Democracy, economic growth, and income inequality: Evidence from province level data
AbstractDemocracy is an essential aspect in national-level governance to safeguard human rights and provide equal distribution of wealth among citizens that are also expected to bolster more rapid economic growth. However, the extant literatures show mixed result in providing evidence of how democra...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2023-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2220244 |
| _version_ | 1827792191784747008 |
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| author | Irwan Trinugroho Aldy Fariz Achsanta Putra Pamungkas Nugroho Saputro Sari Yuniarti |
| author_facet | Irwan Trinugroho Aldy Fariz Achsanta Putra Pamungkas Nugroho Saputro Sari Yuniarti |
| author_sort | Irwan Trinugroho |
| collection | DOAJ |
| description | AbstractDemocracy is an essential aspect in national-level governance to safeguard human rights and provide equal distribution of wealth among citizens that are also expected to bolster more rapid economic growth. However, the extant literatures show mixed result in providing evidence of how democracy will impact economic growth. In this paper, we, therefore, empirically examine the impact of democracy on economic growth and income inequality at the regional level by studying provinces in Indonesia. A panel data estimation is employed with 335 province-year observations to test our empirical model covering 34 provinces. We find that overall democracy is a detrimental factor to regional economic growth as higher level of democracy needs substantial cost to finance. However, our study reveals that democracy help reduce inequality across provinces as it may open up the possibilities to get more education for marginalized people which then implies for higher income for those people. Several policy implications are discussed. |
| first_indexed | 2024-03-11T17:58:21Z |
| format | Article |
| id | doaj.art-cb21f4c2e5ce49e096d9126de64879e5 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-11T17:58:21Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-cb21f4c2e5ce49e096d9126de64879e52023-10-17T10:51:06ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-12-0111110.1080/23322039.2023.2220244Democracy, economic growth, and income inequality: Evidence from province level dataIrwan Trinugroho0Aldy Fariz Achsanta1Putra Pamungkas2Nugroho Saputro3Sari Yuniarti4Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, IndonesiaFaculty of Economics and Business, Universitas Sebelas Maret, Surakarta, IndonesiaFaculty of Economics and Business, Universitas Sebelas Maret, Surakarta, IndonesiaFaculty of Economics and Business, Universitas Sebelas Maret, Surakarta, IndonesiaFaculty of Economics and Business, Universitas Merdeka, Malang, IndonesiaAbstractDemocracy is an essential aspect in national-level governance to safeguard human rights and provide equal distribution of wealth among citizens that are also expected to bolster more rapid economic growth. However, the extant literatures show mixed result in providing evidence of how democracy will impact economic growth. In this paper, we, therefore, empirically examine the impact of democracy on economic growth and income inequality at the regional level by studying provinces in Indonesia. A panel data estimation is employed with 335 province-year observations to test our empirical model covering 34 provinces. We find that overall democracy is a detrimental factor to regional economic growth as higher level of democracy needs substantial cost to finance. However, our study reveals that democracy help reduce inequality across provinces as it may open up the possibilities to get more education for marginalized people which then implies for higher income for those people. Several policy implications are discussed.https://www.tandfonline.com/doi/10.1080/23322039.2023.2220244democracyeconomic growthincome inequalityprovinceindonesia |
| spellingShingle | Irwan Trinugroho Aldy Fariz Achsanta Putra Pamungkas Nugroho Saputro Sari Yuniarti Democracy, economic growth, and income inequality: Evidence from province level data Cogent Economics & Finance democracy economic growth income inequality province indonesia |
| title | Democracy, economic growth, and income inequality: Evidence from province level data |
| title_full | Democracy, economic growth, and income inequality: Evidence from province level data |
| title_fullStr | Democracy, economic growth, and income inequality: Evidence from province level data |
| title_full_unstemmed | Democracy, economic growth, and income inequality: Evidence from province level data |
| title_short | Democracy, economic growth, and income inequality: Evidence from province level data |
| title_sort | democracy economic growth and income inequality evidence from province level data |
| topic | democracy economic growth income inequality province indonesia |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2220244 |
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