Government Intervention, Institutional Quality, and Income Inequality: Evidence from Asia and the Pacific, 1988–2014
CHHORN, Dina
Groupe de Recherche en Economie Théorique et Appliquée [GREThA]
Université de Lausanne = University of Lausanne [UNIL]
Groupe de Recherche en Economie Théorique et Appliquée [GREThA]
Université de Lausanne = University of Lausanne [UNIL]
CHHORN, Dina
Groupe de Recherche en Economie Théorique et Appliquée [GREThA]
Université de Lausanne = University of Lausanne [UNIL]
< Reduce
Groupe de Recherche en Economie Théorique et Appliquée [GREThA]
Université de Lausanne = University of Lausanne [UNIL]
Language
EN
Article de revue
This item was published in
Asian Development Review. 2021-03-22, vol. 38, n° 1, p. 176-206
English Abstract
We examine the linear and nonlinear long-run relationship between public expenditure and institutional quality, and income inequality in Asia and the Pacific. By applying panel cointegration methods using a dataset from ...Read more >
We examine the linear and nonlinear long-run relationship between public expenditure and institutional quality, and income inequality in Asia and the Pacific. By applying panel cointegration methods using a dataset from 1988 to 2014, our main findings suggest that public expenditure and institutional quality have negative long-run, steady-state effects on income inequality in Asia and the Pacific. The effect of institutional quality has only a one-way Granger causality link to income inequality. The existence of a nonlinear relationship between public expenditure and institutional factors linked to income inequality is also found. It implies that, at the early stage of institutional development, a country whose economy has experienced higher public expenditure generates rising income inequality; then, in the long run, when the country improves its institutional quality, higher public expenditure results in lower income inequality.Read less <
English Keywords
Asia and the Pacific
income inequality
institutional quality
public expenditure