scholarly journals Inequality and economic growth in Bangladesh–a diversified evidence on Kuznets pattern `U` hypothesis

1970 ◽  
Vol 7 (1) ◽  
pp. 117-123
Author(s):  
SMA Islam
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Low Income ◽  
Structural Adjustment ◽  
National Level ◽  
Low Income Countries ◽  
Poor People ◽  
Kuznets Hypothesis ◽  
The Government

The study of inequality and economic growth to the developing countries are now a days a comprehensive issue since the growth stimulate the standard of living to the poor people and accordingly reduce income inequality. The improvement of inequality and growth may reduce the social movement to the government and may keep the economic and social integrity amongst the different ethnic groups by efficient resource allocation and income redistribution in Bangladesh. The objective of this research is to assess long term relationship between inequality and growth in Bangladesh with a methodology of Kuznets pattern inverted U hypothesis first introduced by Simon Kuznets since 1955. The popular concept of Kuznets hypothesis suggests that as economic growth occurs, income inequality first increase and then decline after a certain turning point. The study of Kuznets hypothesis is popular to the international economic environment rather than domestic, especially to the developing countries where the per capita GDP is below the level of world average. This study found the evidence that the presumption of Kuznets hypothesis has satisfied in the economy of Bangladesh in national level. In low income countries, structural adjustment is necessary to satisfy the Kuznets hypothesis. Keywords: Kuznets Hypothesis; Inequality; Growth DOI: 10.3329/jbau.v7i1.4973 J. Bangladesh Agril. Univ. 7(1): 117-123, 2009

scholarly journals Economic Growth and Income Inequality in Developing Countries

2015 ◽  
Vol 9 (6) ◽  
pp. 79-82 ◽  
Author(s):  
Morteza Nemati ◽  
Ghasem Raisi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Income Distribution ◽  
Economic System ◽  
Development Strategy ◽  
Low Income ◽  
Poverty Eradication ◽  
The Relationship ◽  
Selection Of

Nowadays, improvement in income distribution and poverty eradication and hence low inequality are served as the main objectives of economic and social development strategy even prior than primary tasks of governments. to manifest importance of income distribution, some economists adopt income inequality and income distribution in society as criteria for economic system of the community, although these criteria and measures are theoretical for the economic system and this varies from the perspective of different people, however, it denotes on  importance of income distribution among individuals. The main objective of this study was to evaluate the effect of economic growth on income inequality in the selection of low-income developing countries.To this end, using panel data and data for 28 developing countries over the period 1990-2010 the relationship between GDP and the Gini coefficient was examined. The results indicate that as per hypothesis Kuznets in the early stages of growth, income inequality increases and then it declines in later stage.

scholarly journals Equitable Growth and Poverty Alleviation: Lessons Learned from Korean Experience

2005 ◽  
Vol 6 (1) ◽  
pp. 1-34
Author(s):  
Chanyong Park ◽  
Khalid Ikram
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Development Strategy ◽  
Low Income ◽  
Land Reform ◽  
Lessons Learned ◽  
Absolute Poverty ◽  
Assistance Program ◽  
Rapid Economic Growth ◽  
The Government

This case study analyzed how Korea achieved rapid economic growth with i.t1ere-JSing equity and poverty aJlcviarion. Korean GDP per capita increased 110 times and absolute poverty rate dccn.:ased from 48.3 percent to 9.8 percent l:x:tween 196 l and 2001. Ir is true to say in rhe Korean case that the most efiecrive measure in reduction of the absolute pwerty level has been to make the economic pie biggcr. It is called growth-firsr~istrihution-larcr principle and brought abJut economic success hy overcoming a sc:vere shortage of natural endowments. TI1e Korean government prioritized certain development-led industries in order to accelerate economic μ;ro\\•th. It was called '"imbalanced development strate,gy" and assessed as being more effective than "balanced development strategy" within the limited budget for ernnomic development. Although income inequality became aggravated Jue to the grmvrh-first polity and imbalanced strate,gy, the sizl' of the economic pie increased drastically. The income levels of middle and low income households increased to such an extent that much income inequality could l:x: rolernted. le can be said that in Korea. rapid economic growth raised welfare levels during rhe period between the l 960s and the 1990s even as income inequality worsened. Korea ran into serious economic difficulties in late 1997. The poverty rates rose sharply from 7.67 rercem in 19'-)7 to 14.28 pen:ent in ·19'-)8. TI1e Korean govemrnenr w1dertook various anti-poverty programs designed to ease the impan of ma-.s lay-offS by implementing a new public assistance program and expanded the coverage of sx·ial insuranu.c:. In addition, hwnan resource development programs \Vere intrOOuced thar enhanced the access of the vulnerable class to the labor market by laying stress on labor welfare, raking mea,ures to protect irregtUar employees, and extending the application of the minimum wage system to all industries. Thanks to these efforts of the government, the p.>verty rates have decreased since 1999. 1bis study has led us to six tentative but useful lessons learned from the Korean success to lx applied to ocher developing countries: establishment of a clear objective of development and. the cornmirmenr of authorities; r,crn.ptive sdt·ction of rtprcscntative kx:omotive engines for rapid economic gro¥.-th and properly designed management; lx.'St investment in human rt'Source development; fair land reform and rural development; job creation and expansion of employment; and building-up of country's capacity to implement plans and projects expeditiously within budgeted costs.

