Conceptualising the Linkages between Financial Development, Human Development, and Income Inequality: Cross-Country Evidences

GIS Business ◽  
2018 ◽  
Vol 13 (5) ◽  
pp. 12-20
Author(s):  
Avisek Sen ◽  
Arindam Laha
Keyword(s):  
Income Inequality ◽  
Human Development ◽  
Financial Development ◽  
Financial Sector ◽  
Well Being ◽  
Inclusive Development ◽  
World Government ◽  
Distribution Of Wealth ◽  
The People ◽  
The Government

In the present era of finance capitalism, it is a great challenge for any country to strengthen its financial sector so as to realise the vision of financial inclusive society. Beside this major challenge, the government has to ensure the well-being of the society. Well-being of the society is not only indicated by the income level of an individual, but also by the noneconomic factors like health and education level of the people. But now-a-days, more and more emphasis is given on the concept of well-being of the population in the context of limiting role of GDP in ensuring equitable distribution of wealth. Formulation of a policy in achieving both the policy objectives (i.e., development of financial sector and ensuring well-being of the population) essentially calls for an understanding on the linkages between financial development and well-being of the population. In this context, this paper attempts to develop a conceptual framework on the linkages between the financial development and the human well-being in the context of inclusive development paradigm. In addition, this paper also tries to conceptualise the theoretical framework on the implications of financial development and/or human well-being on the level of income inequality or the other way round. The empirical analysis in this paper shows that there is positive and significant bidirectional relationship between the financial development and human development across selected countries of the world. Government intervention in the development in the financial sector (or achieving a higher level of well-being of the population) can also reduce the extent of inequality in the distribution of income.

scholarly journals SEGITIGA KEMISKINAN-PERTUMBUHAN-KETIMPANGAN (PGI TRIANGLE): PEMBANGUNAN KEUANGAN, PEMBANGUNAN MANUSIA, DAN KETIMPANGAN PENDAPATAN DI ASIA

2020 ◽  
Vol 28 (2) ◽  
pp. 77-89
Author(s):  
Rivanda Fadhila Indra Putra ◽  
Vera Lisna
Keyword(s):  
Income Inequality ◽  
Human Development ◽  
Financial Development ◽  
Low Income ◽  
Random Effect ◽  
Random Effect Model ◽  
Financial Sector ◽  
Fixed Effect Model ◽  
Effect Model ◽  
Panel Data Regression

One of the issues faced by countries in asia is income inequality. Economic development is expected to improvepeoples living standards to minimize the gap between low-income and high-income populations. One of economicdevelopment is through financial development. The financial sector plays an important role in the economy of acountry, the development of the financial sector will indirectly increase the output of other sectors so as to tie thevalue of the gross domestic product (gdp). In addition to equality and economic growth, economic developmentalso needs to see whether the two are related to human development as described in the poverty-growth-inequality triangle (pgi triangle). The purpose of this study is to see a picture of the inequality of income distribution, financial development and human development in six asian countries. The analysis used descriptive statistics and panel data regression, specifically fixed effect model (fem) and the random effect model (rem). The result showed that there is a significant influence between financial development and human development on income inequality, the higher the financial development will reduce the level of inequality of a country. Meanwhile, the high value of human development actually increases inequality.

Psychological well-being of people living near landfills: preliminary case study in Indonesia

2020 ◽  
Vol 13 (4) ◽  
pp. 365-379
Author(s):  
Hamka Hamka ◽  
Ni'matuzahroh Ni'matuzahroh ◽  
Tri Astuti ◽  
Mein-Woei Suen ◽  
Fu-An Shieh
Keyword(s):  
Personal Growth ◽  
Health Management ◽  
Well Being ◽  
Psychological Well Being ◽  
Content Type ◽  
Positive Attitudes ◽  
The People ◽  
The Government ◽  
Voice Recorder

