Equitable Distribution Of Income Research Articles

GROWTH OF SME SECTOR AND WAYS OF IMPROVING ACCESS TO FINANCIAL SERVICES IN UZBEKISTAN

Private sector is recognized as the driving force and the engine for economic growth in many countries. It delivers important goods and services, provides jobs, generates revenue for public sector, and creates and maintains infrastructure. SMEs in particular create jobs and lead to more equitable distribution of incomes. In Uzbekistan the share of SMEs in GDP steadily increased from 30% in 2000 to 54% in 2012. The sector accounts for 75% of total employment in the country and it is forecasted that SMEs will add around half a million of new jobs in 2013.Despite these improvements, SMEs’ productivity and competitiveness potential have been affected by regulatory and institutional constraints. Access to adequate financial services is a key component for sustainable growth of the private sector, economic diversification and creation of more and better jobs. Adequate access to finance includes not only bank loans, but also a host of financing instruments that are geared to meet the diverse needs of enterprises and entrepreneurs with different characteristics and profiles. In addition, access to a broader range of efficient and reliable financial services, including electronic payment services, enables enterprises to manage the financial resources available to them more effectively.

Two Africas? Why Africa's Growth Miraclee is Barely Reducing Poverty

Although growth has improved substantially in most African countries in recent years, poverty across the continent has fallen very little in the aggregate, even though there have been outstanding performances by some countries. Indeed, some African countries have slipped back, and exhibit higher poverty rates than in 1990. This paper seeks to understand the reasons for this variance between countries; the reasons why, certainly if one uses headcount poverty data, there are ‘two Africas’, one with powerful ability to reduce poverty and one without. We argue that some of the reasons for this difference are rooted in colonial times, and those countries which developed dynamic exports of smallholder cash crops, the ‘peasant export economies’, received a headstart in relation to mineral- and large farm-based economies, because of the more equitable income distribution which labour-intensive, smallholder-based economies generate. However, in the post-colonial period, many peasant export economies wasted this headstart, and some mine/plantation economies were able to transcend the limitation of not having received one. The key reasons for this evolution, we argue, lie in the motivation and ability of African elites to form pro-poor coalitions, which in some cases were then able to implement tax and expenditure policies with the ability to bring a pro-poor pattern of growth into being. This story is tested both econometrically and by means of four contrasted country case studies.

Tributación a la propiedad raíz: ingente carga financiera que atenta contra el fomento de la actividad inmobiliaria.

Resumen: Se parte de la hipótesis en la que el sistema tributario colombiano se constituye en un esquema ampliamente oneroso que afecta directamente a los intereses de los oferentes y demandantes de propiedad raíz en Colombia. Aspecto que redunda de manera nociva sobre designios de equidad, eficiencia, crecimiento y estabilidad para la sociedad. Obstaculiza el avance de las municipalidades y de la actividad económica en general, en especial afecta al sector de la construcción, y por ende el desarrollo de las ciudades. El método desarrollado recurre al esquema de investigación basado en observaciones sobre el entorno real, acompañado de sus bases jurídicas, experiencias e interpretaciones hilvanadas por tratadistas de la disciplina fiscal. Se plantean hipótesis, se recurre a estrategias para descubrir propiedades y características del tema objeto de estudio y se concluye acorde con la hipótesis. Como conclusión se tiene que el exceso de gravámenes incide de manera negativa sobre políticas públicas orientadas hacia la distribución equitativa de ingresos y riquezas, crecimiento económico, estabilidad de precios, empleo y asignación eficiente de los recursos disponibles. En particular, el sector de la construcción es el más afectado con la cascada de tributos que se generan en Colombia, incidiendo sobre la oferta y la demanda, afectando tanto a usuarios, adquirientes y empresarios del ramo. Se sugiere reducir las cargas impositivas para asegurar mayor progreso social y fomento de la actividad edificadora y para asegurar efectivo recaudo del impuesto predial.
 ___Palabras clave: Tributo, Estado, finanzas, propiedad raíz, equidad, eficiencia, estabilidad, crecimiento, cascada tributaria.
 ___Abstract: It begins of the hypothesis in which the Colombia´s tributary system is constituted in a widely onerous scheme that affects directly to the interests of the offers and plaintiffs of real estate in Colombia. Aspect that results in a harmful way on plans of equity, efficiency, growth and stability for the society. It blocks the advance of the municipalities and of the economic activity in general, especially sympathetic on the sector of the construction, and for the development of the cities. The developed method goes to the scheme of investigation based on observations on the real environment accompanied of his juridical bases, experiences and interpretations tacked by commentators of the fiscal discipline. Hypotheses appear, one resorts to strategies to discover properties and characteristics of the topic or object of study and it concludes according to hypothesis. As a conclusion has that the excess of charges affects in a negative way on public policies orientated towards the equitable distribution of income and wealths, economic growth, price stability, employment and efficient assignment of the available resources. Especially, the sector of the construction is most affected by the sequel of taxes that are generated in Colombia, affecting on the offer and the demand, affecting so much users, acquirers and businessmen of the branch. It is suggested to reduce the tax burdens to assure major social progress and promotion of the edifying activity and to assure cash collection of the predial tax.
 ___Keywords: Tax, State, finance, real estate, equity, efficiency, stability, growth, tributary sequel.
 ___Recibido enero 20 de 2014 / Aceptado junio 3 de 2014

