Pub Date : 2019-06-01DOI: 10.35866/CAUJED.2019.44.2.004
Salem Hathroubi
Empirical literature argues that financial inclusion has positive impact on growth, reduce inequality and poverty. This paper has twofold. First, it aims to provide a measurement of financial inclusion in the Kingdom of Saudi Arabia (KSA) as an oil-rich economy during the period 1980-2016 by the construction of a comprehensive index. Second, we study the incidence of financial inclusion on growth and human development through a set of socioeconomic leading variables. Using GMM methodology, our results suggest that financial inclusion is highly and positively correlated to human development index, and to employed share of adult population. Conversely, financial inclusion is insignificantly negatively correlated to per capita real GDP and highly negatively correlated to the share of rural population and to the share of women in adult population. In this study we take in consideration the non-linearity between inclusive finance, economic growth and human development by performing threshold cointegration and Granger-causality tests. Our findings show that there is non-linear causal relationship between financial inclusion, human development and economic growth in the long-run while in the short-run neither financial inclusion nor economic growth Granger-causes each other. This result is in concordance with previous empirical studies in the case of oil-based economies. Our findings could help policy-makers and regulators in KSA to design an inclusive financial sector taking into account the specificities of the Saudi economy.
{"title":"INCLUSIVE FINANCE, GROWTH AND SOCIO-ECONOMIC DEVELOPMENT IN SAUDI ARABIA: A THRESHOLD COINTEGRATION APPROACH","authors":"Salem Hathroubi","doi":"10.35866/CAUJED.2019.44.2.004","DOIUrl":"https://doi.org/10.35866/CAUJED.2019.44.2.004","url":null,"abstract":"Empirical literature argues that financial inclusion has positive impact on growth, reduce inequality and poverty. This paper has twofold. First, it aims to provide a measurement of financial inclusion in the Kingdom of Saudi Arabia (KSA) as an oil-rich economy during the period 1980-2016 by the construction of a comprehensive index. Second, we study the incidence of financial inclusion on growth and human development through a set of socioeconomic leading variables. Using GMM methodology, our results suggest that financial inclusion is highly and positively correlated to human development index, and to employed share of adult population. Conversely, financial inclusion is insignificantly negatively correlated to per capita real GDP and highly negatively correlated to the share of rural population and to the share of women in adult population. In this study we take in consideration the non-linearity between inclusive finance, economic growth and human development by performing threshold cointegration and Granger-causality tests. Our findings show that there is non-linear causal relationship between financial inclusion, human development and economic growth in the long-run while in the short-run neither financial inclusion nor economic growth Granger-causes each other. This result is in concordance with previous empirical studies in the case of oil-based economies. Our findings could help policy-makers and regulators in KSA to design an inclusive financial sector taking into account the specificities of the Saudi economy.","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":"38 36","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41277982","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-01DOI: 10.35866/CAUJED.2019.44.2.001
KINDA SOMLANARE ROMUALD
This paper contributes to the controversial literature on democratic institutions and environmental quality. Despite an extensive literature, studies have not focused on the transmission channels by which democracy affect environmental quality. Using panel data from 1960 to 2008 in 122 developed and developing countries, results are as follows: First democratic institutions have opposite effects on environmental quality: a positive and direct effect on environmental quality and a negative indirect effect through domestic investments and income inequality. Second, the positive effect of democracy on environmental quality is higher in developed countries than in developing countries.
{"title":"DEMOCRACY AND ENVIRONMENTAL QUALITY: ACCOUNTING FOR TRANSMISSION CHANNELS","authors":"KINDA SOMLANARE ROMUALD","doi":"10.35866/CAUJED.2019.44.2.001","DOIUrl":"https://doi.org/10.35866/CAUJED.2019.44.2.001","url":null,"abstract":"This paper contributes to the controversial literature on democratic institutions and environmental quality. Despite an extensive literature, studies have not focused on the transmission channels by which democracy affect environmental quality. Using panel data from 1960 to 2008 in 122 developed and developing countries, results are as follows: First democratic institutions have opposite effects on environmental quality: a positive and direct effect on environmental quality and a negative indirect effect through domestic investments and income inequality. Second, the positive effect of democracy on environmental quality is higher in developed countries than in developing countries.","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48763959","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-01DOI: 10.35866/caujed.2019.44.1.003
A. Mijiyawa, Djoulassi K. Oloufade
We analyze the effect of state capacity on poverty in Africa. We consider two proxy variables for state capacity: the government effectiveness index, capturing administrative capacity, and the political stability index, a proxy for coercive capacity. Using the system-GMM technique with four-year average panel data from 53 African countries over the period 1995-2014, we find that each of the state capacity variable significantly reduces poverty rate. However, administrative capacity appears to be the most important aspect of state capacity for poverty reduction. The results also suggest that cereal yield, a proxy for agricultural productivity, would be a channel through which state capacity affects poverty in Africa.
