FINANCE, GROWTH AND INEQUALITY CONFERENCE

Previously Published Papers on "Finance, Growth and Inequality Conference"

• The Impact of Digital Inclusive Finance on the High-Quality Development of China's Export Trade

  Authors: Yao Wu, Keywords: Digital inclusive finance, high-quality development of export trade, fixed effects, binary marginal effects. DOI:10.5281/zenodo. Abstract: In the context of financial globalization, China has put forward the policy goal of high-quality development, and the digital economy, with its advantage of information resources, is driving China's export trade to achieve high-quality development. Due to the long-standing financing constraints of small and medium-sized export enterprises, how to expand the export scale of small and medium-sized enterprises has become a major threshold for the development of China's export trade. This paper firstly adopts the hierarchical analysis method to establish the evaluation system of high-quality development of China's export trade; secondly, the panel data of 30 provinces in China from 2011 to 2018 are selected for empirical analysis to establish the impact model of digital inclusive finance on the high-quality development of China's export trade; based on the analysis of the heterogeneous enterprise trade model, a mediating effect model is established to verify the mediating role of credit constraint in the development of high-quality export trade in China. Based on the above analysis, this paper concludes that inclusive digital finance, with its unique digital and inclusive nature, alleviates the credit constraint problem among SMEs, enhances the binary marginal effect of SMEs' exports, optimizes their export scale and structure, and promotes the high-quality development of regional and even national export trade. Finally, based on the findings of this paper, we propose insights and suggestions for inclusive digital finance to promote the high-quality development of export trade.

• The Effects of Subjective and Objective Indicators of Inequality on Life Satisfaction in a Comparative Perspective Using a Multi-Level Analysis

  Authors: Atefeh Bagherianziarat, Dana Hamplova, Keywords: individual values, life satisfaction, multi-level analysis, objective inequality, subjective inequality, welfare regimes status DOI:10.5281/zenodo. Abstract: The inverse social gradient in life satisfaction (LS) is a well-established research finding. Although objective aspects of inequality or individuals’ socioeconomic status are among the approved predictors of life satisfaction; however, less is known about the effect of subjective inequality and the interplay of these two aspects of inequality on life satisfaction. It is suggested that individuals’ perception of their socioeconomic status in society can moderate the link between their absolute socioeconomic status and life satisfaction. Nevertheless, this moderating link has not been affirmed to work likewise in societies with different welfare regimes associating with different levels of social inequality. In this study, we compared the moderative influence of subjective inequality on the link between objective inequality and LS. In particular, we focus on differences across welfare state regimes based on Esping-Andersen's theory. Also, we explored the moderative role of believing in the value of equality on the link between objective and subjective inequality on LS, in the given societies. Since our studied variables were measured at both individual and country levels, we applied a multilevel analysis to the European Social Survey data (round 9). The results showed that people in different regimes reported statistically meaningful different levels of LS that is explained to different extends by their household income and their perception of their income inequality. The findings of the study supported the previous findings of the moderator influence of perceived inequality on the link between objective inequality and LS. However, this link is different in various welfare state regimes. The results of the multilevel modeling showed that country-level subjective equality is a positive predictor for individuals’ LS, while the Gini coefficient that was considered as the indicator of absolute inequality has a smaller effect on LS. Also, country-level subjective equality moderates the confirmed link between individuals’ income and their LS. It can be concluded that both individual and country-level subjective inequality slightly moderate the effect of individuals’ income on their LS.

• Predicting the Lack of GDP Growth: A Logit Model for 40 Advanced and Developing Countries

  Authors: Hamidou Diallo, Marianne Guille, Keywords: GDP growth, early warning system, advanced economies, developing countries. DOI:10.5281/zenodo. Abstract: This paper identifies leading triggers of deficient episodes in terms of GDP growth based on a sample of countries at different stages of development over 1994-2017. Using logit models, we build early warning systems (EWS) and our results show important differences between developing countries (DCs) and advanced economies (AEs). For AEs, the main predictors of the probability of entering in a GDP growth deficient episode are the deterioration of external imbalances and the vulnerability of fiscal position while DCs face different challenges that need to be considered. The key indicators for them are first, the low ability to pay its debts and second, their belonging or not to a common currency area. We also build homogeneous pools of countries inside AEs and DCs. For AEs, the evolution of the proportion of countries in the riskiest pool is marked first, by three distinct peaks just after the high-tech bubble burst, the global financial crisis and the European sovereign debt crisis, and second by a very low minimum level in 2006 and 2007. In contrast, the situation of DCs is characterized first by a relative stability of this proportion and then by an upward trend from 2006, that can be explained by more unfavorable socio-political environment leading to shortcomings in the fiscal consolidation.

