scholarly journals Infrastructure and Income Inequality in Indonesia: 2009-2017

2021 ◽  
Vol 2 (2) ◽  
pp. 129-144
Author(s):  
Wiastuti Nurdina
Keyword(s):  
Income Inequality ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Social Infrastructure ◽  
Education And Health ◽  
Health Infrastructure ◽  
One Step ◽  
The Government ◽  
The Impact ◽  
Unbalanced Panel Data

In the economic development field, physical and social infrastructure have been argued to affect income inequality despite the mixed results. This study examines the impact of physical and social infrastructure (education and health) on income inequality in Indonesia using 34 provincial unbalanced panel data during 2009-2017. Infrastructure summary indices are constructed, and the impacts of infrastructure on income inequality are estimated by the Generalized Method of Moments (GMM). The findings conclude that physical and social (education) infrastructure contributes to income inequality increases in Indonesia though not robustly significant. Regarding health infrastructure, this study cannot definitely infer its nexus with income inequality since only the model of one-step different-GMM is significant. The result implies that the government needs to consider providing better distribution of infrastructure among income groups to improve income distribution.

scholarly journals Inequality and Economic Growth in Indonesia in The 2000’s

2018 ◽  
Vol 7 (2) ◽  
pp. 201-212
Author(s):  
Damayanti Simangunsong ◽  
Chen Kuang-Hui
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Method Of Moments ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Dynamic Panel ◽  
Gmm Estimator ◽  
One Step ◽  
The Government ◽  
The Right

The income inequality in Indonesia reached the highest level during the decentralization era and suspected to be the cause of the slowdown of the economic growth in the last five years to 2015. This paper investigates whether increasing inequality had a positive or negative impact on economic growth in Indonesia. Using dynamic panel and applying Generalized Method of Moments (GMM) estimator, the result concluded that there is a significant positive relationship between income inequality and economic growth. However, this study cannot draw a definite conclusion about the association for the different classes (bottom, middle, and top level) since only one-step system GMM is significant. Based on the result, it implies that the government should be more careful in regulating the inequality policy and understand more about the right mechanism of inequality and economy growth.DOI: 10.15408/sjie.v7i2.6177

scholarly journals Does Fiscal Decentralization Increases Regional Income Inequality in Indonesia?

2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Afief El Ashfahany ◽  
Rifi Fazrina Djuuna ◽  
Nur Fahmi Rofiq
Keyword(s):  
Income Inequality ◽  
Method Of Moments ◽  
Fiscal Decentralization ◽  
Panel Data Analysis ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Regional Income ◽  
High Dependency ◽  
Regional Income Inequality ◽  
The Impact

This paper examines the impact of fiscal decentralization on regional income inequality in Indonesia. This study employs dynamic panel data analysis–the two-step system generalized method of moments (GMM) on 2008-2017 regional level datasets. This study found that regional income inequality indeed increases during the implementation of fiscal decentralization and appears to be exceptionally high for rich provinces. Essentially, this study suggest that fiscal decentralization appears to increase regional income inequality in Indonesia. The results might be due to low regional fiscal capacity in Indonesia, which induces high dependency of local government that further restraints local competition in public goods provision. Keywords: fiscal decentralization, regional income inequality, generalized method of moments (GMM).

Trade, FDI and income inequality: empirical evidence from CIS

2019 ◽  
Vol 18 (1) ◽  
pp. 88-108
Author(s):  
Imran Khan ◽  
Zuhaba Nawaz
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Generalized Method Of Moments ◽  
School Enrollment ◽  
Annual Data ◽  
Social Infrastructure ◽  
Trade Theory ◽  
Critical Question ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to examine the relationship between trade, foreign direct investment (FDI) and income inequality for Commonwealth of Independent States (CIS), using annual data from 1990 to 2016. The study attempts to answer a critical question: does openness affect income distribution? Design/methodology/approach The analysis of the model involves the examination of likely non-linear effects of both trade and FDI on income distribution. Therefore, system-generalized method of moments (SYS-GMM) estimator was applied to mitigate the problem of non-linearity and possible endogeneity. In the second stage, the model was extended to test the impact of education on income inequality. The hypothesis is that secondary school enrollment speeds up the process of adoption of contemporary technology and decreases inequality. Findings Trade and FDI have significant effects on income inequality when interacted with Gini-index; in case of trade, an inverted U-shaped curve holds as purposed by the trade theory. The components-wise effect of trade was held, except imports from advanced countries was found insignificant. Moreover, results were not found significant in case of human development index. Different results were found when trade and FDI interacted with education, which represents an important channel through which inequality is affected. Research limitations/implications The study implies that CIS needs to re-design trade and FDI policies by encouraging trade and FDI inflows into industries and sectors aligned with structural adjustments, domestic industries uplift and investment in social infrastructure. Originality/value This is the first study that has examined the impact of openness of income distribution in case of CIS.

