Heterogeneous impact of natural resources on income inequality: The role of the shadow economy and human capital index

Alvarado, Rafael; Tillaguango, Brayan; López-Sánchez, Michelle; Ponce, Pablo; Işık, Cem

doi:10.1016/j.eap.2021.01.015

Cited by 54 publications

(32 citation statements)

References 87 publications

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“…The use of threshold regressions stems from the need to model nonlinear relationships and fit a model that allows obtaining an estimate of the threshold and the coefficients of the explanatory variables on each side of the threshold. Various investigations support the usefulness of the methodology proposed by Hansen [14,[58][59][60][61][62][63][64][65]. The tests performed before estimating the final threshold model should be emphasized.…”

Section: The Modelmentioning

confidence: 99%

Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions

et al. 2022

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Human capital formation in developing countries is a policy instrument to promote economic progress. In recent decades, FDI can act as a mechanism for transmitting human capital in the context of highly globalized countries. Extensive literature indicates that the formation of human capital is one of the most effective mechanisms for promoting structural change in countries. This research examines the causal link between FDI flows, globalization, and knowledge. This relationship is moderated by the index of electoral democracy, employment in agriculture, rent from natural resources, export diversification, and fertility. We employ a set of threshold regressions based on the idea that FDI levels will be significant and permanent as long as FDI transmits knowledge to recipient countries from a substantial level of FDI. The results show a threshold effect in the electoral democracy index and foreign direct investment at the global level and high- and upper-middle-income countries. In addition, we found a threshold effect for the electoral democracy index in the East Asia Pacific regions and the Middle East and North African countries. There is a threshold effect in East Asia, the Pacific, and Latin America in FDI. Based on the results, policymakers should promote FDI and electoral democracy flows above the threshold to encourage the transfer of human capital in the countries analyzed.

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Section: The Modelmentioning

confidence: 99%

Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions

et al. 2022

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“…The strategies to gradually reduce inequality in the long term are based on a structural change in the economies and development strategies that involve a significant period [11,12]. One of the main strategies for economic and social progress is the industrialization of countries, particularly in emerging or developing countries [13,14].…”

Section: Introductionmentioning

confidence: 99%

Causal Link between Technological Innovation and Inequality Moderated by Public Spending, Manufacturing, Agricultural Employment, and Export Diversification

et al. 2022

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Sustainable Development Goal 10 (SDG10) proposes the reduction of inequalities. This research highlights the importance of considering short- and long-term mechanisms for designing and applying policies to reduce income inequality. Specifically, we test for the causal link between technological innovation and income inequality using a balanced panel data sample from 73 countries worldwide. The inequality–technological innovation relationship is moderated by public spending, manufacturing, employment in agriculture, and export diversification. We use quantile regression techniques to test the impact of technological innovation on income inequality. The results offer robust empirical evidence that in most quantiles, the impact of technological innovation on inequality is positive. This result suggests that the dark side of technological innovation is that it increases income inequality. Furthermore, we find that government spending reduces inequality across all quantiles, while the effect of employment in agriculture and export diversification is inconclusive. Those responsible for social policy towards the achievement of SDG10 must include the advantages of public spending to reduce social disparities and promote social cohesion within countries.

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“…Taylor and Martin (2001), Erdogan (2002), Abeysekera and Guthrie (2005), Bozbura et al (2007), Fleisher et al (2010), Guthrie et al (2012), Artuc et al (2015), and other scientists have thoroughly investigated the problem of assessing, accounting and determining the economic effect of human capital development. The effectiveness of human capital in order to increase socio-economic well-being, accumulation of the country's income is considered in the works of Asteriou and Agiomirgianakis (2001), Coulthard et al (2011), Teixeira and Queirós (2016), Hanushek andWoessmann (2020), andAlvarado et al (2021). A separate group of authors approached the accounting and assessment of the economic effect of human capital development from the standpoint of measuring its productivity, which is reflected in the works of Tosi et al (2000), Bronzini and Piselli (2009), Guillaumont et al (2017), and Ghosh and Parab (2021).…”

Section: Introductionmentioning

confidence: 99%

The interstate development of human capital accounting: Assessment and modeling of the economic effect

al.¹

2022

Int. j. adv. appl. sci.

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The aim of the article is to develop a methodology for determining the effectiveness and accounting of human capital in the context of interstate comparison. The article notes the importance of systematic accounting for the interstate development of human capital. It is emphasized that there is no relevant methodology in the scientific world for determining the effectiveness and human capital accounting in the context of interstate comparison. Taking into account the above, the authors proposed a method of human capital accounting using the information resource of the UN statistical database. In the article, for the first time in the scientific world, the comparative interstate human capital accounting with the use of the modified first principal component analysis is carried out. The method proposed by the authors involves the use of a variety of socio-economic and demographic indicators of 29 countries of the world and the modeling of a single integral indicator of human capital accounting. The integral indicator made it possible to take into account and compare the level of human capital development in different countries in the dynamics. The proposed method will allow interested stakeholders to systematically record, evaluate and compare the state of human resource development with other countries of the world.

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Heterogeneous impact of natural resources on income inequality: The role of the shadow economy and human capital index

Cited by 54 publications

References 87 publications

Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions

Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions

Causal Link between Technological Innovation and Inequality Moderated by Public Spending, Manufacturing, Agricultural Employment, and Export Diversification

The interstate development of human capital accounting: Assessment and modeling of the economic effect

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