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Open Access
Article
Publication date: 24 October 2023

Md. Saiful Islam and Abul Kalam Azad

Personal remittance and ready-made garments (RMG) export incomes have emerged as the largest source of foreign income for Bangladesh's economy. The study investigates their impact…

Abstract

Purpose

Personal remittance and ready-made garments (RMG) export incomes have emerged as the largest source of foreign income for Bangladesh's economy. The study investigates their impact on income inequality and gross domestic product (GDP) as a control variable, using time-series yearly data from 1983 to 2018.

Design/methodology/approach

It employs the Autoregressive Distributed Lag (ARDL) estimation and the Toda-Yamamoto (T-Y) causality approach. The ARDL estimation outcomes confirm a long-run association among the above variables and validate the autoregressive characteristic of the model.

Findings

Personal remittances positively contribute to reducing the income gap among the people of the society and declining income inequality. In contrast, RMG export income and economic growth contribute to further income inequality. The T-Y causality analysis follows the ARDL estimation outcomes and authenticates their robustness. It reveals a feedback relationship between remittance inflow and the Gini coefficient, unidirectional causalities from RMG export income to income inequality and economic growth to income inequality.

Research limitations/implications

The finding has important policy implications to limit the income gaps between low and high-income groups by channeling incremental income to the lower-income group people. The policymakers may facilitate further international migration to attract further remittances and may upgrade the minimum wage of the RMG workers.

Originality/value

The study is original. As far as the authors' knowledge goes, this is a maiden attempt to investigate the impact of personal remittances and RMG export income on income disparity in the case of Bangladesh.

Details

Review of Economics and Political Science, vol. 9 no. 2
Type: Research Article
ISSN: 2356-9980

Keywords

Article
Publication date: 22 August 2023

Shobhana Sikhawal

This study examines the non-linear impact of financial development on income inequality and analyses the mediators through which financial development affects income inequality.

Abstract

Purpose

This study examines the non-linear impact of financial development on income inequality and analyses the mediators through which financial development affects income inequality.

Design/methodology/approach

The study uses a dynamic panel threshold method with an endogeneous threshold variable on a comprehensive sample of 85 countries over the period of 1996-2015.

Findings

The author finds that financial development activities increase income inequality in developed countries. However, financial development promotes income equality in developing countries. Further, the study finds that education and institutional quality are the channels through which financial development has non-linear impacts on income inequality.

Originality/value

The study explores relatively new method to examine the nonlinear impact of financial development and also considers new dataset for the main explanatory variable.

Details

Journal of Economic Studies, vol. 51 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 17 October 2023

Anthony Smythe, Igor Martins and Martin Andersson

With the recognition that generating economic growth is not the same as sustaining it, the challenge to catch-up and growth literature is discerning between these processes…

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Abstract

Purpose

With the recognition that generating economic growth is not the same as sustaining it, the challenge to catch-up and growth literature is discerning between these processes. Recent research suggests that the decline in the frequency of “shrinking” episodes is more important for long-term development than higher growth rates. By using a framework centred around social capabilities, this study aims to investigate the effects of income inequality and poverty on economic shrinking frequency, as opposed to previous literature that has exclusively had a growth focus. The aim is to investigate how and why some societies might be more resilient to economic shrinking.

Design/methodology/approach

The research is a quantitative study, and the authors build a longitudinal data set including 23 developing countries throughout 42 years to test the paper’s purpose. This study uses country and period fixed-effects specifications as well as cross-sectional graphical representations to investigate the relationship between proxies of economic inclusivity and the frequency of shrinking episodes.

Findings

The authors demonstrate that while inclusive societies are more resilient to shrinking overall, it is changes in poverty levels, but not changes in income inequality, that appear to be correlated with economic shrinking frequency. Inequality, while still an important element to explain countries’ growth potential as an initial condition, does not seem to make the sample more resilient to shrinking. The authors conclude that the mechanisms in which poverty and inequality are correlated with the catch-up process must run through different channels. Ultimately, processes that explain growth may intersect but not always overlap with the ones that explain resilience to shrinking.

Originality/value

The need for inclusive growth in long-term development has been championed for decades, yet inclusion has seldom been explored from the shrinking perspective. Though poverty reduction is already an important mainstream political objective, this paper differentiates itself by providing an alternate viewpoint of why this is important. Income inequality could have more of an economic growth limiting effect, while poverty reduction could be required to build resilience to economic shrinking. Developing countries will need both growth and resilience to shrinking, to catch-up with higher-income economies, which policymakers might need to balance carefully.

Details

International Journal of Development Issues, vol. 23 no. 1
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 10 May 2023

Sri Herianingrum, Indri Supriani, Raditya Sukmana, Effendie Effendie, Tika Widiastuti, Qudsi Fauzi and Atina Shofawati

This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.

