W. Adrián Risso and Edgar J. Sánchez Carrera
The purpose of this paper is to study the long‐run relationship between economic growth and income inequality in China during the pre‐reform (1952‐1978) and post‐reform…
Abstract
Purpose
The purpose of this paper is to study the long‐run relationship between economic growth and income inequality in China during the pre‐reform (1952‐1978) and post‐reform (1979‐2007) periods, this will be done via cointegration analysis.
Design/methodology/approach
The aim of this paper is to offer a proper answer to the issue of the inequality‐growth nexus by using a cointegrated VAR‐setting approach, in this way, the study can cope and avoid the problems of parameter heterogeneneity, omitted variable bias and endogeneity, from which the model of macroeconometric analysis suffers.
Findings
The cointegration analysis shows that, for both periods the relationship is positive and the inequality‐growth elasticity has grown in the second period. In addition, a more robust test of Granger‐causality suggested by Toda and Yamamoto indicates that whereas in the first period there is unidirectional causality from inequality to growth, there is no directional causality in the second period.
Practical implications
The pre‐reform period going from 1952 to 1978 is characterized by the adoption and implementation of a Soviet‐type economy. The economy showed a modest annual economic growth rate of 2.33 percent and very low levels of inequality, with an average Gini coefficient of 0.27. The post‐reform period tried to combine central planning with market‐oriented reforms to increase productivity. In fact, the economy has grown at an annual growth rate of 7.07 percent since 1979 and also the inequality with an average Gini coefficient of 0.33.
Originality/value
The paper studies the relationship between income inequality and economic growth in China during the pre and post reform periods. A significant and positive long‐run relationship between inequality and economic growth in both periods was found. The inequality‐growth elasticity is greater in the post‐reform than the pre‐reform period. Using a more robust Granger causality test the authors find a unidirectional predetermination between the variables for the whole period and for the pre‐reform period. However, there is not causality in the post‐reform period. Except the urban‐rural disparity which explains the unidirectional causality from inequality to growth, pre‐reform China was basically an egalitarian society. In the pre‐reform period, the low inequality was identified as a strain on economic growth. However, the reform period has seen remarkable growth. Although regional inequality and the rural‐urban gap declined from the late 1970s to the mid‐1980s, both have increased rather dramatically since the mid‐1980s.
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W. Adrián Risso and Edgar J. Sánchez Carrera
The purpose of this paper is to estimate the long‐run relationships and threshold effects between inflation and economic growth in Mexico.
Abstract
Purpose
The purpose of this paper is to estimate the long‐run relationships and threshold effects between inflation and economic growth in Mexico.
Design/methodology/approach
The paper shows the existence of such relationship in a cointegrated vector on economic growth (log of real gross domestic product (GDP)) and inflation rate finding a corresponding elasticity significantly negative. Moreover, the causal relationship between these two series is studied using a more robust Granger causality test, without finding any directional causality between them.
Findings
The estimated threshold model suggests 9 percent as the threshold level (i.e. structural break point) of inflation above which inflation significantly slows the Mexican economic growth.
Research limitations/implications
This paper uses the cointegration technique, and finds a significant and negative long‐run relationship between inflation and economic growth for the Mexican economy. In addition, it is found that inflation is weakly exogenous. In the period 1970‐2007 real GDP was elastic with respect to inflation, and therefore, considering the estimated coefficient, an increase of 1 percent on inflation produces a decrease of 1.5 percent on real GDP. Since, for most of the period under consideration Mexico experienced inflation rates higher than 10 percent, this result is consistent with most of the research suggesting that high levels of inflation produce a negative effect on economic growth.
Practical implications
The analysis could be useful for policymakers in providing some clue in setting an optimal inflation target. For instance, the Mexican Central Bank could apply an expansionary monetary policy for supporting economic growth until the inflation rate does not exceed the threshold level. In fact, the threshold analysis suggests that if the inflation rate exceeds 9 percent, then Mexico's current favorable economic performance might be jeopardized.
Originality/value
Specifically, this paper focuses on two questions: is there any long‐run relationship between economic growth and inflation in Mexico? Is there a statistically significant threshold level of inflation above which inflation affects growth differently than at lower inflation rates in Mexico? Motivated by these questions, this present paper first examines cointegration techniques and then, threshold estimations.
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Senthilkumar Thangavelu, Sangeetha Gunasekar and Amalendu Jyotishi
The purpose of this paper is to understand the nature of the feedback effects of economic growth on innovation. The question is whether the economies with higher levels of…
Abstract
Purpose
The purpose of this paper is to understand the nature of the feedback effects of economic growth on innovation. The question is whether the economies with higher levels of endowments have a declining feedback effect of income on innovation and contribute to the development of effective innovation policies are raised.
Design/methodology/approach
This study hypothesizes that innovation input’s response to economic growth in terms of income is an inverted “U” shaped path, whereas the innovation output’s response to income is positive and asymptotic. This paper uses the global innovation index data of 154 countries over the period 2013–2017 on innovation and gross domestic product for the analysis using the fixed-effect regression models.
Findings
The results confirmed the inverted U shaped relationship in the line of Kuznets’s curve for innovation input and that of negative slope and asymptotic behaviour for innovation output.
Research limitations/implications
In this study, the analysis performed using the global innovation index 2013–2017 data. This study can be extended at each factor level to understand this phenomenon in depth with more data and to help in improving the innovation policies for the betterment of the economic growth.
