Does Nominal Devaluation Improve Income Distribution? Evidence from Bangladesh
Bibliographic Data
| ID | 19451831 |
|---|---|
| Authors | Muhammad Shahbaz (0000-0003-4916-7648), Mohammad Mafizur Rahman (0000-0002-7950-1961, University of Southern Queensland) |
| Year | 2012 |
| Volume | 19 |
| Issue | 1 |
| Pages | 61-77 |
| Publication date | 2012-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | South Asian Survey (JOURNAL) |
| Journal identifiers | ISSN: 0973-0788 • E-ISSN: 0971-5231 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/0971523114539586 |
| OpenAlex | W2058001300 |
| Language | EN |
| References cited | 36 |
The article aims to investigate the impact of nominal devaluation on income distribution in Bangladesh both in short and long runs. In doing so, Auto Regressive Distributed Lag (ARDL) bounds testing has been employed for cointegration, and Error Correction Model (ECM) has been used for short-run dynamics. The empirical psychology has confirmed the existence of long-run relationship between the variables. Furthermore our estimated results reveal that nominal devaluation tends to decrease income inequality. Though economic growth appears to improve income distribution, non-linear link between both the variables, however, depicts Kuznets’ inverted-U curve (1955). Financial development causes further deterioration in income distribution. Trade openness contributes to income inequality as discussed in Leontief Paradox
Cointegration · Devaluation · Distributed lag · Econometrics · Economic inequality · Economics · Error correction model · Exchange rate · Income distribution · Inequality · Kuznets Curve · Macroeconomics · Openness to experience · Short run · Economic theories and models · Economic Theory and Policy · Mathematics · Monetary Policy and Economic Impact
LAG Length Selection and the Construction of Unit Root Tests with Good Size and Power
Contractionary effects of devaluation
The saving and investment nexus for China
Efficient Tests for an Autoregressive Unit Root
Testing for a unit root in time series regression
Bounds testing approaches to the analysis of level relationships
Inequality and Economic Growth
The deterrent effect of capital punishment
Economic Growth and Income Inequality
A Reassessment of the Relationship Between Inequality and Growth
Poverty, Inequality, and Development
Finance, Inequality, and Poverty
Inequality and Growth in a Panel of Countries
Devaluation and the J-Curve
The Kuznets curve
The effect on income distribution of development, the growth rate and economic strategy
International Economics
| Citation velocity | historical |
|---|---|
| Highly cited | No |