Increase In Real Income Research Articles

Income differentiation in Kazakhstan: an in-depth examination of its economic and social drivers

This study comprehensively identifies and quantitatively assesses the factors influencing income differentiation in Kazakhstan, demonstrating the multifaceted relationships between income inequality and various economic indicators. Utilizing quantitative research methodology, the investigation employs an Autoregressive Distributed Lag model to analyze the impact of GDP, real income, social aid, migration, and inflation on the Gini index of Kazakhstan from 2001 to 2022. Data was sourced from the Bureau of National Statistics, ensuring a robust and reliable foundation for the analysis. The investigation highlights the relevance of addressing income inequality in pursuing economic growth balanced with social justice, emphasizing global commitment to sustainable development goals. The results show that GDP growth and migration contribute to reducing income inequality, whereas increases in real income and, unexpectedly, social assistance are associated with higher inequality levels. Inflation's impact on income inequality was statistically insignificant, suggesting its effects may be ambiguous depending on other conditions. Overall, the findings advocate for developing multilevel strategies and policies aimed at reducing income inequality, encompassing economic measures, social investments, and improved labor market regulation to achieve more equitable and sustainable economic development in Kazakhstan.

Environmental sustainability in high‐income countries: Does natural resource protection, financial inclusion, and energy innovation matters?

AbstractEnvironmental sustainability (ES) is critical for high‐income countries (HICs) because of their high ecological footprints. They are responsible for global environmental problems as they consume more natural resources, produce more output, and generate more greenhouse gases than other countries, which could have severe consequences for land degradation. In the context of resource conservation and land development policies, this study examined the impact of natural resource protection (i.e., land, water, and biodiversity), financial institution inclusion, financial market inclusion, and energy innovation (EI) on the enhancement of ES in 15 HICs from 1995 to 2020. The study applied Feasible GLS and Prais–Winsten regression to consider cross‐sectional dependence, autocorrelation, heteroscedasticity, and slope heterogeneity problems for unbiased and robust findings along with 2nd generation cointegration tests and the JKS Granger non‐causality test. Natural resource protection, financial institution inclusion, financial market inclusion, and EI have positive effects on ES, along with green energy and environmental regulations. It was also found that an increase in real income negatively impacts ES, as it increases the use of natural resources and energy and generates more waste and pollution which further accelerates land degradation. Cointegration and causality also exist between variables of interest. This shows that protecting natural resources, increasing financial inclusion, and EI can be successful strategies for fostering a green transition, reducing environmental impacts, and embracing more sustainable practices and laws to meet development goals and develop sustainable land use policies. This study suggests that HICs should protect land, water, and biodiversity, promote green financing, digital payments, EI, energy diversification, and environmental protection to achieve ES which is critically important to reduce land degradation.

Transportation infrastructure and trade

This paper offers a variant of the Ricardian model able to structurally interpret the estimate of country specific variable—transportation infrastructure. Guided by this new theoretical framework, this paper shows that transportation infrastructure enhances international trade more than internal trade. Further quantitative analysis suggests 10% increase in transportation infrastructure induces 3.9% increase in real income and more than 95% of the gains concentrate on the infrastructure improving country. This paper also suggests that transportation infrastructure improvement increases real income mostly through internal trade cost reduction. All the above results suggest that better infrastructure leads to sizable gains providing additional empirical support to policies aiming to improve transportation infrastructure.

Dynamic relationship between energy efficiency, health expenditure and economic growth: in pursuit for SDGs in Malaysia

PurposeThis paper aims to examine the dynamic relationship among energy efficiency, health expenditure and economic growth in Malaysia over the sample period of 1980–2016.Design/methodology/approachThis study uses autoregressive distributed lag cointegration analysis and the causality approach by the vector error correction model to analyse the relationship among energy efficiency, which is proxied by energy intensity and the determinant factors.FindingsThe findings of this paper suggest long-run cointegration causal links between economic growth and health expenditure. However, a mixed conclusion for both determinants exists: an increase in real income contributes to more efficient use of energy sources, whereas an increase in government spending on health intensifies energy usage.Originality/valueMost previous relevant research has focussed on energy efficiency as measured by economic intensity and economic growth and do not relate to the issue of health expenditure. The recent health catastrophe brought on by the COVID-19 epidemic emphasises the significance of allocating more resources to health care. The findings will be helpful in the development of energy efficiency and economic policies in pursuit of sustainable development goals.

