scholarly journals Effects of Remittances on Income Inequality in Bangladesh: A Macroeconomic Analysis

2021 ◽  
pp. 106-118
Author(s):  
Hazera-Tun -Nessa
Keyword(s):  
Income Inequality ◽  
Unit Root Test ◽  
Data Availability ◽  
Distributed Lag ◽  
Macroeconomic Analysis ◽  
Long Run ◽  
Short Run ◽  
Cent Level ◽  
Level Of Significance ◽  
Bound Test

This study attempts to examine the effects of remittances on income inequality in Bangladesh over the period of 1990 to 2016. The study period has been chosen based on data availability at macro level. To serve the purpose, Autoregressive Distributed Lag (ARDL) cointegration technique is applied since unit root test confirms a combination of variables some which are stationary at level and others become stationary after first difference. The error correction model estimated by reparametrizing the ARDL model after having confirmation about the existence of long run relationship through bound test. An inverted U-shaped relationship between the remittances and income inequality has been found by the study. Remittances increase income inequality in short run and decrease income inequality in the long run.  In the long run an increase in remittances by 1 per cent reduces the income inequality by 11 per cent on an average. The adjustment coefficient has the expected negative sign at 1 per cent level of significance which ensure a monotonically convergent adjustment towards the equilibrium with the speed of 21.65 per cent. Among other control variables, private credit increases income inequality in the long run and decrease it in the short run. Exchange rate and inflation either have very negligible effects or no significant effects both in short run and in long run. Based on the findings, it could be suggested that the country should take proper steps to encourage investment of remittances in productive activities to accumulate capital which could ensure the path of accruing the beneficial impacts of remittances on income inequality in the long run.

scholarly journals UNEMPLOYMENT AND VIOLENCE: ARDL ENDOGENEITY APPROACH

2018 ◽  
Vol 37 (2) ◽  
Author(s):  
Adenuga Fabian Adekoya ◽  
Nor Azam Abdul-Razak
Keyword(s):  
Economic Growth ◽  
Annual Data ◽  
Data Set ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
Level Of Significance ◽  
The Unemployed ◽  
Bound Test

This study examines the link between unemployment and violence by controlling for income and security expenditure as an antidote to reduce violence in Nigeria. Violence claims many lives and properties in the country, which further increased the demand for public security as tax on the nation’s resources. Also, the increased unemployment in Nigeria, deserving urgent attention to be reduced, as literature has pointed out, causes idleness, deception, frustration and anger. The idea of criminal motivation and strain as an inducement to violence are supported by evidence. Considering the nature of the variables in this study, we tested for endogeneity by using annual data set from 1980 to 2015 before proceeding to test for the long-run and short-run relationship. The Bound Test used to test the cointegration while the Autoregressive Distributed Lag Model (ARDL) approach was used to conduct endogeneity test. ARDL Instrumental Variable is also employed to determine long-run and short-run estimates. The results showed that unemployment causes violence while income as a variable to economic growth reduces violence at the 1% level of significance. Similarly, the deterrence variable of security expenditure adversely affects violence at the 10% level of significance. Therefore, this study suggests policy to promote economic growth as the means of income-employment generation among the youth and the unemployed. Youth programs should be provided especially among the unemployed by granting credit facilities to finance their own projects and further strengthen the deterrence institutions. RESUMEN Este estudio examina el vínculo entre el desempleo y la violencia mediante el control de los ingresos y el gasto de seguridad, como un antídoto para reducir la violencia en Nigeria. La violencia se cobra muchas vidas y propiedades en el país, lo que aumenta aún más la demanda de seguridad pública, traducida como un impuesto a los recursos de la nación. Además, el aumento del desempleo en Nigeria, la cual merece una atención urgente que se reduzca ya que, la literatura señala, provoca ociosidad, engaño, frustración e ira. La idea de la motivación y la tensión delictiva como un incentivo a la violencia está respaldada por la evidencia. Teniendo en cuenta la naturaleza de las variables en este estudio, probamos la endogeneidad mediante el uso de datos anuales de 1980 a 2015, antes de proceder a la prueba de la relación de largo y corto plazo. El Bound Test se usó para probar la cointegración, mientras que el enfoque del Modelo de retardo distribuido autorregresivo (ARDL), se usó para realizar pruebas de endogeneidad. La variable instrumental de ARDL también se emplea para determinar estimaciones a largo y corto plazo. Los resultados mostraron que el desempleo causa violencia; mientras que el ingreso, como variable del crecimiento económico, reduce la violencia, al nivel de significancia del 1%. De manera similar, la variable de disuasión del gasto en seguridad afecta adversamente la violencia, al nivel de significancia del 10%. Por lo tanto, este estudio sugiere una política para promover el crecimiento económico como el medio de generación de empleo-empleo entre los jóvenes y los desempleados. El empoderamiento de la juventud debe proporcionarse especialmente entre los desempleados mediante la concesión de servicios de crédito para financiar proyectos propios y fortalecer aún más las instituciones de disuasión.

