Do public and internal debt cause income inequality? Evidence from Kenya

Wilkista Lore Obi̇ero, Seher Gülşah Topuz
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引用次数: 5

Abstract

PurposeThis study aims to determine whether there is an effect of internal and public debt on income inequality in Kenya for the period 1970–2018.Design/methodology/approachThe relationship is examined by using the Autoregressive Distributed Lag (ARDL) model by Pesaran et al. (2001) and Toda Yamamoto causality by Toda and Yamamoto (1995).FindingsOur findings suggest that both internal and public debt harm inequality in Kenya in the long term. Furthermore, a one-way causality from internal debt to income inequality is also obtained while no causality relationship is found to exist between public debt and income inequality. Based on these findings, the study recommends that to reduce income inequality levels in Kenya, other methods of financing other than debt financing should be preferred because debt financing is not pro-poor.Originality/valueThis study is unique based on the fact that no previous paper has analysed the debt and inequality relationship in Kenya. To the best of our knowledge, this will be the first study to analyse the applicability of redistribution effect of debt in Kenya. The study is also different in that it provides separate analysis for public debt and internal debt on their effects on income inequality.
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公共债务和内部债务会导致收入不平等吗?来自肯尼亚的证据
本研究旨在确定1970-2018年期间肯尼亚的内部和公共债务是否对收入不平等产生影响。设计/方法/方法使用Pesaran等人(2001)的自回归分布滞后(ARDL)模型和Toda和Yamamoto(1995)的Toda Yamamoto因果关系来检验这种关系。研究结果表明,从长远来看,国内债务和公共债务都会损害肯尼亚的不平等。此外,内部债务与收入不平等之间也存在单向因果关系,而公共债务与收入不平等之间不存在因果关系。根据这些发现,该研究建议,为了减少肯尼亚的收入不平等水平,应优先采用债务融资以外的其他融资方式,因为债务融资不利于穷人。原创性/价值这项研究是独一无二的,因为以前没有论文分析过肯尼亚的债务和不平等关系。据我们所知,这将是分析肯尼亚债务再分配效应的适用性的第一项研究。这项研究的不同之处在于,它对公共债务和内部债务对收入不平等的影响进行了单独分析。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Journal of Economics, Finance and Administrative Science
Journal of Economics, Finance and Administrative Science Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)
CiteScore
5.10
自引率
20.80%
发文量
23
审稿时长
12 weeks
期刊介绍: The Universidad ESAN, with more than 50 years of experience in the higher education field and post graduate studies, desires to contribute to the academic community with the most outstanding pieces of research. We gratefully welcome suggestions and contributions from business areas such as operations, supply chain, economics, finance and administration. We publish twice a year, six articles for each issue.
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