Direct Income Research Articles

Profit Shifting, Returns on Foreign Direct Investments and Investment Income Imbalances

Profit Shifting, Returns on Foreign Direct Investments and Investment Income Imbalances

ANALYSIS OF THE RELATIONSHIP BETWEEN GROSS DOMESTIC PRODUCT, FOREIGN DIRECT INVESTMENTS AND INCOME INEQUALITY IN ROMANIA OVER THE PERIOD 1990-2020

The present study aims to confirm the existence of a non-linear association between economic growth, foreign direct investment (FDI) and income inequality in Romania, over the period of 1990 to 2020. Romania’s macroeconomic output expressed through the Gross Domestic Product per capita has registered a continuous growth trend in the analysed period of time. Income distribution expressed through the GINI index registered also an ascending trend dynamic, while foreign direct investment showed an oscillating evolution. Using the Ordinary Least Square (OLS) method to estimate the impact of FDI and economic growth on income inequality we revealed that the relationship between FDI and income inequality is non-linear, namely quadratic. In the estimated regression equation the sign of FDI squared coefficient is negative, confirming the existence of a U-inverted curve. This suggests that the income gap grows in a first stage, until a threshold in economy is achieved. After this maximum, the income gap could follow a decreasing trend with increasing values of FDI. We found also that economic growth expressed by the dynamics of GDP per capita contributed to the extension of income inequality in Romania for 1990 to 2020. The non-linear model is statistically validated; tests for heteroskedasticity, autocorrelation and normal distribution of errors are performed. Policy implications in the specific case of the Romanian economy are also included, as follows: fiscal measures for supporting FDI inflows, effective channels enabling FDI to have effects on reducing income inequality, increase of FDI absorptive capacity and directing FDI to specific economic sectors.

Model Rantai Pasok Dan Nilai Tambah Gula Semut Kelapa (Studi Kasus: Kelompok Tani)

Ant sugar is coconut sugar in the form of a powder made from sap, which is a solution of sap water that has been cooked so that it becomes sugar. This study aimed to improve the supply chain and added value of ant sugar through supply chain analysis and added value of ant sugar. The mechanism of the ant sugar supply chain was identified by a qualitative method. This research was conducted with a systems approach supported by the Hayami method to calculate added value. The added value and benefits obtained by farmers and SMEs are 84.43% and 64.58%, with profits of 51.1% and 39.59%, respectively. The added value of the owner of the production factor of direct labor income to farmers and IKM is 39.48% and 27.91%, respectively.

Conditional Income Transfer Program as a Means to Development in Brazil: An Intersection With Amartya Sen’s Concepts

The paper aims to examine the ability of income transfer programs in promoting development. More specifically, it utilizes the conception of development defended by Amartya Sen, to confirm or not the hypothesis that the Brazilian approach with the structuring of the Bolsa Familia Program serves the purpose of promoting the economic and social development of the country. For this purpose, the methodology used will be deductive, based on bibliographic research and official data. The article begins by analyzing how income distribution policies operate in the expansion of real freedoms and, more specifically the Brazilian reality with the Bolsa Familia Program, a public policy of direct income transfer, aimed at families in situations of poverty and extreme poverty throughout Brazil, which seeks to guarantee these families the right to food and access to education and health. It then exposes Sen’s conception of what is development, which goes beyond narrower views that limits it to GNP growth or industrialization, encompassing this perspective in a broader concept of development as a process of expanding the real freedoms that people enjoy. In the end, the paper makes an intersection of the Bolsa Familia Programs with Sen’s concept of development, presenting as a final result the conclusion that the program proved to be a relevant tool in removing causes of deprivation of freedom and, therefore, is a move in the right direction of the development process.

Do Subsidies Decrease the Farm Income Inequality in Hungary?