Purpose The purpose of this study is to explore the psychological well-being of people living around landfills, which constitutes a preliminary case study localized in Samarinda city, Indonesia. Design/methodology/approach This current study used a descriptive, participatory case study design. For data collection, interviews and participatory observation were used. Specifically, this case study took place in Samarinda City, Indonesia. Findings The psychological well-being of the people living around landfills was indicated very low in the light of psychological well-being such as personal growth, life’s goals and self-acceptance dimensions. Research limitations/implications Psychological well-being is part of an attitude of gratitude, thus making individuals happy and satisfied in life. The results of this study point to the fact that people who live around landfills have low psychological well-being due to lack of support from the community and government. In addition, with this research, people who live near landfills are very happy because they feel cared for and care about their condition. People who live near landfills expect the government and surrounding communities to know about their situation so that they become prosperous and well-being. In addition, providing medical team services, sending clean water and providing good solutions can help people who live near landfills. The limitation of this preliminary study was that researchers could deeply explore the lives of people in the next research. Besides, the next research can provide a camera or voice recorder in the state of only observation. In addition, the researcher can analyze more deeply in the next research. The final limitation was that participants could not have enough time to interact with, thus, the researcher could not collect the data to explore further. Practical implications Base on the result in this study, the government needs to have the policy to take care of those people who stay near landfills, for example, improving drinking water, establish the health management and giving a right to people to stay near landfills. Social implications By improving the growing environment, the people live near landfills can have some changes in their life. In addition, the negative stereotype and prejudice can be decreased and establish a more friendly society and increasing their well-being. Originality/value The participants were found to be problematic, primarily in managing their environment and influencing their personal growth. On top of that, the participants appeared to possess a lack exposure of to social interaction with other communities, which might cause them social gap and lack of caring perceived toward the surrounding environment, lack of better life’s goals, the disappointment of current conditions due to low educational and skill backgrounds. Nonetheless, the participants were still of gratefulness upon the situation for they were still granted health for studies to support their families. Besides, the participants did not show any positive attitudes toward themselves because of the disappointment of their condition and personal qualities.

Financial sector development and income inequality in South Africa

2017 ◽  
Vol 8 (4) ◽  
pp. 420-432 ◽  
Author(s):  
Forget Mingiri Kapingura
Keyword(s):  
South Africa ◽  
Income Inequality ◽  
Financial Development ◽  
Empirical Studies ◽  
Financial Sector ◽  
Financial Inclusion ◽  
External Trade ◽  
Bounds Testing ◽  
Content Type ◽  
Financial Sector Development

Purpose The purpose of this paper is to examine the relationship between financial sector development and inequality in South Africa for the period from 1990 to 2012. Unlike previous studies, the study examines the role of both the broad measure of financial sector development (Bank credit to the private sector) and a measure of financial inclusion (ATMs). Design/methodology/approach Utilising quarterly data, the autoregressive distributed lag bounds testing model approach to cointegration test was estimated. The approach was preferred due to its compatibility with data of different orders and flexibility. Findings The findings indicate that financial development, especially when it is inclusive reduces the level of inequality in South Africa both in the short- and long-run. The results also highlighted that economic growth, external trade activities and government activities have played a very important role in reducing inequality in South Africa. On the other hand the empirical results also highlight that increasing inflation is regressive on inequality in South Africa. Research limitations/implications The results from the study imply that financial development on its own though important may not benefit the disadvantaged groups such as the poor and the rural community until it is inclusive. It is important to note that the study was carried out on the premise that inequality plays a very important role in exacerbating poverty levels in South Africa. Practical implications The paper highlights another avenue which authorities can pursue to reduce the level of inequality in the country. Social implications The paper documents the importance of financial inclusion in reducing the level of inequality in South Africa rather than advocating for financial sector development only. Originality/value The paper makes a contribution through analysing the effect of financial inclusion on income inequality rather than broad financial sector development which is common to the majority of the available empirical studies.

scholarly journals REMITANSI TENAGA KERJA INDONESIA: DAMPAKNYA TERHADAP INFLASI DAN KONTRIBUSINYA TERHADAP PENINGKATAN KUALITAS HIDUP MASYARAKAT

2009 ◽  
Vol 13 (3) ◽  
pp. 388
Author(s):  
Eny Haryati
Keyword(s):  
Human Development ◽  
Human Development Index ◽  
Development Index ◽  
Goods And Services ◽  
Governmental Policy ◽  
Exact Number ◽  
Expected Inflation ◽  
The People ◽  
The Republic ◽  
The Government

Indonesian manpower (IM) is a term used to refer to the Indonesian migrants who work overseas. Although the exact number of the IM is not well recorded by the government of the Republic of Indonesia, the amount of the remittance the IM send home to their family is found to be quite significant. In 2005, the Minister of Manpower and Transmigration of the Republic of Indonesia declared that the amount of the IM’s remittance reached US$ 2.9 billion, which was much higher than the government’s expected amount (US$ 1.9 billion). This study found out that (1) the IM’s remittance affected the amount of the money spreading in the home district where the IM came from so that it enhanced the purchasing power of the people in the district towards the consumptive goods and services which, in turn, triggered the elevation of the prices of goods and services; (2) the IM’s remittance stimulated the traders or merchants to determine the goods and services pricing which was commonly called the expected inflation; (3) most of the remittance was spent for consumptive goods and services and only a little amount of it was spent for investment; and (4) the IM’s remittance was a factor that positively affected the increase of the human development index (HDI) in the IM’s home district. To effectively increase the effect of the remittance towards the HDI in the IW’s home district, a governmental policy that was oriented towards the development of the IM’s family potentials and attempted to change people’s behavior

scholarly journals Attitude of Public towards Higher Education: Conceptual Analysis