1180

Abstract

Purpose

This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.

Design/methodology/approach

This study used a qualitative method based on library research sourced from books, financial reports and another previous research.

Findings

The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.

Research limitations/implications

This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.

Originality/value

Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

Open Access
Article
Publication date: 1 April 2024

Ying Miao, Yue Shi and Hao Jing

This study investigates the relationships among digital transformation, technological innovation, industry–university–research collaborations and labor income share in…

Abstract

Purpose

This study investigates the relationships among digital transformation, technological innovation, industry–university–research collaborations and labor income share in manufacturing firms.

Design/methodology/approach

The relationships are tested using an empirical method, constructing regression models, by collecting 1,240 manufacturing firms and 9,029 items listed on the A-share market in China from 2013 to 2020.

Findings

The results indicate that digital transformation has a positive effect on manufacturing companies’ labor income share. Technological innovation can mediate the effect of digital transformation on labor income share. Industry–university–research cooperation can positively moderate the promotion effect of digital transformation on labor income share but cannot moderate the mediating effect of technological innovation. Heterogeneity analysis also found that firms without service-based transformation and nonstate-owned firms are better able to increase their labor income share through digital transformation.

Originality/value

This study provides a new path to increase the labor income share of enterprises to achieve common prosperity, which is important for manufacturing enterprises to better transform and upgrade to achieve high-quality development.

Article
Publication date: 16 October 2023

Cydni Meredith Robertson and Caroline Kopot

While today's customer steadily adapts to various modes of shopping, their beliefs around fluency through each shopping channel, and personal factors such as income level, can…

Abstract

Purpose

While today's customer steadily adapts to various modes of shopping, their beliefs around fluency through each shopping channel, and personal factors such as income level, can impact their intention to patronage or purchase from omnichannel department stores. Hence, this study analysed the customers of omnichannel fashion department stores, using perceived fluency and income as indirect factors that help understand customers' patronage intention and purchase intention.

Design/methodology/approach

The overarching framework for this research is the theory of reasoned action, in which patronage and purchase intentions represent the specific likelihood-of-performance behaviours. A Seemingly Unrelated Regression model was empirically used to analyse the relationships between generational cohorts, income, and perceived channel fluency and the behaviours that lead to patronage intention and purchase intention. Researchers conducted a survey among 552 omnichannel fashion department store consumers to examine today's retail environment.

Findings

The results of this study suggest that (1) consumers between the ages of 50 and 69 years, including older Generation X and younger Baby Boomers, who earn between $60,000 and $79,999 in annual salary show a significantly positive relationship with both patronage and purchase intentions through perceived fluency and (2) consumers between the ages of 38 and 49 years, including older Millennials and younger Generation X, who earn between $80,000 and $99,999 in annual salary show a significantly positive relationship with purchase intention through perceived fluency

Originality/value

This study analyses correlations between a generational cohort, perceived fluency as moderated by income and the relationship between these variables and customers' patronage and purchase intentions, which has not been studied before.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 28 no. 3
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 3 January 2023

Alina-Petronela Haller, Mirela Ștefănică, Gina Ionela Butnaru and Rodica Cristina Butnaru

The purpose of this paper is to analyse the influence of economic growth, digitalisation, eco-innovation, energy consumption and patents on environmental technologies on the…

Abstract

Purpose

The purpose of this paper is to analyse the influence of economic growth, digitalisation, eco-innovation, energy consumption and patents on environmental technologies on the volume of greenhouse gas emissions (GHG) recorded in European countries for a period of nine years (2010–2018).

Design/methodology/approach

Two empirical methods were integrated into the theoretical approach developed based on the analysis of the current scientific framework. Multiple linear regression, an extended version of the OLS model, and a non-causal analysis as a robustness method, Dumitrescu–Hurlin, were used to achieve the proposed research objective.

Findings

Digitalisation described by the number of individual Internet users and patents on environmental technologies determines the amount of GHG in Europe, and economic growth continues to have a significant effect on the amount of emissions, as well as the consumption of renewable energy. European countries are not framed in well-established patterns, but the economic growth, digitalisation, eco-innovation and renewable energy have an impact on the amount of GHG in one way or another. In many European countries, the amount of GHGs is decreasing as a result of economic growth, changes in the energy field and digitalisation. The positive influence of economic growth on climate neutrality depends on its degree of sustainability, while patents have the same conditional effect of their translation into environmentally efficient technologies.

Research limitations/implications

This study has a number of limitations which derive, first of all, from the lack of digitalisation indicators. The missing data restricted the inclusion in the analysis of variables relevant to the description of the European digitalisation process, also obtaining conclusive results on the effects of digitalisation on GHG emissions.