Practical implications
This study suggests that developed countries need to guard against complacency in their innovation efforts because of the asymptotic nature exhibited through the effective development of innovation policies. The developing economies can look forward to establishing themselves in the domains of innovation input through imitation of technologies.
Originality/value
This paper extends the study of feedback effects of economic growth on innovation. This study brings out the nature of feedback effects of economic growth on input innovation and output innovation activities. The results show a declining feedback effect of income on innovation in economies with a higher level of endowments and highlight the inclusion of feedback effects of economic activities on the innovation while designing the innovation and economic policies of a country.
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Miguel-Angel Galindo-Martín, María-Teresa Méndez-Picazo and María-Soledad Castaño-Martínez
Economic growth is one the most relevant economic objectives for policy makers. In order to determine the variables that enhance such an objective it is important to consider…
Abstract
Purpose
Economic growth is one the most relevant economic objectives for policy makers. In order to determine the variables that enhance such an objective it is important to consider different types of entrepreneurial activity. It is also necessary to consider the level of development and growth of a country to design the proper economic policy measures, given that entrepreneurship motivations and circumstances vary from country to country. Therefore, the purpose of this paper is to analyse the relationship between entrepreneurship and economic growth, including the role played by institutions and innovation considering two types of entrepreneurship (necessity and opportunity) and countries.
Design/methodology/approach
Data analysis of 31 countries with varying levels of growth and development yielded two large groups – either innovation-driven economies or efficiency-driven economies – following GEM classification based on the phases set out by the World Economic Forum. In order to test the hypotheses, a partial least squares analysis is carried out to show the existing relationships between the different variables, specifically: innovation, institutions, entrepreneurship and economic growth.
Findings
The empirical analysis used demonstrates that innovation positively affects economic growth and entrepreneurship. In addition, adequate functioning of institutions is shown to enhance economic growth and opportunity entrepreneurship. Finally, there is a positive relationship between entrepreneurship and economic growth.
Originality/value
Unlike other studies, different types of entrepreneurship (by necessity and opportunity) are essential to this analysis of the relationship between entrepreneurship and economic growth. The country sample was divided considering some country-specific structural circumstances. Neither aspect is considered in the literature and should be considered relevant for designing measures to enhance economic activity.
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Priyanka Vern, Anupama Panghal, Rahul S. Mor, Vikas Kumar and Dilshad Sarwar
Blockchain technology (BCT) has emerged as a powerful tool for enhancing transparency and trust. However, the relationship between the benefits of BCT and agri-food supply chain…
Abstract
Purpose
Blockchain technology (BCT) has emerged as a powerful tool for enhancing transparency and trust. However, the relationship between the benefits of BCT and agri-food supply chain performance (AFSCperf) remains underexplored. Therefore, the current study investigates the influence of BCT on AFSCperf and sustainability issues.
Design/methodology/approach
Through a comprehensive literature review, various benefits of BCT are identified. Subsequently, a research framework is proposed based on data collected from questionnaire surveys and personal visits to professionals in the agri-food industry. The proposed framework is validated using partial least square structural equation modelling (PLS-SEM).
Findings
The findings reveal that BCT positively impacts AFSCperf by improving traceability, transparency, food safety and quality, immutability and trust. Additionally, BCT adoption enhances stakeholder collaboration, provides a decentralised network, improves data accessibility and yields a better return on investment, resulting in the overall improvement in AFSCperf and socio-economic sustainability.
Practical implications
This study offers valuable practical insights for practitioners and academicians, establishing empirical links between the benefits of BCT and AFSCperf and providing a deeper understanding of BCT adoption.
Originality/value
Stakeholders, managers, policymakers and technology providers can leverage these findings to optimise the benefits of BCT in enhancing AFSCperf. Moreover, it utilises rigorous theoretical and empirical approaches, drawing on a multidisciplinary perspective encompassing food operations and supply chain literature, public policy, information technology, strategy, organisational theory and sustainability.
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Mark Stemmler, Charlotte Kötter, Anneke Bühler, Stefanie Jaursch, Andreas Beelmann and Friedrich Lösel
The purpose of this article is to evaluate the prevention programme EFFEKT‐E that was designed for preschool children of depressive mothers and contains an intervention for…
Abstract
Purpose
The purpose of this article is to evaluate the prevention programme EFFEKT‐E that was designed for preschool children of depressive mothers and contains an intervention for children and for mothers.
Design/methodology/approach
Research was carried out in mother‐child clinics in Germany. In total, 220 strained mothers, who were screened for elevated levels of depressive symptoms, were enrolled in the control and 186 in the training group. For evaluation, mothers rated emotional disturbance and social competence of the child as outcome measures before and after the training. Changes in parenting behaviour, perceived parental competence and parenting stress were also assessed.
Findings
An effect on emotional disturbance of the child emerged (d=0.52) in the training group. Perceived parental competence increased (d=0.72) and parental stress decreased (d=0.23) significantly under training. EFFEKT‐E has proven to be a valuable programme for preventing depression in offspring of mothers who feel depressed.
Originality/value
The article identifies the significance of focusing on parenting as a preventive intervention in the mechanisms of familial transmission of depression and evaluation of a family‐oriented programme for young children designed to achieve this.