scholarly journals Income Inequality and Public Debt: What Can Be Learned from the Lebanese Indebtedness?

2020 ◽  
Vol 10 (4) ◽  
pp. 83
Author(s):  
Adham Sayed
Keyword(s):  
Income Inequality ◽  
Public Debt ◽  
Negative Impact ◽  
Correction Model ◽  
The Public ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
The Impact

This paper examines the impact of domestic public debt on income inequality in Lebanon. The analysis is carried out using the Autoregressive Distributed Lag (ARDL) approach and Error Correction Model (ECM). The data used covers the period between 1990 and 2015. By applying the bounds test, we indicate that there is the existence of a long-run relationship between our variables. Therefore, in both the short and long run, our results show that the domestic share of public debt has a positive and significant effect on income inequality. Hence, a bigger share of domestic public debt leads to wider income inequality. We also suggest steps that may halt the negative impact of public debt on equality in Lebanon, such as reforming the tax system, restructuring the public debt, and searching for sources other than borrowing to cover the budget deficit.

SHORT-RUN AND LONG-RUN IMPACT OF INFLATION, UNEMPLOYMENT, AND ECONOMIC GROWTH TOWARDS POVERTY IN INDONESIA: ARDL APPROACH

2019 ◽  
Vol 2 (1) ◽  
pp. 15
Author(s):  
Ahmadi Murjani
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
The Government ◽  
The Impact

 Poverty alleviation has become a vigorous program in the world in recent decades. In line with the efforts applied by the government in various countries to reduce poverty, some evaluations have been practised. The impacts of macroeconomic variables such as inflation, unemployment, and economic growth have been commonly employed to be assessed for their impact on the poverty. Previous studies in Indonesia yielded mix results regarding the impact of such macroeconomic variables on the poverty. Different methods and time reference issue were the suspected causes. This paper aims to overcome such problem by utilising the Autoregressive Distributed Lag (ARDL) equipped with the latest time of observations. This paper finds in the long-run, inflation, unemployment, and economic growth significantly influence the poverty. In the short-run, only inflation and economic growth are noted affecting poverty significantly. 

On the Evolutionary Interplay Between Remittances, Financial Development, and Economic Growth

2019 ◽  
pp. 78-96
Author(s):  
Ramzi Fahrani ◽  
Azza Béjaoui
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Data Series ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Stable Economy ◽  
Relationship Of ◽  
The Impact

In this chapter, the authors attempt to investigate the interaction between remittances and financial development and its impact on the economic growth over the period 1980-2016. In this respect, they apply the autoregressive distributed lag bound test (ARDL) approach on cross-country of data series from 1980 to 2016 to study the short- and long-run relationship of remittances and financial development with economic growth. The empirical results show that the direct effects of shipments on growth are significant. On the other hand, the impact of remittances on economic seems to be more significant by means of the financial development. It also shows that these shipments are more efficient in the case of a less developed informal sector, a politically stable economy, and a developed financial structure.

Does Nominal Devaluation Improve Income Distribution? Evidence from Bangladesh

2012 ◽  
Vol 19 (1) ◽  
pp. 61-77
Author(s):  
Muhammad Shahbaz ◽  
Mohammad Mafizur Rahman
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Trade Openness ◽  
Bounds Testing ◽  
Correction Model ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

The article aims to investigate the impact of nominal devaluation on income distribution in Bangladesh both in short and long runs. In doing so, Auto Regressive Distributed Lag (ARDL) bounds testing has been employed for cointegration, and Error Correction Model (ECM) has been used for short-run dynamics. The empirical psychology has confirmed the existence of long-run relationship between the variables. Furthermore our estimated results reveal that nominal devaluation tends to decrease income inequality. Though economic growth appears to improve income distribution, non-linear link between both the variables, however, depicts Kuznets’ inverted-U curve (1955). Financial development causes further deterioration in income distribution. Trade openness contributes to income inequality as discussed in Leontief Paradox.

