scholarly journals Economic Development Paper

2019 ◽  
Author(s):  
Diana Annisa
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Inequality ◽  
Income Distribution ◽  
High Growth ◽  
Relative Poverty ◽  
Low Level ◽  
The Poor ◽  
The Rich ◽  
Distribution Of Income

The main problems in economic development are increasing economic growth, eliminating poverty and eliminating poverty. In some destination countries it is sometimes a dilemma between emphasizing economic growth or reducing inequality in income distribution (Deininger and Olinto, 2000). High growth does not necessarily guarantee that the inequality of income distribution will be low.Poverty and income inequality are two things that are being intensely emphasized by the government's growth. Inequality is closely related to poverty because fundamentally inequality is an indicator of relative poverty, namely the gap between the rich and the poor. The low level of inequality, or the more even distribution of income, is certainly one of the important agendas of economic development.To measure economic inequality can be seen using the Gini ratio. Gini ratio is an indicator of income distribution level indicated by a coefficient of zero to one, which means the higher the coefficient, the more uneven distribution of income of the population.

scholarly journals Governance and Income Inequality

2006 ◽  
Vol 45 (4II) ◽  
pp. 751-760 ◽  
Author(s):  
Saima Shafique ◽  
Rashida Haq
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Developing Countries ◽  
Economic Policy ◽  
Income Inequality ◽  
Income Distribution ◽  
Growth And Development ◽  
Well Being ◽  
Low Level ◽  
The Poor

Major problems of developing countries are unequal income distribution and low growth rate, which affect their welfare aspects. It was implicitly assumed that whenever we achieve target of higher growth rate, benefit of growth would automatically trickle down to the poor. History of developing countries shows that the rich benefited more than the poor as evidenced by rising income inequality during the period of higher economic growth. The economic policy changes are often triggered by the logic of low level of equilibrium of output level, employment and income distribution. To overcome this low level of equilibrium trap, government often adopt polices so as to achieve high level of income and employment growth and development, and equitable income distribution. Coherent policy instruments are essential to meet these policy targets. Impact of any macro economic policy has been examined by studying its impact on economic growth and income distribution. In recent years polices have been directed toward reducing the level of poverty and inequality through raising quality of life in society by providing efficient and effective governance. This new economic philosophy has resulted in a massive change in the policy orientation of countries; the priority is now centred on issue of governance and focus is now shifted towards a qualitative nature of its growth and development. According to Sen (1983), the realisation of human capabilities, that enlarge the range of human choices, is essential for a broader notion and measure of economic well-being. The institutional frame work is then considered as one of the essential elements for translating growth and well-being into a sustainable process.

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

Income Inequality and Economic Development

2010 ◽  
Author(s):  
Matthew McKeever
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Inequality ◽  
Poverty Reduction ◽  
Industrial Society ◽  
Considerable Debate ◽  
The Subject ◽  
The Rich ◽  
The Government ◽  
The Relationship

The nature of the relationship between economic development and income inequality has long been the subject of considerable debate. Economic growth has very different effects on poverty, depending on a country’s level of income inequality. In high inequality countries, economic growth that raises the overall level of income disproportionately tends to benefit the rich, whereas policies that encourage economic growth while reducing income inequality will greatly accelerate the achievement of poverty reduction goals. Thus, understanding how income inequality and economic development are linked is important for establishing economic growth policies that reduce poverty. The literature on the economic development–income inequality nexus in industrial society places emphasis on the causes of current social inequality. The central and most cited paper in the literature is S. Kuznets’s “Economic Growth and Income Inequality” (1955), which proposed an inverted U-shaped relationship between development and inequality over the course of industrialization. Some scholars have tried to build upon Kuznets’s theory by focusing on his claim that income inequality is a function of the nature of regulations put on the market. Other studies deal with the importance of studying the relationship between democracy and inequality, the effect of the nature of the government on shaping inequality compared to industrialization, and the implications of globalization for income inequality. This overview of the literature shows that there is little true consensus on the relationship between inequality and development and highlights two major areas for improvement: measurement and data quality.

Foreign Direct Investment as a Tool for Poverty Alleviation

2016 ◽  
pp. 127-137
Author(s):  
James Rossi ◽  
Genevieve Dupont
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Income Inequality ◽  
Income Distribution ◽  
Poverty Alleviation ◽  
Direct Investment ◽  
Previous Literature ◽  
Absolute Poverty ◽  
The Relationship

It has been argued that “Absolute poverty can be alleviated if at least two conditions are met. First, economic growth must occur—or mean income must rise—on a sustained basis. Second, economic growth must be neutral with respect to income distribution or reduce income inequality.” By way of reference to current and previous literature on economic development, this chapter aims to investigate the relationship between poverty, economic growth, and income distribution, as a means of mitigating gaps in the literature on the topic, as well as contributing to the literature of Foreign Direct Investment as a tool for poverty alleviation.

