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Article
Publication date: 21 June 2023

Changjun Jiang and Bohao Jin

Since 2017, China's digital economy has accounted for more than 30% of the country's GDP. The digital economy has become the main driving force of China's economic development…

Abstract

Purpose

Since 2017, China's digital economy has accounted for more than 30% of the country's GDP. The digital economy has become the main driving force of China's economic development. Moreover, the digital economy has also changed the traditional modes of production and distribution between urban and rural areas. This paper aims to explore the influential mechanism of digital economy infrastructure (DEI) on the urban-rural income gap (URIG).

Design/methodology/approach

By analyzing the theoretical model of the URIG, this paper constructs a theoretical analysis framework and clarifies the key roles of rural land circulation (RLC) and resident population urbanization (RPU) in the relationship between DEI and the URIG.

Findings

The DEI can effectively reduce the URIG; the regression coefficient (RC) was −0.109. The reduction effect is mainly reflected in: 1) the wage income gap between urban and rural residents (RC = −0.128) and 2) the net property income gap of urban and rural residents (RC = −0.321). Also, for the spatial spillover effect, the path effect of “DEI – RLC – URIG” is almost equal to the path effect of “DEI – RPU – URIG”; for the local effect, the path effect of the former is far smaller than the latter. Moreover, when the RPU reaches the threshold of 86.29%, the DEI will expand the URIG (RC = 0.201).

Originality/value

This paper proposes a theoretical framework for the impact of DEI on the URIG, explores the mechanism of RLC and RPU in the DEI and URIG and enriches the theory of traditional research on URIG.

Details

Kybernetes, vol. 53 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 24 July 2023

Sudharshan Reddy Paramati and Thanh Pham Thien Nguyen

This paper explores the effect of tourism (national and international) indicators on income inequality in a sample of 21 Asia Pacific economies.

Abstract

Purpose

This paper explores the effect of tourism (national and international) indicators on income inequality in a sample of 21 Asia Pacific economies.

Design/methodology/approach

This study uses panel data set from 1995 to 2020 and employs panel autoregressive distributed lag (ARDL) method for the empirical investigation.

Findings

The empirical findings from the panel ARDL models suggest that all of the considered tourism indicators have significant negative impacts on income inequalities. The results remain consistent with alternative indicators and methods.

Social implications

The findings of this study will be critical for the policymakers to take effective measures to reduce the income inequality. Such measures could include promoting tourism in general, focusing on attracting international tourists or domestic tourists, and putting more weight on developing leisure or business tourism, which will boost the overall economic performance and alleviates inequalities in the society.

Originality/value

This is the first study to consider various forms of tourism indicators to see their impact on income inequality in the Asia–Pacific region, and offers important implications for the policy actions.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 43 no. 1
Type: Research Article
ISSN: 2040-7149

Keywords

Article
Publication date: 14 September 2023

Ishfaq Nazir Khanday, Md. Tarique, Inayat Ullah Wani and Muzffar Hussain Dar

The primary objective of the paper is to examine the asymmetric Cointegration and asymmetric causality between financial development and poverty alleviation on annual data in…

Abstract

Purpose

The primary objective of the paper is to examine the asymmetric Cointegration and asymmetric causality between financial development and poverty alleviation on annual data in Indian context over the period from 1980 to 2019.

Design/methodology/approach

First nonlinearity test by Brooks et al. (1999) is applied to ascertain the nonlinear behavior of the variables used. Once the nonlinear behavior of variables is confirmed, asymmetric and nonlinear unit root tests by Kapetanios and Shin (2008) are applied to check for the order of integration of selected variables. Next, nonlinear autoregressive distributed lag model (NARDL) is employed to analyze the asymmetric Cointegration. Finally, Hatemi-j- asymmetric causality tests is applied to work out the direction of asymmetric causality.

Findings

The empirical findings document the existence of asymmetries in the short-run as well as long-run between poverty and financial development. The asymmetry reveals that negative financial development shocks leave a more profound impact on poverty alleviation than their positive equivalents. The findings of Wald's test also confirm the presence of asymmetric Cointegration. The asymmetric cumulative dynamic multipliers used to examine the behavior of asymmetries and adjustments with respect to time lend credence to the results calculated using NARDL estimator. This result exhibits the robustness of the model. Furthermore, the result emanating from recently introduced asymmetric causality test reveals a unidirectional asymmetric causality between negative shocks in financial development and poverty. The findings of the present study necessitate the need for investigating asymmetric and nonlinear effects in finance–poverty nexus, which existent literature has completely neglected, in order to have relevant policy conclusions.

Research limitations/implications

The study used “Per capita consumption expenditure” as a measure for poverty due to lack of continuous time series data on headcount ratio. In future, researchers can extend this study by incorporating headcount ratio as a measure of poverty in their respective works. There is further scope of research on this issue by finding out the impact of formal and informal sources of credit on poverty separately. A panel data study for developing countries over a period of time could further confirm/negate the findings of the present study.