The paper investigates the impact of different sources of income on farm household income inequality in Hungary using Farm Accountancy Data Network dataset for the period 2007-2015. The decomposition of the Gini coefficients by income sources is applied to focus on the impact of the policy shift from market to government support on farm household income inequality. Off-farm income are rather stable with a slight increase impact on farm household income inequality. Pillar 1 for direct income support subsidies have remained more important than Pillar 2 for rural development subsidies for farm income due to the importance of direct payments or single area payments for crop production. A slight increase in the importance of subsidies from Pillar 2 can be linked to a policy shift towards targeting farms in less favoured areas, and a greater role of agri-environmental and other rural development payments. The most striking finding is regarding instabilities, declining pattern, and for a large majority of farms negative market income. Subsidies from Pillar 1 reduced, while market income increased farm household income inequality.

Seyahat, Yenilik ve Uzay Turizmi

Space tourism industry profit prospects point to largely optimistic and even positive prospects for new entrepreneurs. Today, there is fierce competition between the many space tourism companies competing to give the rich travelers who are ready to pay high fees and who are in pursuit of adventure, to taste the journey of their lives. Thus, Sir Richard Branson made her first civilian space journey with Virgin Galactic space plane in July 2021. More importantly, Amazon founder Jeff Bezos flew to the edge of space with three others in a rocket and capsule developed by private spaceflight company Blue Origin. Billionaire entrepreneur made history as part of the first pilotless suborbital flight with an all-civilian crew. As the space industry matures, the competition between companies has increased. At least a dozen large multinational companies have ventured into space tourism, while a few space tourism companies are operating in the field, with plans to build suborbital vehicles, orbital hotels, and even lunar cruise ships. Space tourists need a destination to maximize their travel experience. A 2005 study reported that Virgin Galactic "received full payment from its first 100 customers" (Gibson, 2012). Income from space tourism includes direct income, economic growth, employment with multiplier economic and social effects.

Combined Source-Storage-Transmission Planning Considering the Comprehensive Incomes of Energy Storage System

An energy storage system transfers power and energy in both time and space dimensions and is considered as critical technique support to realize high permeability of renewable energy in future power systems. It contributes to the achievement of China’s long-term carbon emission abatement targets. However, the promotion and application of energy storage are severely restricted due to the high construction cost of energy storage systems and lack of effective compensation mechanisms for peak-regulating ancillary service. In this study, a source-storage-transmission joint planning method is proposed considering the comprehensive incomes of energy storage. The comprehensive income of the energy storage system is divided in detail from the planning level, and the accounting method of energy storage income is proposed. Based on the load fluctuating trend under the condition of the connecting wind power grid, the dynamic electricity pricing methods of power trisection and time trisection are introduced to achieve the dual goals of direct income from energy storage and improving system flexibility. To comprehensively consider the direct income of peak-valley arbitrage and indirect income of energy storage configuration, a coordinated planning model of source-storage-transmission is constructed and tested in the Garver-6 system using the measured data from one province grid in China. The results verify the effectiveness of the proposed methods and show improvements in cost recovery and system flexibility.

Commodity price fluctuations and child malnutrition

In this paper, we empirically examine the potential impact of commodity price fluctuations on the nutritional status of children in the 0–5 age category. This is important as adverse shocks that children experience at the time of birth will have an irreversible long-term impact that can adversely affect subsequent human capital formation. Unlike the bulk of the literature in the area that focuses on the impacts of drought-induced income shocks, we focus on changes in income caused by fluctuations in international coffee prices. We thus aim to estimate the potential impacts of international commodity price fluctuations on the nutritional status of children in commodity-export-dependent developing countries. To this end, we use the three waves of the Tanzanian National Panel Survey (NPS), together with data on international coffee prices. Our results show that an upward coffee price fluctuation is associated with an improvement in childhood nutritional status in rural Tanzania. This result is robust to the inclusion of household (sibling) fixed effects and data choices. The main result of our paper underlines the importance of international commodity price fluctuations for the wellbeing of communities in commodity-export-dependent countries. In the case of Tanzania, for example, the coffee sector creates direct income for about 400,000 smallholder farmers who produce 90 percent of Tanzania’s coffee, which is mainly produced for export. Thus, if not well-managed, international commodity price fluctuations put a strain on the poverty reduction endeavors of developing countries that depend on exports of one or a few non-oil commodities. The results of the paper also have implications for Goal number 2 of the Sustainable Development Goals (SDGs) which aims to end all forms of malnutrition by 2030.

