Impact of Trade Liberalization on Income Inequality

2021 ◽  
pp. 412-426
Author(s):  
Dilara Ayla ◽  
Çiğdem Karış
Keyword(s):  
Capita Income ◽  
Trade Openness ◽  
Control Variable ◽  
Per Capita Income ◽  
Long Term Effects ◽  
Long Run ◽  
Test Models ◽  
Short And Long Term ◽  
Per Capita

This study consists of trade openness in Turkey within the scope of the 1985-2018 period and examination of the cointegration and causality relationship between the Gini coefficient and per capita income levels. In this regard, per capita income, which is one of the economic welfare indicators, has been used as the control variable. ARDL boundary test models used in the analysis have been examined by forming two models in which both variables have been evaluated as dependent variables. Therefore, the short- and long-term effects of both variables on each other have been determined. The cointegration relationship tests performed within the scope of the ARDL boundary test in the first stage of the analysis showed that these variables act together in the long run. However, it has been determined that the trade openness ratio negatively affected income justice in the short and long term.

scholarly journals Foreign Direct Investment - Growth Nexus: The Case of Nigeria

2017 ◽  
Vol 13 (1) ◽  
pp. 304 ◽  
Author(s):  
Adamu Jibir ◽  
Musa Abdu
Keyword(s):  
Economic Growth ◽  
Capita Income ◽  
Trade Openness ◽  
Wald Test ◽  
Business Environment ◽  
Economic Benefits ◽  
Per Capita Income ◽  
Long Run ◽  
Short Run ◽  
Per Capita

The quest by developing countries for increased FDI stems from the assumption that FDI leads to economic benefits within the host country. The study examined the paradigm ‘FDI led growth’ using dataset for Nigeria obtained from Central Bank of Nigeria span between 1970 and 2014. Modern econometric tools of Vector error correction model and Granger Wald test were employed. The econometric analysis reveals that there is steady long run relationship between FDI and output in Nigeria. Additionally, the causality result indicates that there is unidirectional causality between trade openness and per capita income, running from trade openness to per capita income proxy for economic growth. On the other hand, there is absence of short-run causality between FDI and economic growth in Nigeria. The policy implication is that FDI can be considered as an engine of growth and development. In the case of Nigeria, FDI can be used as a tool for structuring the economy and achieving inclusive growth. This can be done by attracting more FDI through creating conducive business environment, development of infrastructures and strengthening security especially in north-eastern part of the country.

Film Production And Economic Performance: Should South Africa Invest In Movies?

2021 ◽  
Vol 4 (2) ◽  
pp. 125-144
Author(s):  
Andrew Phiri ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Economic Performance ◽  
Government Spending ◽  
Capita Income ◽  
Direct Investment ◽  
Film Production ◽  
Domestic Investment ◽  
Per Capita Income ◽  
Long Run ◽  
Per Capita

The movie industry is increasingly recognised as a possible avenue for improving economic performance. This study focuses on film production and its influence on South African economic growth (per capita income and employment between 1970 and 2020). Our autoregressive lag distributive (ARDL) estimates on a loglinearised endogenous growth model augmented with creative capital indicate that the production of movies has no significant effects on long-run GDP growth, per capita GDP and employment. The baseline regressions find a short-run positive and significant influence of film production on per capita income and are devoid of long-run effects. However, re-estimating the regressions with interactive terms between movie production and i) government spending ii) foreign direct investment, improve the significance of film regression coefficients which all turn positive and significant, for government spending, and negative for foreign direct investment. Our results indicate that foreign investment crowds out domestic investment whilst government investment in movies is growth-enhancing.