scholarly journals Epidemic Spread and Its Management Through Governance and Leadership Response Influencing the Arising Challenges Around COVID-19 in Pakistan—A Lesson Learnt for Low Income Countries With Limited Resource

2020 ◽  
Vol 8 ◽  
Author(s):  
Ahsan Nawaz ◽  
Xing Su ◽  
Muhammad Qasim Barkat ◽  
Sana Asghar ◽  
Ali Asad ◽  
...  
Keyword(s):  
Low Income ◽  
Preventive Measures ◽  
National Level ◽  
Limited Resource ◽  
Low Income Countries ◽  
Strict Adherence ◽  
Similar Work ◽  
The Usa ◽  
The Government ◽  
Global Statistics

The coronavirus disease (COVID-19) was first reported in China (Wuhan) at the end of 2019. It has rapidly spread over 216 countries, including the USA, UK, Europe, Russia, and many Asian countries. It has affected more than 4.5 million people, and around 0.3 million deaths have been reported globally. Many preventive measures have been adopted worldwide to mitigate its spread. The government of Pakistan has also taken many preventive measures to combat the COVID-19 outbreak, such as rapid response by governance, continuous monitoring of the pandemic spread in the affected areas, and integration of resources from multiple sectors, including health, education, defense, and media. According to global statistics, the number of COVID-19 cases in the country remained remarkably lower than the expected number for the first 169 days, as compared to other countries. A total of 286,674 confirmed cases, including 16,475 active, 6,139 deaths, and 264,060 (92%) recoveries were reported. The study finds that strict adherence to national policies, effective governance, and unity at the national level resulted in better outcomes. Hence, the preventive measures, rapid responses, and strategies adopted for combating the challenges could be adopted as a learning tool for other countries having similar work environments and financial constraints. This paper can help and guide governance/public actions in response to the possible rebound of coronavirus this fall/winter.

scholarly journals Lifestyle transitions and the developing world: Reflections on the implications for health, well-being and wealth

2013 ◽  
Vol 3 (2) ◽  
pp. 70
Author(s):  
Ufuoma John Ejughemre
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Low Income ◽  
Well Being ◽  
Evidence Base ◽  
Lifestyle Changes ◽  
Low Income Countries ◽  
Health Concern ◽  
Negative Consequences ◽  
Middle Income

Context: The past few decades witnessed significant economic growth in many developing countries of the world. These economic changes towards increasing gross domestic product (GDP) brought with it several other transitions in these countries: demographic, epidemiological, technological, and nutritional. These resulted in improving the living standards as well as life expectancy in many of these countries. However, of public health concern is the fact that these transitions paradoxically have their negative consequences on the health, well-being and wealth of the populace in these countries. Objectives: This review therefore assesses the evidence of the extent to which these changes have affected the living patterns in many developing countries and the epidemiological implications besides others issues on the populace in these countries. Methods: By using key words, the author involved a broad search of literatures on lifestyle changes, economic growth, nutrition, urbanization, smoking and alcohol, communicable and non-communicable diseases in countries termed low and middle income. Findings and conclusion: The review identified discernible evidence base about the implications of these changes on health, well-being and wealth of these nations. Accordingly, as lifestyle transitions now come to bear, it thus necessitates an all inclusive approach that will include proactive and pre-emptive interventions as well as consistent participation from governments, multilateral institutions, research-funding agencies, donors, and other players in health systems. This is because it will provide the global community with great opportunities in uniting high, middle, and low-income countries in a common purpose, given the shared interests of globalization and economic burdens worldwide.

