Threshold impact of corruption on income inequality-social transfers nexus in Central and Eastern Europe
Corruption, which adversely affects macroeconomic aspects such as growth, investment, and income distribution, causes the anticipated accomplishment from social transfers not to be realized. In this study, the income inequality effects of social transfers under the corruption threshold are investiga...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Alexandru Ioan Cuza University of Iasi
2022-10-01
|
| Series: | Eastern Journal of European Studies |
| Subjects: | |
| Online Access: | https://ejes.uaic.ro/articles/EJES2022_13SI_AKT.pdf |
| _version_ | 1811245754505756672 |
|---|---|
| author | Emin Efecan AKTAS |
| author_facet | Emin Efecan AKTAS |
| author_sort | Emin Efecan AKTAS |
| collection | DOAJ |
| description | Corruption, which adversely affects macroeconomic aspects such as growth, investment, and income distribution, causes the anticipated accomplishment from social transfers not to be realized. In this study, the income inequality effects of social transfers under the corruption threshold are investigated with the annual data of 19 Central and Eastern Europe (CEE) countries for the period 1999-2019. Following Hansen’s (1999) and Wang’s (2015) modeling, it has been detected that corruption has a significant threshold effect on this relationship. Two thresholds have been specified. Below the first threshold of 3.520, the relationship between social transfers and income inequality is inverse. Above this threshold level and the second threshold value of 3.577, the relationship is in the same direction. In 19 CEE countries, it can be concluded that an augmentation in the corruption and the abuse of social transfers by public officials may amplify income inequality. |
| first_indexed | 2024-04-12T14:43:02Z |
| format | Article |
| id | doaj.art-f1387fc242614fd8ad3362c75c48d3f0 |
| institution | Directory Open Access Journal |
| issn | 2068-651X 2068-6633 |
| language | English |
| last_indexed | 2024-04-12T14:43:02Z |
| publishDate | 2022-10-01 |
| publisher | Alexandru Ioan Cuza University of Iasi |
| record_format | Article |
| series | Eastern Journal of European Studies |
| spelling | doaj.art-f1387fc242614fd8ad3362c75c48d3f02022-12-22T03:28:45ZengAlexandru Ioan Cuza University of IasiEastern Journal of European Studies2068-651X2068-66332022-10-0113SI739810.47743/ejes-2022-SI05Threshold impact of corruption on income inequality-social transfers nexus in Central and Eastern EuropeEmin Efecan AKTAS0Kirsehir Ahi Evran UniversityCorruption, which adversely affects macroeconomic aspects such as growth, investment, and income distribution, causes the anticipated accomplishment from social transfers not to be realized. In this study, the income inequality effects of social transfers under the corruption threshold are investigated with the annual data of 19 Central and Eastern Europe (CEE) countries for the period 1999-2019. Following Hansen’s (1999) and Wang’s (2015) modeling, it has been detected that corruption has a significant threshold effect on this relationship. Two thresholds have been specified. Below the first threshold of 3.520, the relationship between social transfers and income inequality is inverse. Above this threshold level and the second threshold value of 3.577, the relationship is in the same direction. In 19 CEE countries, it can be concluded that an augmentation in the corruption and the abuse of social transfers by public officials may amplify income inequality.https://ejes.uaic.ro/articles/EJES2022_13SI_AKT.pdfcorruptionsocial transferincome inequalitythreshold |
| spellingShingle | Emin Efecan AKTAS Threshold impact of corruption on income inequality-social transfers nexus in Central and Eastern Europe Eastern Journal of European Studies corruption social transfer income inequality threshold |
| title | Threshold impact of corruption on income inequality-social transfers nexus in Central and Eastern Europe |
| title_full | Threshold impact of corruption on income inequality-social transfers nexus in Central and Eastern Europe |
| title_fullStr | Threshold impact of corruption on income inequality-social transfers nexus in Central and Eastern Europe |
| title_full_unstemmed | Threshold impact of corruption on income inequality-social transfers nexus in Central and Eastern Europe |
| title_short | Threshold impact of corruption on income inequality-social transfers nexus in Central and Eastern Europe |
| title_sort | threshold impact of corruption on income inequality social transfers nexus in central and eastern europe |
| topic | corruption social transfer income inequality threshold |
| url | https://ejes.uaic.ro/articles/EJES2022_13SI_AKT.pdf |
| work_keys_str_mv | AT eminefecanaktas thresholdimpactofcorruptiononincomeinequalitysocialtransfersnexusincentralandeasterneurope |