2016 ◽  
Vol 2 (12) ◽  
pp. 19 ◽  
Author(s):  
Anuja Roy ◽  
Jacqueline Kareem
Keyword(s):  
Higher Education ◽  
Human Resource ◽  
Well Being ◽  
Poverty Line ◽  
Resource Potential ◽  
The People ◽  
Education In India ◽  
Indian Higher Education ◽  
Males And Females ◽  
The Government

Indian higher education has never received much prominence when compared to the primary level. Academicians of our country have already pointed out that for economic and social well-being of our country majorly depends on the quality and widespread of higher education in our country. The main obstruction is the misconceptions by the general public of our country which is accompanied by the economic issues. The vision of Ministry of Human Resource and Development heads the department of Higher Education whose aim is to realize India’s human resource potential to its fullest in the education sector, with equity and excellence. Higher education is a costly affair when we take into consideration the fact that almost 20% of the population still lie under the poverty line. There is still a gap in the level of enrolment between males and females. The government is trying hard to overcome this disparity. Skills have often been ignored in our country’s scenario. Thus, higher education should also promote and encourage technical education. An All India Survey on Higher Education was initiated only in 2011, only because none of the sources had a complete picture of the data on higher education. The large amount of population is also a problem as it becomes difficult to cater to the needs of each individual or group. The resources are scarce when compared to the people demanding for it. We should try to identify the problems, and then we should work towards solving those problems. Public of our country should be willing to send their children for higher education; they should be having a positive attitude towards higher education. This paper discusses several steps that can be untaken to bridge the gaps in the system of higher education in India.

scholarly journals Smart Cities in India: branded or brain-dead?

2019 ◽  
Author(s):  
Vaishali Aggarwal ◽  
Keyword(s):  
Smart Cities ◽  
Well Being ◽  
Urban Life ◽  
Advanced Technology ◽  
Digital Innovation ◽  
Future Scenario ◽  
The People ◽  
The Future ◽  
Smart Mobility ◽  
The Government

The notion of ‘smart cities’ is increasingly visible in discourses on the future of cities but Change is coming to transportation, whether we are ready for it or not. But how sustainable and digital innovation can unlock better people health and well-being, enhance safety and security and provide seamless mobility experiences. It can be argued that smartening the mobility infrastructure enables the citizens to make informed decisions, and this is indeed true- if done well, but it has a big “if.” This research engages with the key drivers of change and provides affirmative aspirations for mobility in the not-so-distant future in order to facilitate conversations about change. However, the development of possibilities (scenarios) for the government policies and business innovation is dependent on the advanced technology and socio-economic values, which are embedded in the context and culture. The research paper aims to visualize through foresight by design, plausible alternatives of sustainable future for passenger transport in Delhi to stimulate sustainable innovation developments for transportation and analyse the present innovative influences for smart mobility in Delhi to accelerate the adoption. The first part of the paper analyses how do urban planners use the discourse of smart cities and how it has defined in India then later suggest future scenario for the future which will empower users, changing mobility models and transforming eco-system where intelligent connectivity would unite varied rage of emerging technologies to enable smarter, healthier and more resilient and economically vibrant urban life. This research considers smart mobility by outlining current challenges, suggesting technological, infrastructural and policy solutions and distilling explorations of the future into a series of ‘user journeys.’ It seeks to answer if ‘branding of technology’ can be used as a tool to create a new identity for mobility of Delhi or ‘upgrade’ the existing situation. How can the context of Delhi be decoded to describe the perceptions of the people?

scholarly journals Malaysian People Financial Prosperity

2018 ◽  
Vol 7 (2.29) ◽  
pp. 1063
Author(s):  
Fadillah Ismail ◽  
Zuhaimy Ismail ◽  
Mohd. Azhar Abd Hamid ◽  
Ismail Mohamad ◽  
Adibah Abdul Kadir ◽  
...  
Keyword(s):  
Well Being ◽  
Satisfaction Index ◽  
Statistical Institute ◽  
The Poor ◽  
International Statistical Institute ◽  
The People ◽  
The Status ◽  
Survey Results ◽  
Four Levels ◽  
The Government

