scholarly journals THE IMPACT OF FISCAL DECENTRALIZATION ON INCOME AND EDUCATION INEQUALITY THROUGH ECONOMIC GROWTH IN EAST JAVA

2019 ◽  
Vol 4 (special) ◽  
pp. 90-98
Author(s):  
Muhammad Abdul Ghofur ◽  
Lucky Rachmawati
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Economic Model ◽  
Fiscal Decentralization ◽  
Analysis Model ◽  
Education Inequality ◽  
Indirect Impact ◽  
Decentralization Policy ◽  
The Impact

There are still many districts in East Java Province that are categorized as underdeveloped regions, which means that the region has low economic growth with a high income and education inequality. An economic model analysis that illustrates how the impact of fiscal decentralization has been exercised on income inequality and inequality of education through economic growth is needed. The analysis model used is path analysis to determine the direct and indirect impact of fiscal decentralization on income and education inequality through economic growth. The data used in the study were panel data from 2008 to 2015 collected from 29 districts in the East Java Province. The results of the study indicate that the implementation of the fiscal decentralization policy has not been able to encourage economic growth and reduce the number of income inequality and inequality of education. Decentralization makes income inequality even more intense. Economic growth has not been able to reduce the income inequality, but it can reduce the rate of education inequality.

scholarly journals Vertical Fiscal Imbalance and Regional Economic Growth

2020 ◽  
Vol 12 (6) ◽  
pp. 39-53
Author(s):  
B.I. Alekhin ◽  
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
Fiscal Imbalance ◽  
Vertical Fiscal Imbalance ◽  
The Impact

This study examines the impact of fiscal decentralization on regional economic growth using panel data for 82 subjects of the Russian Federation for the period 2005-2018. General theoretical framework was drawn from the second-generation theory of fiscal federalism, and panel data econometrics suggested the appropriate empirical model and estimation method. The pooled mean group method was used to estimate an autoregressive distributed lags model based on Solow-Swan theory of economic growth. The results indicate that vertical fiscal gap has a negative and significant long-term impact on regional economic growth while vertical fiscal imbalance has a positive and significant long-term effect. The study is consistent with the modern theory of fiscal federalism, W.E. Oates’ matching hypothesis and previous empirical work using Russian data. The study also found evidence of conditional convergence of regional economies.

scholarly journals Greenhouse Gas Emission Widens Income Inequality in Africa

2021 ◽  
Author(s):  
Biruk Birhanu Ashenafi
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Development Policy ◽  
Greenhouse Gas Emission ◽  
Gas Emission ◽  
Gas Emissions ◽  
The Impact

Abstract Over the past couple of decades, we have witnessed a rise in greenhouse gas emissions and widening income inequality that threaten human well-being. Addressing these challenges and ensuring sustainable economic growth becomes a pressing issue for the development policy agendas across Africa. This paper offers an answer for the impact of greenhouse gas emissions on income inequality by taking the most vulnerable region. In doing so, a panel data set from 1981–2015 across 49 countries are used and applied a panel data fixed effect regression and instrumental variable method (IV). We establish s causal relationship and show that greenhouse gas emission widens income inequality. We further cemented our baseline finding using alternative emission indicators typical to the Agrarian society. Our findings shed light on alternative development policy choices to the African continent where the traditional policy prescription does not fit the current dynamics in demography, urbanization, and agricultural practices. Hence, we emphasize the Agriculture Development Lead Industrialization (ADLI) policy that places high importance on transforming the livelihood of the people engaged in agriculture. The approach has proven to unlock the trinity challenge posed by environmental degradation, income inequality, and stagnant economic growth. Indeed, industrialization can be realized through transforming agriculture first. Adding value to agriculture reduces emission, redistributes income, and eventually maintains steady per capita income growth in Africa.

scholarly journals Measuring the Impact of Fiscal Decentralization on Economic Growth and Income Inequality using the Heuristic Network

2019 ◽  
Vol 8 (5C) ◽  
pp. 1016-1024
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Fiscal Decentralization ◽  
Regional Economic Growth ◽  
Financial Resources ◽  
Regional Economic ◽  
East Kalimantan ◽  
Regional Budgets ◽  
The Impact

To achieve regional economic growth, the role of regional budgets is very important. In this regard, the utilization of regional economic and financial resources is an important factor in supporting the implementation of the fiscal decentralization system in the area. The implementation of fiscal decentralization in Indonesia is marked by the process of transferring financial resources to regions in significant amounts. In the last five years (2011-2015), the proportion of balancing funds to total regional income nationally reached an average of 73%. Despite the huge spike in decentralization policies, the implementation of fiscal decentralization in East Kalimantan Province, one of Indonesia's provinces, till now has not been able to bring about improving the welfare of local communities. In reality, there is still income inequality, although still relatively low in East Kalimantan Province. This study performs to measure the impact of fiscal decentralization on economic growth and income inequality in East Kalimantan – Indonesia. The hypothesis in this study is that fiscal decentralization negatively affects income inequality directly or indirectly through economic growth in East Kalimantan – Indonesia. The aim of this study is how to use the heuristic network to prove this hypothesis.