The effect of globalization, income and tourism on environment: An empirical analysis

This study investigates the impact of globalization, real income, and tourism on the environment in top 10 destinations that attract the most tourists, using panel unit root, panel cointegration, and panel cointegration estimators for the period between 1995 and 2014. Panel cointegration test results show that the series moves together in the long run. According to the long-run panel estimator results, an increase in real income negatively affects the environment in China, France, Spain, Thailand, and the UK. Tourism decreases environmental degradation in Germany, Italy, the UK, and the United States. Globalization reduces environmental degradation in France and the UK. The short-run panel estimator shows that an increase in real income in all countries, except China, increases environmental degradation. Tourism decreases environmental degradation in Mexico and increases it in Spain. Finally, globalization contributes to the reduction of environmental degradation in Italy.

Reference-dependent preferences and stock market participation

ABSTRACT Prospect theory was proposed mainly to explain irrational investment behaviour. However, empirical evidence has come mostly from controlled experiments, and evidence from real data is rare. This paper uses panel data from a nationally representative survey in China to test whether prospect theory can explain stock market participation. The empirical results show that individuals take expected income as a reference point when investing in stocks. After real income and other factors are controlled for, the relative loss between expected and real income increases by 10,000 RMB, the probability of holding stocks increases by 0.77% and stock investment increases by 11.78%. The mechanism behind this is that relative losses motivate individuals to take excessive risks to hedge losses, while relative gains increase risk aversion and the holding of safe assets. These results can explain the puzzle of limited stock market participation. Participation costs are the main factor that restricts the low-income group from participating in the stock market, while the high-income group often faces relative gains, which leads to increased risk aversion and unwillingness to hold stocks.

Revisiting the nexus of ecological footprint, unemployment, and renewable and non-renewable energy for South Asian economies: Evidence from novel research methods

Given the need to employ novel research methods in the energy-environment nexus, the objective of the present research is to investigate the impacts of real output, unemployment, and renewable and non-renewable energy on ecological footprint under a STIRPAT theoretical framework by applying the second-generation unit root, cointegration, Granger-causality, and long-run estimation methods on the annual data from 1990 to 2017 for South Asian economies. Empirical results show that increases in unemployment and renewable energy decrease ecological footprint while increases in real income and non-renewable energy hurt the environment. This study confirms the adverse effect of renewable energy on environmental degradation as well as the trade-off between unemployment and pollution through multiple robustness and sensitivity checks. In addition, the causality test supports unidirectional causality from income, renewable energy, and non-renewable energy to ecological footprint. Regarding policy perspectives, the governments of the South Asian region should support the deployment of renewable energy through various channels and regulations. The development of technologies that promote sustainable production and consumption play critical roles for reducing the trade-off unemployment and ecological footprint. Further policy suggestions are discussed in the study.

Estimating the economic impacts of improved wind speed forecasts in the United States electricity sector

Each year the U.S. government makes significant investments in improving weather forecast models. In this paper, we use a multidisciplinary approach to examine how utilities can benefit from improved wind-speed forecasts to more efficiently use wind-generated electricity and subsequently increase economic activity. Specifically, we examine how improvements to the National Oceanic and Atmospheric Administration's high-resolution rapid refresh model (HRRR) wind forecasts can provide (1) cost savings for utilities and (2) increase in real household income. To do so, we compare 12-h-ahead wind forecasts with real-time observations for two HRRR model transitions (i.e., when one model is operational, the other is being tested). We compare estimates of actual and predicted wind power under the publicly available and developmental models, with reduced forecast errors allowing for better utility decision-making and lower production costs. We then translate potential cost savings into electricity price changes, which are entered as exogenous shocks to eight regional computable general equilibrium models constructed for the U.S. Overall, we find that households would have seen a potential $60 million increase in real income for our sample (13% of all contiguous U.S. land-based turbine capacity), which had the updated HRRR models been in place during the two transition periods; applying our estimated savings for the sample of turbines to the entire array of turbines shows a potential real household income increase in approximately $384 million during these time frames.