During the first sitting of the fifth term of the 13th Malaysian Parliament, The Yang di-Pertuan Agong Sultan Muhammad V pledged to reign in a just and fair manner by placing the well-being of the people and prosperity of the nation above all else.  Thus it becomes the task of the Malaysian Government which includes the financial prosperity of the people.  This paper aims at identifying the level of financial prosperity of Malaysian people.  It has been identified that financial prosperity is a major problems among Malaysians, a result obtained from a survey research with 2000 samples taken from the whole country which is in accordance with the standards set by the International Statistical Institute [ISI].  The data collected were analyzed using various statistical methods and one of the method used to determine the people financial prosperity or financial well-being is by using index, namely the Malaysian People Satisfaction Index [MPSI]. We categorized the financial prosperity into four levels, namely the poor income, moderate income, good income and excellent income. The survey results show that the level of financial prosperity for Malaysian people is 49.6% with a mean of 4.88 which is categorized as moderate income. Further analysis shows that there are significant differences between the respondents' demographic factors and the financial prosperity.  This shows that the government and relevant agencies need to play a more significant role to ensure the policies that are enacted can contribute to the well-being of the people.  It would just be very difficult for Malaysia to become a developed nation by 2020 if the status of financial prosperity or financial well-being of its people is still at moderate level income. 

NIGER DELTA CRISIS AND THE FEDERAL GOVERNMENT AMNESTY PROGRAMME IMPLEMENTATION IN NIGERIA

2020 ◽  
Vol 1 (1) ◽  
pp. 22-36
Keyword(s):  
Niger Delta ◽  
Social Impact ◽  
Well Being ◽  
Programme Implementation ◽  
Oil Companies ◽  
Niger Delta Region ◽  
The People ◽  
The Social ◽  
The Government

Abstract The Niger Delta since inception of oil exploration in 1956 has been witnessing series of environmental insecurities which culminated into long term sufferings of the people living in the region. The activities of oil companies paid less attention to the well-being of the region and consequently metamorphosed into youth’s militancy –in terms of kidnapping and armed struggles. The effects of militancy led to the proclamation of amnesty programme designed to ameliorate the crisis situation and pardon those who were involved in militancy by the President Yar’Adua led administration in 2009. However, the question of insincerity from the government, multinational oil companies, agencies and militants remains a burden undermining the amnesty implementation programme and its successes in post-amnesty Niger Delta. This seminar, therefore, examined the social impact of amnesty programme and its challenges on Niger Delta. Internet explorations, magazines, newspaper cut-outs, books and journals were the instruments of data collection. Suggestions for proper implementation of amnesty programme and developmental actualisation in the Niger Delta Region were proffered. Keywords: Niger Delta, Crisis, Amnesty Programme, Nigeria

Foreign remittances and income inequality in Pakistan: A Pooled Regression Analysis

2020 ◽  
Vol 4 (4) ◽  
pp. 237-250
Author(s):  
Sana Suleman
Keyword(s):  
Income Inequality ◽  
Random Effect ◽  
Developed Countries ◽  
Entropy Measure ◽  
The People ◽  
Poverty Measures ◽  
Job Opportunities ◽  
The Government ◽  
And Migration ◽  
The Impact

The people from developing countries like Pakistan move to developed countries to earn their bread and butter. Consequently, such migrants remit a handsome part of their earnings to their dependents living in homeland. Foreign remittances have multidimensional impact on the economy of a developing country. The study evaluates the impact of foreign remittances on income inequality in Pakistan by estimating the set of fixed effect and random effect models using the pooled data from eight household income and expenditure surveys between 1998/99 and 2015/16. Gini coefficient as well as generalized entropy measure is used to estimate income inequality, but the results remain intact. It is observed that foreign remittances have statistically significant favorable impacts on income inequality in Pakistan. Further, the results are robust and insensitive to control variables (e.g. income and poverty measures, headcount ratio, poverty gap and squared poverty gap). The policy measure is that Bureau of Emigration and Overseas Employment (BEOE) should be empowered to explore the job opportunities in developed countries. The government should assist the migrants through subsidizing the visa and migration processes to capitalize the foreign remittances.

scholarly journals Dynamics of Financial Development, Economic Growth, and Poverty Alleviation: The Indonesian Experience

2018 ◽  
Vol 13 (1) ◽  
pp. 17-30 ◽  
Author(s):  
Sovia Dewi ◽  
M. Shabri Abd. Majid ◽  
Salina Kassim ◽  
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Financial Sector ◽  
Poverty Rate ◽  
Development Economic ◽  
Annual Data ◽  
Distributed Lag ◽  
Long Run ◽  
The Government

Abstract Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial sector towards poverty reduction. This study aims to empirically explore the interlinkages between financial sector development and poverty reduction in Indonesia. Focusing on annual data covering the period from 1980 to 2015, the study adopts the Autoregressive Distributed Lag (ARDL) cointegration approach to examine the long-run relationship between the variables. The study found that there is a long-run relationship between financial development, economic growth, and poverty reduction in Indonesia. It also documented a unidirectional causality running from the financial sector to poverty reduction and a bidirectional causality between economic growth and poverty reduction. Therefore, policies to ensure the conducive growth of the financial sector would go a long way in promoting the economy, creating employment opportunities, and consequently accelerating poverty eradication

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