Originality/value

A similar analysis of the relationship among the amount of greenhouse gas emissions and economic growth, digitalisation, eco-innovation and renewable energy is less common in the literature. Also, the results can be inspirational in the sphere of macroeconomic policy.

Details

Kybernetes, vol. 53 no. 4
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 22 December 2023

Simplice Asongu

This study aims to examine how the starting of business by females can be promoted by assessing critical levels of microfinance institutions (MFIs) penetration that policymakers…

Abstract

Purpose

This study aims to examine how the starting of business by females can be promoted by assessing critical levels of microfinance institutions (MFIs) penetration that policymakers must endeavor to maintain and/or attain in order for female unemployment not to represent a constraint in the doing of business. A constraint in doing business is understood in terms of the procedure that a woman has to go through to start a business.

Design/methodology/approach

The focus of the study is on 44 countries in Sub-Saharan Africa for the period 2004–2018, while the empirical evidence is based on interactive quantile regressions.

Findings

The following findings are established. The validity of tested hypotheses is exclusively apparent in the lowest and highest quantiles of the conditional distribution of the procedure women have to go through to start a business. MFI penetration levels needed to reverse the unfavorable incidence of female unemployment in doing business are provided. These are minimum MFIs penetration thresholds that are required in order for female unemployment not to negatively affect the procedure that a woman should go through to start a business.

Originality/value

The study complements the extant literature by assessing critical microfinance penetration levels that are needed to promote female doing of business, contingent on existing levels of female doing of business.

Details

Social Responsibility Journal, vol. 20 no. 5
Type: Research Article
ISSN: 1747-1117

Keywords

Open Access
Article
Publication date: 6 November 2023

Albulena Shala, Peterson K. Ozili and Skender Ahmeti

This study examines the impact of competition and concentration on bank income smoothing in Central and Eastern European (CEE) countries.

Abstract

Purpose

This study examines the impact of competition and concentration on bank income smoothing in Central and Eastern European (CEE) countries.

Design/methodology/approach

The two-step system GMM method was used to analyse the impact of competition and concentration on bank income smoothing in 17 CEEs from 2004 to 2015.

Findings

Loan loss provisions (LLPs) are negatively related to bank competition and concentration. The authors find no evidence for income smoothing using LLPs in a high-competition or high-concentration environment.

Research limitations/implications

A limitation of the study is that the analysis was restricted to commercial banks. The authors did not examine investment banks or microfinance banks in this study. Also, not having access to databases does not allow them to include recent years in the study.

Practical implications

CEE commercial banks will likely keep fewer provisions or engage in under-provisioning when they face intense competition, and this can expose them to credit risk, which may threaten their stability.

Originality/value

This study is the first to investigate the effect of concentration and competition on income smoothing among CEE banks.

Details

Journal of Economics, Finance and Administrative Science, vol. 29 no. 57
Type: Research Article
ISSN: 2077-1886

Keywords

Article
Publication date: 26 May 2023

David John Gilchrist, Dane Etheridge and Zhangxin (Frank) Liu

The purpose of this study is to investigate the prevalence of earnings management in the Australian not-for-profit (NFP) disability service providers sector, as well as to…

Abstract

Purpose

The purpose of this study is to investigate the prevalence of earnings management in the Australian not-for-profit (NFP) disability service providers sector, as well as to understand the motivations for and implications of such practices. This research is important for stakeholders, such as members and funders, as well as the broader Australian community, considering the significant financial resources allocated to these organizations from the public purse.

Design/methodology/approach

The authors employ a longitudinal dataset containing financial data from 154 Australian NFP disability service providers, collected over a two-year period (2015–2016). Through the analysis of detailed balance sheets and income statements, the authors seek to uncover evidence of earnings management practices in this sector. The study’s results provide valuable insights into the behaviour of the charitable human services sector.

Findings

The findings reveal that Australian NFP disability service providers engage in earnings management practices, primarily aimed at reducing reported profits to meet the normative financial expectations of stakeholders, such as public sector funders and philanthropists. The executives of these organizations strive to report profits close to zero, being cautious not to report a loss, which might raise concerns about their sustainability.

Originality/value

The authors contribute to the existing literature on earnings management in the NFP sector by focussing on Australian disability service providers, an area that has been under-researched due to a lack of suitable data. The results offer insights into the incentives and implications of earnings management practices in this sector and highlight the need for a revaluation of accounting standards, reporting requirements and audit arrangements applicable to the NFP sector.

Details

Journal of Accounting Literature, vol. 46 no. 2
Type: Research Article
ISSN: 0737-4607

Keywords

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