Rethinking money demand function in Nigeria using Toda-Yamamoto Approach

This study examined the demand for money in Nigeria from 1980 to 2019, employing various techniques of econometric analysis. The study was motivated to determine whether Keynes liquidity preference theory holds in Nigeria and to ascertain whether money demand function is stable in Nigeria. The Augmented Dickey Fuller (ADF) unit root test showed that the variables were stationary at different levels. The test of stability showed that the estimated parameters for the study are stable within the period under study. Thus, money demand function is stable in Nigeria. Considering a year period lag in the estimated money demand function, it was found that there was a positive relationship between money demand and real income during the period of study. It implies that increase in real income (gross domestic product) leads to increase in the demand for money, as predicted by economic theory. The real income (gross domestic product) coefficient is 0.09 which is less than unit and is consistent with the transactions and precautionary theories. However, the inflation rate both at a year and two years period lags had negative signs, and were consistent with a priori expectations. The coefficient of –0.002 and -0.001 respectively showed that the demand for money in Nigeria will decrease by about 0.2% or 0.1% when the inflation rate (at a year or two year lag) rises by 1%. The result indicated that the higher the rate of expected inflation (i.e. higher returns on the alternative assets), ceteris paribus, and the lower is the demand for money in Nigeria. Hence, people would tend to switch to other money alternatives when inflation is anticipated, because they promise higher rates of returns. In the light of the findings, it was recommended that Central Bank of Nigeria should pursue policy aimed at changing the level of income which will influence the demand for money in the same direction.

On the question of factors and indicators poverty in Russia

This article examines the dynamics of real monetary incomes of the population, as well as the level of poverty in Russia; it is proved that minor increases in the minimum wage do not lead to an increase in real incomes, as they are «eaten up» by inflation; it is shown that the minimum wage should be tied to a real increase in prices for essential goods and services based on objective statistical data. It is emphasized that the subsistence minimum and the minimum wage, being basic social indicators, are among the indicators that determine the poverty threshold.

Pengaruh Tingkat Investasi, Nilai Tukar Rupiah dan Pertumbuhan Ekonomi terhadap Tingkat Pengangguran

Economic development is a process increase in real income of the population in a country as sustainably. Macroeconomy growth becomes one of the indicators for rate economic conditions in a country. Unemployment in the macroeconomy is a complicated problem from human resources in each country, including Indonesia. Bali province is one of the provinces that have a very tight population, so there are many workers and unemployment. The purpose of this study are to know the effect of economic growth, inflation and investation partially to open unemployment rate of Bali Province and to know the effect of economic growth, inflation and investation simultaneously to open unemployment rate of Bali Province. The result of this research are economic growth variable partially has a negative and significant effect on to open unemployment rate of Bali Province, while the inflation variable partially has an insignificant effect on to open unemployment rate of Bali Province, and investation variable partially has a positive and significant effect to open unemployment rate of Bali Province. The last one, that economic growth, inflation, and investation simultaneously have a significant effect to open unemployment rate of Bali Province.

КОНКУРЕНТОСПОСОБНОСТЬ РОССИИ И ПЕРСПЕКТИВА РАЗВИТИЯ

The article considers the factors affecting the socioeconomic development of Russia. The assessment of Russia's competitiveness in the Global Competitiveness Index 4.0 system is given. The contribution of various industries to economic indicators, such as gross domestic product and its average annual growth, the indicator of information and communication technologies and the innovative component of development is Considered. Arguments are given in favor of the development of the manufacturing industry. Measures are proposed for structural adjustment, demonopolization of the economy, fighting corruption while reducing the taxation of small businesses. The author focuses on the increase in real incomes of citizens and the return of citizens ' confidence to carry out reforms, against the background of low inflation and an increase in the number of jobs.

Экономическая конъюнктура в Дальневосточном федеральном округе в 2019 г.

The paper explores the socio-economic state of the Far Eastern Federal District (FEFD) in 2019 as to administrative regions and industries therein based on current statistics and expertise. The key factors and problematic issues of the main industries are being investigated as well as those in the social sector and the foreign economic activity under financial and geopolitical shocks. Comparison is drawn between the FEFD socio-economic situation and the mean Russian parameters. It is demonstrated that the FEFD economy is characterized by stable dynamics of the key macroeconomic indicators with signs of instability in certain sectors. It is stressed that the industrial production growth at the rate that outperforms the national mean level is secured by ongoing projects in mining and contractual works in water vessel and aircraft manufacturing, and the defense sector. A moderate accretion of investment resources is still in place while the interest of foreign investors goes toward projects in extracting natural resources, especially in fuel and energy sector and production of export-oriented goods. Against the background of shrinking construction volume there is economic recovery in civil engineering still. Positive dynamics are seen in aviation, railway and marine transport. A slow regular increase in real income is registered while the agribusiness output is reducing due to a cutback in crop production and slackened foreign trade activity due to decreasing value of exports with the global reduction of prices for main export commodity groups. The depopulation of FEFD has continued, both as a result of the migration outflow and m a change for the worse in natural reproduction statistics showing a lower birth rate against the insufficiently low mortality rate

