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1 – 10 of over 6000Quoc Hoi Le, Manh Hao Quach and Huong Lan Tran
This paper examines credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and…
Abstract
Purpose
This paper examines credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit adversely affect on income inequality. The authors also examine whether the educational level and institutional quality condition the impact of policy credit on income inequality.
Design/methodology/approach
The authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem.
Findings
The authors show that while commercial credit increases income inequality, policy credit reduces income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality due to the asymmetric effects of different types of credit.
Practical implication
The government should focus on credit for the poor by helping them to exit poverty through investing in human capital, health and micro enterprises activities.
Originality/value
This is the first study that examines the links between the two components of credit and income inequality as well as the constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.
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Cleomar Gomes da Silva and Fábio Augusto Reis Gomes
The purpose of this paper is to contribute to the teaching of undergraduate macroeconomics.
Abstract
Purpose
The purpose of this paper is to contribute to the teaching of undergraduate macroeconomics.
Design/methodology/approach
To suggest a roadmap, based on a consumption function, to be used by instructors willing to teach the Lucas Critique subject.
Findings
Therefore, this paper proposes a lesson, which consists of three parts, to help undergraduates better understand the subject: (1) a grading exercise to bring the topic closer to students’ lives; (2) a Keynesian and an optimal consumption function, followed by an example based on an unemployment insurance policy; and (3) two optional topics consisting of extensions of the optimal consumption function and some empirical results related to the Lucas Critique.
Originality/value
The Lucas Critique influenced the evolution of research in macroeconomics, but it is not easily grasped in a classroom.
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Mohd Fahmee Ab Hamid, Umar Abdul Basar, Rozilee Asid, Wan Farisan Wan Sulaiman, Elya Nabila Abdul Bahri, Nor Fatimah Che Sulaiman and Norlee Ramli
The study aims to use individuals using the internet and fixed broadband subscriptions as a proxy for digitalization to empirically assess the effects of Foreign Direct Investment…
Abstract
Purpose
The study aims to use individuals using the internet and fixed broadband subscriptions as a proxy for digitalization to empirically assess the effects of Foreign Direct Investment (FDI), digitalization and their interaction on income inequality in developed and developing countries from 2002 to 2019.
Design/methodology/approach
The paper used the system general method of moments estimators for 30 developed and 35 developing countries.
Findings
FDI increases income inequality in developed countries but decreases it in developing countries, digitalization reduces income inequality in both groups and interaction term narrows income inequality in developed countries but widens it in developing countries.
Originality/value
The paper is the first to introduce digitalization into the FDI – income inequality relationship. Furthermore, it provides empirical evidence to show the difference in the role of digitalization in this relationship between developed and developing countries.
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Yogeeswari Subramaniam, Tajul Ariffin Masron and Nanthakumar Loganathan
Tourism has grown to be one of the world's largest and fastest-growing economic industries. Tourism development is viewed as a tool to improve income distribution as it allows…
Abstract
Purpose
Tourism has grown to be one of the world's largest and fastest-growing economic industries. Tourism development is viewed as a tool to improve income distribution as it allows people at the bottom of the pyramid to get involved in the industry. This study aims to examine the impact of tourism on income inequality in the top income equality countries.
Design/methodology/approach
The paper employs fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares techniques to investigate the dynamic impact of tourism on income inequality in the world's most income equality countries, from 2001 to 2016.
Findings
The result shows that tourism is one of the major drivers of income equality. Thus, tourism can be used to reduce a country's income disparity.
Practical implications
As a result, policymakers should support the tourism industry to reduce income disparity and enhance income distribution.
Originality/value
Given the conflicting findings in the literature, this study reexamines this link and attempts to backwardly assess if the top equal-income countries in the world are heavily dependent on tourism.
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Milla Salin, Mia Hakovirta, Anniina Kaittila and Johanna Raivio
This article analyzes the challenges Finnish single mothers experienced in their everyday lives during the COVID-19 pandemic. In studies on challenges to family life during…
Abstract
Purpose
This article analyzes the challenges Finnish single mothers experienced in their everyday lives during the COVID-19 pandemic. In studies on challenges to family life during COVID-19 lockdowns, single-parent families remain a largely understudied group.
Design/methodology/approach
The authors apply triple bind theory and ask how did Finnish single mothers manage the interplay between inadequate resources, inadequate employment, and inadequate policies during lockdown in spring 2020? These data come from an online survey including both qualitative and quantitative questions which was conducted between April and May 2020 to gather Finnish families' experiences during lockdown. This analysis is based on the qualitative part of the survey.