Does Bank Profitability Stimulate Economic Growth in the Arab Region?

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Omar Ghazy Aziz
Keyword(s):  
Financial Development ◽  
Method Of Moments ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Arab Countries ◽  
Return On Assets ◽  
Bank Profitability ◽  
Arab Region ◽  
Return On Equity ◽  
The Impact

AbstractThis study empirically investigates the impact of bank profitability, as a complementary measure of financial development, on growth in the Arab countries between 1985 and 2016. Using a generalized method of moments (GMM) estimation to test the impact of the bank profitability on growth, this study utilises two variables in the econometric model which are return on assets and return on equity. This study reveals that both variables of bank profitability are positive and significant. This confirms that the bank profitability, beside other financial development variables, has positive impact on the growth. This study points out some important implications based on this result.

The impact of urbanization on energy consumption and efficiency

2017 ◽  
Vol 28 (7) ◽  
pp. 673-686 ◽  
Author(s):  
Pengfei Sheng ◽  
Yaping He ◽  
Xiaohui Guo
Keyword(s):  
Energy Consumption ◽  
Method Of Moments ◽  
Energy Use ◽  
Generalized Method Of Moments ◽  
Method Of Moments Estimation ◽  
Process Of Urbanization ◽  
Per Capita ◽  
Using Data ◽  
Impact Of Urbanization ◽  
The Impact

There is no consensus about the impact of urbanization on energy efficiency. We seek to fill this gap in literature using data from 78 countries for the period of 1995 through 2012. Extending the Stochastic Impacts by Regression on Population, Affluence, and Technology model, we identify the impact of urbanization on energy consumption and efficiency. Results of generalized method of moments estimation indicate that the process of urbanization leads to substantial increases in both the actual and the optimal energy consumption, but a decrease in efficiency of energy use. In addition, we find that the extent to which energy inefficiency correlates with urbanization is greater in countries with higher gross domestic product per capita.

Changes in Income Distribution in Brazil

2018 ◽  
Author(s):  
Rodolfo Hoffmann
Keyword(s):  
Income Inequality ◽  
Household Income ◽  
Gini Index ◽  
Military Coup ◽  
Transfer Programs ◽  
Per Capita ◽  
The Government ◽  
The Military ◽  
The Impact ◽  
Very High

Income inequality in Brazil, already high, increased after the military coup of 1964 and remained very high even after democratization in the 1980s. It decreased substantially in the period 2001–2014, after inflation was controlled. The Gini index of the per capita household income dropped from 0.594 in 2001 to 0.513 in 2014. The determinants of this decline in inequality are analyzed considering the components of that income and how each one affected changes in inequality, showing the impact of changes in the remuneration of private sector employees and in pensions paid by the government, as well as federal transfer programs. Changes in education lie behind the first of these effects, and the increase of the minimum wage reinforced all three. The economic crises after 2014 interrupted the process of decline, and among economically active persons, inequality even increased from 2014 to 2015. Measures to further reduce inequality are suggested.

scholarly journals A Crook is a Crook . . . But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption

2015 ◽  
Vol 16 (4) ◽  
pp. 464-489 ◽  
Author(s):  
Eugen Dimant ◽  
Margarete Redlin ◽  
Tim Krieger
Keyword(s):  
Method Of Moments ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Destination Country ◽  
Estimation Methods ◽  
Econometric Methodology ◽  
Migration Flows ◽  
The Difference ◽  
Method Of Moments Estimator ◽  
The Impact

