Equity In Income Distribution Research Articles

Economic Stability in Islamic View : Approach to Controlling Inflation

Economic stability is the main goal in the Islamic view, in which economic concepts based on ethical values ​​and social justice are prioritized. One of the problems faced in achieving economic stability is inflation which can cause imbalance and instability in the economy. Therefore, this paper discusses the approach put forward from an Islamic perspective to control inflation and achieve sustainable economic stability, through: 1) implementation of a sharia-based monetary system, which prohibits usury (interest) and excessive speculation, 2) currency management, 3) equity in income distribution, 4) encouraging investment in the productive sector and economic infrastructure, and 5) economic supervision and regulation. The narrative of this research is told in accordance with the requirements of the formulation being addressed. It is a descriptive qualitative study with a literature study technique. The findings of this study demonstrate that, from an Islamic perspective, attempts to maintain economic stability and manage inflation are not just commercial endeavors but also an essential component of worship for achieving social welfare and justice. By implementing these approaches, it is hoped that the economy in the Islamic view can achieve sustainable stability and provide long-term benefits for society as a whole.

Are European social spending policies effective in the fight against gender inequality?

ABSTRACT The aim of this paper is to analyse the factors that influence a greater or lesser decrease in gender inequality, paying special attention to the role of social policy. To this end, a measure of inequality in the distribution of income between men and women has been developed and a panel of data has been estimated for 33 European countries and a time period of 15 years. The results show that income inequality in general, as measured by the Gini index, and gender inequality based on differences in the distribution of income between men and women are closely linked, and that retirement benefits and women’s educational attainment are the tools that most improve gender equity in income distribution.

The Relation between Higher Education Enrollment Rate and Equity Distribution of Income: Per Capita Income as a Mediator

<p>本研究從世界銀行蒐集 2015 至 2018 年 41 國資料,探討高等教育在學率與國民所得和所得分配公平的關聯。結論如下:這四個年度的高等教育在學率和所得分配公平沒有顯著關聯,然而國民所得與所得分配公平為正向顯著關聯;高等教育在學率透過國民所得對所得分配公平的影響具有完全中介效果。2015 與 2018 年臺灣高等教育在學率,在各國吉尼係數與國民所得條件下,超出全球平均 33.86 及 24.40 個百分點;臺灣的吉尼係數低於全球平均 2.54 與 5.46。可見臺灣高等教育在學率擴充與所得分配公平有關。本研究貢獻是,高等教育在學率沒有直接提升所得分配公平,而是透過國民所得才提升所得分配公平,因此高等教育在學率擴充下,良好經濟發展是所得分配公平的關鍵。針對結論討論,提出建議。</p> <p> </p><p>This study collected data of 41 countries from 2015 to 2018 from the World Bank report to explore the mediating role of per capita income in the relationship between higher education enrolment rate and equity of income distribution. The results revealed no correlation between the higher education enrolment rate and equity of income distribution in the 4-year study period. However, income was significantly related to the equity of income distribution. Over the 4-year study period, the per capita income of countries had a mediating effect on the relationship between the higher education enrolment rate and equity of income distribution, that is, a higher education enrollment rate corresponded to greater equity of income distribution through per capita income. In 2015 and 2018, Taiwan’s higher education enrollment rate exceeded the global average by 33.86 and 24.40 percentage points based on the Gini coefficient and national income of various countries; Taiwan’s Gini coefficient was lower than the global average of 2.54 and 5.46, respectively. An increase in Taiwan’s the rate of enrolment in higher education was also related to the equitable distribution of income. However, the higher education enrollment rate did not improve the equity of income distribution directly but indirectly through the mediating effect of per capita income. Although the higher education enrollment rate has been increasing in many countries, rapid economic development is a key factor influencing the equity of income distribution. The paper finally makes suggestions.</p> <p> </p>

Income Inequality and Economic Growth in Algeria: Empirical Study during the Period 1980-2015