A FRAMEWORK FOR ANALYZING THE IMPACT OF FISCAL DECENTRALIZATION ON MACROECONOMIC PERFORMANCE, GOVERNANCE AND ECONOMIC GROWTH

2018 ◽  
Vol 65 (01) ◽  
pp. 3-39 ◽  
Author(s):  
UMAIMA ARIF ◽  
EATZAZ AHMAD
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Decentralization ◽  
Direct Impact ◽  
Macroeconomic Performance ◽  
Indirect Impact ◽  
Quality Of Governance ◽  
Governance Institutions ◽  
The Impact

This study analyzes the direct impact of fiscal decentralization on economic growth and broadens the scope of assessment by examining the indirect impact of fiscal decentralization on economic growth via its impact on macroeconomic performance and quality of governance institutions. The study uses a panel data set of 53 developed and developing countries over the period of 1996–2014. The empirical findings show that the indirect impact, rather than the direct impact of fiscal decentralization on growth, that is, the effect of decentralization on economic growth through its effect on macroeconomic performance and quality of governance institutions significantly matters for growth. Further, the results show that fiscal decentralization is growth enhancing when supported by stable macroeconomic performance in terms of stability in prices, budget deficit and exchange rate. The effect of fiscal decentralization on per capita gross domestic product (GDP) growth rate is positive when it is complemented by sound institutional structure in terms of rule of law, low corruption in government institutions, high-bureaucratic quality and democratic accountability. All these conclusions hold for developed as well as for developing countries.

scholarly journals An assessment about the relationship between educational inequality and economic growth in Brazilian Northeast region

2020 ◽  
Vol 5 (1) ◽  
pp. 1-12
Author(s):  
Frederico Uchoa
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Educational Inequality ◽  
Dynamic Panel Data ◽  
Economic Policies ◽  
Dynamic Panel ◽  
Unequal Distribution ◽  
Education Inequality ◽  
Panel Data Estimation ◽  
The Impact

In this paper we analyze the impact of education inequality on the income of formal workers in Northeast Brazil. For this study, we analyzed the data collected from censuses data and estimate a dynamic panel data model. Statistical analyses were performed by using the quasi-maximum likelihood linear dynamic panel data estimation, an approach that produce consistent estimates with large n and small T. We found a negative and statistically significant impact of education inequality on economic growth, which is convergent with the literature that advocates that an unequal distribution of education reduces growth. Our results suggest that economic policies should be targeted not only more at education but also more equal access to education.

scholarly journals PENGARUH DESENTRALISASI FISKAL TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI BENGKULU

2012 ◽  
Vol 1 (1) ◽  
pp. 31
Author(s):  
Aan Zulyanto
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Panel Data ◽  
Fixed Effects ◽  
Fiscal Decentralization ◽  
Initial Level ◽  
Positive Impact ◽  
Fixed Effects Model ◽  
Decentralization Policy ◽  
Analytical Tools

Since 2001, the Indonesian government has effectively run fiscal decentralization policy as a broad strategy to accelerate regional development. This study aims to see the influence of fiscal decentralization on economic growth in the province of Bengkulu. The analysis focused on indicators of fiscal decentralization of expenditure. And using a set of control variables consisting of the Initial Level Growth, Population Growth, Investment, and Human Capital. This study uses panel data and analytical tools of LSDV or Fixed Effects Model (FEM). The study shows that there is a hump-shaped form in the influence of fiscal decentralization in the province of Bengkulu. This means that when the degree of fiscal decentralization is not too high, then the fiscal decentralization policy will bring positive impact on economic growth, but the degree of decentralization is too high, fiscal decentralization policies will only hinder economic growth.

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

scholarly journals Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Services ◽  
Sub Saharan Africa ◽  
Kuznets Curve ◽  
African Countries ◽  
Financial Access ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

scholarly journals The Importance of Maritime Transport for Economic Growth in the European Union: A Panel Data Analysis

2021 ◽  
Vol 13 (14) ◽  
pp. 7961
Author(s):  
Alexandra Fratila (Adam) ◽  
Ioana Andrada Gavril (Moldovan) ◽  
Sorin Cristian Nita ◽  
Andrei Hrebenciuc
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Maritime Transport ◽  
The European Union ◽  
Panel Data Regression ◽  
Green Investment ◽  
Port Infrastructure ◽  
The Impact

Maritime transport is one of the main activities of the blue economy, which plays an important role in the EU. In this paper, we aim to assess the impact of maritime transport, related investment, and air pollution on economic growth within 20 countries of the European Union, using eight panel data regression models from 2007 to 2018. Our results confirm that maritime transport, air pollutants (NOx and SO2) from maritime transport, and investment in maritime port infrastructure are indeed positively correlated with economic growth. In other words, an increase of 10% in these factors has generated an associated increase in economic growth rate of around 1.6%, 0.4%, 0.8%, and 0.7% respectively. Alongside the intensity of economic maritime activities, pollution is positively correlated with economic growth, and thus it is recommended that policymakers and other involved stakeholders act to diminish environmental impacts in this sector using green investment in port infrastructure and ecological ships, in accordance with the current European trends and concerns.

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