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Nov 18, 2024

The impact of poverty, malnutrition, and household income on human development in Central Sulawesi, Indonesia: A panel data analysis

Central Sulawesi has been grappling with significant challenges in human development, as indicated by its Human Development Index (HDI). Despite recent improvements, the region still lags behind the national average. Key issues such as high poverty rates and malnutrition among children, particularly underweight prevalence, pose substantial barriers to enhancing the HDI. This study aims to analyze the impact of poverty, malnutrition, and household per capita income on the HDI in Central Sulawesi. By employing panel data regression analysis over the period from 2018 to 2022, the research seeks to identify significant determinants that influence HDI and provide evidence-based recommendations for policy interventions. Utilizing panel data regression analysis with a Fixed Effect Model (FEM), the study reveals that while poverty negatively influences with HDI, underweight prevalence is not statistically significant. In contrast, household per capita income significantly impacts HDI, with lower income levels leading to declines in HDI. The findings emphasize the need for comprehensive policy interventions in nutrition, healthcare, and economic support to enhance human development in the region. These interventions are crucial for addressing the root causes of underweight prevalence and poverty, ultimately leading to improved HDI and overall well-being. The originality of this research lies in its focus on a specific region of Indonesia, providing localized insights and recommendations that are critical for targeted policy making.

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Jul 16, 2024

Income inequality, governance quality, and environmental degradation in Asian countries: Does interaction of governance quality matter? Evidence from panel data

The objective of this research is to examine the effects of income inequality, governance quality, and their interaction on environmental quality in Asian countries. Time series data are obtained from 45 Asian countries for the period 1996–2020 for this empirical analysis. The research has performed various econometric tests to ensure the robustness and reliability of the results. We have addressed different econometric issues, such as autocorrelation, heteroskedasticity, and cross-sectional dependence, using the Driscoll-Kraay (DK) standard error estimation and endogeneity issues by the system generalized method of moments (S-GMM). The results of the study revealed that income inequality and governance quality have a positive impact on environmental degradation, while the interaction of governance quality with income inequality has a negative effect on it. In addition, economic growth, population growth, urbanization, and natural resource dependency are found to deteriorate the quality of the environment. The findings of the study offer insightful policies to reduce environmental degradation in Asian countries.

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Jan 26, 2024

Improving rural property tax instruments: A case study of Sinaloa, Mexico

The objective of this work on the Rural Property Tax is to make a proposal to improve the instruments for statistical information on both income and investment spending. A qualitative methodology is proposed to make transparent from which community the tax is generated and how to decide the expenditure in public works for rural communities. Finally, public policy recommendations are made such as the suggestion that investment spending should not be concentrated in a small group of communities but should be distributed strategically for the well-being of the rural population. In this regard, it is important that the municipal government reaches agreements with ejido commissaries, syndics and commissaries so that there is a positive economic, social, cultural and political impact. Likewise, the creation of fiscal observatories to follow up on the route of income generated by the tax and the investment spending executed with the said resources. Truth is that the great importance of this tax for Sinaloa’s municipal public finances has not yet been fully appreciated. Among the findings was the preferential treatment given to taxpayers engaged in aquaculture and vegetable exports by paying a lower rate than that established in the law; while agricultural and livestock activities pay a higher rate; there is also a lack of transparency in the selection process of the communities that will benefit from investments for public works. Recommendations for future research may be to address how the public works bidding process is conducted; what experiences exist of tax observatories that monitor both the collection and the correct exercise of public expenditure of this tax; also explore why there is no public policy focused on benefiting the most marginalized communities in Sinaloa’s municipalities with public works.