• Strategic Investment in Infrastructure Development to Facilitate Economic Growth in the United States

  Authors: Arkaprabha Bhattacharyya, Makarand Hastak, Keywords: Economic growth, infrastructure development, infrastructure projects, strategic investment. DOI:10.5281/zenodo. Abstract: The COVID-19 pandemic is unprecedented in terms of its global reach and economic impacts. Historically, investment in infrastructure development projects has been touted to boost the economic growth of a nation. The State and Local governments responsible for delivering infrastructure assets work under tight budgets. Therefore, it is important to understand which infrastructure projects have the highest potential of boosting economic growth in the post-pandemic era. This paper presents relationships between infrastructure projects and economic growth. Statistical relationships between investment in different types of infrastructure projects (transit, water and wastewater, highways, power, manufacturing etc.) and indicators of economic growth are presented using historic data between 2002 and 2020 from the U.S. Census Bureau and U.S. Bureau of Economic Analysis (BEA). The outcome of the paper is the comparison of statistical correlations between investment in different types of infrastructure projects and indicators of economic growth. The comparison of the statistical correlations is useful in ranking the types of infrastructure projects based on their ability to influence economic prosperity. Therefore, investment in the infrastructures with the higher rank will have a better chance of boosting the economic growth. Once, the ranks are derived, they can be used by the decision-makers in infrastructure investment related decision-making process.

• Income Inequality and the Poverty of Youth in the Douala Metropolis of Cameroon

  Authors: Nanche Billa Robert, Keywords: Income, inequality, poverty, metropolis. DOI:10.5281/zenodo. Abstract: More and more youth are doubtful of making a satisfactory labour market transition because of the present global economic instability and this is more so in Africa of the Sahara and metropolis like Douala. We use the explanatory sequential mixed method: in the first phase we randomly administered 610 questionnaires in the Douala metropolis respecting the population size of each division and its gender composition. We constructed the questionnaire using the desired values for living a comfortable life in Douala. In the second phase, we purposefully selected and interviewed 50 poor youth in order to explain in detail the initial quantitative results. We obtain the following result: The modal income class is 24,000-74,000 frs Central Africa Franc (CFA) and about 67% of the youth of the Douala metropolis earn below 75,000 frs CFA. They earn only 31.02% of the total income. About 85.7% earn below 126,000 frs CFA and about 92.14% earn below 177,000 frs CFA. The poverty-line is estimated at 177,000 frs CFA per month based on the desired predominant values in Douala and only about 9% of youth earn this sum, therefore, 91% of the youth are poor. We discovered that the salary a youth earns influences his level of poverty. Low income earners eat once or twice per day, rent low-standard houses of below 20,000 frs, are dependent and possess very limited durable goods, consult traditional doctors when they are sick, sleep and gamble during their leisure time. Intermediate income earners feed themselves either twice or thrice per day, eat healthy meals weekly, possess more durable goods, are independent, gamble and drink during their leisure time. High income earners feed themselves at least thrice per day, eat healthy food daily, inhabit high quality and expensive houses, are more stable by living longer in their neighbourhoods, like travelling and drinking during their leisure time. Unsalaried youth, are students, housewives or unemployed youth, they eat four times per day, take healthy meals daily, weekly, fortnightly or occasionally, are dependent or homeless depending on whether they are students or unemployed youth. The situation of the youth can be ameliorated through investing in the productive sector and promoting entrepreneurship as well as formalizing the informal sector.

• The Experience of Middle Grade Teachers in a Culture of Collaboration

  Authors: Tamara Tallman, Keywords: Collaboration, professional development, teacher, growth. DOI:10.5281/zenodo. Abstract: Collaboration is a powerful tool for professional development and central for creating opportunities for teachers to reflect on their practice. However, school districts continue to have difficulty both implementing and sustaining collaboration. The purpose of this research was to investigate the experience of the teacher in a creative, instructional collaboration. The teachers in this study found that teacher-initiated collaboration offered them trust and they were more open with their partners. An interpretative phenomenological analysis was used for this study as it told the story of the teacher’s experience. Interpretative Phenomenological Analysis was chosen for this study to capture the complex and contextual nature of the teacher experience from a creative, instructional collaborative experience. This study sought to answer the question of how teachers in a private, faith-based school experience collaboration. In particular, the researcher engaged the study’s participants in interviews where they shared their unique perspectives on their experiences in relation to this phenomenon. Through the use of interpretative phenomenological analysis, the researcher interpreted the experiences of each participant in an attempt to gain deeper insight into how teachers made sense of their understanding of collaboration. In addition to the researcher’s interpreting the meaning of this construct for each research participant, this study gave a voice to the individual experiences and positionality of each participant at the research site. Moreover, the key findings presented in this study shed light on how teachers within this particular context participated in and made sense of their experience of creating an instructional collaborative. The research presented the findings that speak to the meaning that each research participant experienced in their relation to participating in building a collaborative culture and its effect on professional and personal growth. The researcher provided recommendations for future practice and research possibilities. The research findings demonstrated the unique experiences of each participant as well as a connection to the literature within the field of teacher professional development. The results also supported the claim that teacher collaboration can facilitate school reform. Participating teachers felt less isolation and developed more teacher knowledge.