High-speed railway, market access and economic growth

This paper establishes a general equilibrium trade model, adopts the “market access” approach to measure the impact of the high-speed railway (HSR) network on the economic growth of 110 main Chinese prefecture-level cities, of which we manually collected the pairwise travel distances and railway speeds to calculate MA (Market Access). The empirical results show that the launch of HSR exhibits significant positive effects on growth, specifically, 1 percentage increase in MA leads to an increase of real income by 0.123 (controlling region fixed effect) or 0.121 (controlling province fixed effect) percentage. Counterfactual econometrics analysis shows that if all HSR were removed in 2015, the market access would fall by an average of 76.2%, and aggregate real income would decline by up to 9.4%. The growth effect of HSR varies across cities, and HSR has a more prominent impact on services than on manufactures. The conclusion stands valid after a series of robustness tests.

ANALISIS DAMPAK PENGGUNAAN DANA DESA TERHADAP PEMBANGUNAN EKONOMI PEDESAAN DI KECAMATAN PANDAWAN KABUPATEN HULU SUNGAI TENGAH TAHUN 2016

The research was conducted to (1) Analyze the impact of the impact of village funds on rural economic development in terms of income increase and poverty reduction in rural Pandawan District ; (2) To analyze the community’s view of the use of village funds for economic development and rural infrastructure. The result of this study indicate that the village fund program has a role in the addition of rural physical facilities and infrastructure. From the analysis results indicate that 40% of the community expressly agree the addition of rural physical facilities and infrastructure. Furthermore, there is an increase in real incomes by the community and it is recognized as much as 69% of rural communities so that the impact of the utilization of village funds for the development of economic desaan has gone well whose benefits can be felt directly by the surrounding community.

ЗАБЕЗПЕЧЕННЯ СТІЙКОСТІ ГРОШОВОГО ОБІГУ В УКРАЇНІ В КОНТЕКСТІ РЕАЛІЗАЦІЇ ІНСТРУМЕНТІВ ГРОШОВО-КРЕДИТНОЇ ПОЛІТИКИ

Подано рекомендації щодо забезпечення стійкості грошового обігу в Україні в контексті реалізації грошово-кредитної політики за рахунок: встановлення інфляційних цілей, упровадження режиму таргетування інфляції, політики обмінного курсу, підвищення ступеня незалежності та прозорості діяльності НБУ у сфері грошового обігу та монетарної політики.

СУЧАСНІ ВИКЛИКИ ДЛЯ УКРАЇНСЬКОГО БІЗНЕСУ

The challenges facing Ukrainian business in new socio-economic realities were considered. It was noted that the rapid pace of globalization and migration processes and the growth of the digital economy have increased the interest in business innovation and recruitment problems. It is emphasized that current problems should be seen as challenges for the revival and further dynamic development of business. It is revealed that the main challenges for Ukrainian enterprises are: the intensification of competition, especially in foreign markets, for the use of the resource potential of national economies and for markets; increased competition at the global level for labor, especially highly skilled, which is one of the reasons for the growing shortage of personnel in the domestic market; decreasing demand in the domestic market amid rising imports; high level of corruption; underdevelopment of industrial and social infrastructure, inefficiency of logistics; lack of knowledge and innovation of business; the dynamic growth of the digital economy (digitization). Ukrainian enterprises must respond to these challenges, first of all by technological modernization of their enterprises on an innovative basis, transition to creation of new productions and new types of products; involving employees through various motivational programs, in particular by investing in training and retraining through close collaboration with educational institutions at different levels of accreditation; increasing the capacity of the internal market by increasing the scale and efficiency of the business sector, which will be accompanied by a decrease in unemployment and an increase in real incomes, and by gradual import substitution; promising areas of business diversification; active use of digital technologies in business, unique software products which will provide indisputable advantages for increase of competitiveness.