AbstractThis paper analyzes the impact of migration on destination-country corruption levels. Capitalizing on a comprehensive dataset consisting of annual immigration stocks of OECD countries from 207 countries of origin for the period 1984-2008, we explore different channels through which corruption might migrate. We employ different estimation methods using fixed effects and Tobit regressions in order to validate our findings. Moreover, we also address the issue of endogeneity by using the Difference- Generalized Method of Moments estimator. Independent of the econometric methodology, we consistently find that while general migration has an insignificant effect on the destination country’s corruption level, immigration from corruption-ridden origin countries boosts corruption in the destination country. Our findings provide a more profound understanding of the socioeconomic implications associated with migration flows.

scholarly journals Credit composition and income inequality in Vietnam: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Quoc Hoi ◽  
Hương Lan Trần
Keyword(s):  
Income Inequality ◽  
Educational Level ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Primary Data ◽  
Data Set ◽  
Content Type ◽  
Private Credit ◽  
The Impact

PurposeThis paper aims to examine the credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit had adverse effects on income inequality. The authors also examine whether the impact of policy credit on income inequality is conditioned by the educational level and institutional quality.Design/methodology/approachThe authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem.FindingsThe authors show that while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality, due to the asymmetric effects of different types of credit.Originality/valueThis is the first study that examines the links between the two components of credit and income inequality as well as constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.

scholarly journals Assessment of the Effect of Technological Innovations on Unemployment in the European Union Countries

2021 ◽  
Vol 32 (2) ◽  
pp. 130-139
Author(s):  
Zigmas Lydeka ◽  
Akvile Karaliute
Keyword(s):  
European Union ◽  
Method Of Moments ◽  
Scientific Literature ◽  
Generalized Method Of Moments ◽  
Technological Innovations ◽  
Labour Demand ◽  
The European Union ◽  
Independent Variables ◽  
European Union Countries ◽  
The Impact

Innovation and unemployment are two economic elements related to each other that have been constantly analyzed in the economic debates from the beginning of the 21st century. A classical question is whether innovation creates or destroys jobs. The conventional approach contemplates innovation as a transformation instrument of an economy, resulting in economic growth and jobs creation. Another approach points out to various mechanisms which can compensate the primary effect of innovations and cause an ultimate effect of innovations on labour demand to be unclear. In view of the fact that there are many different explanations about the impact of innovations on labour demand, this paper, after the analysis of theoretical and empirical scientific literature in this field, provides an empirical analysis with unemployment as the dependent variable. The authors use data from 28 European Union countries for the period of 1992–2016 and pursue to research how technological innovations affect unemployment rate. There are two core independent variables – expenditure on R&D (research and development) and number of patent applications – as the main proxies for technological innovations. Control variables that affect unemployment are included to the model as well. The model was estimated using a dynamic two-step System Generalized Method of Moments (GMM-SYS) of a panel data system. After the composition of 12 different estimations of the model, the results suggest that, in some cases, technological innovations affect unemployment.

scholarly journals IMPACT OF FINANCIAL INCLUSION, GOVERNMENT EXPENDITURES IN EDUCATION AND HEALTH SECTORS ON HUMAN DEVELOPMENT IN INDONESIA

2020 ◽  
Vol 9 (2) ◽  
pp. 5
Author(s):  
Mulia Simatupang
Keyword(s):  
Human Development ◽  
Government Policy ◽  
Human Development Index ◽  
Health Sector ◽  
Financial Inclusion ◽  
Government Expenditures ◽  
Development Index ◽  
Education And Health ◽  
The Government ◽  
The Impact

ABSTRACT The purpose of this paper in to assess the impact of financial inclusion and  government expenditures in education and health sectors in order to increase human development index. Government expenditures has important role to support economic growth and welfare for its people. Fiscal policy expenditures in education and health sectors are kind of significant government policy to increase human development. It is believed that financial inclusion has also important role  to reduce poverty and indirectly increase human development index. Financial inclusion  has positive impacts to human development index component along with government  expenditures in education and health sector. In the years ahead, The Government should prioritize and increase budget in order to increase human  resources quality in Indonesia.

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