Can place-based policies reduce urban-rural income inequality? Evidence from China’s Old Revolutionary Development Program based on county-level data

Pan, Dan; Fang, Peilin; Chen, Shengdong

doi:10.1080/1331677x.2022.2164323

“…In order to assess inequality, the Gini coe cient was utilized, speci cally calculated using disposable income. This choice aligns with previous research, such as [41], which recognizes disposable income as a consistent and appropriate indicator. The study also incorporated a range of economic indicators gathered from different datasets.…”

Section: Description Of Study Variables and Datasupporting

confidence: 64%

The Moderating Effect of Income Inequality on the Relationship between Economic growth and Political Economy, Human capital, Innovation, and Saving Channels in Ethiopia

Hordofa

2023

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0

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Background This research focuses on examining the relationship between income inequality and economic growth in Ethiopia over the period from 1981 to 2020. The study aims to understand the various channels through which income inequality affects economic growth and explores the role of different factors such as political economy, innovation, human capital, and saving channels. Method To analyze the relationship between income inequality and economic growth in Ethiopia, the researchers employ the Autoregressive Distributed Lag (ARDL) model. They also conduct the Bayer Hanck (BH) Cointegration Test using four different methods: Engle-Granger, Johansen, Banerjee, and Boswijk. These techniques help determine whether there is a long-term connection, or cointegration, between the variables under investigation. Results The findings of this study indicate strong evidence of cointegration between income inequality and economic growth in Ethiopia, except in the Engle-Granger test. This suggests a long-term relationship between these variables. The researchers analyze various channels through which income inequality affects economic growth. They discover that income inequality significantly hampers economic growth in Ethiopia. On the other hand, the development of human capital, as measured by school enrollment, has a positive and significant impact on economic growth. However, other channel variables such as gross domestic saving, gross fixed capital formation, high-technology exports, general government revenue, and general government total expenditure do not exert a significant influence on economic growth. Conclusions Based on the research findings, the study emphasizes the role of government expenditure as a moderating factor that can mitigate the adverse effects of income inequality on economic growth in Ethiopia. It also highlights the importance of savings channels, particularly gross fixed capital formation, in fostering economic growth. Moreover, the study suggests that innovation, represented by high-technology exports, may indirectly influence economic growth by promoting the development of human capital. Overall, this research provides valuable insights into the intricate relationships between income inequality and economic growth in Ethiopia, exploring both direct and moderating effects through various transmission channels.

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“…The lower-income groups are predominantly located in rural areas, 2 of 19 especially in less prosperous regions known as Outlying Rural Areas (ORAs). Increasing the income of farmers in ORAs and reducing regional income disparities among farmers constitute pivotal steps towards realizing CP in rural areas [5].…”

Section: Introductionmentioning

confidence: 99%

Balancing Acts: Unveiling the Dynamics of Revitalization Policies in China’s Old Revolutionary Areas of Gannan

Liao,

Yuan,

Zhang

et al. 2024

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A series of revitalization policies (RPs) have been implemented in China’s Old Revolutionary Areas (ORAs). Evaluating the impact of these RPs is of paramount importance for refining policy design and achieving the goal of common prosperity. This study focuses on the ORAs in Gannan (ORAG) and employs the Propensity Score Matching Difference-in-Differences (PSM-DID) method to assess the effects of the RPs from two perspectives: stimulating economic growth and increasing farmers’ income, utilizing county-level data spanning from 2006 to 2019. The findings of this study reveal that while the RP restrains the growth of per capita GDP in ORAG, it significantly promotes the growth of farmers’ income. Moreover, it plays a crucial role in reducing the income gap between ORAG and Jiangxi Province, thus promoting the common prosperity of farmers in ORAG. A detailed examination using quantile regression shows that the RP has a significant and consistent negative impact on GDP per capita GDP at different quantile points. At the same time, it has a significant positive effect on increasing farmers’ income at the 25% quantile point, effectively reducing income inequality among farmers at all quantile levels. The mechanism analysis shows that the RP has stimulated increased government investment in ORAG, leading to an increase in farmers’ incomes and a reduction in income disparities. However, the study also highlights the existence of a “policy trap” that has hindered the RP’s effectiveness in ORAG. Drawing upon these findings, this paper offers policy recommendations to enhance the impact of RP in ORAs.

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The moderating effect of income inequality on the relationship between economic growth and political economy, human capital, innovation, and saving channels in Ethiopia

Hordofa

2023

Discov glob soc

0

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Background This research focuses on examining the relationship between income inequality and economic growth in Ethiopia over the period from 1981 to 2020. The study aims to understand the various channels through which income inequality affects economic growth and explores the role of different factors such as political economy, innovation, human capital, and saving channels. Method To analyze the relationship between income inequality and economic growth in Ethiopia, the researchers employ the Autoregressive Distributed Lag (ARDL) model. They also conduct the Bayer Hanck (BH) Cointegration Test using four different methods: Engle-Granger, Johansen, Banerjee, and Boswijk. These techniques help determine whether there is a long-term connection, or cointegration, between the variables under investigation. Results The findings of this study indicate strong evidence of cointegration between income inequality and economic growth in Ethiopia, except in the Engle-Granger test. This suggests a long-term relationship between these variables. The researchers analyze various channels through which income inequality affects economic growth. They discover that income inequality significantly hampers economic growth in Ethiopia. On the other hand, the development of human capital, as measured by school enrollment, has a positive and significant impact on economic growth. However, other channel variables such as gross domestic saving, gross fixed capital formation, high-technology exports, general government revenue, and general government total expenditure do not exert a significant influence on economic growth. Conclusions Based on the research findings, the study emphasizes the role of government expenditure as a moderating factor that can mitigate the adverse effects of income inequality on economic growth in Ethiopia. It also highlights the importance of savings channels, particularly gross fixed capital formation, in fostering economic growth. Moreover, the study suggests that innovation, represented by high-technology exports, may indirectly influence economic growth by promoting the development of human capital. Overall, this research provides valuable insights into the intricate relationships between income inequality and economic growth in Ethiopia, exploring both direct and moderating effects through various transmission channels.

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Can place-based policies reduce urban-rural income inequality? Evidence from China’s Old Revolutionary Development Program based on county-level data

Cited by 4 publications

References 50 publications

The Moderating Effect of Income Inequality on the Relationship between Economic growth and Political Economy, Human capital, Innovation, and Saving Channels in Ethiopia

The Moderating Effect of Income Inequality on the Relationship between Economic growth and Political Economy, Human capital, Innovation, and Saving Channels in Ethiopia

Balancing Acts: Unveiling the Dynamics of Revitalization Policies in China’s Old Revolutionary Areas of Gannan

The moderating effect of income inequality on the relationship between economic growth and political economy, human capital, innovation, and saving channels in Ethiopia

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