Bhutan: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bhutan

The pandemic has had a substantial impact on the economy, straining pre-pandemic gains in income and poverty reduction. The wide-ranging policy measures, including containment protocols, rapid vaccination and booster campaigns, direct income support, and policy support for borrowers and businesses, mitigated the adverse impact on lives and well-being. As the pandemic recedes and in light of the uncertainties from the war in Ukraine, the focus needs to be on securing livelihoods and ensuring strong and job-rich medium-term growth, while minimizing any persistent adverse effects from the pandemic and mitigating risks.

The welfare effects of India’s rural employment guarantee

We assess the welfare effects of India’s workfare program NREGA using a novel, almost sharp regression discontinuity design. We find large seasonal consumption increases in states implementing the program intensely, which are a multiple of the direct income gains. We also find increases in adolescents’ schooling. Our results imply substantial beneficial indirect effects of this large welfare program. We conclude that public employment programs hold significant potential for reducing poverty and insuring households against various adverse implications of seasonal income shortfalls — when properly implemented.

The Three Parties in the Race to the Bottom: Host Governments, Home Governments and Multinational Companies

Most studies of tax competition and the race to the bottom focus on potential host countries competing for mobile capital, neglecting the role of corporate tax planning and of home governments that facilitate this planning. This neglect in part reflects the narrow view frequently taken of the policy instruments that countries have available in tax competition. For example, hightax host governments can permit income to be shifted out to tax havens as a way of attracting mobile companies. Home countries will cooperate in this shift if they think the benefit to their companies is greater than any reduction in the domestic tax base. We use various types of U.S. data, including firm level tax files, to identify the role of the three parties (host governments, home governments and multinational companies) in the evolution of tax burdens on U.S. companies abroad from 1992 to 2002. This period is of particular interest because the United States introduced regulations in 1997 that greatly simplified the use of more aggressive tax planning techniques.The evidence indicates that from 1992 to 1998 the decline in effective tax rates on U.S. companies was driven largely by host governments defending their market share. But after 1998, tax avoidance behavior seems much more important. Effective tax rates on U.S. companies had a much weaker link with local statutory tax rates. Furthermore, the disparity in the reported profitability of subsidiaries in high-tax and low-tax jurisdictions grew substantially.After 1997, there was a very large growth in intercompany payments and a parallel growth of holding company income. We attempt to estimate how much of these payments were deductible in the host country, and conclude that by 2002 the companies were saving about $7.0 billion per year by using the more aggressive planning strategies. This amounts to about 4% of foreign direct investment income and about 15% of their foreign tax burden.

Evaluate the Program in Strengthening Group Business’s Capital Effectiveness of Beef Cattle Farm to Increasing Farmers Income in Kupang Regency

Research has been conducted, and this study aims to know the effectiveness and income of the program in Strengthening Group Business’s Capital (SGBC) by performance, the assistance of government institutions, and local institutions, then point to income. The data collecting method used multi random sampling such-stage as the first seven district samples are selected based on purposive random sampling, and the second 200 respondents are chosen. Data, then, are analyzed by applying analysis of descriptive and inferential use of SPSS and SMART PLS software. The result shows that performance, assistance, and local institutions significantly affect program effectiveness by direct effect and income by indirect effect with the role of mediating factors, While point significantly affects farmers' income.

Direct and Indirect Income Support and Their Determinants: Developing an Income Profile for Older Adults in Sri Lanka

Given the rapid increase in population aging and older population dependency rates, a sound understanding of old-age income support systems is vital for formulating effective policy responses. This research studies old-age income sources to develop an income profile for older adults in Sri Lanka, measuring direct and indirect income sources using nationally representative survey data from Household Income and Expenditure Surveys 1995/1996 and 2016. In the absence of direct information on intergenerational transfers, we investigate the material support older adults receive from their families, an essential source of income in many developing countries. We found that while indirect income support, cash transfers, and employment are vital sources of old-age income, there have been significant changes in the composition of old-age income over time. Indirect income support is becoming less important, and income from employment and formal cash transfers is becoming more prominent. These results highlight potential avenues to improve the economic well-being of older adults, such as increasing the mandatory retirement age and taking measures to provide decent employment opportunities for older adults while also expanding pension coverage to all types of workers and access to social security for vulnerable groups such as women or the poor.

