Does inequality hamper long run growth? Evidence from Emerging Economies

Babu, M. Suresh; Bhaskaran, Vandana; Venkatesh, Manasa

doi:10.1016/j.eap.2016.08.005

Cited by 19 publications

(2 citation statements)

References 37 publications

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“…Attention to long-term economic growth has been carried out, but the role of several macroeconomic variables on economic growth is still a concern to be examined (Ammannati Francesco & Guido, 2017); (Tamura et al, 2019); (Suresh Babu et al, 2016). Economic growth is a process of increasing the production of goods and services in the economic activities of the community.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Indonesia’s Long-Term Economic Structure Panel Data Approach Using Logistic Multinomial Regression

Barika,

Sukiyono,

Ekaputri

et al. 2023

Advances in Economics, Business and Management Research

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The pattern and structure of the economy in Indonesia are experiencing a contraction in line with economic development. This study aims to analyze changes in economic structure and causative factors. The analysis was conducted in panel data on 33 provinces from 2007-2021. Using Multinomial Logistic Regression to analyze the determinants of the economic position of provinces in Indonesia. The results showed that economic growth, poverty rate, unemployment rate, and investment had a significant effect on increasing the tendency of provinces that are in the classification of underdeveloped areas to become fast-growing regions. The expansion of employment opportunities coupled with inclusive economic growth is an effort to achieve a better economy.

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Section: Introductionmentioning

confidence: 99%

Determinants of Indonesia’s Long-Term Economic Structure Panel Data Approach Using Logistic Multinomial Regression

Barika,

Sukiyono,

Ekaputri

et al. 2023

Advances in Economics, Business and Management Research

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“…The relationship between economic growth and income inequality has long been of importance in the field of economics. A substantial number of studies have asserted that income inequality has positive impacts on economic growth (see Benabou 2000;Deininger and Olinto 2000;Chen 2003;Nahum 2005;Voitchovsky 2005;Lopez 2006;Frank 2009;Shin 2012;Chan et al 2014;Wahiba and El Weriemmi 2014;Henderson et al 2015;Saari et al 2015;Babu et al 2016), while some have found the opposite (see Alesina and Rodrick 1994;Perotti 1996;Lui 1997;Deininger and Squire 1998;Mo 2000Mo , 2009Panizza 2002;Knowles 2005;Ostry et al 2014;Wan et al 2006;Sukiassyan 2007;Nissim 2007;Majum-dar and Partridge 2009;Ogus Binatli 2012;Fang et al 2015;Muinelo-Gallo and Roca-Sagalés 2013;Rubin and Segal 2015). The theoretical reasoning for nega-tive and positive relationships between income inequality and economic growth is as per the following discussion.…”

Section: Introductionmentioning

confidence: 99%

Asymmetric effects of inequality on real output levels of the United States

et al. 2019

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The existing literature on the short-and long-run impacts of economic growth on income inequality indicates that positive and negative output shocks have worsened the income distribution in the United States. In this paper, we report our empirical examination of the opposite; that is, the impact of positive and negative income inequality shocks on the real output levels. Using the same time-series data, over the period 1917-2012, in a more comprehensive manner, by employing six measures of income distribution, we examined the impact of an increase/decrease in income inequality on economic growth, using the NARDL approach. The results provide evidence in support of a long-run asymmetric impact between income inequality and the real output levels, since the long-run coefficients of positive changes have positive signs, while the signs of those of negative changes are negative, indicating that a decrease or an increase in income inequality improves the real output level in the US.

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