NON-LINEAR EFFECTS OF TERRORISM ON ECONOMIC GROWTH IN PAKISTAN: ACCOUNTING FOR CAPITAL PER WORKER AND STRUCTURAL BREAKS

2019 ◽  
pp. 1950014
Author(s):  
RONALD RAVINESH Kumar ◽  
SYED JAWAD HUSSAIN SHAHZAD ◽  
PETER JOSEF STAUVERMANN ◽  
NIKEEL Kumar
Keyword(s):  
Economic Growth ◽  
Capita Income ◽  
Structural Breaks ◽  
Per Capita Income ◽  
Negative Effects ◽  
Capital Share ◽  
Long Run ◽  
Non Linear ◽  
Short Run ◽  
Per Capita

In this study, we examine the asymmetric effects of terrorism and economic growth in Pakistan over the period 1970–2016, while considering the role of capital per worker and structural breaks. We use the non-linear ARDL approach to establish the long-run association and to estimate the short-run and long-run effects accordingly. The results indicate the presence of asymmetries in both long and short run. Moreover, 1% decrease in terrorism results in an increase of per capita income by 0.02% in the long run and 0.001% in the short run. Assuming symmetry, the long run capital share is 0.47. In asymmetric relation, a 1% increase in capital share increases output by 0.55%, whereas a 1% decrease in capital stock decreases output by 0.26%. The break effects show that the years 1993 and 2004 have negative effects on growth. The vector error correction model-based causality results indicate a unidirectional causality from terrorism to per capita income. Overall, the results highlight that terrorism is growth retarding.

scholarly journals Regional Integration: Do Intra-African Trade and Migration Improve Income in Africa?

2019 ◽  
Vol 43 (6) ◽  
pp. 587-631 ◽  
Author(s):  
Blaise Gnimassoun
Keyword(s):  
Regional Integration ◽  
Capita Income ◽  
Per Capita Income ◽  
Cross Sectional ◽  
Wide Range ◽  
Per Capita ◽  
Migration Flows ◽  
And Migration ◽  
The Impact

Regional integration in Africa is a subject of great interest, but its impact on income has not been studied sufficiently. Using cross-sectional and panel estimations, this article examines the impact of African integration on real per capita income in Africa. Accordingly, we consider intra-African trade and migration flows as quantitative measures reflecting the intensity of regional integration. To address the endogeneity concerns, we use a gravity-based, two-stage least-squares strategy. Our results show that, from a long-term perspective, African integration has not been strong enough to generate a positive, significant, and robust impact on real per capita income in Africa. However, it does appear to be significantly income-enhancing in the short and medium terms but only through intercountry migration. These results are robust to a wide range of specifications.

scholarly journals Econometric Analysis of Sustainable National Economy Development

2020 ◽  
Keyword(s):  
Sustainable Development ◽  
Sulfur Dioxide ◽  
Growth Rates ◽  
Capita Income ◽  
Time Lag ◽  
Hazardous Substances ◽  
Gdp Growth ◽  
Per Capita Income ◽  
Per Capita

Purpose. The study objective was to model conditions, mechanisms and opportunities to achieve sustainable development parameters for the national economy. Меthods. Analysis and synthesis, induction and deduction, analytical grouping and special (abstraction, modelling, etc.) methods of studying economic phenomena and processes have been used. Results. Based on the analysis of the dynamics of GDP growth rates, sulfur dioxide, nitrogen dioxide, oxide and carbon dioxide emissions during 1991-2017, the cycle of their change lasting 3 - 5 years has been proved. It has been found out that the Environmental Kuznets Curve (EKC) in Ukraine is a specific one due to the "turning points". According to the results of comparing the cyclicality of per capita income growth rates, GDP indexes with the dynamics of dependence between the hazardous substances emissions and per capita income and GDP in actual prices, it is found that they do not always coincide. It gives grounds to make a conclusion about the presence of lag between the emissions volumes changes and values of per capita income and GDP in actual prices. The conclusions are grounded on the comparison of the dynamics of GDP growth rates, income per capita, pollutant emissions and the parameters of their mutual correlation. It has been proposed to carry out coordinated policy referring its economic, social and environmental components, taking into account the time lag to create the conditions for the EKC curve parameters in the economy of Ukraine. Conclusions. . Based on the analysis of GDP growth rates dynamics, sulfur dioxide, nitrogen dioxide, carbon oxide and dioxide emissions, the periodicity (cyclicality) of their change has been proved. In Ukraine, EKC has a specific nature in the form of separate «turning points», without achievement of long-term parameters of the relationship between the hazardous substances emissions and GDP and per capita income values. Thus, the feasibility of developing the agreed policy concerning the economic (GDP value), social (population income level) and environmental components (conservation activity financing and decrease of hazardous substances emissions) taking into account the time lag, which will create the conditions for achieving not only temporary values, but also long-term parameters of EKC curve in the Ukrainian economy, was substantiated. The obtained results allow to forecast sustainable development parameters of Ukraine for the future.