The Role of Entrepreneurship in Economic Development

Entrepreneurship is one of the most Important Inputs in the Economic Development of a country. According to Harbison, entrepreneurs are prime movers of innovation. Entrepreneurship is known for the high risks involved in launching a startup. The fact is people often suffer failures along the path to success, and some businesses have to close, due to a lack of fund, sales decisions, or a lack of demand in the market. That’s why entrepreneurship is mostly viewed as something risky and out of the comfort zone. Enterprise takes courage to make one’s dreams come true and see possibilities, solutions and opportunities for the future where others see only problems. Entrepreneurship is all about putting to better use the resources which are considered to be of low value with an aim of earning income. Economic growth is measured in terms of a sustained increase in real income. It is the entrepreneurial communities who complement and supplement the economic growth increase per capita income by identifying and establishing profitable business ventures. Entrepreneurs supplement the economic growth by enhancing the physical quality of life. Establishment of enterprises leads to increase in employment avenues both directly and indirectly. Consequently, poverty is alleviated as per capita income grows. This results in improving the physical quality of life which is an indicator of economic growth. Entrepreneurs help in the growth of infrastructural facilities such as roads, bridges, buildings, factories, etc. which are the cornerstones of economic growth. Establishment of factories and industries in a particular locality presupposes the growth of infrastructural facilities.

The Distributional Effects of Trade: Theory and Evidence from the United States

Are the gains from trade unequally distributed in society? This paper presents new evidence on the distributional effects of trade on education groups in the U.S. through both consumer prices (expenditure channel) and wages (earnings channel). Our analysis, guided by a simple quantitative trade model, leverages linked datasets that cover the entire U.S. economy and include detailed spending data on consumer packaged goods and automobiles. First, we show that the expenditure channel is distributionally neutral due to offsetting forces. College graduates spend more on services, which are largely non-traded; however, their spending on goods is skewed towards industries, firms, and brands with higher import content. Second, on the earnings side, we find that college graduates work in industries that (1) are less exposed to import competition, (2) export more, (3) are more income-elastic, and (4) use fewer imported inputs. The first three forces cause trade liberalizations to favor college graduates; the fourth has the opposite effect. Finally, we combine and quantify the expenditure and earnings channels using the model. A 10% reduction of all import and export barriers generates a modest increase in inequality between education groups, primarily due to the earnings channel. Welfare gains are 16% higher for college graduates, whose real income increases by 2.02% compared to 1.74% for individuals without a college degree. Reductions of import barriers with China have qualitatively similar implications.

A Historical Reality of Underdevelopment of Africa

Generally, development can simply be considered in the context of economic growth and economic development. More specifically, on one hand, some scholars describe development as not only as a quantitative measure of a growing economy (such as the rate of increase in real income per head). On the other hand, others argue that development is all about an improvement in the quality of life but from the socio-economic aspect rather than only changes that lead to economic growth. It is evident that, there is a difference between the economic development and economic growth though so often they are used interchangeably to refer to progress. Arguably, one would states that growth does not necessarily imply development. Development goes beyond this assumption as changes in the economic growth rate does not imply economic development in real terms. Today, development experts argue that there is a distinction between the more commonly used terms, economic development and economic growth. The challenge is that when development is perceived purely from the growth rate point of view, the outcome is that economic development is often translated to mean economic growth rate even when there is no tangible improvement in the well-being of the people. It can be argued that there is no single established definition of development that which is so comprehensive as to incorporate all the features of development. It can be further debated that economic growth rate does not necessarily mean improvement in economic welfare for the majority poor. An increase in economic well-being does not lead to economic development unless there is resultant distribution of national income across the majority. Ideally, one can clearly state that development is a multi-dimensional and complicated concept. Development is normally conceived as a multi-dimensional process from the economic as well as social and environmental changes. In the recent times, the idea of underdevelopment has gained momentum in both national and international discourse. Maybe because, as the global wealth continues to increase in this age of globalization, only very few nations are gaining and progressing from such expansion, while others many of whom are found in the Third World, have continued to experience underdevelopment. Also, despite the billions of dollars that annually go into the eradication of underdevelopment, it seems the problem instead of reducing, is increasing.