The Effects of Financial Development and Governance Quality on Economic Growth: Evidence from Developed and Developing Countries

2021 ◽  
Vol 40 (1) ◽  
Author(s):  
Assef Filfilan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Financial Development ◽  
Low Income ◽  
Good Governance ◽  
Principal Component ◽  
Threshold Level ◽  
Low Income Countries ◽  
Domestic Credit ◽  
Governance Quality

This paper investigates the effects of financial development on economic growth with especial emphasis on the role played by governance quality. An indicator of governance built from the Principal Component factor method (PCF) and which takes into account the simultaneous effects of political, institutional and economic governance, is used in mediating such relationship. The study is carried out using a two-step system dynamic GMM method for 93 developed and developing countries over the 1996–2018 period. The findings from the study revealed that the effects of financial development on economic growth various according to the nature of governance and the level of development of countries.  Results show a non-significant effect of financial development on economic growth for low-income countries and a positively significant impact in middle and high-income ones. Estimations demonstrate also that good governance plays an important and significant role in mediating the finance-growth relationship. Finally, results demonstrate that there is a certain threshold level that countries must achieve to make government domestic credit to private sector favorable to economic growth.

scholarly journals Distributive Politics, Nature of Government Spending and Economic Growth in a Low Income Democracy

2011 ◽  
Vol 16 (30) ◽  
pp. 31-49
Author(s):  
Joydeb Sasmal ◽  
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Government Spending ◽  
Public Expenditure ◽  
Low Income Countries ◽  
Short Term ◽  
Tax Rate ◽  
Behavioral Parameters ◽  
The Government

In this paper we analyze how the government in a democratic setup of the developing world manipulates the fiscal instruments to maximize its political gain so that it can retain power. The government and the voters in low income countries are generally selfish and myopic in the sense that the electorates prefer to get direct and immediate benefits from the government while the government, in turn, tries to seek majority support in the election, by adopting short term and distributive policies instead of going for long term growth. Using the theoretical structure of the existing literature, and making modifications therein, this study demonstrates that the optimal tax rate, public expenditure shares and growth rate are determined in terms of technological and behavioral parameters. The simulation results show that if political gain from distributive policies is high, the government will allocate a greater share of the fund for distributive purposes adversely affecting economic growth.

scholarly journals Economic Growth and Income Inequality Relationship: Role of Credit Market Imperfection

2008 ◽  
Vol 47 (4II) ◽  
pp. 727-743 ◽  
Author(s):  
Amina Tabassum ◽  
M. Tariq Majeed
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Income Inequality ◽  
Latin American ◽  
Low Income ◽  
Growth Rates ◽  
Poverty Reduction ◽  
Sub Saharan Africa ◽  
Average Growth ◽  
Income Inequalities

The 20th century has witnessed unequalled success in improving the living standard of people in most part of the world. According to World Bank annual Statistical reports, poverty has declined significantly in developing countries over the past twenty years but the progress has been uneven. The number of people living in poverty fell from 1.5 billion in 1981 to 1.1 billion in 2001. However, many low-income developing countries are still trapped in vicious circle of poverty. In Sub-Saharan Africa, the number of poor rose from 41 percent to 46 percent between 1981 to 2001.While in Eastern Europe and Central Asia, the numbers of poor people have risen to around 20 percent in 2001.1 Therefore; reduction of widely scattered poverty is the most challenging goal for low income developing countries. Economic growth is considered to be a powerful force for reducing poverty. High and sustained economic growth increases the labor demand and wages which in return will reduce poverty. Similarly, better earnings as a result of reduction in poverty lead to increase productivity and growth. But the extent of poverty reduction as a result of economic growth depends on how the distribution of income changes with economic growth and on initial Inequalities in income. If income inequality increases, then economic growth does not lead to a significant poverty reduction. Many developing countries achieved high growth rates in different periods but poverty does not reduce significantly in these periods due to increase in income inequalities. Most South and East Asian economies grew at higher per capita rates since early 1970 along with rise in income inequality over time. In contrast, Latin American countries grew by less than the half of average growth rates in South and East Asia while maintaining high income inequality.2 The differences in income inequality at a given rate of growth require that efforts to reduce poverty by stimulating growth are not sufficient and need to be complemented by efforts to reduce income inequalities.