• Maternal Health Outcome and Economic Growth in Sub-Saharan Africa: A Dynamic Panel Analysis

  Authors: Okwan Frank, Keywords: Economic growth, maternal mortality, pool mean group, Sub-Saharan Africa. DOI:10.5281/zenodo. Abstract: Maternal health outcome is one of the major population development challenges in Sub-Saharan Africa. The region has the highest maternal mortality ratio, despite the progressive economic growth in the region during the global economic crisis. It has been hypothesized that increase in economic growth will reduce the level of maternal mortality. The purpose of this study is to investigate the existence of the negative relationship between health outcome proxy by maternal mortality ratio and economic growth in Sub-Saharan Africa. The study used the Pooled Mean Group estimator of ARDL Autoregressive Distributed Lag (ARDL) and the Kao test for cointegration to examine the short-run and long-run relationship between maternal mortality and economic growth. The results of the cointegration test showed the existence of a long-run relationship between the variables considered for the study. The long-run result of the Pooled Mean group estimates confirmed the hypothesis of an inverse relationship between maternal health outcome proxy by maternal mortality ratio and economic growth proxy by Gross Domestic Product (GDP) per capita. Thus increasing economic growth by investing in the health care systems to reduce pregnancy and childbirth complications will help reduce maternal mortality in the sub-region.

• Cultural Effects on the Performance of Non- Profit and For-Profit Microfinance Institutions

  Authors: Patrick M. Stanton, William R. McCumber, Keywords: Hofstede cultural dimensions, international finance, microfinance institutions, non-profit. DOI:10.5281/zenodo. Abstract: Using a large dataset of more than 2,400 individual microfinance institutions (MFIs) from 120 countries from 1999 to 2016, this study finds that nearly half of the international MFIs operate as for-profit institutions. Formal institutions (business regulatory environment, property rights, social protection, and a developed financial sector) impact the likelihood of MFIs being for-profit across countries. Cultural differences across countries (power distance, individualism, masculinity, and indulgence) seem to be a factor in the legal status of the MFI (non-profit or for-profit). MFIs in countries with stronger formal institutions, a greater degree of power distance, and a higher degree of collectivism experience better financial and social performance.

• The State Support to the Tourism Policy Formation Mechanism in Black Sea Basin Countries (Azerbaijan, Turkey, Russia, Georgia) and Its Impact on Sustainable Tourism Development

  Authors: A. Bahar Ganiyeva, M. Sabuhi Tanriverdiyev, Keywords: Sustainable tourism, hospitality, destination, strategic roadmap, tourism, economy, growth, state support, mechanism, policy formation, state program. DOI:10.5281/zenodo. Abstract: The article analyzes state support and policy mechanisms aimed at driving tourism as one of the vibrant and rapidly developing economies. State programs and long-range strategic roadmaps and previous programs execution, results and their impact on the particular countries economy have been raised during the research. This theme provides a useful framework for discussions with a wider range of stakeholders as the implications arising are of importance both for academics and practitioners engaged in hospitality and tourism development and research. The impact that tourism has on sustainable regional development in emerging markets is highly substantial. For Azerbaijan, Turkey, Georgia, and Russia, with their rich natural resources and cultural heritage, tourism can be an important basis for economic expansion, and a way to form an acceptable image of the countries as safe, open, hospitable, and complex.

• Bank Loans and the Business Cycle: The Case of the Czech Republic

  Authors: Libena Cernohorska, Jan Cernohorsky, Keywords: Bank, business cycle, economic growth, loans. DOI:10.5281/zenodo.3299547 Abstract: This article aims to evaluate the impact of loans provided within the Czech banking sector on the growth of the Czech economy. The article is based on research of current scientific findings in respect to bank loans and economic development. The paper is based on data taken from the Czech Statistical Office on the development of the gross domestic product and data from the Czech National Bank on the development of loans from the period 2004-2015. Links between selected variables are tested using Granger causality tests. The results calculated confirm the hypothesis of the impact of the loans on economic growth, with a six-month delay. The results thus correspond to the standard economic findings and results of most previous studies.