scholarly journals Investment Portfolio, Democratic Accountability, Poverty and Income Inequality Nexus in Pakistan: A Way to Social Sustainability

2021 ◽  
Vol 13 (11) ◽  
pp. 6411
Author(s):  
Muhammad Shahid Hassan ◽  
Haider Mahmood ◽  
Muhammad Ibrahim Saeed ◽  
Tarek Tawfik Yousef Alkhateeb ◽  
Noman Arshed ◽  
...  
Keyword(s):  
Income Inequality ◽  
Social Sustainability ◽  
Data Availability ◽  
Democratic Accountability ◽  
Investment Portfolio ◽  
Economic Activities ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Short Run

Institutions help to streamline the economic activity-related procedures, where government intervention might be involved. Institutions also play a significant role in social sustainability. The findings using the Autoregressive Distributed Lag approach to cointegration for the period from 1984–2019 reveal that investment portfolio and democratic accountability reduce poverty in Pakistan both in the long and short run. Moreover, democratic accountability helps to reduce income inequality, but the investment portfolio’s role is not significant. The literacy rate helps to reduce income inequality, and inflation increases poverty and income inequality. The remittances increase income inequality, and urbanization increases poverty. To eradicate poverty and income inequality, the governments should be accountable for their actions to the general public while they remain in power. If they do not deliver as per their manifestoes, they will not be reelected in the next election. Moreover, there is a dire need to redefine the role of an investment portfolio to reduce the risk of investment. So, investments would increase economic activities and could reduce poverty and income inequality. This study contributes to the literature by inquiring about the role of the investment portfolio and democratic accountability in social sustainability by reducing poverty and income inequality. This study only considers Pakistan’s economy due to limitations of poverty data availability in other countries. The scope could further be broadened by accessing data for a wider Asia region to test the role of the investment portfolio and democratic accountability to reduce poverty and income inequality.

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.

scholarly journals Public Debt and Economic Growth in Niger: An Autoregressive Distributed Lag Approach

2020 ◽  
Vol 1 (2) ◽  
pp. 56-65
Author(s):  
Issoufou Oumarou
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Unit Root Test ◽  
Annual Data ◽  
African Countries ◽  
Policy Makers ◽  
Significance Level ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

Purpose: The aim of the paper is to examine the existence or not of a long run or a short run relationship between public debt and economic in Niger and investigate the significance of this relationship. Approach/Methodology/Design: The study first applied time series econometrics tests such as Augmented Dickey-Fuller (ADF) unit root test, Bound cointegration test and Auto Regressive Distributed Lag (ARDL) on annual data obtained from the International monetary fund (IMF) and the West African States Central Bank (BCEAO). The observations cover the period from 1970 to 2019. The study then performed some residual tests including serial correlation, normality and heteroskedasticity for the accuracy of the prediction of the model. Findings: The empirical results showed no long run relationship between public debt and economic growth in Niger. The short run analysis revealed that public debt and budget balance have short run causal effects on economic growth in Niger. The coefficients are significant at 10% significance level. Practical Implications: This article gives valuable information to Niger policy makers regarding the effects of public debt on Niger economic growth. The article highlights the effects that public debt has on economic growth in Niger in the short and long run. Therefore helping policy makers decide whether to increase or reduce the borrowing trend. Originality/value: The results of the paper give valuable information on the relationship that public debt may have with economic growth in Sub Saharan African countries with the similar macroeconomic indicators with Niger.

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.

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

scholarly journals Does Climate Change Asymmetrically Affect Rice Productivity In India? New Insight From NARDL Cointegration Approach

2021 ◽  
Author(s):  
Imran Ali Baig ◽  
Abbas Ali Chandio ◽  
Md. Abdus Salam
Keyword(s):  
Climate Change ◽  
Ardl Model ◽  
Rice Productivity ◽  
Distributed Lag ◽  
Dynamic Relationship ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Asymmetrical Impact ◽  
Bound Test