Book review: Wallace E. Oates, Fiscal Federalism, reprinted edition (Edward Elgar, Cheltenham, UK and Northampton, MA, USA 2011) 256 pp.

Although this book is a reprint of a text that first appeared in 1972, the subjects it addresses are of the utmost importance, considering the events taking place at present. It revives the discussion of government intervention in the economy, pursuing the objectives of full employment, equitable income distribution and efficient resource allocation.

Impact of Aqua-Model Village Scheme on Income and Employment Generation and Equity: A Case Study of Tripura

The launch of aqua-model village scheme by the Government of Tripura was an ambitious effort for the development of fisheries in the state. The study has assessed the employment generation and income distribution pattern across fish farmers on implementation of aqua-model village scheme by the Department of Fisheries of Govt. of Tripura during 2004–05 to 2010–11 based on the responses of 80 sample farmers selected from both the adopted and non-adopted villages under the scheme. The study has revealed that the aqua-model village scheme has helped in generating employment and income and improving equitable distribution of income across the fish farmers of the state. The study has suggested implementation of this scheme in other areas of the state also.

Does income inequality harm the environment?: Empirical evidence from the United States

This study revisits the growth-inequality-environment nexus in the context of country-specific time series data. The short- and long-run effects of income inequality, economic growth and energy consumption on CO2 emissions in the U.S. are examined using the autoregressive distributed lag (ARDL) approach. We find that more equitable distribution of income in the U.S. results in better environmental quality in the short- and long-run. It is also found that, in both the short- and long-run, economic growth has a beneficial effect on environmental quality, whereas energy consumption has a detrimental effect on the environment.

An exploratory study on corporate governance practices in small and micro fast moving consumer goods enterprises in the Cape Metropole, Western Cape, South Africa

Small, medium and micro enterprises (SMMEs) play a crucial role in the growth and development of a country’s economy. With this in mind, the small business sector is seen as an important force to generate employment and more equitable income distribution. SMMEs strive towards sustainability and growth, however a substantial number of SMMEs fail due to, amongst other, the lack of corporate governance compliance. One of the major factors that may hinder the implementation of corporate governance practices in SMMEs is insufficient access to SMME funding and lack of skills and information. The main outcome of this study is to provide insight into governance practices of small and micro enterprises in the fast moving consumer goods sector. The descriptive quantitative research design was used in this study. In this research, an exploratory design was used to help develop areas for future research. Furthermore, this study can be regarded as a statistical study and are classified as basic research with the intention of increasing our understanding of corporate governance influence on small and micro enterprises without seeking to solve or treat problems. The units of analyses for this research study were fast moving consumer goods small and micro enterprises operating in the Cape Metropole, while the target population comprised of the owners and/or managers of these enterprises. Judgemental sampling technique was used to select the sample of 36 small and micro enterprises. The data collection consisted of questionnaires, done within the ambit of a survey, which were completed by owners/managers of small and micro enterprises. Key words: Small and micro enterprises, sustainability, growth, corporate governance.