Abstract In recent years, Algeria achieves significant progress in the economic and social condition of its population due to the improvement in most economic and social indicators, and the increase in the human development index from 0.577 in 1990 to 0.754 in 2018. However, this improvement is not equally shared between groups and different regions. Therefore, poverty and inequality persist and remain a major challenge of the Algerian government. In this paper, we attempt to study income inequality and its impact on economic growth in Algeria. To attend the aim of this study we explore the relationship between income inequality and economic growth over the period 1980-2015 based on the available data. Based on the recent theoretical and empirical studies, we use Autoregressive Distributive Lags (ARDL) model to explore the long-run relationship, and Error Correction Model (ECM) for the short-run dynamics, the results indicate that economic growth as measured by the annual per capita GDP growth rate is associated negatively and significantly with inequality as measured by Gini coefficient, implying that in the long run, a 1% increase in income inequality will hurt economic growth in Algeria by nearly 0.52% in the long-run. The result obtained from the ECM model shows that the coefficient is equal to -1.23 and highly significant; this implies that the deviation for the short-run in economic growth is corrected by 123% percent over each year in a long time. These findings confirm the hypothesis that high inequality hurts the economic growth in low- and middle-income countries. Therefore, the Algerian government must adopt policies that favor economic growth and achieve greater equity in income distribution to ensure sustainable and inclusive growth.

TREND ANALYSIS OF EXPENDITURE PATTERN OF GOVERNMENT OF INDIA DURING PRE AND POST ECONOMIC REFORMS

For the fiscal system of every federal nation public expenditure is an important tool. The growth process is very much dependent on the pattern and extent of public spending, it also helps in reducing economic disparities. Till 1920s study of public expenditure was neglected. It was general belief that public expenditure is waste. This belief got strengthened by classical economists especially by Adam Smith, 1776 who opined that activities of government should be restricted to Police, defense and justice (Zahir, 1972). Recardo also viewed public spending as wasteful. John Stuart Mill had less extreme but similar views as classists. Lutz in 1936 favored public expenditure as it is the direct medium for addition in community wealth. Keynes, a revolutionary economist opined that public expenditure is an important policy tool to stimulate the economy. R. A. Musgrave also favored public expenditure by saying that it has capacity to correct market distortions, provision of public good and regulatory activities etc. The increasing participation of government in economic functioning has highlighted the superiority of public spending over other fiscal instruments. In any economy public expenditure has its wide impact not only on consumption but also on production and distribution. Public expenditure has potential to stimulate and stabilize the economy. It promotes positive externality to society as well as economy (Piana, 2001). Public expenditure is an effective tool not only for developed economies but also for underdeveloped economies across the world. On the one hand it helps developed nations to achieve stabilization by preventing frequent cyclical fluctuations on the other hand it supports underdeveloped nations by promoting economic development and equity in income distribution. India is also not far behind in employing its benefits.

Pay for performance in hospital management: A case study

ABSTRACT Background: This study aims at exploring the aspects of this newly applied payment mechanism compared with the previous ones. Methods: A mixed qualitative and quantitative study, including a descriptive analysis of P4P aspects compared with non-performance-based payment method and a quantitative comparative analysis of hospital departments’ revenue and employees’ payment, was conducted over a time period of 2013–2015. Results: The desire to provide high-quality services and association between staff reimbursement and some of the features, including performance, patient satisfaction, full-time participation at work, equity in income distribution among staff in different occupational groups, were among the main characteristics of P4P. But in terms of non-performance payment system, the quantitative analysis of data affirmed no significant correlation between the quantity of provided services, staff salary and department’s revenue. Conclusion: It is evident that pay for performance can persuade employees to improve the quantity and quality of rendered services with much more emphasis on achieving the health system goals and improving patient health outcomes.

