Tag: I38

SPATIAL DISPARITIES IN THE EUROPEAN UNION: A MACROSCOPIC REVIEW

Serafeim POLYZOS

Professor, Department of Planning and Regional Development, University of Thessaly, Volos, Greece

spolyzos@uth.gr

Dimitrios TSIOTAS

Assistant Professor, Department of Regional and Economic Development, School of Applied Economics and Social Sciences, Agricultural University of Athens, Amfissa (Phocis), Greece

tsiotas@aua.gr

(Corresponding Author)

Abstract

The European Union (EU) is a unique and challenging project aimed at integrating countries with diverse languages, cultures, and histories. While economic cohesion is a key objective, reducing inequalities between Member States and ensuring balanced development for all citizens remains a significant challenge. Despite the progress made, Europe continues to face considerable geographical and economic disparities, impacting living standards, productive capacity, and technological advancement. Analyzing these inequalities, their determinants, and their mitigating policies is crucial for understanding the EU’s challenges. The allocation of EU financial resources and strategic initiatives, such as the Structural Funds, strive to reduce disparities and promote social cohesion, while also tackling emerging issues such as migration and reliance on public expenditure. This article reviews the root causes of inequalities in Europe, the policies designed to mitigate them, and the future obstacles in achieving a more united and socially just European Union.

Keywords: spatial inequalities, European Union’s enlargements, economic indicators, European growth, cohesion.

JEL classification: O18, R11, I38, D63, F15

pp. 13-36

read more

DOES ZAKAT MATTER FOR HUMAN DEVELOPMENT? AN EMPIRICAL EVIDENCE FROM INDONESIA

I.K. Balyanda AKMAL

Postgraduate Student in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

balyanda@gmail.com

M. Shabri Abd. MAJID

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

Corresponding author

mshabri@unsyiah.ac.id

Eddy GUNAWAN

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

egunawan@unsyiah.ac.id

Abstract

This study aims to empirically measure and analyze the contribution zakat to human development and, consequently towards the achievement of the Sustainability Development Goals (SDGs) program in Indonesia. Specifically, this study intends to measure the differences in the Human Development Index (HDI) of zakat recipients before and after receiving zakat and measure the effect of zakat on the HDI and its components. The response to these issues, the study estimates the value of the Human Development Index (HDI) at a minor level; the individual and household levels. 100 recipients of zakat (mustahik) from the three programs of zakat distribution by the zakat institution of Aceh Province, Indonesia (Baitul Mal Aceh – BMA) were selected as the sample of the study using a combination of purposive and proportionate stratified random samplings. These zakat programs include zakat for cancer and thalassemia patients, zakat for one family one undergraduate scholarship, and zakat for buying working capital for the poor families. The paired t-test is adopted to assess the differences in HDI of zakat recipients before and after receiving zakat, while the multiple linear regression is used to measure the effect of zakat on the HDI and its components. The study found that, after receiving zakat, the HDI of zakat recipients is higher than before. Zakat is also recorded to have a significant positive effect on the HDI, while the family size affected negatively the HDI and the types of zakat and profession of zakat recipients have an insignificant effect on the HDI. These findings suggest the positive role of zakat in improving human development and it could be used as one of the instruments to accelerate the achievement of the SDGs agenda in Indonesia.

Keywords: Education, Health, Human Development, Welfare, Zakat

JEL classification: D64, O15, Q01, I15, I25, I38

read more

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

read more