Globalisation, income inequality and poverty relationships: evidence from Mexico, Indonesia, Nigeria and Turkey

Abstract

PurposeThe study examines the dynamic relationship among globalisation, income inequality and poverty in Mexico, Indonesia, Nigeria and Turkey (MINT countries) between 1980 and 2018.Design/methodology/approachA Bayesian vector autoregressive (BVAR) approach is used as a technique of estimation hanging on the fact that the method uses prior distribution for the estimated parameters.FindingsThe results show that globalisation is a strong predictor of itself in all the MINT countries only in the short run. In the long run, income inequality and poverty strongly influence globalisation, respectively, in Indonesia and Turkey, while globalisation still has more impact on itself in Nigeria. Income inequality has a strong endogenous impact on itself in Mexico and Indonesia over the time horizon, whereas globalisation and poverty are strong predictors of income inequality in the long run in Nigeria and Turkey, respectively. Also, poverty strongly influences itself in all the MINT countries in all the periods, meaning that poverty begets itself in all the MINT countries, except for Indonesia in the long run.Practical implicationsThe study suggests that all the MINT countries should ensure political stability and a strong institutional framework to gain from the process of globalisation and to experience reductions in the levels of income inequality and poverty.Originality/valueThis study is distinct from other studies in the sense that an overall globalisation index (GBI) as used by Dreher et al. (2008) is used for the globalisation variable, and the Multidimensional Poverty Index (MPI) is used to capture poverty in all the MINT countries. Also, the research paper uses a BVAR approach as against the classical VAR, and this helps in solving over-fitting problems.

Comparative investigation of the growth-poverty-inequality trilemma in Sub-Saharan Africa and Latin American and Caribbean Countries

“…This finding is similar to Fosu (2017), who found that poverty-inequality elasticity is higher than poverty-income elasticity. Similar to Osinubi and Olomola (2020), the Gini index exhibit no significant impact on poverty across all model specifications.…”

The Impact of Income Inequality, Renewable Energy Consumption, Non-Renewable Energy Consumption and Per Capita Income on Poverty: Evidence from BRICS Economies

“…The variables used in the study are measured as follows: different variables are used as measures of poverty in empirical studies. Headcount-based data for the poor (Omar and Inaba, 2020;Baloch et al, 2020;Kousar and Shabbir, 2021;Solarin, 2021;Ogbeide-Osaretin, 2021), income (Adekoya, 2018), infant mortality (Tsaurai, 2018;Magombeyi and Odhiambo, 2018;Khobai, 2021;Solarin, 2021), life expectancy (Magombeyi and Odhiambo, 2018;Tsaurai, 2018), multidimensional poverty index (Aziz et al, 2020;Osinubi and Olomola, 2020) and human development index (Nwani and Osuji, 2020) are used as proxy for poverty in some studies. Some other studies used per capita consumption expenditure as proxy for poverty due to the lack of data on poverty (Quartey, 2008;Odhiambo, 2009;Odhiambo, 2011;Nayasha, Gwenhure and Odhiambo, 2017;Sehrawat and Giri, 2018;Adeleye et al, 2020;Dada and Fanowopo, 2020;Garidzirai and Matiza, 2020).…”

A New Intuition into Tourism-Inclusive Growth Nexus in Turkey and Nigeria (1995 – 2018)

“…The study interpolates for missing data in Nigeria in 2004 for TOE and 2017-2018 for TOA. Following the purpose of this study, an index, Tourism activity index (TOI), is generated from the three measures of tourism (TOA, TOE and TOR) using a principal component analysis (PCA (Osinubi & Olomola, 2020a) and (ii) Nigeria has the lowest TOA, while turkey has the highest TOA among the MINT countries. The variables are described in Table 2.…”

“…Tourism, however, though well established and thriving in More Developed Countries (MDCs), has yet to hit its full potential in MINT countries. MINT countries are an agglomeration of Mexico, Indonesia, Nigeria and Turkey; and are so-called due to their vast demographic and economic similarities such as having speedily growing and emerging economies, burgeoning populations, high labour force figures, single-digit growth rates, significant poverty levels and reliance on western technology (Durotoye, 2014;Kokotovic & Kurecic, 2016;Olomola & Osinubi, 2018;Osinubi, 2020a;2020b;Osinubi & Olomola, 2020a;2020b). Osinubi (2020a) and Ajani and Kalu (2017) submit that strong economic growth and greater returns on investment are expected of MINT countries within the next decade.…”