scholarly journals The Impact of Remittances on Economic Growth of Kyrgyzstan

2017 ◽  
Author(s):  
Burulcha Sulaimanova ◽  
Daniyar Jasoolov
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Estimation Methods ◽  
Kyrgyz Republic ◽  
Empirical Estimation ◽  
Vector Autoregressive ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
The Impact

The aim of this paper is to study the impact of remittances on the gross domestic product of Kyrgyz Republic, by using several empirical estimation methods, these are: the method of simultaneous equations, the Autoregressive Distributed Lag and Vector Autoregressive models. While there is a long run relationship between remittances and economic growth of Kyrgyzstan, according to the estimation results of the simultaneous models, there is statistically significant positive correlation of households’ final consumption and imports with remittances, and simultaneously significant positive effect of consumption on GDP, and significant, but negative impact of imports to GDP. Moreover, the small but significant impact of remittances on demand for domestic products were found.

scholarly journals Dilemma Between Deposit And Lending Rate: Savings-Investment Perspective

2021 ◽  
Vol 65 (1) ◽  
pp. 65-85
Author(s):  
Lateef Yunusa ◽  
◽  
Ibrahim Adekunle ◽  
Tolulope Williams ◽  
Jamiu Akindele ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Negative Impact ◽  
Positive Impact ◽  
Deposit Rate ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach ◽  
Lending Rate ◽  
The Interest Rate ◽  
The Impact

The dilemma between deposit and lending rate has created challenges for financial institutions in the course of intermediation. This dilemma also made it difficult for investors to make accurate decisions which has created a lacuna in the financial system. The objective of this study is to investigate the source of the dilemma between deposit and lending rate. The study also examined the impact of deposit and lending rate on saving and investment respectively in Nigeria using the AutoRegressive Distributed Lag (ARDL) approach. The empirical result revealed the main cause of the dilemma to be the fluctuation in the deposit and lending rate. The ARDL result shows that the deposit rate has a positive impact on savings while the lending rate has a negative impact on investment in Nigeria. The monetary authority should endeavor to maintain stability of the interest rate due to the significant impact of these rates on saving, investment and economic growth at large.

scholarly journals Public debt and economic growth: Further evidence for the euro area

2018 ◽  
Vol 68 (2) ◽  
pp. 209-229 ◽  
Author(s):  
Marta Gómez-Puig ◽  
Simón Sosvilla-Rivero
Keyword(s):  
Economic Growth ◽  
Euro Area ◽  
Public Debt ◽  
Negative Impact ◽  
Annual Data ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run

This paper empirically investigates the short and the long run impact of public debt on economic growth. We use annual data from both the central and the peripheral countries of the euro area (EA) for the 1961–2013 period and estimate a production function augmented with a debt stock term by applying the Autoregressive Distributed Lag (ARDL) bounds testing approach. Our results suggest different patterns across the EA countries and tend to support the view that public debt always has a negative impact on the long-run performance of EA member states, whilst its short-run effect may be positive depending on the country.

ON AUTOREGRESSIVE DISTRIBUTED LAG, COINTEGRATION AND ERROR CORRECTION MODEL: An Application to Some Nigeria Macroeconomic Variables

2012 ◽  
Vol 02 (08) ◽  
pp. 56-62
Author(s):  
Olanrewaju I. Shittu ◽  
Raphael A. Yemitan ◽  
OlaOluwa S. Yaya
Keyword(s):  
Error Correction ◽  
Error Correction Model ◽  
Correction Model ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run

This paper reviews the use of the traditional ARDL and the ARDL approach to cointegration for the analysis of short-run dynamic and long run relationship when series are difference stationary (series can be integrated of different orders). The two models were used to estimate the short-run dynamics and the long run relationships between selected Nigeria’s macroeconomic series. The results compares favorably with the theory that the ARDL is equivalent to the short-run dynamics of the error correction model (the resultant model from the ARDL approach to cointegration).

