scholarly journals DOES LESS CORRUPTION REDUCE INCOME INEQUALITY IN INDONESIA?

2018 ◽  
Vol 4 (2) ◽  
pp. 167
Author(s):  
Azwar Iskandar
Keyword(s):  
Income Inequality ◽  
Negative Impact ◽  
Dynamic Error ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Social Spending ◽  
Transparency International ◽  
Distributed Lag ◽  
Long Run ◽  
Major Disaster

It is widely believed that corruption is a cause of income inequality and a barrier to successful its eradication. It undermines the efforts of developing countries, including Indonesia to alleviate income inequality. It is also argued that the increased inequality caused by corruption worsens the position of the poorest people in a society as it reduces public resources available for social spen-ding of government. In addition, corruption might have a negative impact on the quality and quantity of public services, such as education and health services. This study designed to know the long run and short run impacts of corruption on inequality of income. The study uses secondary data from World Bank and Transparency International then Auto Regressive Distributed Lag (ARDL) and dynamic Error Correction Model (ECM) during the year of 1995-2017. The results of study indicate that corruption has significant effects on the level of income inequality both in the short and long run. The negative implication of corruption on citizens’ life is a major disaster in the economy and harmful to the growth and development of the people in Indonesian particularly, and the economy in general. The simple Pearson correlation findings also indicate that corruption has significant distributional consequences by affecting government expenditures. Therefore, the raise of corruption increases income inequality as it reduces the effectiveness of government spending on education, health and final consumption for society. Thus, it can be concluded that for the Indonesian context, an increased inequality due to corruption has worsened the position of the poorest as less resources available for social spending.

scholarly journals DOES CORRUPTION AFFECT POVERTY IN INDONESIA?

2018 ◽  
Vol 11 (1) ◽  
pp. 1-14
Author(s):  
Azwar Azwar Azwar ◽  
Rahmaluddin Saragih
Keyword(s):  
Poverty Reduction ◽  
Dynamic Error ◽  
Pearson Correlation ◽  
Reduction Process ◽  
Secondary Data ◽  
Good Health ◽  
Social Spending ◽  
Significance Level ◽  
Long Run ◽  
Major Disaster

Corruption is likely to increase poverty because it reduces the potential income earning of the poor. Therefore, eradicating corruption is a crucial issue in the poverty reduction process. This study is set out to investigate and analyze the short and long-run relationship between corruption and poverty. It uses secondary data from World Bank and Transparency International then  Autoregressive Distributed Lag (ARDL) and dynamic Error Correction Model (ECM), focuses on capability poverty using headcount poverty index during year 1995-2017. The results of study indicated that corruption have positive significant effect on the level of poverty ratio in 1% significance level In the long run. This implies that in the long run, there is relationship between corruption and poverty. In the long run, the coefficient of corruption effect implies that 1% increase in corruption would increase the poverty ratio by 1.36%. The negative implication of corruption on the life of the citizens is a major disaster in the economy and harmful to the growth and development of the citizens in particular and the economy in general. The simple pearson correlation findings also show that corruption has significant distributional consequences by affecting growth and government expenditures. High and rising corruption increases poverty by reducing the level and effectiveness of groth and social spending (education and health).  For effective sustainable and management of this disaster, government should embark on policies that will reduce the level of corruption significantly so as to have positive influence on the standard of living of the citizens in terms of quality and efficient education, sound management of our natural resources, provision of good health facilities and other infrastructures that will transcend to the growth of the economy.

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

scholarly journals Trade Openness Effect on Income Inequality: Empirical Evidence from Indonesia

2018 ◽  
Vol 7 (1) ◽  
pp. 1-14
Author(s):  
Lestari Agusalim ◽  
Fanny Suzuda Pohan
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Negative Impact ◽  
Forecast Error ◽  
Trade Openness ◽  
Impulse Response Function ◽  
Secondary Data ◽  
Error Variance ◽  
Long Run ◽  
Forecast Error Variance

This research analyzed the effect of international trade openness to income inequality in Indonesia using Vector Error Correction Model (VECM). The data used is the secondary data, which are the export-import value, gross domestic product (GDP), GDP per capita, open unemployment rate, and Gini index. The results of this study indicate that in the short term the trade openness has negative impact significantly on the income inequality. However, in the long-run, it does not show any significant effect in decreasing the income inequality rate. The impulse response function (IRF) concluded that income inequality gives a positive response, except on the third year. Based on the forecast error variance decomposition (FEDV), the trade openness does not provide any significant contribution in effecting the income inequality in Indonesia, but economic growth does. Nevertheless, in long-term, the economic growth makes the income inequality getting worse than in the short-term.DOI: 10.15408/sjie.v7i1.5527

scholarly journals Income Inequality and Public Debt: What Can Be Learned from the Lebanese Indebtedness?

