How does economic complexity influence income inequality? New evidence from international data

Chu, Lan Khanh; Hoang, Dung Phuong

doi:10.1016/j.eap.2020.08.004

Cited by 73 publications

(59 citation statements)

References 70 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…But corruption control is just one indicator of institutional quality. Closely related to our study are recent studies by Adeleye et al (2017) and Chu and Hoang (2020). However, while Chu and Hoang (2020) include institutional quality as a control variable in their model without recourse to its components, Adeleye et al (2017) consider only the interactive effects of the components of institutional quality and financial development on income inequality in sub‐Saharan Africa.…”

Section: Introductionsupporting

confidence: 90%

“…Closely related to our study are recent studies by Adeleye et al (2017) and Chu and Hoang (2020). However, while Chu and Hoang (2020) include institutional quality as a control variable in their model without recourse to its components, Adeleye et al (2017) consider only the interactive effects of the components of institutional quality and financial development on income inequality in sub‐Saharan Africa. The strength of our study is that it deviates from these trends of studies by rather investigating more comprehensively the role institutional quality/governance plays amongst the key drivers of income inequality in Africa.…”

Section: Introductionsupporting

confidence: 90%

“…Our study examines income inequality in a dynamic model setting. This is because income inequality is known to exhibit a great degree of inertia as evidenced in studies by Anyanwu (2016); Anyanwu et al (2016); Asongu, Nnanna, and Acha‐Anyi (2020); Chu and Hoang (2020); Dincer and Gunalp (2012); Kunawotor et al (2020); Mahmood and Noor (2014). Thus, the current level of income inequality depends on its past value.…”

Section: Methodsmentioning

confidence: 99%

“…The rich are also more able to pay bribes to consolidate their positions. Recently, a study by Chu and Hoang (2020) examined the relationship between economic complexity and income inequality in 88 countries and found that economic complexity is significantly associated with higher income inequality. The study includes institutions and its square as controls among other control variables such as education level, trade openness, government expenditure, GDP per capita and its square.…”

Section: Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

Drivers of income inequality in Africa: Does institutional quality matter?

Kunawotor

Bokpin

Barnor

2020

African Development Review

View full text Add to dashboard Cite

This paper examines the role institutional quality plays amongst the empirical drivers of income inequality in Africa. Using a dynamic two-step difference GMM with robust standard errors over the period 1990-2017, we find no statistically significant effect of institutions in general, on income inequality. However, we find that institutional quality indicators such as control of corruption and the strict enforcement of the rule of law significantly reduce income inequality. We also find no statistically significant effects of the other institutional quality indicators such as government effectiveness, voice and accountability, regulatory quality and political stability on income inequality in our sample. We suggest that more premium be placed on corruption control and the stringent adherence to the rule of law in ensuring equitable distribution of income in Africa. Furthermore, we re-echo suggestions that promote institutional development in Africa as institutions in general remain very weak.

show abstract

Section: Introductionsupporting

confidence: 90%

Section: Introductionsupporting

confidence: 90%

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Drivers of income inequality in Africa: Does institutional quality matter?

Kunawotor

Bokpin

Barnor

2020

African Development Review

View full text Add to dashboard Cite

show abstract

“…Hidalgo and Hausmann ( 2009 ) state two concepts related to COM—that is, diversity and ubiquity—which signify the number of goods a nation can export with a revealed comparative advantage and the number of benefits a nation gets from exporting a specified product, respectively. Thus, an economy is more complicated if it can export a broader base of goods that have comparatively great ubiquity (such as those exported by few other nations) (Chu and Hoang, 2020 ). Neagu and Teodoru ( 2019 ) pinpoint that COM is an element that must be considered when a country’s economic and energy policies are formed.…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

The criticality of tourism development, economic complexity, and country security on ecological footprint

Chen

2022

Environ Sci Pollut Res

View full text Add to dashboard Cite

What kinds of countries are likely to be prosperous and have a sustainable environment at the same time? How might countries reorient their policy setting to be more capable of suppressing environmental degradation? To explore these questions, this research examines data from 99 countries for 2006–2017, takes the six major forms of ecological footprint (EF) as indicators of environmental quality, and probes the environmental Kuznets curve (EKC) hypothesis via quantile regression approach. We find that tourism development leads to greater environmental degradation, with tourism development particularly corresponding to more usage of carbon absorption land and cropland. The lower the country security is, the better is the environmental quality. Economic complexity also worsens environmental quality. However, country security weakens the negative influence of tourism development and economic complexity on environmental quality, specifying that better country security stalls the negative impact of tourism and economic complexity on environmental quality. Results mostly support the tourism- and country security–induced EKC hypotheses in fishing footprint, whereas economic complexity–induced EKC is generally validated in cropland footprint. Finally, we present that tourism arrivals, economic complexity, and country security have varying impacts across diverse ecological footprint quantiles.

show abstract

Economic complexity and environmental degradation: Evidence from OECD countries

Aluko

Acheampong

2022

Bus Strat Env

View full text Add to dashboard Cite

We augment the existing knowledge on the role of economic complexity in the environment and sustainable development debate by examining the effect of economic complexity on environmental degradation (measured by ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions) contingent on income, using data from 35 OECD countries between 1998 and 2017. With the fixed effects model estimator, we find that income facilitates economic complexity to mitigate ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions. Also, we fit a partial linear functional-coefficient model to find that income influences economic complexity to exert a nonlinear effect on ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions. We find that economic complexity leads to an increase in ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions at lower income levels but gradually dampens them as income rises. Finally, by applying the Method of Moments Quantile regression to control for distributional heterogeneity, we also find that the mitigating effect of economic complexity on ecological footprint, CO 2 emissions, N 2 O emissions and greenhouse gas emissions is transmitted through income across quantiles. The policy implications are discussed.

show abstract

How does economic complexity influence income inequality? New evidence from international data

Cited by 73 publications

References 70 publications

Drivers of income inequality in Africa: Does institutional quality matter?

Drivers of income inequality in Africa: Does institutional quality matter?

The criticality of tourism development, economic complexity, and country security on ecological footprint

Economic complexity and environmental degradation: Evidence from OECD countries

Contact Info

Product

Resources

About