scholarly journals Foreign Direct Investment: A Journey To Economic Growth In Ghana - Empirical Evidence

2013 ◽  
Vol 12 (5) ◽  
pp. 573
Author(s):  
George Owusu-Antwi ◽  
James Antwi ◽  
Peter K. Poku
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Low Income ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Low Income Countries ◽  
Series Data ◽  
Economic Activities

Foreign Direct Investment (FDI) has been viewed as a major stimulus to economic growth in developing countries. Its ability to deal with two major obstacles; namely, shortages of financial resources and technology and skills, has made it the center of attention for policymakers in low-income countries in particular. In spite of the significance generated by FDI flows, the flow to developing countries and the world, in general, has witnessed persistent decline over the years. The implication for the drop means that competition to attract FDI has increased as developing countries continue to create the enabling environment to attract foreign investors. Ghana, in particular, has, over the last decade, pursued various forms of economic reforms and liberalization of trade regimes in order to become more competitive in the international financial market. A handful of papers has recently dealt with FDI flows in Ghana. However, most of these studies are concerned with strategic FDI policy to attract FDI flows. The purpose of this study is to empirically determine the factors that influence FDI flows in Ghana, using time series data from 1988 to 2011. Regression analysis was carried out using relevant econometric techniques. The results of the study capture trade openness, exchange rate, natural resources, and infrastructure as the drivers of FDI in Ghana. Macroeconomic variables, such as inflation and per capita gross domestic products, were also registered to impact the determinants of FDI flows in Ghana. The contribution of this paper is that economic liberalization was found to be significant, indicating that policymakers' efforts in liberalizing the economic activities may necessarily translate into significant FDI inflows into the country.

CORRELATION BETWEEN TAX POLICY AND CORRUPTION IN THE LEGAL PERSPECTIVE FOR COUNTRY'S ECONOMIC GROWTH

2017 ◽  
Vol 1 (2) ◽  
pp. 205
Author(s):  
Gideon J. ◽  
Edgar H. ◽  
Ivan I. ◽  
Nabil N. ◽  
Aptina A. ◽  
...  
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Tax Evasion ◽  
Tax Policy ◽  
Public Awareness ◽  
Transparency International ◽  
Tax Amnesty ◽  
Legal Perspective ◽  
State Income ◽  
The Government

<p>People Tax is the main source of state income. The better the tax policy of a country, the better the development of a country. One of the factors that influence the level of public awareness in paying taxes is corruption. Study shows that tax collection is one of them influenced by corruption. In the data of Corruption Perceptions Index 2016 reported by Transparency International, Indonesia is ranked 90 out of 176 countries. Tax evasion is a serious problem for many countries. Every year, the government loses revenue potential as many residents evade taxes in various ways. For this reason, the government implements tax amnesty. Tax amnesty is designed to permanently reduce the amount of underground economy activity, thereby increasing tax revenues in the future and developing countries can grow well.</p>

scholarly journals The Rotavirus Vaccine Landscape, an Update

Pathogens ◽  
2021 ◽  
Vol 10 (5) ◽  
pp. 520
Author(s):  
Roberto Cárcamo-Calvo ◽  
Carlos Muñoz ◽  
Javier Buesa ◽  
Jesús Rodríguez-Díaz ◽  
Roberto Gozalbo-Rovira
Keyword(s):  
Developing Countries ◽  
Mortality Rate ◽  
Low Income ◽  
State Of The Art ◽  
The State ◽  
Cold Chain ◽  
Low Income Countries ◽  
Rotavirus Vaccine ◽  
Oral Vaccines

Rotavirus is the leading cause of severe acute childhood gastroenteritis, responsible for more than 128,500 deaths per year, mainly in low-income countries. Although the mortality rate has dropped significantly since the introduction of the first vaccines around 2006, an estimated 83,158 deaths are still preventable. The two main vaccines currently deployed, Rotarix and RotaTeq, both live oral vaccines, have been shown to be less effective in developing countries. In addition, they have been associated with a slight risk of intussusception, and the need for cold chain maintenance limits the accessibility of these vaccines to certain areas, leaving 65% of children worldwide unvaccinated and therefore unprotected. Against this backdrop, here we review the main vaccines under development and the state of the art on potential alternatives.

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