2020 ◽  
Vol 10 (4) ◽  
pp. 83
Author(s):  
Adham Sayed
Keyword(s):  
Income Inequality ◽  
Public Debt ◽  
Negative Impact ◽  
Correction Model ◽  
The Public ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
The Impact

This paper examines the impact of domestic public debt on income inequality in Lebanon. The analysis is carried out using the Autoregressive Distributed Lag (ARDL) approach and Error Correction Model (ECM). The data used covers the period between 1990 and 2015. By applying the bounds test, we indicate that there is the existence of a long-run relationship between our variables. Therefore, in both the short and long run, our results show that the domestic share of public debt has a positive and significant effect on income inequality. Hence, a bigger share of domestic public debt leads to wider income inequality. We also suggest steps that may halt the negative impact of public debt on equality in Lebanon, such as reforming the tax system, restructuring the public debt, and searching for sources other than borrowing to cover the budget deficit.

scholarly journals Fiscal federalism and accountability in Nigeria: an ARDL approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olabanji Olukayode Ewetan ◽  
Romanus Osabohien ◽  
Oluwatoyin Augustina Matthew ◽  
Abiola Ayopo Babajide ◽  
Ese Urhie
Keyword(s):  
Public Sector ◽  
Fiscal Federalism ◽  
Local Economic Development ◽  
Fiscal Decentralization ◽  
Secondary Data ◽  
Law And Order ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive

Purpose The purpose of this paper is to examine the relationship between fiscal federalism and accountability in Nigeria. Corruption is a global plague and is endemic in nature. Several policies have been adopted by the Nigerian Government to institutionalize accountability and combat the scourge of corruption that have hindered socio-economic progress but to no avail. Design/methodology/approach Thus, this study examined fiscal federalism and accountability issues in Nigeria using secondary data and used the auto-regressive distributed lag econometric technique to analyse the data. Findings The results from this study reveal that fiscal federalism fails to mitigate corruption in the long run in Nigeria because of poor bureaucratic quality (BQ) and ineffective law and order (LOR). Social implications Fiscal decentralization must be accompanied by legislations that will strengthen BQ of fiscal institutions at subnational levels and promote effective LOR. Originality/value This study recommends that for fiscal federalism to mitigate corruption in the long run, government must adopt appropriate policies to improve BQ and further strengthen LOR in Nigeria. The finding also suggests that to promote public sector accountability in Nigeria, government should ensure the simultaneous decentralization of expenditure and revenue to lower tiers of government. This study provides detailed empirical evidence that fiscal decentralization without accountability will accentuate public sector corruption, and in the long run, weaken local economic development initiative to boost growth and development.

scholarly journals A Long Run ARDL Investigation of Manufacturing Adjustment to the Services Economy in Nigeria

2021 ◽  
Vol 9 (3) ◽  
pp. 95-107
Author(s):  
Olumuyiwa Olamade
Keyword(s):  
Capital Accumulation ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
Business Services ◽  
Development Indicators ◽  
Services Sector ◽  
Positive Effects ◽  
Distributed Lag ◽  
Long Run

The long-run equilibrating relationship between the value-added growth of services and manufacturing is investigated in this research. The study is based on the well-established empirical link between manufacturing and service activities, and in particular, manufacturing's servicification. The selected variables' annualized time series were obtained from the World Development Indicators. The paper used the autoregressive distributed lag framework to regress manufacturing value-added growth against service value-added growth while accounting for economic growth, factor input growth, and trade effects. The findings revealed that in Nigeria, a strong performing services sector has a large negative impact on manufacturing performance, whereas capital accumulation and income growth have positive effects. The supply constraint of business services that the manufacturing sector requires is at the root of this finding. The paper advocates for policy frameworks that support the efficient supply of business services as both a manufacturing input and a productivity enhancer for the entire economy.

scholarly journals THE INFLATION AND POVERTY IN INDONESIA: CONSEQUENCE OF USURY?

2019 ◽  
Vol 17 (2) ◽  
pp. 91
Author(s):  
Azwar Iskandar ◽  
Bayu Taufiq Possumah ◽  
Khaerul Aqbar
Keyword(s):  
Interest Rates ◽  
Negative Impact ◽  
Positive Impact ◽  
Pearson Correlation ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Positive Influence ◽  
Interest Rate Policy ◽  
Depth Index ◽  
The People

This research was conducted to analyze the influence and correlation of interest rates as one form of the implementation of usury practices on inflation and poverty in Indonesia. This study uses secondary data from the publication of the Central Statistics Agency (BPS) and Bank Indonesia for the period 2005-2018. This study uses Simple Linear Regression Analysis Techniques and Pearson Correlation Techniques. The results showed that interest rates as one form of the implementation of usury practices had an effect and had a positive and significant correlation to inflation in Indonesia. The practice of ribawi actually will bring a negative impact on the economy of the people in Indonesia in the form of an increase in the level of inflation in society. Measures of monetary policy intervention in maintaining price stability and inflation in society have not shown a positive impact. Also, the results of the study showed that interest rate policy also had a positive influence and correlation on the increase in the poverty depth index. That is, when interest rates are set to rise, the poverty depth index in the community also tends to go up or get worse. The findings of this study reinforce the legitimacy of the word of Allah Subhanahu Wa Ta'ala in the Qur'an and the Hadith related to the prohibition of usury practices that can lead to injustice, wrongdoing, and economic destruction of the people.