{"title":"STATE CAPACITY, AGRICULTURAL PRODUCTIVITY AND POVERTY REDUCTION IN AFRICAN COUNTRIES","authors":"A. Mijiyawa, Djoulassi K. Oloufade","doi":"10.35866/caujed.2019.44.1.003","DOIUrl":"https://doi.org/10.35866/caujed.2019.44.1.003","url":null,"abstract":"We analyze the effect of state capacity on poverty in Africa. We consider two proxy variables for state capacity: the government effectiveness index, capturing administrative capacity, and the political stability index, a proxy for coercive capacity. Using the system-GMM technique with four-year average panel data from 53 African countries over the period 1995-2014, we find that each of the state capacity variable significantly reduces poverty rate. However, administrative capacity appears to be the most important aspect of state capacity for poverty reduction. The results also suggest that cereal yield, a proxy for agricultural productivity, would be a channel through which state capacity affects poverty in Africa.","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47806737","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-01DOI: 10.35866/caujed.2019.44.1.002
Jianfeng Yao, Fafanyo Asiseh
This paper explores the relationship between household income inequality at county level and Body Mass Index (BMI). The hypotheses associating BMI with income inequality are tested. Unlike most literature that found positive linear relationship between prevalence of overweight or obesity and household income inequality, by using a longitudinal data from China Health and Nutrition Survey (CHNS) between 1991 and 2011, we find that BMI will first decrease with household income inequality and then increase at an increasing rate, which suggests that high inequality may speed up the possibility of being overweight and obese. Policy measures on controlling obesity should be directed towards reducing inequality.
{"title":"AN ECONOMIC ANALYSIS OF HOUSEHOLD INCOME INEQUALITY AND BMI IN CHINA","authors":"Jianfeng Yao, Fafanyo Asiseh","doi":"10.35866/caujed.2019.44.1.002","DOIUrl":"https://doi.org/10.35866/caujed.2019.44.1.002","url":null,"abstract":"This paper explores the relationship between household income inequality at county level and Body Mass Index (BMI). The hypotheses associating BMI with income inequality are tested. Unlike most literature that found positive linear relationship between prevalence of overweight or obesity and household income inequality, by using a longitudinal data from China Health and Nutrition Survey (CHNS) between 1991 and 2011, we find that BMI will first decrease with household income inequality and then increase at an increasing rate, which suggests that high inequality may speed up the possibility of being overweight and obese. Policy measures on controlling obesity should be directed towards reducing inequality.","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45117946","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-01DOI: 10.35866/CAUJED.2019.44.1.001
G. Anderson, A. Farcomeni, M. G. Pittau, Roberto Zelli
Mounting concern regarding inadequacies of per capita GDP or GNI as a source of nation wellbeing classi cation and comparison lead to the employment of multidimensional approaches with attendant concerns regarding their arbitrary and complex nature. Here, based upon commonalities in multidimensional behavior of nations, feasible, less arbitrary, classi cation methodologies and techniques for assessing wellbeing within and between groups are proposed. Implementation in a three dimensional study of 164 countries from 1990 to 2014 in a Human Development Index (HDI) framework reveals substantive multi-dimensional growth in a slowly evolving, relatively immobile three group world exhibiting simultaneous increases in equality and polarization with a growing Lower HD class and shrinking Middle and High HD classes.
{"title":"MULTIDIMENSIONAL NATION WELLBEING, MORE EQUAL YET MORE POLARIZED: AN ANALYSIS OF THE PROGRESS OF HUMAN DEVELOPMENT SINCE 1990","authors":"G. Anderson, A. Farcomeni, M. G. Pittau, Roberto Zelli","doi":"10.35866/CAUJED.2019.44.1.001","DOIUrl":"https://doi.org/10.35866/CAUJED.2019.44.1.001","url":null,"abstract":"Mounting concern regarding inadequacies of per capita GDP or GNI as a source of nation wellbeing classi cation and comparison lead to the employment of multidimensional approaches with attendant concerns regarding their arbitrary and complex nature. Here, based upon commonalities in multidimensional behavior of nations, feasible, less arbitrary, classi cation methodologies and techniques for assessing wellbeing within and between groups are proposed. Implementation in a three dimensional study of 164 countries from 1990 to 2014 in a Human Development Index (HDI) framework reveals substantive multi-dimensional growth in a slowly evolving, relatively immobile three group world exhibiting simultaneous increases in equality and polarization with a growing Lower HD class and shrinking Middle and High HD classes.","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42273002","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-01DOI: 10.35866/caujed.2019.44.1.005
Aman A. Bara and Bidisha Chakraborty
The present paper considers a closed economy model with infrastructure service which is an excludable, impure public good, e.g. metro railway service, electricity service, and telephone service etc. The physical capital required by infrastructure sector is provided by public-private partnership. Public and private investment may be complementary or substitute to each other in infrastructure production. We assume government runs a balanced budget. We find there exists unique, saddle path stable growth rate in both the cases. We find that PPP model is optimal in the provision of infrastructure no matter public capital and private capital are a substitute or complementary to each other. But, PPP solution is not growth maximizing in case of substitute relationship between the public capital and private capital. It also makes a comparative study of decentralized economy and command economy. We find that in case of substitute relationship between private capital and public capital, command economy growth rate is higher than the competitive economy growth rate but in the case of complementary relationship between two, command economy growth rate may not be higher than the competitive economy growth rate.
