Trade, Infrastructure and Income Inequality in Selected Asian Countries: An Empirical Analysis

Raychaudhuri, A. K.; De, Prabir

doi:10.1007/978-81-322-2797-7_12

Cited by 19 publications

(34 citation statements)

References 30 publications

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“…About infrastructure -Growth nexus in the long run, our findings is similar to the result of Sawada (2012); Mahmud and Sawada (2015); Achour and Belloumi (2016); Chingoiro and Mbulawa (2016); Raychaudhuri and De (2016); Sawada et al (2017); Udah and Bassey (2017); Khandker and Samad (2018). However, it is in contrast to the results of Holtz-Eakin and Schwartz (1994); Bougheas et al (2000); Songco 2002; German-Soto et al (2017).…”

Section: Long Run Dynamicssupporting

confidence: 87%

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Technological Innovation, Infrastructure and Industrial Growth in Bangladesh: Empirical Evidence from ARDL and Granger Causality Approach

Fan

Hossain

Sultanuzzaman

2018

Asian Economic and Financial Review

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In this study, we examined the empirical cointegration, long and short-run dynamics and relationships between technological innovation, infrastructure and industrial growth in Bangladesh over the period of 1974-2016. The ARDL Bounds Test methodology and Granger Causality test in an augmented VECM framework were applied. The ARDL bounds tests and additional cross-checking tests, undoubtedly confirmed long run as well as short-run cointegration between the three variables in Bangladesh. The obtained results expressed that infrastructure has a positive impact on the industrial growth but technological innovation has a negative impact on it in the long run. In the short run, infrastructure and technological innovation both have a positive and significant impact on industrial growth. The VECM Granger causality test reveals the existence of a bi-directional causality running between Industrial growth and infrastructure; and infrastructure and technological innovation. On the other hand, unidirectional causality is running from industrial growth to technological innovation. The findings of the Granger causality test supports the results obtained in the ARDL approach in our study. The results obtained from this empirical analysis have an important policy implication for a developing country like Bangladesh as well as other developing countries. 1. INTRODUCTION The founding partner, Roger McNamee, of the Venture Capital Firm Elevation Partners of US, commented that "We need to stop thinking about infrastructure as an economic stimulant and start thinking about it as a strategy. Economic stimulants produce Bridges to Nowhere. Strategic investment in infrastructure produces a foundation for long-term growth". In the same paper, investigation conducted on "Industry and Infrastructure" of India, it was revealed that vital factors for economic growth and development are to promote inclusive employment-intensive industry and to build resilient infrastructure (Hogan and McNamee, n.d). So there is a close relationship between infrastructure and industrial development or Economic development. All the activities of human being are somehow related to economic development and industrial development is one of the major components of it Rahman and Kashem (2017). From the economic growth point of view, the world has achieved a significant development in different kinds of infrastructure as the roads, railroads, airlines, giant bridges, high rise skyscrapers, tunnels, and industries etc. According to Ayeche et al. (2016) the global economic system has Asian Economic and Financial Review

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Section: Long Run Dynamicssupporting

confidence: 87%

“…Further in a study in 14 Asia-Pacific countries at different stages of development (Raychaudhuri and De, 2016) asserted the impact of trade openness and infrastructure on income inequality. On the contrary, they showed that the reverse effect does not exist.…”

Section: Literature Reviewmentioning

confidence: 99%

Technological Innovation, Infrastructure and Industrial Growth in Bangladesh: Empirical Evidence from ARDL and Granger Causality Approach

Fan

Hossain

Sultanuzzaman

2018

Asian Economic and Financial Review

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“…The highly significant and, at the same time, strong influence of the endogenous regressor EHII ( t −1) shows the high persistence of inequality of income in short observation periods, as also seen in studies by Meschi and Vivarelli (), Shen and Yao () and Raychaudhuri and De (). An increase in inequality of 1% in the previous period augments the inequality in the following period by 0.67%.…”

Section: Empirical Estimates Of Growth and Distribution Effectsupporting

confidence: 74%

Poverty Reduction through Growth and Redistribution Policies—a Panel Analysis for 59 Developing Countries

Belke

Wernet²

2015

Review Development Economics

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In this paper, we empirically test the determinants of growth, as derived from a semi‐endogenous growth model, in terms of its poverty‐reducing effects. We base our empirical analysis of the growth and distribution effect of economic policies on a panel data set of 59 developing countries, divided into two subgroups, and a sample period ranging from 1960 to 2004. For purposes of estimation we make use of the generalized methods of moments (GMM) system estimator. The estimations reveal a poverty‐reducing effect of investment. In contrast population growth induces higher poverty. The import of knowledge is growth enhancing only for countries at a higher stage of development—meanwhile the positive growth effect of an increasing democratization is limited to the poor developing countries.

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“…The role of infrastructure on regional trade flows has been investigated in a number of previous studies (Ismail and Mahyideen, 2015;Shepherd, 2016;Raychaudhuri and De, 2016;Rehman et al, 2020). However, there is little understanding of how different forms of infrastructure and institutions affect intra-regional trade flows, particularly in East Africa.…”

Section: Introductionmentioning

confidence: 99%

Infrastructure development, institutions, and intra-regional trade: The case of East Africa

Ochieng¹,

Abala²,

Mbithi³

2020

EurJ Appl Econ

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This study empirically examines the relationship between infrastructure stock and bilateral trade flows using a panel of 11 countries in East Africa for the period 2000 to 2018. Infrastructure augmented gravity model was estimated using total bilateral exports for the countries in East Africa. Infrastructure was disaggregated into transport and information and communications technology (ICT) infrastructures. Two institutional variables, control of corruption index and regulatory quality, were incorporated in the model. By employing Poisson Pseudo Maximum Likelihood (PPML) estimator, the results confirm that both ICT and transport infrastructures and quality institutions positively impact on the volumes of total bilateral exports in East Africa. However, ICT infrastructure has a greater impact on trade flows compared to transport infrastructure. Therefore, more resources should be channelled towards increasing the stock of ICT infrastructure to propel trade and regional integration in East Africa.

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Trade, Infrastructure and Income Inequality in Selected Asian Countries: An Empirical Analysis

Cited by 19 publications

References 30 publications

Technological Innovation, Infrastructure and Industrial Growth in Bangladesh: Empirical Evidence from ARDL and Granger Causality Approach

Technological Innovation, Infrastructure and Industrial Growth in Bangladesh: Empirical Evidence from ARDL and Granger Causality Approach

Poverty Reduction through Growth and Redistribution Policies—a Panel Analysis for 59 Developing Countries

Infrastructure development, institutions, and intra-regional trade: The case of East Africa

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