Income inequality and CO2 emissions: Empirical evidence from Turkey

2018 ◽  
Vol 30 (3) ◽  
pp. 444-461 ◽  
Author(s):  
Caner Demir ◽  
Raif Cergibozan ◽  
Adem Gök
Keyword(s):  
Income Inequality ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Aggregate Consumption ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

The aim of the study is to investigate the impact of income inequality on environmental quality in Turkey within the Environmental Kuznets Curve framework. In order to observe the short-run and long-run effects of income inequality on environmental quality, an autoregressive distributed lag bounds test on CO2 emission has been employed for the period 1963–2011 of Turkey. The results of the analysis reveal that there is a negative association between CO2 emission level and income inequality, which implies that increasing income inequality reduces environmental degradation in Turkey. Hence, a greater inequality in the society leads to less aggregate consumption in the economy due to lower propensity to emit in the richer households resulting in better environmental quality. The findings confirm an argument in the existing literature, which suggests that for developing countries, until a certain level of development, environmental degradation increases as income inequality in the society decreases. The results also confirm the Environmental Kuznets Curve hypothesis.

scholarly journals Microfinance Institutions and Financial Sector Growth in Nigeria (1992-2018)

2021 ◽  
Author(s):  
Emmanuel Abiodun Ayodeji ◽  
Adebayo Tunbosun Ogundipe
Keyword(s):  
Secondary Data ◽  
Financial Sector ◽  
Variable Coefficients ◽  
Model Specification ◽  
Microfinance Institutions ◽  
Negative Effects ◽  
Positive Effects ◽  
Distributed Lag ◽  
Long Run ◽  
Bound Test

Abstract The extent to which microfinance bank institutions have contributed to the financial sector growth has not been well unraveled in the extant literature in Nigeria, hence, this study examined the effects of microfinance banks on financial sector growth in Nigeria. It further investigated the dynamic form of relationship between microfinance banks and financial sector growth in Nigeria covering a temporal scope 1992 to 2018. The model specification was formulated using financial sector GDP as the proxy for dependent variable, microfinance credit, deposits, assets and investment were used as proxies for microfinance banks institutions. Secondary data were sourced from CBN statistical Bulletin and analyzed using auto regressive distributed lag bound test and its corresponding short and long run coefficients. Finding revealed an inconclusive long run relationship between microfinance bank institutions and financial sector growth. Checking the individual variable coefficients in the short run, microfinance credit has significant positive effect while microfinance assets has insignificant effects on financial sector growth. In the long run, it was revealed that microfinance bank deposits and assets exert insignificant positive effects while microfinance credits have insignificant effect and investments have significant negative effects on financial sector growth. The study concluded that, in the long run, microfinance bank institutions exert positive and insignificant effects on financial sector growth in Nigeria. It was therefore recommended that, for microfinance bank institutions to impact significantly on financial sector growth in Nigeria, its credit should be increased and be more directed to the target individuals and the level of their investments should be geared up so as to engender growth of the financial sector in Nigeria. Furthermore, microfinance bank institutions should maintain its status quo on deposits and assets, however, improvement on them should be encouraged so as to enhance the growth of the financial sector in Nigeria

scholarly journals Milk Supply Response in Delaware

1980 ◽  
Vol 9 (1) ◽  
pp. 41-45 ◽  
Author(s):  
G. Joachim Elterich ◽  
Sharif Masud
Keyword(s):  
Milk Production ◽  
Negative Impact ◽  
Milk Supply ◽  
Supply Response ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Milk Cows ◽  
Short Run ◽  
Lag Model

Milk supply response by dairy farmers in Delaware was analyzed employing distributed lag price structures for number of milk cows and milk production per cow. A polynominal distributed lag model is fitted to quarterly data with deflated prices for the period 1966 to 1978. The variations in the number of milk cows is explained by about 98 percent. Farmers react positively to milk prices after 1–2 years, while wages and feed prices have a negative impact on cow numbers. Milk production per cow shows positive adjustments to milk prices after 6 to 15 months. Technology and feed prices influence also milk production While the short-run price elasticity of milk production is only .2, the long-run aggregate elasticity grows to 2.8 percent. Intermediate-run projections of milk supply were also performed with the model.

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