Institutions and Income Equality  (Case Study: Selected Non-Aligned Movement Countries)

Shahabadi, Abolfazl; Amiri, Behzad; Sarigol, Sara

doi:10.22054/joer.2016.5292

Document Type : Research Paper

Authors

¹ Professor, Department of Economics, Faculty of Economics and Social Science, Bu-Ali Sina University, Hamedan, Iran

² PhD Student in Economics, Bu-Ali Sina University

https://doi.org/10.22054/joer.2016.5292

Abstract

In recent decades, reducing income inequality has become one of the major objectives of economic and social development and even important part of governments’ tasks. Thus, studying equal distribution of income and trying to find its causes are important to achieve sustained and stable economic growth and development. Consequently, this study is using conventional econometrics technique (panel data approach) to evaluate the effect of governance on income equality in selected NAM countries during the period 1996-2012. The results show that governance variable has positive and significant effect on income equality in countries under study. Based on the estimation results, the effect of financial development, human capital, subsidies granted by the government on equal income distribution are positive and significant. The effect of synthesized variable of difference between labor compensation growth rate and inflation on income equality is positive but insignificant. Interaction effect of natural resources and governance variables on income equality is positive and significant.

Keywords

References

ابریشمی، حمید (1375)،اقتصاد ایران، انتشارات علمی و فرهنگی، چاپ اول، تهران.

پرخیده، احمد و تاجیک، مهدی (1390)، «نقش و اهمیت امنیت اقتصادی در تامین رشد و توسعه پایدار»، نامه اتاق بازرگانی، 83(59)، 13-16.

تودارو، مایکل(1378)، توسعه اقتصادی در جهان سوم، مترجم غلامعلی فرجادی، موسسه عالی پژوهش در برنامهریزی و توسعه، تهران.

دهمرده، نظر، صفدری، مهدی و شهیکی تاش، مهیم (1389)، "«تاثیر شاخص‌های کلان بر توزیع درآمد در ایران»، فصلنامه پژوهشنامه بازرگانی، 54، 55-25.

راستی، محمد(1388)، «آثار توسعه تجارت بر توسعه مالی در اقتصاد ایران»، بررسیهای بازرگانی، 37، 63-56.

رحمانی، تیمور و گلستانی، ماندانا (1388)، «تحلیلی از نفرین منابع طبیعی و رانت‌جویی بر توزیع درآمد در کشورهای منتخب نفتخیز»، مجله تحقیقات اقتصادی، 44(89)، 57-86.

شاهآبادی، ابوالفضل و پورجوان، عبداله (1391)، «رابطه حکمرانی با شاخصهای توسعه اقتصادی- اجتماعی کشورهای برگزیده»، مجله علوم اجتماعی دانشگاه فردوسی مشهد، 9(2)، 53-75.

عزتی، مرتضی و دهقان، محمدعلی (1387)، «امنیت اقتصادی در ایران»، دفتر مطالعات اقتصادی مرکز پژوهش‌های مجلس شورای اسلامی، تهران.

کمیجانی، اکبر (1373)، «ملاحظاتی پیرامون انتخاب نظام ارزی مناسب برای ایران»، فصلنامه پژوهشها و سیاستهای اقتصادی، 5، 33-5.

همدمی خطبهسرا، ابوالفضل (1383)، «فساد مالی: علل، زمینهها و راهبردهای مبارزه با آن»، پژوهشکده مطالعات راهبردی، تهران.

نیلی، فرهاد (١٣٧٥)، «رشد اقتصادی، توزیع درآمد و رفاه اجتماعی در سال‌های ١٣٦١ تا ١٣٧١»، مجله برنامه و بودجه، 1، 6-47.

Akram, Z. , Wajid, S. , Mahmood, T. and Sarwar, Sh. (2011), “Impact of Poor Governance and Income inequality of Poverty in Pakistan”, Far East Journal of Psychology and Business, 4(3); 43-55.

Albanesi, S. (2001), “Inflation and inequality, Innocenzo Gasparini Institute for Economic Research”, Working Paper No. 199.

Banerjee, A. V. and Newman, A. (1993(, “Occupational choice and the Process of Development”, Journal of Political Economy, 101(2); 274– 298.

Barro, R. J. and Lee, J. W. (2014), “Educational Attainment Dataset”, www. barrolee. com.

Batuo, E. M. , Guidi, F. and Kupukil, M. (2010), “Financial Development and Income Inequality: Evidence from African Countries”, MPRA, Working Paper No. 25658.

Baumol, W. J. (1990), “Entrepreneurship: Productive, Unproductive, and Destructive”, Journal of Political Economy, 98(5); 893-921.

Birchenall, J. A. (2001), “Income Distribution, Human Capital and Economic Growth in Colombia”, Journal of Development Economics, 66, 271-287.

Breen, R. and Garcia-Penalosa, C. (1999), “Income Inequality and Macroeconomic Volatility: An Empirical Investigation”, University Aix-Marseille III, Working Paper No. 99b11.

Budd, E. C. and Seiders, D. F. (2004), “The Impact of Inflation on the Distribution of Income and Wealth”, The American Economic Review Journal, 61, 128-138.

Bulir, A. (2001), “Income Inequality: Does Inflation Matter?” IMF Staff Papers, 8(1); 59-139.

Chong, A. and Gradstein, M. (2004), “Inequality and Institution”, Research Department Inter- American Development Bank: New York, Working Paper No. 506.

Colin L. XU. and Heng. F. Z. (2000), “Explaining the Changes of Income Distribution in China”, Journal of China Economic Review, 11,149-170.

Crowe, Ch. (2004), “Inflation, Inequality and Social Conflict, Centre for Economic Performance”, Discussion Papers No. 657.