Originality/value

To the best of the authors’ knowledge none of the studies in Indian context has scrutinized asymmetric and nonlinear impact of financial development on poverty. To dredge up asymmetric structures at work, the authors have used the highly celebrated NARDL estimator. To enrich the existent body of knowledge along the lines of asymmetric (nonlinear) linkages, the authors have also used recently introduced asymmetric causality test by Hatemi-j-(2012) to find out the direction asymmetric causality.

Details

Journal of Economic Studies, vol. 51 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 25 April 2024

Ayi Gavriel Ayayi and Hamitande Dout

The purpose of this paper is to calculate the financial inclusion index and analyze its dynamics in developing countries.

Abstract

Purpose

The purpose of this paper is to calculate the financial inclusion index and analyze its dynamics in developing countries.

Design/methodology/approach

The authors use the two-stage principal component analysis (PCA) method and consider financial technology innovations to improve the accuracy of the financial inclusion index.

Findings

The authors found a downward trend in the financial inclusion index in most developing countries over the study period. The authors also found that a high financial inclusion index is linked to high scores in the Doing Business and high business climate regulation ranking. In addition, the authors observed that the rates of low financial inclusion in developing countries are due to low utilization of and unequal access to financial services.

Practical implications

The analysis suggests that policymakers in developing countries could invest in digital infrastructure to extend access to financial services in remote areas. They could also encourage financial innovation, particularly in financial technologies, by adopting flexible regulatory frameworks. Promoting the financial inclusion of marginalized groups through targeted initiatives tailored to their needs is another solution. They could also encourage the use of financial services by raising awareness and educating populations through training programs. Finally, to improve the business climate, governments could simplify administrative procedures and promote transparency and legal stability.

Originality/value

Unlike previous studies, the use of the two-stage PCA method and the consideration of financial technology (Fintech) innovations such as mobile money in the determinants of the financial inclusion index improve the accuracy of the index.

Details

Journal of Financial Economic Policy, vol. 16 no. 3
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 20 March 2024

Jinwei Lv, Bing Liu and Li Chai

Urbanization is driving the growth of China’s carbon footprint. It’s important to investigate what factors, how and to what extent, affect carbon footprints embedded in various…

Abstract

Purpose

Urbanization is driving the growth of China’s carbon footprint. It’s important to investigate what factors, how and to what extent, affect carbon footprints embedded in various categories of rural and urban households’ consumption.

Design/methodology/approach

We employ an environmental extended input-output model to assess and compare the rural-urban household carbon footprints and perform a multivariant regression analysis to identify the varying relationships of the determinants on rural and urban household carbon footprints based on the panel data of Chinese households from 2012 to 2018.

Findings

The results show evidence of urbanity density effect on direct carbon footprints and countervailing effect on indirect carbon footprints. The old dependency ratio has no significant effect on rural family emissions but has a significantly negative effect on urban direct and indirect carbon footprints. A higher child dependency ratio is associated with less rural household carbon emissions while the opposite is true for urban households. Taking advantage of recycled fuel saves direct carbon emissions and this green lifestyle benefits urban households more by saving more carbon emissions. There is a positive relationship between consumption structure ratio and direct carbon footprints while a negative relationship with indirect carbon footprints and this impact is less significant for urban households. The higher the price level of water, electricity and fuel, the lower the rural household’s direct carbon footprints. Private car ownership consistently augments household carbon footprints across rural and urban areas.

Originality/value

This paper provides comprehensive findings to understand the relationships between an array of determinants and China’s rural-urban carbon emissions, empowering China’s contribution to the global effort on climate mitigation.

Details

China Agricultural Economic Review, vol. 16 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 3 March 2023

Christian Lukineyo Joshi, Helene Maisonnave, Robert Luanda Baroki and Anastasie Bulumba Mariam

The purpose of this study was to show how pro-gender public policies in the agricultural sectors can contribute to the reduction of gender inequalities in the labour market and…

Abstract

Purpose

The purpose of this study was to show how pro-gender public policies in the agricultural sectors can contribute to the reduction of gender inequalities in the labour market and the diversification of the Congolese economy.

Design/methodology/approach

Computable general equilibrium model that has been adapted to the Congolese economy from the Democratic Republic of the Congo (DRC)'s SAM.

Findings

The results reveal that policies of increasing women's land allocation and government cash transfers to rural female households contribute to the reduction of inequalities in the labour market. However, only the policy of increasing women’s land allocation improves economic diversification.

Research limitations/implications

The implementation of the policy of government cash transfers to rural women's households comes at a cost to the government. Future studies to look at the most effective mode of financing for this policy. Moreover, the policy of increasing women's land allocation is feasible in the DRC as there is a lot of unused arable land available.

Social implications

In Pillar 1 of the National Strategic Development Plan (PNSD) on Economic Diversification and Transformation, the policy of increasing land allocation to women could be added to the objectives related to strengthening the contribution of agriculture to economic growth and employment creation. In Pillar 3 of the PNSD on Social Development and Human Resource Development, the policy of increasing land allocation to women as well as the policy of increasing government transfers to female rural households could be added to the objectives related to the promotion of employment of youth, women and vulnerable groups.

