Enriching the socio-economic inequality model by using alternative indices

Syahnur, Sofyan; Frohberg, Kurt Klaus; Ryu, Doojin; Diantimala, Yossi

doi:10.14254/2071-789x.2021/14-4/3

Cited by 7 publications

(7 citation statements)

References 41 publications

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“…At the same time, the key actions of Latvia and Lithuania governments were aimed at increasing the investment attractiveness of national economies and the inflow of FDI and portfolio investments, primarily from the leading countries of the EU (France, Germany, Italy, the Netherlands). As a result, this formed a certain dependence of these countries on foreign financial capital, associated with the growth Source: developed by the author of credit risks, exchange rate fluctuations, changes in the effective interest rate, therefore, in our opinion, the main directions to reduce economic inequality in the Baltic countries (Latvia and Lithuania) can be the stimulation of domestic investments and ensuring the high yield of domestic government bonds (DGB) [20][21][22]. Instead, the main reason for the economic inequality of population in Bulgaria is the disproportionality of deindustrialization processes, which have led to changes in the sectoral structure of employment, an increase in the role of service sector and job cuts in the main industries (mining, metallurgy, machine-building, chemical industry, food industry, light industry, textile industry) [9].…”

Section: Resultsmentioning

confidence: 99%

Taxonomic analysis of income inequality in the EU countries

Cherkashyna¹

2022

Economics of Development

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The problem of population economic inequality is an actual issue for all countries of the world, but the peculiarity of economic inequality in EU countries lies in the differentiation of non-labor incomes received from property ownership, and also in the uneven distribution of residential and commercial real estate. Therefore, the analysis of population economic inequality in the EU countries is an urgent scientific and practical task. The purpose of this study was to determine the degree of economic inequality and the optimal rate of population income differentiation in the EU countries, and to develop measures based on this to reduce the degree of property inequality in the countries of this region. To achieve the goal, the taxonomy method was used, as well as general scientific methods (dialectics, analysis, synthesis, induction, deduction). For the quantitative description of the obtained results, the Harrington factor-criterion scale was used, which made it possible to divide 27 EU countries into three groups (clusters): countries with a high degree of economic inequality (Bulgaria, Latvia, Lithuania); countries with an average degree of economic inequality (Austria, Belgium, Greece, Spain, Italy, Cyprus, Luxembourg, Germany, Poland, Portugal, Romania, Hungary, Croatia, Finland, France, Sweden); countries with a low degree of economic inequality (Denmark, Estonia, Ireland, Malta, the Netherlands, Slovakia, Slovenia, the Czech Republic). To reduce the population economic inequality in the countries of the third group, the following measures have been proposed: stimulation of domestic and foreign investments; ensuring a high return on financial assets at the state level; creating more favorable conditions for the development of industry and increasing the wages of workers at the industrial enterprises. The obtained results have scientific and practical value on how to improve the economic policy of the countries of Northern and Eastern Europe and can be used in further theoretical researches on problems of population economic inequality in the countries of this region and for the specification of applied measures to reduce economic inequality in Bulgaria, Latvia and Lithuania

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Section: Resultsmentioning

confidence: 99%

Taxonomic analysis of income inequality in the EU countries

Cherkashyna¹

2022

Economics of Development

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“…Therefore, policymakers should encourage investment in infrastructure and transportation to enhance economic performance sustainably and decrease income inequality. In another study in Indonesia, Syahnur et al (2021) analysis the regional socioeconomic inequality with a provincial sample. The empirical result confirms some determinants of the inequality including the economic strengths and weaknesses of provinces, economic capability, environmental factors, and human capital source.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, in the case of the Northern Midlands & Mountain region, the estimated coefficients are positive and indicate a larger labour force province can have higher inequality. Hence, the improvement of key socio-economic indicators in social welfare for ethnic minorities will help to reduce inequality not only in a specific region such as the Northern Midlands & Mountains but also in Vietnam (see Syahnur et al, 2021). It can be explained that this region is the homeland of the largest ethnic groups of people who have low labour skills, low educational levels as well as the poorest group in Vietnamese society.…”