{"title":"IS PUBLIC-PRIVATE PARTNERSHIP AN OPTIMAL MODE OF PROVISION OF INFRASTRUCTURE?","authors":"Aman A. Bara and Bidisha Chakraborty","doi":"10.35866/caujed.2019.44.1.005","DOIUrl":"https://doi.org/10.35866/caujed.2019.44.1.005","url":null,"abstract":"The present paper considers a closed economy model with infrastructure service which is an excludable, impure public good, e.g. metro railway service, electricity service, and telephone service etc. The physical capital required by infrastructure sector is provided by public-private partnership. Public and private investment may be complementary or substitute to each other in infrastructure production. We assume government runs a balanced budget. We find there exists unique, saddle path stable growth rate in both the cases. We find that PPP model is optimal in the provision of infrastructure no matter public capital and private capital are a substitute or complementary to each other. But, PPP solution is not growth maximizing in case of substitute relationship between the public capital and private capital. It also makes a comparative study of decentralized economy and command economy. We find that in case of substitute relationship between private capital and public capital, command economy growth rate is higher than the competitive economy growth rate but in the case of complementary relationship between two, command economy growth rate may not be higher than the competitive economy growth rate.","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47100153","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-01DOI: 10.35866/CAUJED.2019.44.1.004
S. Behera
This paper examines the long-run purchasing power parity (PPP) by testing for unit roots in real exchange rates of 10 newly industrialized countries (NICs) during the period 1980-2013. Alternatively, this paper examines the long-run PPP by evaluating the cointegration between nominal exchange rates and price ratios of the NICs. The Pesaran (2007) unit root test results support the evidence of long-run PPP during the period 1980-1990; however, during the other sub-periods, the results invalidate the long-run PPP. We find that the evidence against the unit root hypothesis is stronger for larger than small samples, for monthly than quarterly data. Moreover, the results suggest the mere evidence of strong PPP and also suggest that the speed at which the real exchange rates restore to equilibrium is relatively slow during the period 1991-2000.
{"title":"PURCHASING POWER PARITY TESTS IN COINTEGRATED PANELS: EVIDENCE FROM NEWLY INDUSTRIALIZED COUNTRIES","authors":"S. Behera","doi":"10.35866/CAUJED.2019.44.1.004","DOIUrl":"https://doi.org/10.35866/CAUJED.2019.44.1.004","url":null,"abstract":"This paper examines the long-run purchasing power parity (PPP) by testing for unit roots in real exchange rates of 10 newly industrialized countries (NICs) during the period 1980-2013. Alternatively, this paper examines the long-run PPP by evaluating the cointegration between nominal exchange rates and price ratios of the NICs. The Pesaran (2007) unit root test results support the evidence of long-run PPP during the period 1980-1990; however, during the other sub-periods, the results invalidate the long-run PPP. We find that the evidence against the unit root hypothesis is stronger for larger than small samples, for monthly than quarterly data. Moreover, the results suggest the mere evidence of strong PPP and also suggest that the speed at which the real exchange rates restore to equilibrium is relatively slow during the period 1991-2000.","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45263952","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-12-01DOI: 10.35866/caujed.2018.43.4.004
ITCHOKO MOTANDE MONDJELI MWA NDJOKOU, CHRISTOPHE MARTIAL MBASSI
{"title":"DOES FINANCIAL DEVELOPMENT EXPLAIN THE CYCLICALITY OF MONETARY POLICY IN SUB-SAHARAN AFRICA?","authors":"ITCHOKO MOTANDE MONDJELI MWA NDJOKOU, CHRISTOPHE MARTIAL MBASSI","doi":"10.35866/caujed.2018.43.4.004","DOIUrl":"https://doi.org/10.35866/caujed.2018.43.4.004","url":null,"abstract":"","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70076739","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-12-01DOI: 10.35866/caujed.2018.43.4.001
AMIT GHOSH
{"title":"WHAT DRIVES BANKING INDUSTRY COMPETITION IN DEVELOPING COUNTRIES?","authors":"AMIT GHOSH","doi":"10.35866/caujed.2018.43.4.001","DOIUrl":"https://doi.org/10.35866/caujed.2018.43.4.001","url":null,"abstract":"","PeriodicalId":15602,"journal":{"name":"Journal of economic development","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70076624","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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