchers in recent years. One essential topic in this area is how to reduce or even eliminate the negative consequences of workplace ostracism. Based on conservation of resources (COR) theory, the current study assesses the relationship between workplace ostracism and its negative outcomes, as well as the moderating role played by psychological capital, using data collected from 256 employees in three companies in the northern part of China. The study yields two important findings: (1) workplace ostracism is positively related to intention to leave and (2) psychological capital moderates the effect of workplace ostracism on affective commitment and intention to leave. This paper concludes by discussing the implications of these findings for organizations and employees, along with recommendations for future research.


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