DETERMINANTS OF PRIVATE DOMESTIC SAVINGS IN NIGERIA (1981- 2015).

2018 ◽  
Vol 6 (2) ◽  
pp. 21-40 ◽  
Author(s):  
Otiwu K. ◽  
Peter A Okere ◽  
Uzowuru L.N
Keyword(s):  
Capita Income ◽  
Secondary Data ◽  
Financial Inclusion ◽  
Coefficient Of Determination ◽  
Small Scale ◽  
Per Capita Income ◽  
Long Run ◽  
Domestic Savings ◽  
Private Savings ◽  
Per Capita

This study empirically evaluates the determinants of private domestic savings in Nigeria (1981- 2015). Secondary data were sourced from CBN statistical bulletin and bureau of statistics. Hypotheses were formulated and tested using vector error correction model (VECM) and the test for stationarity proves that the variables are integrated in 1(1) order which implies that unit roots do not exist among the variables. There is also long-run equilibrium relationship between the variables and the result also confirms about 29 percent short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicates that about 78 percent of the variations in private domestic savings are explained by changes in its determinants in Nigeria. The results show that per capita income and financial inclusion are major determinants of private domestic savings in Nigeria. The study therefore recommends that concerted and well articulated efforts should be made to make available and affordable credits to productive investments like small scale industries/businesses as they constitute an integral part of the growth and transformation process of an agro based economy like that of Nigeria this will induce employment, increase financial access and income of the various economic agents which will have a spillover effect on private savings. Secondly, since Per capita income and financial inclusion are the important factors that influence private savings in Nigeria, policy makers can promote growth of per capita income by improving productivity of workers and greater effort should be geared towards sustaining or improving on the financial inclusion strategies.

Analysis on Enhancing Private Sector Contribution in GDP through E-Government and Research in ASEAN Region

2020 ◽  
pp. 31-38
Author(s):  
Kevin Hart ◽  
Samhitha Kalman
Keyword(s):  
Private Sector ◽  
Capita Income ◽  
Control Variable ◽  
Per Capita Income ◽  
Literacy Rate ◽  
Review Section ◽  
Systems Research ◽  
Per Capita ◽  
Asean Countries ◽  
The Impact

Private sector is important for a country as it contributes to the economy and GDP of a country to a greater extent. E-government is the use of latest technologies in the services provided by the government and other information management systems. Research and development is the process applied before introducing a new product or starting a new business. This study analyzes the influence of e-government adoption and R&D process on private sector contribution of GDP in ASEAN countries. Two control variables i.e. literacy rate and per capita income have also been used. The past studies have been discussed in literature review section. For analysis purpose, data about the concerned variables has been collected from ASEAN countries for 27 years. After application of several tests and methods i.e. IPS unit root test, Pedroni cointegration test and FMOLS coefficient estimation test, the two major hypotheses of this study are accepted along with the impact of a control variable, literacy rate. However, the impact of other control variable i.e. per capita income is rejected. This study has various implications in theoretical, practical and policy making context in order to increase the performance and GDP contribution by private sector.

scholarly journals Vocational Education, Per Capita Income, and Employment in the US

2017 ◽  
Vol 7 (2) ◽  
pp. 392
Author(s):  
Eric Im Posthumous ◽  
Tam Vu
Keyword(s):  
Vocational Education ◽  
Capita Income ◽  
College Graduates ◽  
University Education ◽  
Per Capita Income ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
Per Capita ◽  
Using Data

This paper examines the effects of vocational education on per capita income and employment in the U.S. A panel dataset on the number of graduates from community colleges as a proxy for vocational education for fifty states and Washington D.C. during 2002-2010 is used. The method of three stage least squares was employed. The results show that vocational education appears to affect changes in per capita income and employment positively. Nest, we compare and contrast vocational education with university education by using data on the number of four-year college graduates. The results show that the vocational education increases per capita income and employment more than university education in the short run but less than the latter in the long run.

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