Economic growth and income distribution in Mexico: A cointegration exercise

Risso, Wiston Adrián; Punzo, Lionello F.; Carrera, E.

doi:10.1016/j.econmod.2013.08.036

Cited by 32 publications

(32 citation statements)

References 44 publications

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“…Hereafter, we take instead a time series approach to study the evolution of pc GDP (levels and growth rates) vs income inequality (through a Gini index) in the two economies, China and Brazil. (A companion paper by Risso et al () examines México. )…”

Section: Introductionmentioning

confidence: 99%

Brazil and China: Two Routes of Economic Development?

Policardo

Punzo

Carrera

2016

Review Development Economics

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We look at two emerging economies, Brazil and China, and propose an evaluation of their recent development in terms of growth performance and the evolution of income inequality. Our analysis, therefore, is related to the literature on their recent vast growth and also to the much debated Kuznets curve and theory. However, we claim that neither the growth nor the Kuznets approach capture recent relevant phenomena characterizing such countries' dynamics: namely, the presence of at least two distinct growth models. Cointegration analysis and empirical evidence seem to corroborate our interpretation. They also offer some further insights. We surmise that while contributing to press for a further re-examination of convergence in the light of the issue of income distribution, such findings have interpretative relevance and policy implications for other less developed countries

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Section: Introductionmentioning

confidence: 99%

Brazil and China: Two Routes of Economic Development?

Policardo

Punzo

Carrera

2016

Review Development Economics

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“…FMOLS method employs kernel estimators of the nuisance parameters that affect the asymptotic distribution of the OLS estimator. For asymptotic efficiency this method modifies least squares to account for serial correlation effects and test for the endogeneity in the regressors that result from the existence of a cointegrating relationship (Aljebrin, 2012;Risso et al, 2013). The resulting estimator is asymptotically unbiased and has fully efficient mixture normal asymptotics allowing for standard Wald tests using asymptotic Chi-square statistical inference (Belke and Czudaj, 2010).…”

Section: Johansen Cointegration Testmentioning

confidence: 99%

“…CCR and DOLS estimators deal with the problem of second-order asymptotic bias arising from serial correlation and endogeneity, and together with FMOLS they are asymptotically equivalent and efficient (Risso et al, 2013). Park's (1992) Canonical Cointegrating Regression (CCR) is closely related to FMOLS, but instead employs stationary transformations of the data to obtain least squares estimates to remove the long run correlation between the cointegrating equation and stochastic regressors innovations (Belke and Czudaj, 2010).…”

Section: Johansen Cointegration Testmentioning

confidence: 99%

Factors Affecting Current Account Balance of Turkey: A Survey With the Cointegrating Regression Analysis

Özdamar¹

2015

Pressacademia

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In Turkish economy, especially in recent years, ratio of current account deficits to national income is considerably high. Interrelations between current account balance and other macroeconomic indicators make it important to investigate which factors to what extent affect the current account balance in terms of economic policy decisions. In this study, the relationships between current account balance and various macroeconomic variables in Turkish economy are investigated empirically with Johansen cointegration test and with cointegrating regression analyses (FMOLS, CCR and DOLS) for the 1994-2014 period. It is found that foreign trade balance is a strong explanatory of the current account balance; terms of trade and gross domestic product also have statistically significant effects on the current balance. According to the results Harberger-Laursen-Metzler (HLM) hypothesis seems to be valid for Turkey. Besides, results of the study reveal that domestic interest rates and real effective exchange rate affects Turkey's current account balance as expected but these variables are found to be insignificant.

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“…Nessa abordagem, a questão distributiva afeta o crescimento somente se a propensão a poupar dos indivíduos variar com a renda e/ou a riqueza (Risso, Punzo & Carrera, 2013). Nos países desenvolvidos, onde a taxa de poupança dos indivíduos ricos é maior que a dos pobres, uma política redistributiva de renda de pessoas ricas para as pessoas pobres reduz a taxa de poupança agregada da economia causando a desaceleração do crescimento econômico.…”

Section: A Literaturaunclassified

“…As pesquisas que consideram os efeitos da desigualdade sobre o crescimento (positivos e negativos) em contrapartida àquelas que estudam os efeitos do crescimento sobre a desigualdade inspirados em Kuznets (1955) têm sido mais comum. Enquanto Galor e Zeira (1993), Alesina e Rodrik (1991), Barro (2000), Shin (2012), Iradian (2005) desenvolveram modelos empíricos para explicar os efeitos da desigualdade de renda no crescimento, Zhou e Li (2011), Risso, Punzo e Carrera (2013) estudaram os efeitos do crescimento sobre a desigualdade. Diferentemente desses dois grupos distintos de investigação científica, Lin Huang e Yeh (2009) inovam ao estudar simultaneamente os dois 1 Conforme Jones (1995), essa teoria sugere que mudanças permanentes em determinadas variáveis políticas têm efeitos permanentes sobre a taxa de crescimento econômico.…”

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Distribuição De Renda E Crescimento Econômico No Brasil: Uma Análise Econométrica Do Período 1976-2010

Santos

Cunha

Gadelha

2016

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ResumoO modelo brasileiro de crescimento econômico predominante se caracteriza por baixas taxas de crescimento, grau reduzido de dinamismo e intensa desigualdade social. Esta pesquisa se norteia pela seguinte questão: de que forma e em que magnitude a distribuição de renda e o crescimento econômico brasileiro tem se inter-relacionado ao longo do período 1976-2012? O objetivo deste trabalho é estudar as relações de longo prazo entre a distribuição de renda e crescimento econômico no Brasil. Tanto a modelagem VEC quanto os modelos autorregressivos de defasagens distribuídas (ADLs) sugeriram a existência, no sentido de Granger, de bicausalidade da desigualdade para o crescimento e do crescimento para a desigualdade.Palavras-chave: Crescimento econômico, desigualdade, séries temporais. AbstractThe Brazilian model of economic growth is characterized by low growth rates, low level of dynamism and intense social inequality. This research is guided by the following question: in what way and to what extent the distribution and Brazilian economic growth has interrelated over the period 1976-2012? The objective of this work is to study the long-term relationships between income distribution and economic growth in Brazil. Both VEC modeling as the autoregressive models of distributed lags (ADLs) suggested the existence, in the sense of Granger, causality of inequality for growth and growth for inequality. In Brazil, income inequality hampers economic growth because of the inertia of inequality and also economic growth is revealed as an important tool for reducing income inequality.

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Economic growth and income distribution in Mexico: A cointegration exercise

Cited by 32 publications

References 44 publications

Brazil and China: Two Routes of Economic Development?

Brazil and China: Two Routes of Economic Development?

Factors Affecting Current Account Balance of Turkey: A Survey With the Cointegrating Regression Analysis

Distribuição De Renda E Crescimento Econômico No Brasil: Uma Análise Econométrica Do Período 1976-2010

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