Originality/value

To the best of the authors’ knowledge, this is the first study of its kind for the DRC, which highlights the impact of pro-gender policies on women's employment, particularly in the agricultural sectors and in the diversification of the Congolese economy. This study contributes to policy orientation in DRC. The two policies (increasing land allocation to women and cash transfers to rural women) analysed in this study were chosen in light of the DRC's National Strategic Plan, the first phase of which focuses on promoting employment for vulnerable groups and economic diversification through the development of agricultural sectors.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

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: 5 January 2023

Miraj Ahmed Bhuiyan, Zhihui Liu and Fanqiang Meng

At present, the scale of China's floating population has reached 376 million people. Compared with the local inhabitants, the poverty problem of the floating population is more…

Abstract

Purpose

At present, the scale of China's floating population has reached 376 million people. Compared with the local inhabitants, the poverty problem of the floating population is more complex, and this problem should also attract the attention of all sectors of society. This paper aims to measure and analyze the multidimensional poverty of the floating population in China.

Design/methodology/approach

The data used in this paper are the data of the China Migrants Dynamic Survey (CMDS) in China. This survey is a large-scale national migratory population sampling survey organized by the China National Health Commission, covering 31 provinces (autonomous regions and cities) and other autonomous regions. This paper uses the dynamic monitoring and Alkire and Foster (A-F) method to study the multidimensional poverty problem of the floating population.

Findings

This study finds that income poverty is no longer the main type of poverty faced by the floating population. The multidimensional poverty of the floating population mainly occurs in the social security and education dimensions, of which social security has become the most severe poverty dimension of the floating population. From the perspective of group differences, compared with the floating population in urban areas, the multidimensional poverty of migrant workers is more serious. However, the poverty of migrant workers is mainly concentrated in one-dimensional poverty and two-dimensional poverty.

Social implications

In the future, the authors should focus on the social security of the floating population in the place of influx and the education of the floating population.

Originality/value

Through the review of the existing literature, the authors find that the current research on the multidimensional poverty of the floating population is mainly concentrated on the migrant worker groups that move from rural areas to urban areas. However, insufficient attention is paid to the urban floating population groups moving between cities.

Details

Kybernetes, vol. 53 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 2 January 2023

Shulin Xu, Zefeng Tong, Cheng Li and Shuoqi Chen

High-quality labor supply is inevitable to maintain sustainable and steady economic growth. This study mainly explores the impact of the social pension system on the health of…

Abstract

Purpose

High-quality labor supply is inevitable to maintain sustainable and steady economic growth. This study mainly explores the impact of the social pension system on the health of human capital, and further explores its impact mechanism.

Design/methodology/approach

On the basis of the data from China Family Panel Studies from 2012 to 2018, this article uses the fixed effect model and the mediation effect model to empirically study the influence of the social pension scheme on the health of human capital and further explore its influence mechanism.

Findings

This study shows that the social pension scheme can significantly improve the physical and mental health of laborers, especially for low-income and agricultural groups. The implementation of the social pension scheme contributes to increasing medical services and reducing the labor supply for the benefit of human health capital. Therefore, the government should continue to expand the coverage of the social pension scheme and comprehensively improve the importance of human health capital on economic growth.

Practical implications

Medical costs and labor supply play a mediating effect in the relationship between social pension and rural labors' health status, which indicates that medical costs and labor supply level are still important factors affecting the health status of rural labor. There are essential factors affecting the health status of the rural labor force, and their role should be given more consideration in the process of system design and improvement.

Originality/value

The existing studies have more frequently studied the effect of the implementation of social pension schemes from the perspective of economic performance, but this paper evaluates the policy effect of social pension schemes based on the perspective of health human capital, which enriches research on health performance in related fields.

Details

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

Keywords

Article
Publication date: 15 April 2024

Shan Jin, Christopher Gan and Dao Le Trang Anh

Focusing on micro-level indicators, we investigate financial inclusion levels in rural China, examining its determinants and impact on household welfare. We construct a financial…

Abstract

Purpose

Focusing on micro-level indicators, we investigate financial inclusion levels in rural China, examining its determinants and impact on household welfare. We construct a financial inclusion index of four essential financial services: savings, digital payments, credit and insurance. We identify factors influencing financial inclusion among Chinese rural households and assess the effects of financial inclusion on household welfare.

Design/methodology/approach

With the entropy method, we use data from the 2019 China Household Finance Survey to assess financial inclusion levels in rural China. Determinants and their impact on welfare are analyzed through probit and ordinary least squares models, respectively. Propensity scoring matching is applied to address potential endogeneity.

Findings

We reveal that rural households exhibit limited usage of formal financial services, with notable regional disparities. The eastern region enjoys the highest financial inclusion and the central region lags behind. Household characteristics such as family size, education level of the household head, income, employment status and financial literacy significantly influence financial inclusion. Financial inclusion positively impacts household welfare as indicated by household consumption expenditure. The use of different types of financial services is crucial with varying but significant effects on household welfare.

Originality/value

This study offers valuable insights into China’s rural financial inclusion progress, highlighting potential barriers and guiding government actions.

Details

Agricultural Finance Review, vol. 84 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

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