THE EFFECT OF FERTILIZER SUBSIDY ON PADDY PRODUCTION OF SMALL SCALE FARMERS: SPECIAL REFERENCE IN POLONNARUWA DISTRICTIN SRI LANKA

Paddy cultivation is major part in rural agriculture sector in Sri Lanka. Majority of rural sector paddy farmers are small-scale producers. According to available data paddy production sector provides livelihood opportunities for large numbers of rural population, provide rice requirement of the nation, provide inputs to other industrial sector etc.To enhance small-scale farmers living condition as well as paddy production, Sri Lankan government promotes paddy farmers to use more fertilizer for their paddy cultivation activities. Therefore, Sri Lankan government provides subsidized fertilizer to enhance both paddy production and paddy yield per acre. Last few decades paddy production and paddy yield per acre data show continues increasing trend. At the same time government expenditure on fertilizer also becomes heavy burden to national budget. There are arguments for and against to fertilizer subsidy program and its practice. This study attempts to study the effect of fertilizer subsidy on paddy production and living condition of small-scale farmers in Polonnaruwa district in Sri Lanka. The data are used to estimate an econometric model to find the relationship between paddy productivity, fertilizer subsidy, agricultural infrastructure facilities and farmers education level. The data were collected from Bubula and Raja-elagama villages in Higurakgoda divisional secretariat in Polonnaruwa district. Structured questioner was used to collect the data from 150 farmers. The results show that there is significant relationship between paddy production and dependent variables named fertilizer subsidy, agricultural infrastructure facilities and farmers education level. Especially fertilizer subsidy and paddy productivity is significant at 5 per cent level and R2 was 0.68. This result shows that government main objective of fertilizer subsidy that improves paddy productivity has been fulfilled. At the same time, household income from paddy has also increased and it has affected their livelihoods. But poor agricultural infrastructural facilities have mitigated farmers’ income. Research results and some empirical evidence have concluded that it is important to find alternative methods to select suitable and needy farmers who are eligible to get fertilizer subsidy because conducting methods of distributing have made many kinds of effects on the efficiency of resource utilization, equity of income distribution as well as government budget. Agricultural infrastructure facilities are very important for making fertilizer subsidy programs more meaningful and to have a significant effect on enhancing paddy farmers’ living conditions.

The effect of high temperature minerals and microstructure on the compressive strength of bricks

The widely distributed Adıyaman region clay sources were long conceived to be of utmost importance as potential appropriate sources for the immense brick and tile demand of the rapid urbanisation in southeast Anatolia enhanced by the State Irrigation Project initiated in the 1980s. This project seeks to improve the social structure of the region as well as the equity in income distribution. In this respect, the long neglected study of the brick production properties of these soil/clay raw material resources in Adıyaman were determined via mineralogical (X-ray diffractometry), chemical, sub-microscopic analyses (scanning electron microscopy, energy dispersive spectroscopy). Compressive strength tests for experimental fired and unfired-dried tablet specimens were also carried out. The analyses were conducted for 3 widespread raw material sources and their natural admixtures collected from selected clay (montmorillonite) and carbonate (calcite) rich sediments located in the Adıyaman-Center (Rezip-Rzp), Kahta (Kht) and Besni (Bsn) areas. The presence of high-temperature minerals (HTM) such as bredigite (1040 °C), akermanite (1040 °C), hematite (900 °C and 1040 °C) and diopside (900 °C) in the specimen Rzp were most probably responsible for the enhanced specimen compressive strength. In contrast, the lower specimen strengths of the fired tablet specimens Bsn and Kht were related to the microstructures/pore-HTM networks developed after firing. The pores-with the welded high temperature mineral (bredigite) infills was the responsible microstructure for the slight increase in Bsn at 900 °C compared to the specimen tablet of 1040 °C. Although this microstructure caused a slight increase in the compressive strength of the fired specimens of Bsn, it is incomparable to the increases in the Rezip. This makes the Rzp material source appropriate for the brick industry besides its feasible accessibility in the field. The study revealed that the clay mineral contents of the raw materials and their natural admixtures were responsible for the quality and especially the compressive strength of the specimens.