Expansion of social protection is necessary towards zero catastrophic costs due to TB: The first national TB patient cost survey in the Philippines.

Tuberculosis (TB) is a disease associated with poverty. Moreover, a significant proportion of TB patients face a substantial financial burden before and during TB care. One of the top targets in the End TB strategy was to achieve zero catastrophic costs due to TB by 2020. To assess patient costs related to TB care and the proportion of TB-affected households that faced catastrophic costs, the Philippines National TB Programme (NTP) conducted a national TB patient cost survey in 2016-2017. A cross-sectional survey of 1,912 TB patients taking treatment in health facilities engaged with the NTP. The sample consists of 786 drug-sensitive TB (DS-TB) patients in urban facilities, 806 DS-TB patients in rural facilities, and 320 drug-resistant TB (DR-TB) patients. Catastrophic cost due to TB is defined as total costs, consisting of direct medical and non-medical costs and indirect costs net of social assistance, exceeding 20% of annual household income. The overall mean total cost including pre- and post-diagnostic costs was US$601. The mean total cost was five times higher among DR-TB patients than DS-TB patients. Direct non-medical costs and income loss accounted for 42.7% and 40.4% of the total cost of TB, respectively. More than 40% of households had to rely on dissaving, taking loans, or selling their assets to cope with the costs. Overall, 42.4% (95% confidence interval (95% CI): 40.2-44.6) of TB-affected households faced catastrophic costs due to TB, and it was significantly higher among DR-TB patients (89.7%, 95%CI: 86.3-93.0). A TB enabler package, which 70% of DR-TB patients received, reduced catastrophic costs by 13.1 percentage points (89.7% to 76.6%) among DR-TB patients, but only by 0.4 percentage points (42.4% to 42.0%), overall. TB patients in the Philippines face a substantial financial burden due to TB despite free TB services provided by the National TB Programme. The TB enabler package mitigated catastrophic costs to some extent, but only for DR-TB patients. Enhancing the current social and welfare support through multisectoral collaboration is urgently required to achieve zero catastrophic costs due to TB.

On the Determinants of Green Technology Diffusion: An Empirical Analysis of Economic, Social, Political, and Environmental Factors

The purpose of this study is to investigate the importance of economic, social, political, and environmental factors in determining green technology diffusion. We use a unique annual panel dataset covering 58 nations from 1990 to 2019. Based on dynamic panel data models estimated using system generalized method of moments (GMM), we test whether the technological achievement of nations, general technology diffusion trends, environmental performance, democratic accountability, income distribution, foreign direct investment, income level, and socioeconomic conditions are significant determinants. Our findings indicate that green technology diffusion has a significant relationship with all of these factors. We obtain new evidence that general or brown technological innovation, diffusion, and achievement trends in a country are significant drivers of environmental technology diffusion. The findings of our paper have significant implications for sustainable development, given the importance of green products and technologies. The results of the study suggest that policies aimed at promoting the diffusion of green technologies may not be successful in the presence of unfavorable economic, social, political, or environmental conditions.

COVID-19 economic impact payments and opioid overdose deaths.

BackgroundGiven the global economic recessions mediated by the COVID-19 pandemic and that many countries have implemented direct income support programs, we investigated the timing of the COVID-19 economic impact payments and opioid overdose deaths.MethodsA longitudinal, observational study design that included data from the Ohio Department of Health was utilized. Statistical change point analyses were conducted to identify significant changes in weekly number of opioid overdose deaths from January 1 of 2018 to August 1 of 2020. Additional analyses including difference-in-difference, time series tests, interrupted time series regression analysis and Granger causality test were performed.ResultsA single change point was identified and occurred at week 16, 2020. For 2020, the median opioid overdose deaths numbers for weeks 1–16 and weeks 17–32 were 68.5 and 101, respectively. The opioid overdose deaths numbers from weeks 17–32 of 2020 were significantly higher than those in weeks 1–16 of 2020 and those in 2018 and 2019 (before and after week 16). The interrupted time series regression analysis indicated more than 203 deaths weekly for weeks 17–32 of 2020 compared to all other weeks. The result of the Granger causality test found that the identified change point (week 16 of 2020) directly influenced the increase in opioid overdose deaths in weeks 17–32 of 2020.ConclusionThe identified change point may refer to the timing of many factors, not only the economic payments and further research is warranted to investigate the potential relationship between the COVID-19 economic impact payments and overdose deaths.

