Does financial development help bridge the gap in income inequality? Evidence from selected Asian countries

2021 ◽  
Vol 12 (1) ◽  
pp. 136-136
Author(s):  
Nur Syazwani Mazlan
Keyword(s):  
Economic Development ◽  
Regression Analysis ◽  
Income Inequality ◽  
Financial Development ◽  
Positive Relationship ◽  
Panel Regression ◽  
Asian Countries ◽  
Level Of Economic Development ◽  
High Level ◽  
The Impact

This study delves into the effects of financial development (FD) on income inequality (IE), involving 12 Asian countries, with three different income level groups, over a period of 14 years (between 1993 and 2017). The three groups concerned comprise countries with a low, middle and high level of economic development. The findings derived through panel regression analysis, suggest that the impact of financial development on income inequality, with regards to the Asian countries selected for this investigation, is dependent on their level of economic development. It was also established, that for countries with a low economic standing, financial development has a positive relationship with income inequality.

scholarly journals Exploring the Impact of Financial Development on Inequality: Evidence from Three Asian Countries

2018 ◽  
Vol 4 (2) ◽  
pp. 341-355 ◽  
Author(s):  
Abdul Qayyum Khan ◽  
Muhammad Haroon Hafeez ◽  
Naima Saleem ◽  
Muhammad Azam
Keyword(s):  
Growth Rate ◽  
Human Capital ◽  
Income Inequality ◽  
Financial Development ◽  
Positive Relationship ◽  
Trade Openness ◽  
Gdp Growth ◽  
Asian Countries ◽  
Gdp Growth Rate ◽  
The Impact

The broad objective of the present study is to investigate the impact of financial development along with some other variables namely GDP per capita, inflation rate, human capital, and trade openness for three developing Asian countries- Bangladesh, India and Pakistan. Annual time series data during the period 1980-2014 have been used for empirical investigation. After employing appropriate tests and estimation techniques, it is found that the financial development is statistically insignificant for all three countries, it implies that yet these developing countries are not efficiently allocating domestic private credit to poor segments of population. The results also reveal that inflation impedes income inequality for Bangladesh and India.  GDP growth rate is insignificant for India and Pakistan however it is significant for Bangladesh having statistically positive relationship with income inequality. It means that GDP growth rate is linked with growth of income of elite class rather than bottom segments of population. National income improves inequality for Bangladesh but have insignificant affect on income inequality for India and Pakistan. Similarly, trade openness is insignificant for India and Pakistan, however it is significant for Bangladesh having statistically positive relationship with income inequality, which indicates that there is increasing unemployment in these countries due to lesser employment opportunities for skilled and unskilled labour. Empirical results of human capital shows insignificancy for India and Pakistan where as it is significant for Bangladesh; hence revealing that these countries failed to optimally utilize their resources in educational sector.

INEQUALITY, FDI AND ECONOMIC DEVELOPMENT: EVIDENCE FROM DEVELOPING COUNTRIES

2017 ◽  
Vol 62 (05) ◽  
pp. 1039-1057 ◽  
Author(s):  
MUHAMMAD TARIQ MAJEED
Keyword(s):  
Economic Development ◽  
Estimation Methods ◽  
Host Countries ◽  
Data Set ◽  
Regional Effects ◽  
Specific Effects ◽  
Level Of Economic Development ◽  
Time Specific ◽  
High Level ◽  
The Impact

This paper empirically investigates the impact of Foreign Direct Investment (FDI) on inequality using a panel data set of 65 developing counties. While the existing literature mainly examines the impact of FDI on growth, this study explores the importance of domestic conditions of the host countries in determining the distributional effects of FDI. The results show that the impact of FDI is not homogenous on host countries as FDI inflows exert inequality-narrowing effect only in countries that have stronger investment in human capital, better financial sector and a high level of economic development. While FDI accentuates not ameliorates inequality in countries with low level of economic development, findings of the study are robust to the use of different specifications, different estimation methods, inclusion of regional effects and time specific effects.

scholarly journals The Impact of ICT and FDI as Drivers to Economic Growth In ASEAN-8 Countries: A Panel Regression Analysis

2021 ◽  
Vol 9 ◽  
pp. 91-98
Author(s):  
Noraina Mazuin Sapuan ◽  
Mohammad Rahmdzey Roly
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Regression Analysis ◽  
Panel Regression ◽  
Information And Communication ◽  
Asean Countries ◽  
Using Data ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Over the last few years, information and communication technology (ICT) has become a key catalyst for economic growth. The durability of this technology is demonstrated by the rapid proliferation of the Internet, mobile phones and cellular networks across the globe. However, among economic scholars, the question of exactly how the spread of ICT affects economic development and FDI, especially in ASEAN countries with differences in levels of income, remains unanswered. The aim of this study was essentially to explore the relationship between ICT dissemination, FDI and economic growth in ASEAN-8 countries. By using data from 2003 to 2017, the panel regression analysis was used to evaluate these relationships. The results showed that the dissemination of ICT and FDI are important and they have a positive effect on the ASEAN-8 countries’ economic development.

