scholarly journals Income Inequality and Economic Growth: An Analysis Using a Panel Data

2018 ◽  
Vol 10 (5) ◽  
pp. 242
Author(s):  
Mohamed Bouincha ◽  
Mohamed Karim
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Developed Countries ◽  
Global Model ◽  
Kuznets Curve ◽  
Main Indicator ◽  
Development Indicator ◽  
Long Time ◽  
The Developed Countries ◽  
The Relationship

A long time ago, economic growth was the main indicator of countries’ economic health. However, since the 1970s, the analysis of the relationship between economic growth and other economic phenomena such as inequality has begun to grow (Sundrum, 1974). Much of the literature on the link between economic growth and income inequality is based on Kuznets revolutionary theory. The purpose of our article is to suspect the causality relationship between growth and inequality. To do this, we used data from 189 countries for the period between 1990 and 2015. We estimated a global model and three other of each category of countries in terms of development. In the global model, economic growth is insignificant even if its sign is positive. The same result appears in the developing country model and the moderately developed countries one. However, in the developed countries model, economic growth is negatively and statistically related to inequality. The Kuznets curve is approved in our study only when using human development indicator in the place of growth. Growth explain inequality’s movement in our study only in the model of developed countries and its coefficient is negative.

Global Trends in Domestic savings and Longevity- Implications for India

2021 ◽  
pp. 111-118
Author(s):  
Thilak Venkatesan ◽  
Venkataraman R
Keyword(s):  
Economic Growth ◽  
Developed Countries ◽  
The Other ◽  
Demographic Dividend ◽  
Policy Action ◽  
Global Trends ◽  
Domestic Savings ◽  
The Developed Countries ◽  
Developed Nations ◽  
The Relationship

Demographic dividend and the lowest median age among the earning population propels consumption and growth in India. Among the emerging economies, China had the leverage for growth through exports until 2008. India benefited by demographic dividend and this translates to providing income and thereby increases savings. On the other hand, the developed countries are experiencing problems of an aging economy, a deflationary scenario, and a pension burden. India, with its major workforce in the unorganized and private sector, needs to recognize the need for forward-looking policies that stimulate savings for a better lifestyle post-retirement. The study was focussed on the relationship between longevity (life expectancy), and domestic savings. The research observed divergence between the developed nations and India. A more futuristic policy action is suggested to motivate savings as the increase in population and higher levels of economic growth can be achieved with more domestic savings.

Technology and Economic Growth: Quo Vadis, India?

2005 ◽  
Vol 30 (1) ◽  
pp. 1-6
Author(s):  
V S Arunachalam
Keyword(s):  
Economic Growth ◽  
Developed Countries ◽  
Transport Systems ◽  
Strong Base ◽  
Long Time ◽  
Information And Communication ◽  
Quo Vadis ◽  
To Come ◽  
The Developed Countries ◽  
Genetic Pool

While the movement for independence of India was being led by the political leaders and social reformers, there was emerging another community of leaders—scientists and technologists—whose contributions remained unnoticed and unrecognized for a long time. If the politicians laid the foundation for a democratic India, the scientists created a fertile environment for building a science-based society in the country. Amongst them were those visionaries who also comprehended the links between science, technology, and economic growth. Drawing from the economic growth theories, this paper demonstrates how technological innovations worked as the engine propelling economic growth of cities and nations and addresses four specific questions: What is the basis for economic growth? How can this growth be improved and sustained? How can it be spread across the country? What will be the reaction of the developed countries to such challenges? The author closely studies the case of information and communication technology-based growth of Bangalore and explores the possibilities of its extension to other cities. He attributes Bangalore's economic growth to social, cultural, and infrastructural factors unique to the city. A comparison of Bangalore's growth with a few other locations suggests that it is not possible to blindly replicate the success story of Bangalore in other regions of the country. What has worked for Bangalore may not be relevant for those regions. What is required is a strong base and, for that, the country should start building the infrastructure and educating the labour. For diffusion of growth, the author stresses upon the need for identifying local strengths, encouraging local innovation, intensifying educational programmes, and respecting the sociological systems and local culture. Overall, the author draws the following lessons for India: Population—trained and educated—is an asset. Labour will be an asset only if there is adequate infrastructure for the use of the genetic pool. Energy, communications, and transport systems should be ubiquitous, reliable, and affordable. Setting up of profit-seeking R&D centres and R&T institutions should be encouraged. Market size and competition should be increased. Transaction costs will have to be minimized. Ideas, knowledge, and skills should be allowed to come from anywhere. This improved understanding of the forces driving social development and economic growth offers enticing options for India to pursue.