Cysne, R. P., Maldonado, W. L. and Monteiro, P. K. (2005), “Inflation and Income Inequality: A Shopping-time Approach”, Journal of Development Economics, 78(2); 516-528.

Dincer, O. C. and Gunalp, B. (2012), “Corruption and v United States”, Journal of Contemporary Economic Policy, 30(2): 283–292.

Dupont, V. and Martin, Ph. (2003), “Subsidies to Poor Regions and Inequalities: Some Unpleasant Arithmetic”, CEPR Discussion Papers with number 4107.

Fleisher, B., Li, H. and Zhao, M. Q. (2007), “Human Capital, Economic Growth, and Regional Inequality in China”, IZA, Discussion Paper No. 2703.

Galor, O. and Zeira, J. (1993), “Income Distribution and Macroeconomics”, The Review of Economic Studies, 60(1); 35-52.

Goderis, B. and Malone, S. W. (2011), “Natural Resource Booms and Inequality: Theory and Evidence”, Scandinavian Journal of Economics, 113(6); 388-417.

Godin, B. (2004), “The New Economy: What the Concept Owes to the OECD”, Journal of Research Policy, 33, 90-679

Greenwood, J. and Jovanovic, B. (1990), “Financial Development, Growth, and the Distribution of Income”, The Journal of Political Economy, 98(5); 1076-1107.

Gupta, S. , Davoodi, H. and Terme, R. A. (2002), “Does Corruption Affect Income Inequality and Poverty?”, Journal of Economics of Governance, 3(1); 23-45.

Honohan, P. (2004), “Financial Development, Growth and Poverty: How Close are the Links”, World Bank Policy Research, Working Paper 3203.

Indermit, S. G. and Nadeem, I. (2000), “Economic Insecurity, Individual Behavior and Social Policy”, World Bank, Working Paper No. 31522.

Jeanney, S. G and Kpodar, K. (2005), “Financial Development, Financial Instability and Poverty”, Canadian Society of Association, Executives (CSAE)/2005-09.

Juneba, E. (2000), “Trade, Income Inequality, and Government Policies: Redistribution of Income or Education Subsidies?” NBER, Working Paper No. 7485.

Justino, P. (2010), “War and Poverty”, Households in Conflict Network (HiCN), Working Papers No. 81.

Law, S-H. , Tan, H-B and Azman-Saini, W. N. W. (2014), “Financial Development and Income Inequality at Different Levels of Institutional Qlity”, Journal of Emerging Markets Finance & Trade, 50(1): 21-33.

Kaufmann, D., Kraay, A. & Mastruzzi, M. (2009), “Governance Matters VIII: Aggregate and Individual Governance Indicators 1996-2008”, Policy Research of World Bank, Working Paper, No. 4978.

Kawashima, H. (2012), “Labor Markets, Poverty and Crime”, Osaka School of International Public Policy, (OSIPP), Osaka University, Discussion Paper No. 12J007.

Lopez-Feldman, A., Mora, J. and Taylor, E. T. (2006), “Does Natural Resource Extraction Mitigate Poverty and Inequality? Evidence from rural Mexic”, American Agricultural Economics Association, 2006 Annual Meeting, July 23-26, CA No. 21362.

Lustig, N. , Gray-Molina, G. , Higgins, S. , Jaramillo, M. , Jiménez, W. , Paz, V. , Pereira, C. , Pessino, C. , Scott, J. and Yañez, E. (2012), “The Impact of Taxes and Social Spending on Inequality and Poverty in Argentina, Bolivia, Brazil, Mexico, and Peru: A synthesis of results”, Center for Global Development, Working Paper No. 311.

Mi, Z. and Liu, Q. (2014), “Income Inequality, Fiscal Redistribution, and Governmental Corruption: Evidence from Chinese Provincial Data”, Journal of Developing Areas, 48(4): 119-137.

Mohtashami Borzadaran, H., Behname, M. and Mostafavi, S. M. (2013), “Natural Resources, Openness and Income Inequality in Iran”, Romanian Economic Journal, 16(49); 3-26.

Mushtaq Khan, H. (2009), “Governance, Growth and Poverty Reduction”, DESA, Working Paper No. 75.

North, D. C. (1990), Institutions, Institutional Change and Economic Performance, Cambridge University Press, Cambridge

Shafique, S. and Haq, R. (2006), “Governance and Income Inequality”, The Pakistan Development Review, 45(4); 751–760.

Shen, Y. and Yao, Y. (2008), “Does Grassroots Democracy Reduce Income Inequality in China?” Journal of Public Economics, 92, 2182-2198.

Thalassinos, E., Ugurlu, E. and Muratoglu, Y. (2012), “Income Inequality and Inflation in the EU”, European Research Studies Journal, XV (1); 127-140.

Torvik, R. (2002), “Natural Resources, Rent Seeking and Welfare”, Journal of Development Economics, 67(2), 455-470.

Umukoro, N. (2014), “Democracy and Inequality in Nigeria”, Journal of Developing Societies, 30(1); 1-24.

Veradi, V. (2005), “Electoral Systems and Income Inequality”, Economics Letter, 86, 7-12.

World Bank (2014). http://data. worldbank. org

Economics Research

Institutions and Income Equality (Case Study: Selected Non-Aligned Movement Countries)

References

References

Volume 16, Issue 61 - Serial Number 61
July 2016
Pages 155-179

Institutions and Income Equality (Case Study: Selected Non-Aligned Movement Countries)

References

References

Volume 16, Issue 61 - Serial Number 61July 2016Pages 155-179

Volume 16, Issue 61 - Serial Number 61
July 2016
Pages 155-179