Infrastructure, Education, and Economic Development in India

2017 ◽  
pp. 1-13
Author(s):  
Sebak K. Jana ◽  
Asim K. Karmakar
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Factor Analysis ◽  
Regression Analysis ◽  
Infrastructure Development ◽  
Physical Infrastructure ◽  
Level Of Economic Development ◽  
Per Capita ◽  
The Impact ◽  
Huge Variation

A large number of studies reveal that regions with larger stocks of physical infrastructure and human capital often are associated higher level of economic development. The present chapter attempts to find whether this is valid for India. Factor Analysis has been used to find the index of scores of infrastructure of the selected 20 major states of India. We have then used regression analysis to find the impact of infrastructure and education on economic development of the states. The results indicate that there is huge variation of infrastructure development across the states in India. The findings also indicate the significant impact of infrastructure development and education on economic development of the state, measured in terms of Per Capita Net State Domestic Product (PCNSDP).

scholarly journals ANALISIS PENGARUH FAKTOR PERTUMBUHAN EKONOMI, PENDIDIKAN, DAN PENGANGGURAN TERHADAP KETIMPANGAN DISTRIBUSI PENDAPATAN DI INDONESIA

Media Ekonomi ◽  
2019 ◽  
Vol 27 (1) ◽  
pp. 37
Author(s):  
Aufa Nadya ◽  
Syafri Syafri
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Regression Analysis ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Analysis Tool ◽  
Panel Regression ◽  
School Duration ◽  
The Impact

<em>This study is analyze the impact of economic growth, education and unemployment on the inequality of income distribution and see which provinces contribute the most to income inequality in Indonesia</em>. <em>This study used Panel regression analysis with the Eviews 8 analysis tool. The data used in this research are Gini ratio, GDRP growth rate, mean of school duration, and open unemployment rate from 33 Provinces within 2007 to 2016 (330 observations).</em> <em>The results show that economic growth has no impact on income inequality, at the same time education has a positive impact and unemployment has a negative impact on income inequality in Indonesia. The results show that Banten is a province with the highest level of income inequality.</em>

scholarly journals Investigating the Link Between Macroeconomic Factors and Income Inequality of Asian Countries

2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Ameenullah Aman ◽  
Usman Ahmad ◽  
Sumera Muhammad Saleem
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Income Inequality ◽  
Positive Relationship ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Asian Countries ◽  
Macroeconomic Factors ◽  
Sample Data ◽  
The Impact

The main purpose of the study was to analyze the impact of macroeconomic factors on income inequality. The panel data analysis is conducted on the sample data of 36 Asian countries. The data of 19 years from the period 2001 to 2019 is collected to analyze the impact of interest rate, economic growth, FDI and exports. The findings revealed the positive relationship between income inequality and economic growth whereas FDI and exports have negative relationship with income inequality. Result of the study implies that authorities should pay special attention to design policies that encourage inward FDI and increase exports.

Economic development: How does it influence the survival of different types of autocracy?

2020 ◽  
Vol 41 (5) ◽  
pp. 711-727
Author(s):  
Daniel Stockemer ◽  
Steffen Kailitz
Keyword(s):  
Economic Development ◽  
Regression Analysis ◽  
Research Question ◽  
Regime Type ◽  
Modernization Theory ◽  
Different Types ◽  
Level Of Economic Development ◽  
Using Data ◽  
The Impact ◽  
Economic Modernization

Modernization theory is one of the most influential theories in political science. However, to date, studies testing the impact of modernization on political regimes have almost completely focused on democracies. We aim at broadening the discussion to autocracies and ask the following research question: What impact has economic development on the survival of different types of autocracy? Using data covering 1946 to 2016, we ascertain – mainly through logistic regression analysis – that the level of economic development affects not only the endurance of democracies but also that of various types of autocracy. In more detail, we find that economic development prolongs the survival of ideocracies and personalist autocracies. The effect of economic modernization on military dictatorships, monarchies and electoral autocracies is very limited. In contrast, one party autocracies are the only regime type whose survival chances (moderately) decrease with modernization.