FAKTOR-FAKTOR YANG MEMPENGARUHI DISTRIBUSI PENDAPATAN INDONESIA TAHUN 2008-2012 DALAM PERSPEKTIF EKONOMI ISLAM

In many developing countries including Indonesia, issues concerning equity in income distribution often receive special attention since inequality in income will result in economic inequality. This study aimed to determine the effect of economic growth, the Regional Budget (APBD), wage and the ratio of Muslim population on income distribution in Indonesia. 
 This was a descriptive study using a quantitative method and a normative juridical approach. The data used were the time series data in 2008-2012 and the cross section data in 33 provinces in Indonesia. The secondary data were taken from the Central Bureau of Statistics and Ministry of Religious Affairs of the Republic of Indonesia. The analysis technique used a panel data model with fixed effect method (FEM). The results showed that (1) Economic Growth (PE), the Regional Budget (APBD) and the ratio of Muslim population (Muslims) were not significant in affecting income distribution (DP), because an increase in these three variables was not always followed by a decline in DP and (2) wage had a positive and significant effect on income distribution, meaning that the higher the amount of wages would result in higher levels of the equity rate of income distribution. 
 Based on the findings of this research, it is expected that the increase in PE and APBD can directly be proportional to the reduction in the Gini ratio in the future. Muslims as the majority in Indonesia are also expected to be able to contribute positively to the income distribution, such as by maximizing Zakāh as a solution viewed from the perspective of Islamic Economic.

CEPAL, Economic Development, and Inequality

Latin American structuralism, first promulgated in 1949 by the Argentine economist Raúl Prebisch, held that Latin American economies were characterized by heterogeneous technologies, structural unemployment, external disequilibrium, and secularly deteriorating terms of trade. The crisis of structuralism in the latter 1960s, following the exhaustion of “easy” import substitution, ultimately resulted in “neostructuralism” in 1990, a reformed version of the doctrine that emphasized greater equity in income distribution, expansion of export markets, aggressive pursuit of technological change, and continuous “learning by doing.” In the last two decades, CEPAL’s interest has focused on issues of inequality in the global region that is still the most unequal in the world.

Determining Rural Poverty in Manga Del Cura – Ecuador Non Delimited Zone

This paper shows the implementation of the direct method, also called unsatisfied basic need index, indirect or poverty line method, Gini coefficient and Lorenz curve in Manga del Cura non delimited zone in Ecuador. The data used are the result of the processing of questionnaires applied to the people living in the zone. Simple probabilistic randomized sampling was applied for data processing (136 questionnaires). Housing and minimum equipment for home were analyzed, together with infrastructure, access to education and home subsistence ability. Results show that residents have more than one unsatisfied basic need, among them overcrowding, in an infrastructure that does not guarantee the minimum sanitary standards needed. These people live under the line of poverty because their average earnings correspond to 271, 37 USD, not enough to cover the cost of a basic food basket and Ecuadorian vital food basket. Engel and Gini coefficients demonstrate that there is equity in income distribution, what does not necessarily constitutes an indicator of good economic conditions, on the contrary, in this particular case, they indicate that this population group has similar, under 300.00 USD, monthly incomes.

An Analytical Network Process on Financial Access of the Small and Medium Enterprise in Sharia Banking in Tasikmalaya City

Small and Medium Enterprise (SME) is one of the significant roles in national economic development. It is seemly followed by the rise of employment absorbent and equity in income distribution. The capital constraint and the impedance of banking financial access have become the main problem to the Small and Medium entrepreneurs. The objectives of this research are to identify the main factors as problems of Small and Medium Enterprises in having access to the financial institutions, and also to find out the solutions of the research problems. This research uses qualitative approach i.e. Analytic Network Process (ANP). Through applying this method, it is expected to help the researchers in making measurement and synthesis of some factors regarding on the topic analyzed as well as finding the solution for problems faced by the SMEs. The resources of the data is derived from questionnaires and in-depth interview with experts, practitioners, SMEs and regulators which then analyzed by the structure and hierarchy into homogen clusters of the SMEs problems and solutions, measuring into ratio scale and building synthesis. As the result, it becomes clear what factors impeding the financial access of the SMEs to banks. The results of this research show that the difficulties of SMEs in accessing financial support in Islamic financial institutions are internal problems of Islamic banking i.e. lack of financial assistance given to the SMEs, the functions of Islamic banking as business partners for SMEs is not optimal. Whereas the external problems in the SMEs are the disability in meeting the financial requirements asked by Islamic banking that are collateral and business history. The internal solutions are Islamic banking must give business mentoring to SMEs that have received financial supports to minimalize the bad credits level. The external solution is the government must also socialize Islamic financial mechanism to SMEs as part of education efforts.

