Economic Growth and Income Inequality in ASEAN-5 Countries
Abstract
This study aims to analyze the effect of economic growth, inflation, and expenditure on income in ASEAN-5 by using the ARDL panel analysis model. The data panel in this study is from 1985-2019 and covers five countries for 175 observations. The results of this study indicate that in the long-run economic growth and inflation harm income while government spending is positive with concerns. Meanwhile, economic growth, inflation, and government spending are positive with concerns in the short term. This study recommends that the government focus on standard policies rather than selective for poor areas in each country, improve employee performance, implement education reforms, and support tax efficiency and governance in general. If this policy is implemented correctly, it will not burden public finances in the long term, so that it will have a positive impact.
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Lisani, N., Masbar, R., & Silvia, V. (2020). Inflation-unemployment trade-offs in ASEAN-10. Jurnal Ilmu Ekonomi, 9(2), 241-256.
Munir, K., & Sultan, M . (2017). Macroeconomic determinants of income inequality in India and Pakistan. Theoretical and Applied Economics, Vol. XXIV No. 4 (613), 109-120.
Namini, S, S., & Hudson, D. (2019). The impacts of sector growth and monetary policy on income inequality in developing countries. Journal of Economic Studies, 46(3), 591-610.
Nazipawati. (2019). Analisis ketimpangan pendapatan dan pola pertumbuhan ekonomi di wilayah Belajasumbatahun 2013-2017. PARETO : Jurnal Ekonomi dan Kebijakan Publik, 2(1), 26-34.
Park, D., & Shin, K. (2017). Economic growth, financial development and income inequality. Emerging Markets Finance and Trade, 1-96.
Paus, E. (2017). Escaping the middle-income trap: innovate or perish. ADBI Working Paper, 685.
Pratama, R, A, P., Muhammad, S., & Silvia, V. (2020). Do minimum wage and economic growth matter for labor absorption in Sumatra island, Indonesia? East African Scholars Journal of Economics, Business and Management, 3(1), 54-61.
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Younsi, M., Khemili, H., & Betchtini, M. (2019). Does foreign aid help alleviate income inequality? New evidence from African countries. International Journal of Social Economics, 1-14.
Azam, M., & Raza, S, A. (2018). Financial sector development and income inequality in ASEAN-5 countries: does financial Kuznets curve exists? . Global Business and Economics Review, 20(1), 88-110.
Balcilar, M., Chang, S., Gupta, R., & Miller, S. M. , 52 (5). (2017). The relationship between the inflation rate and inequality across U.S. States: a semiparametric approach. Quality and Quantity Journal, 52(5), 2413-2425.
Berisha, A., Gupta, R., & Mezharos, J. (2019). The impact of macroeconomic factors on income inequality: Evidence from the BRICS. Economic Modelling, 2-9.
Binder, C. (2019). Inequality and the inflation tax. Journal of macroeconomics, 61, 103-122.
Brida, J, G., Carrera, E, J, S., & Segarra V, 56. (2020). Clustering and regime dynamics for economic growth and income inequality. Structural Change and Economic Dynamics, 55, 99-108.
Chang, S., Gupta, R., & Miller, S, M. (2017). Correction to: causality between per capita real GDP and income inequality in the U.S: evidence. Soc Indic Res, 1-5.
Chiang, Alpha, C., & Wainwraight, K. (2006). Dasar-dasar Matematika Ekonomi Edisi keempat Jilid dua. Jakarta: Erlangga.
Chu, A, C., Cozzi, G., Gan, H., Furukawa, Y., & Liao, C, H. (2019). Inflation and income inequality in a schumpeterian economy with menu costs. Economics Letters, 1-5.
Destek, M., Sinha, A., & Sarkodie, S, A. (2020). The relationship between financial development and income inequality in Turkey. Economic Structures, 9(11), 2-14.
Fournier, J-M., & Johansson, A. (2016). The effect of the size and the mix of public spending on growth and inequality. OECD Economics Department Working Papers, 68, 6-25.
Hindun., Soejoto, A., & Hariyati. (2019). Pengaruh pendidikan, pengangguran, dan kemiskinan terhadap ketimpangan pendapatan di Indonesia. Jurnal Ekonomi Bisnis dan Kewirausahaan, 8(3), 250-265.
Ho, C, M., Le, Q, T, T., Vo, A, T., Vo, D, H., & Ha, D, T, T. (2020). Does government spending on education affect provincial income Inequality in Vietnam? The Singapore Economic Review, 1-27.
Johansson, A. (2016). Public finance, economic growth and inequality: a survey of the evidence. Economics Department Working Paper (pp. 5-16). Paris: OECD Publishing No.1346.
Kavya, T, B., & Shijin, S. (2020). Economic development, financial development, and income inequality. Borsa Istanbul Review, 80-93.
Kim, J, H. (2016). A study on the effect of financial inclusion on the relationship between income inequality and economic. Emerging Markets Finance & Trade, 52, 498-512.
Lisani, N., Masbar, R., & Silvia, V. (2020). Inflation-unemployment trade-offs in ASEAN-10. Jurnal Ilmu Ekonomi, 9(2), 241-256.
Munir, K., & Sultan, M . (2017). Macroeconomic determinants of income inequality in India and Pakistan. Theoretical and Applied Economics, Vol. XXIV No. 4 (613), 109-120.
Namini, S, S., & Hudson, D. (2019). The impacts of sector growth and monetary policy on income inequality in developing countries. Journal of Economic Studies, 46(3), 591-610.
Nazipawati. (2019). Analisis ketimpangan pendapatan dan pola pertumbuhan ekonomi di wilayah Belajasumbatahun 2013-2017. PARETO : Jurnal Ekonomi dan Kebijakan Publik, 2(1), 26-34.
Park, D., & Shin, K. (2017). Economic growth, financial development and income inequality. Emerging Markets Finance and Trade, 1-96.
Paus, E. (2017). Escaping the middle-income trap: innovate or perish. ADBI Working Paper, 685.
Pratama, R, A, P., Muhammad, S., & Silvia, V. (2020). Do minimum wage and economic growth matter for labor absorption in Sumatra island, Indonesia? East African Scholars Journal of Economics, Business and Management, 3(1), 54-61.
Watzka, S., & Jauch, S. (2015). Financial development and income inequality: a panel data approach. Empir Econ, 1-24.
Younsi, M., Khemili, H., & Betchtini, M. (2019). Does foreign aid help alleviate income inequality? New evidence from African countries. International Journal of Social Economics, 1-14.
Published
2021-12-01
How to Cite
SARI, Yola Mairina; ALIASUDDIN, Aliasuddin; SILVIA, Vivi.
Economic Growth and Income Inequality in ASEAN-5 Countries.
International Journal of Advanced Research in Economics and Finance, [S.l.], v. 3, n. 4, p. 34-44, dec. 2021.
ISSN 2682-812X.
Available at: <https://myjms.mohe.gov.my/index.php/ijaref/article/view/16148>. Date accessed: 03 oct. 2023.
Section
English Section