Abstract This article attempt to answer the question "whether the dynamic relationship between climate change and rice productivity is symmetrical or asymmetrical" using data from 1990-2017 in India. First, we test the symmetrical and long-run dynamic relationship using the Autoregressive Distributed Lags (ARDL) model and test the asymmetrical and cointegration relationship based on Nonlinear Auto-Regressive Distributed Lag (NARDL) technique. The results of the ARDL model indicates that no symmetrical relationship between the variables in long-run. Whereas outcomes of the NARDL bound test reveal that there is long-run asymmetrical impact of climate change on rice productivity. The positive and negative shock of climate change has affected the rice productivity by different magnitude in India. The Wald statistics confirm asymmetric relationship between rice productivity and climate change in the long-run while only short-run asymmetrical relationships exist between rainfall and rice productivity in India.Furthermore, dynamic multipliers indicate that negative component of rainfall and temperature has a dominant effect over the positive component on rice productivity. To the best of the author's knowledge, no studies have been done to assess both symmetrical and asymmetrical dynamic relationships between climate change and rice productivity using ARDL and NARDL cointegration approaches in India's context. This study will help frame the environmental policies and strategy to cope with climate change in India's agriculture productivity.

The Economic Growth–Income Inequality–Poverty Nexus and Its Impact on Environmental Degradation: Empirical Evidence from India

2021 ◽  
pp. 097639962110238
Author(s):  
Geetilaxmi Mohapatra ◽  
Arun Kumar Giri
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Environmental Degradation ◽  
Poverty Reduction ◽  
Positive Impact ◽  
Universal Access ◽  
Causality Test ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to examine the main forces affecting short-run and long-run carbon emission patterns due to changes in economic growth, income inequality and poverty in India over the period 1982–2018. For this purpose, it uses the autoregressive distributed lag (ARDL) cointegration technique and the vector error correction model (VECM) based on Granger causality tests. The stationary properties of the variables are checked using the Ng–Perron test. The results of the ARDL bounds test confirm the long-run relationship among the variables. Further, the ARDL coefficient confirms that economic growth and poverty increase carbon emissions in both the short and long run. The empirical findings of the causality test indicate the presence of short-run causality running from economic growth and poverty reduction to environmental degradation. Hence, the study recommends that policymakers must devote more attention to alleviating poverty and reducing income inequalities through redistributing transfers, investing on universal access to health and education, implementing progressive taxation policies, empowering women and enforcing the Clean India mission, which will have a positive impact on reducing environmental degradation in India. Further, the study also recommends appropriate environmental regulations that can substantially stimulate innovations to increase energy efficiency and thereby reduce carbon dioxide (CO2) emissions.

scholarly journals Inflationary Effect on Nigeria Economic Growth: The ARDL Bound Test Approach

2021 ◽  
pp. 25-36
Author(s):  
B. U. K. Farouk ◽  
I. J. David ◽  
N. S. Agog
Keyword(s):  
Economic Growth ◽  
Information Criterion ◽  
Sampled Data ◽  
Distributed Lag ◽  
Long Run ◽  
High Inflation ◽  
Short Run ◽  
Stable Estimation ◽  
The Impact ◽  
Bound Test

The expectation of any country is to experience a high output but in the presence of increasing inflation such expectation becomes blurring because high inflation is a sign of a low working economic system. In this research the impact of inflation rate (InfR) on Nigeria economic growth (EcoG) is studied for the period of 1986 to 2018 using an Autoregressive Distributed Lag (ARDL) Bounds test approach to determine the co-integration existence between InfR and EcoG and determine the long run effect through the approach of Error Correction Model (ECM). The results obtained showed that an ARDL (2, 2) model was the best fitted model for the sampled data based on the smallest Akaike’s Information Criterion (AIC) value obtained. Also, it was found that InfR significantly impacted on Nigeria EcoG negatively on the long and short run dynamics with a stable estimation as portrayed by the CUSUM square chart.

scholarly journals Determinants of unemployment in less developed countries

2018 ◽  
Vol 48 ◽  
pp. 01015
Author(s):  
Asma Riaz ◽  
Fareeha Zafar
Keyword(s):  
Vocational Education ◽  
Empirical Relationship ◽  
Negative Relationship ◽  
Developed Countries ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
Level Of Significance ◽  
Determinants Of Unemployment

Unemployment is a major issue all over the world in both developed and under developed countries. This study analyzes those factors which determine unemployment in Pakistan. The data is taken from1990-2015 to see the empirical relationship between GDP, Population, Technical & Vocational education, degree colleges and universities enrollment. ARDL (Auto Regressive Distributed Lag) approach is used to check the determinants of unemployment in Pakistan. Long run results show that there is a negative relationship between GDP and unemployment. Population has positive and significant relation and technical & vocational education has positive and insignificant relation with unemployment in Pakistan. The results of Short run ECM-1(Error correction model) show that the negative and significant relationship with unemployment. The CUSUM and CUSUMQ (Graph) are represent that model is structurally stable within critical bound at 5% level of significance.

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