Updating the method of monetary conversion of remuneration for work within the concept of assessing the value of human capital

The economic formation of the present time is characterized by innovative processes occurring at all levels of organization of economic systems. The object of the study is a complex of knowledge, skills, abilities that characterize conscious human activity and form the concept of human capital. The subject of the study is salary as an economic category that reflects the cost of remuneration for a person’s labor activity within the framework of the economy of the People’s Republic of China. The purpose of the study is to update the method of monetary conversion of the cost of remuneration for the labor activity of a person. The objectives of the study are: 1. The study of theoretical sources of the subject area; 2. Consideration on a scientific basis of the traditional method of monetary conversion of remuneration for work adopted in the People’s Republic of China; 3. Scientific substantiation of the actualization of the method of monetary conversion of the remuneration of labor activity within the framework of the concept of human capital; 4. Practical approval of the proposed method of monetary conversion of remuneration for work in the activities of the subject of economic relations of the People’s Republic of China. The research methodology is a theoretical and heuristic approach, based on economic methods of cognition.The results of the study are a calculation formula for the method of monetary conversion of remuneration in the form of the cost of future salary in accordance with modern economic and social conditions. The essence of the proposed updating of the method is to divide the income from the monthly remuneration of employees into direct income (salary after taxes, allowances, overtime pay, bonuses, etc.) and indirect income, which is not paid to the employee and is a monthly compulsory national insurance, paid by the company to employees (retirement insurance, health insurance, work injury insurance, unemployment insurance, and maternity insurance). The authors also presented the evaluation of the method at the Chinese enterprise Goertek to calculate the value of the human capital of the enterprise for seven years, and at the same time, the advantages and disadvantages of the improved model in practice were analyzed.

Foreign Direct Investment Openness and Income Classes in Europe Around the Great Recession

Foreign Direct Investment Openness and Income Classes in Europe Around the Great Recession

Fund Utilization Pattern of PM-KISAN Beneficiaries

The Central Sector Scheme, Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) has been a momentous step in the area of direct income support (DIS) in India. The present study was conducted in district Kangra to get an insight into utilization pattern of PM-KISAN funds by farmer beneficiaries. Using 3 stage random sampling technique, a sample of 80 farmers was drawn which were further categorized in small and marginal categories on the basis of total size of land holding. The scheme was reported to have 100.0 per cent coverage of the sample respondents. The farmers who received PM-KISAN benefits during the agricultural peak season reported spending it on agriculture, while those who received it during the off-season spent it on consumption. The fund utilization pattern of marginal farmers differed significantly from small farmers. Findings suggests that the government should preferably enhance, restructure and release the installment amounts keeping in view the seasonal needs of the farmers. Along with this provision of skill-building trainings to farmers is the potential area that need to be worked upon. This study would serve as a valid reference for future studies and policy making concerning such schemes.

THE GROSS DIRECT PREMIUM INCOME UNDER GENERAL AND HEALTH INSURANCE: A SEGMENT – WISE ANALYSIS OF INDIAN PUBLIC SECTOR INSURERS

Insurance business is broadly classified under the two heads – Life Insurance and General Insurance. Life Insurance Corporation of India (LICI) and General Insurance Corporation of India (GICI) are the key players in the public sector. The Indian insurance market consists of many private players as well. The gross direct premium has been the income sources for the insurance business. This study shall highlight the gross direct premium income specifically under the General and Health insurance business of the Indian public sector insurers.