PENERAPAN BISNIS MODEL DENGAN PENDEKATAN BUSINESS MODEL CANVAS PADA INDUSTRI KECIL MENENGAH (Studi kasus di IKM QUE QOE di Kelurahan Tengah, Jakarta Timur)

The government began focus their attention to the Small and Medium Industries (SMEs), because this sector can address equity in income distribution among other regions, which is the amount of labor absorption. SME QUE QOE is one of SMEs which is still surviving their business to compete with another enterpreuner. In order to resolve the problems which is faced by SMEs, this research focuses on the business canvas model (BMC). The aim of this research were to describe the business canvas model of SME QUE QOE and to know the desain of business canvas model as a form of business development strategies are appropriated and advised to apply at SME QUE QOE. This research is using method data which consists of qualitative methodological approach. The result of this research showed that SMEs have a great opportunity to develop their market with production registering such as PIRT and HALAL. Otherside, SMEs need to change packaging of their product so it can be marketable. Keywords : Business Canvas Model, Small and Medium Industries (SMEs)

The input-state-output model and related indicators to investigate the relationships among environment, society and economy

Economic systems can be studied as thermodynamic open systems that rely upon inputs of energy and materials, processed through human labor and a structured organization, and eventually transformed into useful outputs (i.e., goods and services). In this vein, a generic input-state-output model can be used to represent the relations among environment, society, and economy as well as their dynamics. This approach, that implies the use of holistic and systemic approaches, allows the description and understanding of the evolution of the level of sustainability of national economies through the use of three different metrics computed for world countries in time-series: emergy flow as input-based indicator, Gini index of income distribution as a state descriptor, and gross domestic product as a measure of outputs produced by the economic system. This whole framework depicts a synthetic representation of the environmental, social, and economic dimensions that characterize national systems. It aims at being highly informative to better understand complex relationships between quality and amount of energy and resources used, equity in income distribution, and the overall value of economic production.

China's Role in Global Climate Change Mitigation

AbstractChina contributed a majority of the growth in global greenhouse gas emissions in the first 11 years of this century. The trajectory of emissions has changed radically since then, as China has implemented its Cancun 2010 commitment to reduce the 2005 emissions intensity of economic activity by 40–45 percent by 2020. The change in trajectory has been reinforced by China's new model of economic growth, with its greater emphasis on equity in income distribution, consumption and services. The large‐scale deployment of low emissions technology in China is lowering the cost of transition to a low carbon economy all over the world. China's new emissions trajectory improves the opportunity for the international community to meet the 2°C climate target. It is essential that the changes in China are brought to account in shaping global mitigation ambition.

Equity in Distribution of Proceeds from Forest Products from Certified Community-Based Forest Management in Kilwa District, Tanzania

Equity in distribution of income from forest products among producers, processors and traders is required for sustaining forests resource use. Despite many studies being undertaken on benefits of certified community forest products, distributional aspects of these benefits to the communities have not been fully examined. Employing a value chain analytical framework, this paper investigates the distribution of proceeds of forest products by assessing net revenue of roundwood equivalent and its shares among actors along the chain. A comparative study was conducted using the Forest Stewardship Council (FSC) certified community forests and non-certified (non-FSC) forests in Kilwa District, Tanzania. Actors from certified forest communities were found to earn higher income than those from non-FSC forests, and experience significantly greater income equity. This finding suggests that forest certification is an important forest management approach in enhancing equity in income distribution among the actors. However, sustainability of equity in income for certified community forests in Kilwa is highly conditional upon the technical and managerial capacities of villagers, and their access to finance and markets of certified forest products. This study provides baseline data for future assessment of income distribution among actors for the various forest management regimes in Tanzania and the African region as a whole.