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Sept 4, 2024

The mechanism and boundary conditions of farmers’ income increase in financial services: A case study of Yunnan Province

Finance is the core of the modern economy and the bloodline of the real economy; adherence to the people-centered value orientation and the financial services of the real economy as the fundamental purpose is an important connotation of the road of economic development with Chinese characteristics. Financial work is distinctly political and people-oriented, and must consciously practice the concept of the people, serve agricultural and rural development and farmers to increase their income and contribute to the common prosperity of farmers and rural areas. This study is based on the key factors affecting the multidimensional poverty of rural households—external rural financial resources availability and internal rural household entrepreneurship, rural household risk resilience, and rural household financial capability joint analysis. Based on financial exclusion theory, financial inclusion theory, poverty trap theory, and financial literacy theory, to build a logical framework between the rural financial resources availability, farmers’ financial capability, farmers’ entrepreneurship, farmers’ risk management capability, and farmers’ poverty, and then empirically explore the optimization mechanism of poverty reduction for farmers, and analyze the heterogeneity of the financial resources availability, to reduce the return to poverty caused by the lack of entrepreneurial motivation and the low level of risk resilience of rural households. The study aims to improve the farmers’ financial capability and promote sustainable and high-quality development of rural households. In this study, we modeled financial resource availability and rural household poverty using structural equations and surveyed rural households using a scale questionnaire. It was found that financial resource availability significantly affects rural household risk resilience, farmers’ entrepreneurship, and rural household poverty and that rural household risk resilience significance mediates the relationship between financial resource availability and rural household poverty, financial capability plays a significant moderating role. However, the mediating effect of farmers’ entrepreneurship on the availability of financial resources and farmers’ poverty is insignificant. Here, we put forward corresponding countermeasures and recommendations: guiding the allocation of financial resources to key areas and weak links; optimizing financial services; and building a long-term mechanism.

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Jul 2, 2018

To what extent can long-term investments in infrastructure reduce inequality?

By reviewing US state-level panel data on infrastructure spending and on per capita income inequality from 1950 to 2010, this paper sets out to test whether an empirical link exists between infrastructure and inequality. Panel regressions with fixed effects show that an increase in the growth rate of spending on highways and higher education in a given decade correlates negatively with Gini indices at the end of the decade, thus suggesting a causal effect from growth in infrastructure spending to a reduction in inequality through better access to education and opportunities for employment. More significantly, this relationship is more pronounced with inequality at the bottom 40 percent of the income distribution. In addition, infrastructure expenditures on highways are shown to be more effective at reducing inequality. By carrying out a counterfactual experiment, the results show that those US states with a significantly higher bottom Gini coefficient in 2010 had underinvested in infrastructure during the previous decade. From a policy-making perspective, new innovations in finance for infrastructure investments are developed, for the US, other industrially advanced countries and also for developing economies.

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Apr 11, 2019

Rising incomes and inequality of access to infrastructure among Latin American Households

The question of infrastructure needs is a crucial policy one in Latin America, given evidence of large access shortfalls across all major types of infrastructure, and the increase in demand linked to the rapid growth in households’ income over the past two decades. However, how much and how fast countries should invest in each of the main infrastructure areas are largely speculative, as to date, literature on investment needs has relied exclusively on aggregate data and cross-country regressions, ignoring both potential policy and supply-side differences across settings, and variations in demand along the income distribution. This paper addresses these shortcomings, providing building blocks to better assess infrastructure investment needs across the region. It does so documenting access to services and ownership of infrastructure-related durables in the water, energy, telecom, and transport areas, based on harmonized household survey data covering 1.6 million households in 14 Latin American countries from 1992 to –2012. It provides a systematic disaggregation of access and ownership rates at different levels of income and over time, and econometrically derives the country infrastructure premium, a measure of how much a household benefits from simply being located in a given country. Within countries, the results show extensive inequality of access across the income distribution, but this is also the case for households at similar levels of income across countries. Few country fundamentals appear to be significant in explaining this variability, pointing to differences in policy choices and local constraints as important determinants. The paper derives disaggregated income elasticity measures for the full set of infrastructure indicators and uses these to estimate the time that would be needed to close the remaining gap for households at different levels of the income distribution in each country under a “business as usual” hypothesis. Under that scenario, universal access appears to still be decades away for many countries in the region. The last part discusses the policy challenges, arguing that in a context in which public budgets face strong constraints and significant increases in private investment are unlikely to be forthcoming, a large part of the solution lies in refocused investment strategies, better demand management, and improved public spending efficiency.

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