scholarly journals Linkage between Financial Development and Income Inequality in India

2020 ◽  
Author(s):  
Rajesh Sharma ◽  
Suman Dahiya
Keyword(s):  
Economic Development ◽  
Income Inequality ◽  
Financial Development ◽  
Government Expenditure ◽  
Testing Procedure ◽  
Economic Policies ◽  
Monetary And Fiscal Policy ◽  
The Impact ◽  
The Relationship ◽  
Financial Development Index

Abstract A sound financial system is a prerequisite for the inclusive and stable development of an economy, especially it plays a key role in dealing with the menace of inequality in income distribution. Economic policies including monetary and fiscal policy framed by the policymakers influence the accessibility to the financial resources by the poor. This study intends to examine the relationship between financial development and income inequality in India over the period 1973 to 2015. To analyze this relationship, the financial development index was constructed using the PCA approach. The study also checks the presence of the Greenwood–Jovanovich (GJ) hypothesis in the Indian economy. In this study, the ARDL Bound testing procedure is followed to assess the impact of financial development on income inequality. Besides financial development, the impact of economic development and government expenditure is also observed. Results confirm the existence of an inverted U-shaped linkage between financial development and income inequality in India, whereas economic development deteriorates the gap between the income of poor and rich. Furthermore, a U-shaped relationship between government expenditure and income inequality is revealed in this study. The findings of this study may provide new insight to the policymakers for framing suitable economic policies to encourage sustainable development in India.

scholarly journals The Impact of B Corp Certification on Growth

2021 ◽  
Vol 13 (13) ◽  
pp. 7191
Author(s):  
Valerie Paelman ◽  
Philippe Van Cauwenberge ◽  
Heidi Vander Bauwhede
Keyword(s):  
Regression Analysis ◽  
Propensity Score ◽  
Panel Regression ◽  
Medium Term ◽  
Difference In Differences ◽  
Dual Purpose ◽  
Full Effect ◽  
The Impact ◽  
Positive Effect ◽  
Over Time

We empirically test whether B Corp certification affects the short- and medium-term growth rates of sustainable enterprises. These businesses are growing in popularity and prevalence but, due to their hybrid nature, often suffer from external credibility issues and competing internal logics. Because of the rigorous and time-involving audit procedure, B Corp certification potentially sends a credible signal about the sustainable nature of the enterprise to its stakeholders. In addition, the B Corp label could help to straighten out internal tensions and align the company towards its dual purpose. Hence, B Corp certification could contribute to company success. We observe 129 firms that were certified between 2013 and 2018 over a period between six years prior and five years post-certification. Using propensity score matching, we identify 129 non-certified matching companies. On this sample, we conduct a difference-in-differences panel regression analysis to investigate the effect of certification. Our dataset allows us to study how the effects of B Corp certification evolve over time, which was previously untested. Our study documents a positive effect of B Corp certification on turnover growth and also that this effect increases with the time since certification, implying that certification requires some time for its full effect to become apparent.

scholarly journals Rural Financial Development Impacts on Agricultural Technology Innovation: Evidence from China

2021 ◽  
Vol 18 (3) ◽  
pp. 1110
Author(s):  
Yuyu Liu ◽  
Duan Ji ◽  
Lin Zhang ◽  
Jingjing An ◽  
Wenyan Sun
Keyword(s):  
Economic Development ◽  
Financial Development ◽  
Agricultural Development ◽  
Technology Innovation ◽  
Agricultural Technology ◽  
Rural Finance ◽  
Rural Economic Development ◽  
High Degree ◽  
The Impact ◽  
Positive Effect

Agricultural technology innovation is key for improving productivity, sustainability, and resilience in food production and agriculture to contribute to public health. Using panel data of 31 provinces in China from 2003 to 2015, this study examines the impact of rural financial development on agricultural technology innovation from the perspective of rural financial scale and rural finance efficiency. Furthermore, it examines how the effects of rural financial development vary in regions with different levels of marketization and economic development. The empirical results show that the development of rural finance has a significant and positive effect on the level of agricultural technology innovation. Rural finance efficiency has a significantly positive effect on innovation in regions with a low degree of marketization, while the rural financial scale has a significantly positive effect on technological innovation in regions with a high degree of marketization. Further analysis showed that improving the level of agricultural technology innovation is conducive to rural economic development. This study provides new insights into the effects of rural financial development on sustainable agricultural development from the perspective of agricultural technology innovation.

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