Findings
This study's results show that lockdown created new inadequacies while also enhancing some old inadequacies in the lives of Finnish single mothers. During lockdown, single mothers faced policy- and resource-disappearances; accordingly, they lost their ability to do paid work normally. Furthermore, these disappearances endangered the well-being of some single mothers and their families.
Originality/value
This article contributes to the wider understanding of everyday lives of single mothers and the challenges COVID-19 pandemic created. Moreover, this study provides knowledge on the applicability of the triple bind theory when studying the everyday lives of single mothers.
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Pham Dinh Long, Bui Quang Hien and Pham Thi Bich Ngoc
The paper aims to shed light on the effects of inflation on gold price and exchange rate in Vietnam by using time-varying cointegration.
Abstract
Purpose
The paper aims to shed light on the effects of inflation on gold price and exchange rate in Vietnam by using time-varying cointegration.
Design/methodology/approach
Using cointegration techniques with fixed coefficient and time-varying coefficient, the study exams the impacts of inflation in models and compares the results through coefficient estimates.
Findings
A significant inflation impacts are found with the time-varying cointegration but not with the fixed coefficient cointegration models. Moreover, monetary policy affects exchange rate not only directly via its instruments as money supply and interest rate but indirectly via inflation. Also, interest rate is one of the determinants of gold price.
Originality/value
To the best of our knowledge, this paper is the first to use time-varying cointegration to analyze the impact of inflation on the gold price and exchange rate in Vietnam. Gold price and exchange rate fluctuations are always the essential and striking issues, which have been emphasized by economists and policymakers. In macroeconometric researches, cointegration models are often used to analyze the long-term relations between variables. Attentionally, applied models show a limitation when estimating coefficients are fixed. This characteristic might not really match with the data properties and the variation of the economy. Currently, time-varying cointegration models are emerging method to solve the above issue.
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Expanding the research on traditional history of economic ideology into the research on the history of economics composed of three elements – history of ideology, history of…
Abstract
Purpose
Expanding the research on traditional history of economic ideology into the research on the history of economics composed of three elements – history of ideology, history of policies and events – is a new idea for researching the history of socialist political economy with Chinese characteristics. The start of the history of socialist political economy with Chinese characteristics is consistent with that of the Sinicization of Marxist political economy and can be dated from at least 1917.
Design/methodology/approach
The key point of the research on the history of ideologies of the socialist political economy with Chinese characteristics is to treat the relationship between theory and people properly, i.e. we should not neglect the effect brought out by the economists on theory construction while we attach importance to the theoretical contribution of the leaders and leading group of the Communist Party of China (CPC).
Findings
For the research on the history of economic policies of socialist political economy with Chinese characteristics, on the one hand, we should clarify the relationship among ideologies, strategies and policies; on the other hand, we should not evade the summarization of lessons from history.
Originality/value
Besides presenting the development route of socialist political economy with Chinese characteristics under competition, the research on the events in the history of socialist political economy with Chinese characteristics should also help develop the socialist political economy with Chinese characteristics.
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This paper aims to examine the distributional channel of monetary policy (MP) and evaluate how financial development (FD) affects the transmission mechanism from MP to income…
Abstract
Purpose
This paper aims to examine the distributional channel of monetary policy (MP) and evaluate how financial development (FD) affects the transmission mechanism from MP to income inequality.
Design/methodology/approach
The empirical investigation is implemented for 32 sub-Saharan African countries over the period 2000–2017, with the aid of vector autoregressions and a dynamic panel data model.
Findings
This study shows that MP has a significant impact on income inequality and the financial system plays an important role by dampening the dis-equalising effects of MP shocks. Both MP and FD directly exert redistributive effects. However, the financial system appears to wield the greatest impact and contribute more to the inequality dynamics.
Practical implications
The policy-relevant conclusion is that the financial system is crucial for the monetary transmission mechanism and the effects of MP actions. As the economy develops financially, it may require less movement in the policy position to achieve the desired policy outcome. Also, macroeconomic stabilisation policies may not be distributionally neutral and may have a role to play in averting longer-term increases in inequality.
Originality/value
Contrary to previous studies, this study indicates MP by the structural shocks to purge the MP stance of the issues of endogenous and anticipatory actions. A distinctive finding of this paper is that cross-country differences in monetary regimes and income explain a significant variation in the distributional impacts of monetary policy. Notwithstanding, the evidence shows that the strength of the transmission is more dependent on FD than the nature of the policy regime.
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