Section: Source: Own Compilationmentioning

confidence: 99%

“…The growth of income per capita and the distribution of income are the spotlight topics in economics, both in theoretical literature (Barro, 1991;Mankiw et al, 1992) and in empirical studies (Knowles, 2005;Lee, 2008;Fanta & Upadhyay, 2009;Yusuf et al, 2014;Włodarczyk et al, 2017;Nugraha et al, 2020;Syahnur et al, 2021;Seven, 2022). Many studies show that economic growth helps to reduce the poverty rate in many developing countries, however, income inequality arises as a social problem (Kumar & Mahadevan, 2011;Jalles, 2011;Yusuf et al, 2014;Tran et al, 2017;Sánchez-López et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

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The relationship between income growth and inequality: Evidence from an Asian emerging economy

Tùng¹,

Bentzen²

2022

Economics &Amp; Sociology

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This paper aims to investigate the relationship between income growth and inequality in Vietnam. The study database was collected and calculated from 61 provinces in the period of 2006-2018. The economic equation is estimated with 3 types of data including the full sample, the North and the South regions, and six sub-economic regions. The empirical results present several important scientific contributions. First, the estimated results show the Kuznets curve hypothesis is confirmed in Vietnam when the relationship between income growth and inequality is presented by an inverted U-shaped curve. Second, the Kuznets curve does not occur in the provinces which have a high level of economic liberalization and a large private sector, as evidenced by the analysis of sub-samples. Economic integration is a progressive process provided foreign direct investment decreases inequality in most regions. Educational development helps to reduce inequality but this relationship is only found in the areas populated by ethnic minorities. The labour force has a positive and significant relationship to inequality, especially in regions with labour shortages, although this variable can even help reduce inequality in some sub-economic regions that have an abundance of labour. Tourism development and trade variables are considered to be the sources of inequality in lower development regions. The empirical results suggest that policymakers need to continuously reduce income inequality to support sustainable development in the future.

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“…The next section of the literature review aims to summarise the most relevant research results on the assessment of income inequality and its impact on economic development proxies. Thus, (Syahnur et al (2021)) in the context of a quantitative assessment of the level of socio-economic inequality, relied on indicators of investment volumes, public expenditures, human development index. Tiutiunyk et al (2022);Fertö, Bojnec, Podruzsik (2022) also argued that the country's social development is closely related to the leveling of the population's income distribution (the Gini index) and the level of human development.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic development and income inequality: Role in country resistance to COVID-19

Vasylieva¹,

Vysochyna²,

Filep³

2022

Economics &Amp; Sociology

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The pandemic of coronavirus disease (COVID-19) significantly slowed economic development and exacerbated income inequality. However, the scale of this destructive influence varies considerably among countries. Thus, the purpose of this study is to identify changes in causality patterns between economic development and income inequality due to COVID-19. To fulfill the task, an Index of Economic Development (IED) is developed using the multivariate analysis tools, Cronbach's alpha and the Fishburn formula. The Gini index was chosen as a core proxy of social inequality. The research covers a sample of 15 European countries. The period of the analysis is 2000-2021. A set of regression equations are constructed to determine the relationship between economic development and income inequality in the studied countries. A dummy variable is integrated into the equation to determine the impact of the coronavirus disease (COVID-19). Modeling is carried out on the panel data. The most acceptable functional form of the regression model is clarified based on the Hausman test. Modeling results make it possible to identify patterns of changes in the impact of income inequality on economic development, and vice versa. The change in their causality due to COVID-19 is substantiated.

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Enriching the socio-economic inequality model by using alternative indices

Cited by 7 publications

References 41 publications

Taxonomic analysis of income inequality in the EU countries

Taxonomic analysis of income inequality in the EU countries

The relationship between income growth and inequality: Evidence from an Asian emerging economy

Economic development and income inequality: Role in country resistance to COVID-19

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