Subjective Well-Being Analysis of Income Inequality: Evidence for the Industrialized and Emerging Economies

Subjective well-being analysis of income inequality finds that very high levels of objective inequality are considered “bad” in both the industrialized and emerging economies covered in the study. People from the industrialized economies appear to be more sensitive to mild levels of objective inequality compared to those from the emerging economies. Subjective inequality, on the other hand, is not considered “bad” in the same industrialized and emerging economies covered in the study. People from both areas appear to tolerate subjective inequality provided it is the outcome of an impartial environment founded upon rules observed by the majority. There, however, remains the need to help people recognize the importance of addressing inequalities in order for them to demand a more equitable distribution of income in society.

Problems of the US Economic Policy

How to provide for full employment and equitable distribution of incomes and wealth are the keenest issues of the U.S. society. The Democratic and the Republican Parties have elaborated opposing views on economic policy, though both parties are certain that the problems may be resolved through the reform of the federal tax and budget systems. Globalization demands to increase incentives for labor and enterprise activity and for savings to secure proper investment rate. Tax rates for labor and enterprise incomes are to be low, but tax rates for consumption, real estate and land should be progressive.

Islamic Banking in Pakistan : A Critical Analysis

Islamic banking in Pakistan has completed one decade of operations in Pakistan and now there are 5 full-fledged Islamic banks and more than 15 conventional banks with Islamic banking windows. Due to the consistent double digit growth in total assets, the market share had steadily risen to 7% by the end of 2011. However, meaningful assessment of Islamic banking requires looking at how far they have contributed to uphold Islamic principles, values and bringing about or at least working towards equitable distribution of income. But, Islamic banking industry continues to use debt based financing modes which are priced using KIBOR as the benchmark. Equivalence of means test confirms that Islamic banking spreads are higher than conventional interest rate spreads. The paper analyzes the Islamic banking philosophy, principles and practices and identifies the shortcomings which need attention of Islamic scholars as well as the regulators.

Dealer Network Strategy for MSMEs - A Case Study of Growth Strength

MSMEs are the back bone of any industrial economy. They create a number of new jobs and ensure a more equitable distribution of national income. Most of the units suffer from scarcity of working capital and inability to market the products. The present study makes an attempt to understand as to how a small or micro undertaking can achieve success by adopting strategic decisions at the appropriate time. The case study of S.S. Fiber Tech Industries describes a successful journey of a micro industry wading through challenges for a decade into a grow into a small industry by apt marketing decision and new channel strategies.

Ways of increasing the total factor productivity of cement industry for economic development: A case study in Iran and other selected countries (1990 to 2007)

Man has always thought of efficient utilization of available potentials and sources. Today this subject drives more serious attention compared to the past. Limited available resources, increasing population and growing human needs and demands of those involved make the economy, politics and management and community organizations increase productivity in its priority programs. Productivity has positive effect on phenomena such as competition in international markets, equitable distribution of income, raising living standards, economic development and even political power of a government. However, the study in this field requires knowledge about its development process. So far there has been no comparison of total factor productivity factor in Iran with other countries in the cement industry with regard to position and valuable role in the economy. This research should be considered a step toward eliminating the deficiencies outlined. In this study, using the relative index of total factor productivity factor, the relative total factor productivity factor in Iran and Turkey, South Korea and the United States has been evaluated and analyzed between the years (2007 to 1990) in the cement industry. Also, using panel data approach, the effect of macro and institutional factors such as the role of government, the degree of openness, inflation, and human capital on total factor productivity factor is evaluated. The findings indicate that there is a wide gap between total factor productivity of Iran's cement industry and that of the United States and the trend is not a proper one. This is an alarm for Iran's policy makers and planning managers to plan and utilize proper policies and take necessary actions to close or reduce this wide gap. It is also adversely shown that interference of the government may negatively affect the total factor productivity but, developed human resources and an open economic environment will have positive effect on the productivity. It is also noted that inflation has an adverse effect on total productivity. Key words: Total productivity, cement industry board data, equal purchasing power.

