Impact of institutional determinants on income inequalities in Indonesia during the Era Reformasi

Szczepaniak, Małgorzata; Geise, Andrzej; Bariyah, Nurul

doi:10.1016/j.asieco.2022.101526

Cited by 17 publications

(14 citation statements)

References 53 publications

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“…Kouadio and Gakpa (2022) demonstrate that petty corruption, sounder bureaucratic quality, and a more efficient judicial system are growth fundamentals, narrowing the income gap. Similar results were found by Szczepaniak et al (2022) during the Period Reformasi in Indonesia. Blancheton and Chhorn (2021) explain that higher public spending increases the income gap at the initial level of institutional development.…”

Section: Literature Reviewsupporting

confidence: 86%

The Resurgence of Income Inequality in Asia-Pacific: The Role of Trade Openness, Educational Attainment and Institutional Quality

2022

JEM

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Within-country inequality is on the rise in many Asian countries despite rapid educational expansion, poverty reduction and export-driven macroeconomic growth. This trend raises questions about the role and effectiveness of governments in redistributing income and wealth. Therefore, our study re-examines the effects of trade openness and educational attainment on income inequality while additionally investigating the role of governance on several dimensions. The study is conducted on nineteen Asian economies for the period 1990-2019. Methodologically, we follow Generalised Methods of Moments using dynamic panel procedures to improve previous efforts to examine the trade-inequality relationship. We hypothesize that good institutions can generate better distributional outcomes in terms of foreign trade and educational attainment. To test this, aggregate measures of institutions on five dimensions of governance -government stability, corruption, law and order, democratic accountability, and bureaucratic quality are incorporated into the empirical model. Our empirical results reveal that controlling for the country's income level, increasing trade openness and overall improvements in institutional quality contribute to reducing income inequality in the Asia-Pacific region. However, educational attainment has an inequalitywidening effect during our period of study. We conclude by discussing other possible explanations for rising inequality in the region, and in that context, the role of public policy in ensuring equitable distributions.

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Section: Literature Reviewsupporting

confidence: 86%

The Resurgence of Income Inequality in Asia-Pacific: The Role of Trade Openness, Educational Attainment and Institutional Quality

2022

JEM

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“…investigated the influence of institutional quality on income inequality in Africa from 1990 to 2017, discovering that institutional quality factors significantly reduce income inequality. Pursuing similar themes,Szczepaniak et al (2022) demonstrated that changes in institutional factors, such as economic freedom, regulatory quality and voice and accountability, considerably decreased income inequalities in the case of Indonesia. Finally,Dossou et al…”

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confidence: 87%

The role of institutional efficiency in achieving the SDGs: evidence from Africa

Musah

2023

JBSED

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PurposeThe objective of this study is to analyze the influence of institutional quality on the attainment of the Sustainable Development Goals (SDGs) using a data set comprising 45 African nations during the timeframe 2000 to 2020.Design/methodology/approachThe data are divided into two periods, with the Millennium Development Goals (MDGs) data covering the years 2000–2015 and the SDGs data spanning from 2015 to 2020. Controlling for other factors, the researcher employs an index of institutional quality and applies the generalized method of moments (GMM) method to analyze the data.FindingsThe findings demonstrate a noteworthy inverse relationship between institutional quality and the achievement of both the MDGs and SDGs. The findings reveal a significant and positive link between economic growth and the achievement of the MDGs, while the impact on the SDGs is shown to be insignificant. Population growth significantly drives the SDGs. The results further reveal that trade openness and industrialization contribute positively to the achievement of both the MDGs and SDGs.Practical implicationsThe findings emphasize the importance of improving institutional quality, promoting economic growth and supporting trade openness and industrialization for sustainable development in African countries.Originality/valueThe contribution of the study is twofold. Firstly and to the best of the author’s understanding, this research marks an initial endeavor to empirically investigate the nexus between institutional quality and the SDGs in the context of Africa. Secondly, it adds novelty to the literature by examining how institutional quality influences both the SDGs and their precursor the MDGs, providing insights into the actual contribution of institutions to development within the framework of these two major global compacts.

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“…This article pertains to the amendment of paragraph (1) of Article 20 to increase the lucidity of its provisions. By the stipulations outlined in the statutory regulations, administrative sanctions shall be imposed on any state administrator who contravenes the provisions referenced in Article 5, points 1, 2, 3, 5, and 6 (Szczepaniak, Geise, and Bariyah 2022). Moreover, by applicable regulations, the Corruption Eradication Commission may endorse administrative sanctions against the state official in question to the chief of the institution or direct superior to whom the state official is subordinate.…”

Section: The Role Of State Official Wealth Report To Realize the Gene...mentioning

confidence: 99%

The role of State Official Wealth Report in realizing the principles of Maqashid Sharia

Nuryanto,

Jaelani

2024

LJIH

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This research aims to examine and analyze problems related to the implementation of maqasid sharia principles in effective reporting of state administrators' assets in Indonesia and to look for factors causing the ineffectiveness of legal instruments for reporting state administrators' assets in realizing the general principles of government in Indonesia. This research employed a normative legal method, with its prescriptive and applied nature. The research results show that, first, the implementation of maqasid sharia principles in reporting the assets of state administrators is in line with Hifz al-din (maintaining religion), Hifz an-nafs (maintaining the soul), Hifz al-aql (maintaining reason), Hifz an-nasl (maintaining offspring), and Hifz al-mal (maintaining assets); however, the challenge of implementing the principles of maqasid sharia in regulating the reporting of state administrators' assets requires a strong commitment from legal institutions, government, and society. Second, the factor causing the ineffectiveness of the legal instrument for reporting state administrators' assets still needs to be a more vital law enforcement factor. This can be seen in the LHKPN reporting instrument, which is the responsibility of the Corruption Eradication Commission. To deal with these problems, a legal instrument for reporting state administrators' assets is needed to embody the General Principles of Good Governance in Indonesia based on eight principles that the law must fulfil as a basis for forming reasonable regulations.

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Impact of institutional determinants on income inequalities in Indonesia during the Era Reformasi

Cited by 17 publications

References 53 publications

The Resurgence of Income Inequality in Asia-Pacific: The Role of Trade Openness, Educational Attainment and Institutional Quality

The Resurgence of Income Inequality in Asia-Pacific: The Role of Trade Openness, Educational Attainment and Institutional Quality

The role of institutional efficiency in achieving the SDGs: evidence from Africa

The role of State Official Wealth Report in realizing the principles of Maqashid Sharia

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