Environmental quality: impact of economic growth

2014 ◽  
Vol 20 (5) ◽  
pp. 673-696 ◽  
Author(s):  
Sangeeta Bansal
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Income Distribution ◽  
Environmental Quality ◽  
Quality Attribute ◽  
Product Model ◽  
Environmental Friendliness ◽  
The Poor ◽  
Regulatory Measure

AbstractUsing a vertically differentiated product model, the paper aims to investigate the effects of economic growth on market provision of product quality. The quality attribute considered is the environmental friendliness of products. Economic growth is modeled as a shift in income distribution. It shows that the effect of economic growth depends on the form it takes. A growth in income that is uniform across consumers improves the cleanup levels adopted by both firms. However, a growth in income that is accompanied by changes in income inequality may result in the lowering of one of the two qualities. More specifically, if the growth in income is accompanied by increased disparities in income distribution, the quality of the (environmentally) inferior variant is reduced. This has serious implications for the poor consumers if the product has safety or health hazards. The paper suggests a regulatory measure to prevent such deterioration in the quality of the inferior variant.

scholarly journals ECONOMIC DEVELOPMENT

2019 ◽  
Author(s):  
Rani Rahayu Nengsih
Keyword(s):  
Economic Growth ◽  
Output Growth ◽  
Total Output ◽  
Development Indicators ◽  
The Poor ◽  
Long Run ◽  
Per Capita ◽  
The Rich ◽  
Distribution Of Income ◽  
Capita Output

Economic growth is the process of increasing per capita output in the long run. economic growth only discuss about how much output growth or how much gnp is received without questioning the largest source of contribution from the total output received. So it is not surprising if one of the development indicators cannot be used as a reflection of the distribution of income of a country. It is also not surprising, when a country experiences growth, the country will also face the problem of inequality in income distribution, so that the rich the richer the poor the poorer they become.

scholarly journals Do Real Depreciations Reduce the Income Gap between the Rich and the Poor?

2017 ◽  
Vol 9 (3) ◽  
pp. 266
Author(s):  
Guangjun Qu
Keyword(s):  
Economic Development ◽  
Reverse Causality ◽  
Gini Coefficients ◽  
Income Gap ◽  
Currency Depreciation ◽  
The Poor ◽  
The Rich ◽  
The Relationship ◽  
Distribution Of Income

This study concentrates on the effect of real depreciations of a currency on one key aspect of economic development, the distribution of income. Based upon the recent availability of a real depreciation index and two databases on Gini coefficients, we investigate how real depreciations affect levels and changes in the distribution of income. The panel evidence of more than  158 countries indicates that real depreciations are associated with a decline in levels of income gap between the rich and the poor. They, however, have no statistically significant association with changes in the distribution of income. Therefore, the relationship between real depreciations and levels of the distribution of income is likely to stem from reverse causality. Our main findings may help policymakers who attempt to use a currency depreciation policy fully realize that the policy at least does not hurt the poor.

scholarly journals Inequality and its discontents

2019 ◽  
Vol 35 (3) ◽  
pp. 396-430 ◽  
Author(s):  
Brian Nolan ◽  
Luis Valenzuela
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Technological Change ◽  
National Institutions ◽  
Social Domains ◽  
The Rich ◽  
Rich Countries ◽  
Distribution Of Income

Abstract Inequality in the distribution of income and wealth has come to the fore as a core concern across the industrialized world. Here we examine what has happened to income inequality across the rich countries in recent decades. We discuss the range of factors that appear to be driving inequality upwards, notably the role of technological change, globalization, and national institutions and policies. We look at how rising inequality might undermine economic growth and squeeze the middle, and assess the extent to which it has actually done so. We assess whether rising inequality is associated with worsening outcomes and inequalities across various social domains. Finally, we review emerging evidence on the role that rising inequality may be playing in the ‘revolt of the angry’ and rise of populism.

scholarly journals Is income inequality unjust? Perspectives from political philosophy

2011 ◽  
Vol 7 (2) ◽  
Author(s):  
Xavier Marquez
Keyword(s):  
Economic Growth ◽  
Political Philosophy ◽  
Income Inequality ◽  
Life Expectancy ◽  
Social Mobility ◽  
Relative Deprivation ◽  
The Poor ◽  
The Rich ◽  
Teenage Births ◽  
Rich Countries

Richard Wilkinson and Kate Pickett have argued recently (Wilkinson and Pickett, 2010) that income inequality produces many kinds of social and health problems in rich countries.1 High rates of infant mortality, teenage births, crime and obesity, educational under-achievement, low life expectancy, social mobility and many other social problems are worse, they claim, in more unequal societies. They further argue that these problems are caused not by absolute deprivation (poverty) but by relative deprivation, and that they are best addressed by compressing the income distribution, even if this means slowing or entirely stopping economic growth. Moreover, their argument has the further implication that more could be done for underprivileged groups in society by reducing the gap between the rich and the poor than by investing more resources in public services.

scholarly journals Income inequalities: the rationale of demarcation amid growth and development

2013 ◽  
Vol 1 (1) ◽  
pp. 69-76
Author(s):  
Bharat Gahlot ◽  
Akanksha Dubey
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Inequality ◽  
Growth And Development ◽  
Developing Economy ◽  
Unequal Distribution ◽  
Income Equality ◽  
Income Inequalities ◽  
In The Beginning ◽  
Distribution Of Income

In this paper we provide an analytical view of the effect of income inequality over economic development even in the charisma of continuous economic growth. In the beginning a detailed discussion has been done regarding the differences between economic growth and development.Ours is a developing economy with a continuous rise in GDP. However due to unequal distribution of income, the economy has not been able to witness economic development on an overall basis. An introduction is given regarding the HDI, the ultimate measure of economic development. This paper also proves the fact that economic development is possible only if there is equality in the distribution of income.In our study we have included a number of facts and figures to conclude that income equality is a precondition for economic development. At the end, few suggestions are given as to how we can overcome this problem and promote economic development.

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