Personal and regional redistribution through public finance in a federal setting

Abstract Following a partial equilibrium approach, this paper studies the effect of fiscal policy on income distribution in Argentina, based on budget information corresponding to the year 2004. Specifically, it aims to provide an empirical answer to a set of questions related to the responsibility of different levels of government (national or provincial) in ensuring the equitable distribution of income; how this responsibility is accomplished in practice, when this function is shared among two or more levels of government; whether an incompatibility arises among the policies from different levels of government; and the effect of fiscal policy on personal and regional income distribution.The main results of the paper are summarized as follows. At the aggregate level, both national and provincial budgets have a redistributive impact on personal income distribution, through a combination of progressive expenditures and (slightly) regressive taxes. Regional redistribution depends on two fiscal tools: the national budget and the revenue sharing regime. The progressive effect of expenditures and taxes interacts with the geographical effect of the revenue-sharing and the national budget, reinforcing progressivity in net-receiving groups and creating a trade-off between progressivity and (negative) regional transfer in net-financing ones. Provincial budgets have more impact than the national budget, both being compatible in pursuing the redistributive goal.

Comparative analysis of co-operative and non- coperative maize farmers in Chikun Local Government Area, Kaduna State

The desire of the Federal Government of Nigeria is to use farmers’ cooperatives to achieve increased production of food, income and more equitable distribution of such income when compared with non- participants. This study therefore examined comparative analysis of co-operative and non –co-operative maize farmers in Chikun Local Government Area of Kaduna State. Primary data were obtained using structured questionnaires administered to 54 cooperators and 58 non-cooperators (20% of sampled respondents respectively). Descriptive statistics, Gross Margin and Z- test analysis were used for the analysis of data. The result showed that maize-based crop mixtures were more profitable for co-operative farmers with Gross margin of N 34, 482 and N26, 818/ha respectively when both family and hired labour were costed. It was therefore recommended that in order to reduce cost of production, farm machineries, fertilizers and improved seed varieties need to be made available to farmers at affordable prices. However, the calculated z- test indicated that there was no significant difference between profit of co-operative farmers and non- cooperative farmers.

Factors Associated with the Enactment of Safety Belt and Motorcycle Helmet Laws

It has been shown that road safety laws, such as motorcycle helmet and safety belt laws, have a significant effect in reducing road fatalities. Although an expanding body of literature has documented the effects of these laws on road safety, it remains unclear which factors influence the likelihood that these laws are enacted. This study attempts to identify the factors that influence the decision to enact safety belt and motorcycle helmet laws. Using panel data from 31 countries between 1963 and 2002, our results reveal that increased democracy, education level, per capita income, political stability, and more equitable income distribution within a country are associated with the enactment of road safety laws.

Determinants of Income Distribution in the Nigeria Economy: 1977-2005

The study carried out an investigation of a number of factors which determine income distribution in Nigeria by making empirical analysis of the relationship between the determinants and income distribution using the cointegration technique. The empirical findings in the study revealed that, Gini Coefficient is very high in Nigeria, indicating a high level of income inequality. Also, employment rate, inflation rate, Gross Domestic Product and social spending were true determinants of income distribution in the Nigerian economy during the period under review (1977-2005). The study also found that, both the growth rate of output and government health expenditure exhibited an inverse relationship with Gini coefficient of income distribution in the Nigerian economy while employment rate, inflation rate and government education expenditure had direct relationship with Gini coefficient of income distribution in the Nigerian economy. Moreso, the findings showed the existence of a long run relationship between income distribution and its determinants in Nigeria. Finally, from the empirical findings in this research work and based on the relationship each determinant exhibited with the Gini coefficient of income distribution in Nigerian economy, a set of policy ecommendations were made such as: government ensuring the formulation and implementation of more pragmatic employment policies in Nigeria, government ensuring proper monitoring of its spending on education and health through appropriate policy measures and policies that bring about more equitable distribution of income and associated income earning opportunities were suggested among others. Key words : Income distribution; Inegquate; Gini coefficient enploment rate; Nigeria economy