Evaluating the Relationship between Economic Growth and Environmental Pollution

2014 ◽  
Vol 644-650 ◽  
pp. 5884-5888 ◽  
Author(s):  
Rui Lian Zhang ◽  
Feng Yao
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Industrial Waste ◽  
Developed Countries ◽  
Anhui Province ◽  
Kuznets Curve ◽  
Industrial Waste Water ◽  
Waste Gas ◽  
Industrial Solid Waste ◽  
The Relationship

The paper evaluates the relationship between economic growth and environmental pollution of Anhui province using the data from 1990 to 2012. The indicators for the evaluation included emission of industrial waste water (EIWW), emission of industrial waste gas (EIWG), emission of industrial solid waste (EISW) and GDP per capita (GDPPC). The results show that the relationship between economic growth and environmental pollution of Anhui province is different from Environmental Kuznets curve. There is a U-shaped plus inverted U-shaped curve between EIWW and GDPPC. EIWG and EISW keep increasing monotonically. The turning points of EIWG and EISW both apparently less than that of developed countries. Our study then predicts that EIWG and EISW begin to decrease when the GDPPC reaches 3421Yuan and 5189Yuan (The price of 1978) respectively. Our study reveals the importance of increasing environmental protection expense and strengthening the construction of environmental policy.

scholarly journals Poverty, income inequality, and energy consumption based on EKC hypothesis: Evidence from developed and developing countries

2021 ◽  
Author(s):  
Yusuf Ekrem Akbas ◽  
Fuat Lebe
Keyword(s):  
Developing Countries ◽  
Energy Consumption ◽  
Income Inequality ◽  
Unit Root Test ◽  
Developed Countries ◽  
Primary Objective ◽  
Seemingly Unrelated Regression ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
The Relationship

Abstract The primary objective of this study is to examine the relationship between carbon dioxide (CO2) emissions, energy consumption, income inequality, and poverty within the framework of the Environmental Kuznets Curve (EKC) in 14 developed and ten developing countries over the period 2000–2018. We employed the Fourier unit root test and Dynamic Seemingly Unrelated Regression (DSUR) estimator to analyze the relationship between these variables. The results show that in developing countries, income inequality, poverty, and energy consumption positively affect CO2 emission. In contrast, in developed countries, there is no significant relationship between these variables. Moreover, we found out that the EKC hypothesis, which suggests an inverted U-shaped relationship between per capita income and CO2 emissions, is valid in developed countries and invalid in developing countries. We determined that the turning points obtained from regression analysis are outside of the sample period in five developing countries (Argentina, Armenia, Kazakhstan, Panama, and Uruguay). These results show that income inequality and poverty can indirectly affect environmental quality by energy consumption in developing countries.

Income Inequality, Economic Growth and Carbon Dioxide Emissions Nexus: Empirical Evidence from Ethiopia

2021 ◽  
Author(s):  
Shemelis Kebede Hundie
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Unit Root ◽  
Carbon Dioxide Emissions ◽  
Unit Root Test ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Low Carbon ◽  
Long Run ◽  
The Relationship

Abstract The relationship between income inequality, economic growth and CO2 emissions is ambiguous both theoretically and empirically. Hence, this study examines the link between income inequality and CO2 emissions in Ethiopia for time span covering 1979–2014 using ARDL bounds test and DOLS approach to cointegration. The Zivot-Andrews unit root test and Clemente-Montanes-Reyes unit root test reveal that some of the variables under consideration are stationary at level while others become stationary after first differencing. Both ARDL and DOLS approaches confirm that there is a long-run relationship among the series during the study period. The long-run empirical results show that a 1% increase in economic growth accounts for a 1.05% increase in CO2 emissions while a 1% increase in economic growth squared reduces CO2 emissions by 0.11%. The U-test result reveals that the relationship between CO2 emissions and economic growth confirms existence of the Environmental Kuznets Curve hypothesis. The effect of income inequality on CO2 is not robust to alternative estimation techniques; it is statistically insignificant under the ARDL estimation, but DOLS estimates show that a 1% increase in income inequality increases CO2 emissions by 0.21% in the long-run during the study period. In the long-run a 1% rise in urbanization, population size, energy intensity and industrialization each positively contribute to environmental degradation in Ethiopia by 0.38%, 0.22%, 0.07% and 0.11% respectively. Results from the Toda-Yamamoto Granger causality show a bidirectional causal relationship between CO2 emissions and all other variables except economic growth. CO2 emissions granger causes economic growth with no feedback effect. Results suggested important policy implications in the light of achieving its 2030 targets of low-carbon economy for Ethiopia.

