DOES GOODS AND SERVICES SPENDINGS REDUCE INCOME INEQUALITY? A PANEL DATA EVIDENCE FROM INDONESIA

B. S. NAZAMUDDIN

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

nazamuddin@unsyiah.ac.id

Khairul AMRI

Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda Aceh, Indonesia

khairul.amri@ar-raniry.ac.id

(corresponding author)

Abstract

The main purposes of our study are to investigate the effect of goods & services spending (GSS) and social spending (SS) on income inequality (GR). Using a panel data set of 26 provinces in Indonesia from 2005 to 2015, panel vector autoregressive and Granger causality test are employed to explore the causal relationship of the variables. The study found out that the SS has a negative and significant effect on GR at the 2-period horizon. The GR has a positive and significant effect on the GSS at the 4-period horizon, but negative and significant effects at the 3-period horizon. The result of the Granger causality test indicates that there is a unidirectional causality running from GSS to SS, and bidirectional causality exists between GR and SS, and between GR and GSS.

Keywords: Income inequality, goods and services spendings, social spendings, Panel Vector Autoregressive, and Granger Causality test.

JEL classification: D33, H53, I38

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CHANGES IN HUMAN GEOGRAPHY: SCENARIOS OF COUNTER-URBANIZATION IN THE CONTEXT OF ECONOMIC CRISIS

Evgenia ANASTASIOU

Postdoctoral Researcher, University of Thessaly

evanastasiou@uth.gr

Abstract

The last decade economic developments affected to a large extend the demographic structure of Greece. The period 2001-2011 is characterized by a net slowdown of the intense urbanization trend, while in the context of crisis there have been identified counter-urban trends, revealing new attractiveness zones in the rural areas. These indications of mobility do not concern entirely the countryside as the newcomers settle only in specific rural spatial units. At the same time these areas have specific features that facilitate the establishment of a new population, such as population dynamics, tourism development, agricultural activity, services and structures, reduction of geographical isolation, low cost of living and habitation. The future of internal migration in Greece heavily depends on existing trends as well as future economic, social and political developments. Though, the lack of official data for the period after 2011 constrains our understanding for the development of internal migration and particularly counter-urban trends in Greece. The present paper raises the issue of the prospects of the establishment of the Greek population in the countryside, taking into account the pull factors of rural areas. Through Foresight and Strategic Thinking Methods, a longer-term framework is being developed to reflect the potential strategic choices of the internal migrants. This approach is based on a mainly qualitative analysis, scenario planning, in order to present the prerequisites for the further development of such a type of mobility.

Keywords: foresight, scenario planning, internal migration, population, countryside

JEL classification: J1, J6, J11, R23

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MEASURING THE EFFICIENCY AND PRODUCTIVITY CHANGE OF MUNICIPALITIES:EMPIRICAL EVIDENCE FROM GREEK MUNICIPALITIES OVER THE TIME PERIOD 2013-2016

Ifigeneia-Dimitra POUGKAKIOTI

Ph.D. cand. University of Thessaly, Lamia, Greece

pougakioti.ifigenia@gmail.com

Constantinos TSAMADIAS

Emeritus Professor, School of Environment, Geography and Applied Economics Harokopio University, Athens, Greece

ctsamad@hua.gr

Abstract

This paper investigates the relative efficiency and productivity change of municipalities of Greece (regions of Thessaly and Central Greece), during the period 2013–2016. It implements Data Envelopment Analysis (D.E.A.) and Malmquist analysis. Additionally it estimates the effects of the environmental factors on the efficiency using Regression Analysis. The empirical analysis reveals that efficiency and productivity values have gradually improved after the latest reform of Local Government and under restrictive fiscal policy. Τhe average efficiency under constant or variable returns to scale is 0.772 and 0.878 respectively and the mean scale efficiency is 0.883. The total factor productivity has risen by an annual average of 3.3% relatively to the base year 2013. Environmental variables such as type of municipality and population density had a statistically significant positive effect on efficiency. The results of the empirical analysis are consistent to the findings from studies that concern European and other countries. The findings provide benchmarks for policy evaluation and suggestions for region-based approaches.

Keywords: Greek municipalities, efficiency, productivity, DEA, Malmquist analysis

JEL classification: C14, J48, P41, P43

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