KEBIJAKAN FISKAL DAN IMPLIKASINYA TERHADAP PEMBANGUNAN EKONOMI

Fiscal policy beside monetary policy is usually used by the government to overcome the macro economic problems regarding stabilization in the short-run such as control of inflation to make it low inflation, alleviating poverty, achieving full employment and control of balance of payment to make it in balance or even surplus and in the long-run achieving economic growth, prosperity and sustainable economic development. This research tries to investigate the role of fiscal policy and its implication on economic development in an Islamic perspective conceptually and theoretically. It found that the instrument of fiscal policy in an Islamic perspective not only using tax and government expenditure but also zakah which could be utilized to counter cyclical fiscal policy.
 Zakah as one of the instrument of fiscal policy could also be utilized to achieve equitable distribution of income and wealth as the basic characteristic of zakah is redistribution of wealth taken from the rich and given to the poor ones. In the time of stagflation, zakah instrument could become powerful tool to overcome that problem through demand side and thus stimulate production. Although this mechanism is not as simple as we perceived, zakah does help overcome the macroeconomic problems on conditions that we also adopt and implement Islamic values and Islamic norms in our economy.

Entrepreneurship through Micro Finance in North East India: A Comprehensive Review of Existing Literature

Entrepreneurship on small scale is the only solution to the problems of unemployment and proper utilization of both human and non-human resources and improving the living conditions of the poor masses. The basic rationale of developing these industries are that they provide immediate large scale employment, ensure more equitable distribution of income, encourage decentralization of industries and eradicate poverty and unemployment. During the last three decades, many countries of the world have experienced the need and importance of entrepreneurship has been accepted as a strategy to achieve the twin objectives of promotion of entrepreneurship, particularly among the educated unemployed youth and also for rapid industrialization in the economy. The main object of this paper is to study the existing literature on entrepreneurship through Micro finance-SHG linkage in India in general and NER in particular. The analysis of this study is based on secondary sources. Efforts are also made in this paper to analyze the role of micro finance through SHGs in the promotion and development of entrepreneurship. This paper examines the different approaches of entrepreneurship and also explains the different key areas of micro enterprise development. Finally, this paper highlights the problems of micro, rural and women entrepreneurs and also suggested some specific measures based on the survey of existing literature, for the promotion of these industries in the country.

Regional human development index and performance of social security hospitals in Iran

Social security is a public right and in this regard hospitals play an important role in the health sector of the society through serving therapeutic and health services. The goal of this research is to answer the basic question of, what relationship is there between the human development index (HDI) of the regions and the efficiency level of hospitals working in those specified regions. The data envelopment analysis (DEA) method is used to measure the efficiency level of 65 hospitals owned by the social security organization (SSO) of Iran, including small hospitals (working with lower than one hundred active beds) and large hospitals (working with over one hundred active beds) during the period of 2007 to 2009. Further, the relationship between human development index and technical efficiency level of hospitals in the provinces has been analyzed. Results show that the average technical efficiency of small and large hospitals in low and medium HDI provinces (0/912 and 0/937) are more than the average technical efficiency of hospitals in higher HDI provinces (0/870 and 0/887).Therefore it is recommended that social security organization should preferably spread its hospital services by more concentration on provinces with lower HDI and higher density of population living under the coverage of organization’s provident funds. This will eventually puts its positive effects on per capita income of people, as well as more equitable distribution of income. Keywords: Hospital, human development index, efficiency and data envelopment analysis.

Macroeconomics, Human Development, and Distribution

Policies designed to pursue an equity-led macroeconomic growth strategy must take into account feedback effects, with distribution itself influencing macroeconomic outcomes. Under the right conditions, a more equitable distribution of income and opportunities in the form of human development can be a stimulus to growth, funding further investments in human development. Developing the policies to create those conditions is the central challenge for any human development-centered macroeconomic framework. I review here some macro-level policies that achieve this goal, identifying a key role for fiscal policy to raise productivity and for monetary policy to expand employment, a central goal of any macro-inclusive strategy.