scholarly journals The Relationship between Labor Productivity and Economic Growth in OECD Countries

2017 ◽  
Vol 9 (5) ◽  
pp. 71 ◽  
Author(s):  
Suna Korkmaz ◽  
Oya Korkmaz
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Labor Productivity ◽  
Panel Data Analysis ◽  
Developed Countries ◽  
Oecd Countries ◽  
Factor Productivity ◽  
The Developed Countries ◽  
Partial Factor Productivity ◽  
The Relationship

In the course of globalization, the countries entered into an intense competition between each other. In order to achieve the competitive advantage, countries pay significant importance to the technological advancements. By improving the productivity, the technological innovations and developments allow the countries to make production at lower costs. The increase in factor productivities would enable higher levels of output in the economy. Since the factor productivity influences many other factors and the developed countries meet these criteria better than developing countries do, the factor productivities are higher in developed countries, when compared to those in developing countries. For this reason, in this study, the relationship between labor productivity, which is a partial factor productivity, and economic growth in seven OECD countries for the period between 2008 and 2014 by utilizing the panel data analysis method. According to the test results, we find a unidirectional causality relationship from economic growth to labor productivity.

scholarly journals A STUDY OF THE ENVIRONMENTAL KUZNETS CURVE FOR TRANSPORT GREENHOUSE GAS EMISSIONS IN THE EUROPEAN UNION

2020 ◽  
Vol 18 (3) ◽  
pp. 513
Author(s):  
Nikola Petrović ◽  
Nebojša Bojović ◽  
Marijana Petrović ◽  
Vesna Jovanović
Keyword(s):  
European Union ◽  
Ghg Emissions ◽  
Developed Countries ◽  
Gdp Per Capita ◽  
Kuznets Curve ◽  
The European Union ◽  
Per Capita ◽  
The Developed Countries ◽  
The Relationship ◽  
The Eu

In view of the European Union as one of the main polluters in the word and the fact that GDP per capita in the European Union is equivalent to the 282 percent of the world`s average, it is interesting to study the relationship between transport GHG emissions and the economic activity within the European Union. In the paper, the authors check the environment Kuznets curve hypothesis for members of the EU over the period 2000-2014. The analysis results show that an inverse-U relationship exists between transport GHG emissions and GDP per capita. At the same time, the results indicate that the change of economic structure has influenced the transport GHG emissions in the developed countries, that is, in the countries that record a higher level of GDP per capita.

Financial Development and Economic Growth

2015 ◽  
pp. 24-37
Author(s):  
Dimitrios Nikolaou Koumparoulis
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Capital Flows ◽  
Final Section ◽  
Financial System ◽  
Developed Countries ◽  
Critical Studies ◽  
The Developed Countries ◽  
The Relationship

In this chapter, the author examines the relationship between financial development and economic growth. In the first three sections of the chapter, they present the expansionary policies in the developed countries that led to increased capital flows in the last decades. Such an analysis was done through a thorough review of both empirical and other critical studies from distinguished academics. In the final section, a new financial system at the service of society and development with a case study for Greece is illustrated.

Exploring the Impact of Trade and Investment on Income Inequality

1999 ◽  
Vol 32 (3) ◽  
pp. 363-395 ◽  
Author(s):  
VINCENT A. MAHLER ◽  
DAVID K. JESUIT ◽  
DOUGLAS D. ROSCOE
Keyword(s):  
Income Inequality ◽  
Developed Countries ◽  
Western World ◽  
Data Sets ◽  
Economic Sector ◽  
Significant Relationships ◽  
Recent Trends ◽  
The Developed Countries ◽  
The Impact ◽  
The Relationship

This article explores the relationship between international integration and domestic inequality in the developed countries in the mid-1980s and early 1990s. The analysis examines two major modes of integration, trade and direct investment, disaggregating each by economic sector and distinguishing between imports and exports, and inbound and outbound flows and stocks. In measuring income inequality, extensive use is made of micro-data sets that have recently become available through the Luxembourg Income Study (LIS), which provides much more detailed and comparable data on income inequality than has heretofore been the case. In particular, LIS data can be aggregated at the level of economic sector, and permit the comparison of pre- and post-government income. The study finds few significant relationships between either trade or investment and sectoral income distribution. The overall conclusion is that economic globalization is not a critically important factor in explaining recent trends in income inequality in the Western world.

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