scholarly journals Determinants of Inflation Sources in Iraq: An Application of Autoregressive Distributed Lag (ARDL) Model

2019 ◽  
pp. 381-388
Author(s):  
Mohamed Khaled Al-Jafari ◽  
Hatem Hatef Abdulkadhim Altaee
Keyword(s):  
Exchange Rate ◽  
Money Supply ◽  
Budget Deficit ◽  
Bounds Testing ◽  
Correction Model ◽  
Speed Of Adjustment ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
The Impact

Most economists agree that the emergence of substantial inflationary pressure in Iraq was due to the monetary growth arising from large increase in the money supply by government to finance enormous budget deficit. This was true especially during the comprehensive sanction imposed on the country between 1990 till 2003. Others point out to exchange rate depreciations as another cause to inflation. Such controversy about the causes of inflation in Iraq has necessitated studying this phenomenon quantitatively. Our main contribution is to assess empirically the effects of money supply, exchange rate, and import on inflation in Iraq over the period 1995–2015. Using the ARDL bounds testing approach, we estimated the long-run effects of those variables on real inflation. In addition, we attempt to draw attention to the impact of changes in global prices on the phenomenon of inflation in Iraq. It is analyzed that money supply, exchange rate and import, changes inflation to 0.59, -0.85, and 0.11 percent points respectively by one percent rise in long-run. The Error Correction model with a negative sign remained statistically significant with the approximately 34% speed of adjustment to restore the equilibrium in the long-run, which was convergent quickly.

scholarly journals Tax revenue and private domestic investment

2019 ◽  
Vol 1 (2) ◽  
pp. 25-32
Author(s):  
Richard Umeokwobi ◽  
Emeka Nkoro
Keyword(s):  
Ordinary Least Squares ◽  
Tax Revenue ◽  
Domestic Investment ◽  
Secondary Sources ◽  
Used Oil ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Oil Revenue ◽  
Long Run ◽  
The Impact

This paper investigated the impact of tax revenue on private domestic investment in Nigeria from 1980 to 2018 using the modified ordinary least squares- Autoregressive distributed lag (ARDL). The paper used oil revenue, non-oil revenue, and Corporate Income Tax (CIT) as the independent variables while Private Domestic Investment (PDI) is the dependent variable. Oil revenue and non-oil revenue were used as a proxy for oil and non-oil tax. These data were obtained from secondary sources- central Bank of Nigeria, World Bank database and Federal Inland Revenue service statistical bulletin. The result showed that a long-run relationship exists between the aforementioned variables. Also, the paper revealed that oil and non-oil do not have a significant impact on PDI but CIT has a positive and significant impact on PDI. The paper recommends that proper measures/reforms should be put in place in order to reduce the impact of tax on private domestic investment in Nigeria.

Income inequality and CO2 emissions: Empirical evidence from Turkey

2018 ◽  
Vol 30 (3) ◽  
pp. 444-461 ◽  
Author(s):  
Caner Demir ◽  
Raif Cergibozan ◽  
Adem Gök
Keyword(s):  
Income Inequality ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Aggregate Consumption ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

The aim of the study is to investigate the impact of income inequality on environmental quality in Turkey within the Environmental Kuznets Curve framework. In order to observe the short-run and long-run effects of income inequality on environmental quality, an autoregressive distributed lag bounds test on CO2 emission has been employed for the period 1963–2011 of Turkey. The results of the analysis reveal that there is a negative association between CO2 emission level and income inequality, which implies that increasing income inequality reduces environmental degradation in Turkey. Hence, a greater inequality in the society leads to less aggregate consumption in the economy due to lower propensity to emit in the richer households resulting in better environmental quality. The findings confirm an argument in the existing literature, which suggests that for developing countries, until a certain level of development, environmental degradation increases as income inequality in the society decreases. The results also confirm the Environmental Kuznets Curve hypothesis.

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