Achieving Equity and Efficiency Simultaneously in the Primary Distribution Stage in the People’s Republic of China

This paper establishes a theoretical framework addressing the long-debated issue of efficiency and equity. Empirical evidence shows that a comparative-advantage-following development strategy promotes growth and narrows the income gap, achieving both efficiency in production and equity in income distribution. A review of the past three decades of reform reveals that development in line with the comparative advantage of the People’s Republic of China accounts for its outstanding economic performance. The dominant causes of the country’s current problems are the remaining distortions in prices and government interventions in resource allocation. Therefore, to put the government’s “scientific development outlook” into practice and to realize development with quality and speed, the country should deepen market-oriented transformation by eliminating these distortions and interventions. The inclusiveness of development can be further strengthened with financially sustainable social security and transfer payment policies.

Consensus and dissension among Mexican economists

This article identifies areas of agreement and disagreement among Mexican economists in relation to key issues of economics, on the basis of a survey of 360 members of the profession. The propositions eliciting the greatest consensus included: equity in income distribution, vigorous use of antitrust and consumer protection laws and the use of countercyclical fiscal policies. The most contentious issues were: private investment in the energy sector, the determinants of inflation, the minimum wage as a cause of unemployment and the objectives to be pursued by an independent central bank.

Achieving efficiency and equity in irrigation management: an optimization model of the El Angel watershed, Carchi, Ecuador

The objective of this paper is to address the problems of inefficiency and inequity in water allocation in the El Angel watershed, located in Ecuador's Sierra region. Water is captured in a high-altitude region of the watershed and distributed downstream to producers in four elevation-defined zones via a system of canals. Upstream and downstream producers face radically different conditions with respect to climate and terrain. A mathematical programming model was created to study the consequences of addressing chronic water scarcity problems in the watershed by shifting water resources between the four zones. The model captures the nature of water use by humans, crops and dual purpose cattle. Its objective function maximizes producer welfare as measured by aggregate gross margin, subject to limited supplies of land, labor and water. Five water allocation scenarios are evaluated with respect to efficiency in land and water use and equity in income distribution. Results reveal that although water is the primary constrained resource downstream, in the upstream zones, land is far more scarce. The current distribution of water rights does not consider these differences and therefore is neither efficient nor equitable. Improvements in efficiency (resource use) and equity (income distribution) are associated with (1) a shift of water to the lower zone, and (2) the use of lower levels of irrigation intensity upstream. Furthermore, the scenarios that result in the most efficient use of resources also bring the greatest degree of equity in income distribution, indicating that these may be complementary, not conflicting, goals.

Privatization in the Transition Economies: A Critique

In his 1990 paper, Janos Kornai (1990) tantalizingly offers the prospect of a discussion of the relationship between ownership and coordinating mechanisms in reforming socialist economies. Unfortunately, the socialism he is talking about is the pre1988 variety, by now passe in all except a very limited number of countries (China? Vietnam?). His point is that certain combinations are more compatible than othersthey form a strong linkage in his words-hence, societies characterized by these strong linkages are more likely to thrive than those characterized by weak linkages. If this is true, then it is a crucial aspect of reform that the socialist economies in transition must take into account. Since 1989, one after another of the Eastern and Central European countries has embarked on the process of overturning communist regimes, starting a search for democratic alternatives and a new mechanism for organizing an economy in place of a rigid, bureaucratized central planning mechanism. The transition process itself seems to be intended to tum these economies into something more like their democratic, mixed-economy neighbors to the West. Now, if this transition only involves a move away from one strong linkage (state ownership plus a bureaucratic command economy) to another (private ownership plus a market economy), then objectively, one can only be judged better than another on the basis of outcomes (such as growth rates, output per citizen, equity in income distribution, and so on). However, the reformers (and their Western advisers) also have very strong value judgments and preferences: an a priori preference for private ownership per se. In Komai's tenns, this must also imply that a market coordinating mechanism is the necessary and sufficient second