scholarly journals Economic and Social Sustainability: The Influence of Oligopolies on Inequality and Growth

2020 ◽  
Vol 12 (22) ◽  
pp. 9378
Author(s):  
Ronald R. Kumar ◽  
Peter J. Stauvermann
Keyword(s):  
Economic Growth ◽  
Imperfect Competition ◽  
Market Competition ◽  
Social Sustainability ◽  
Market Concentration ◽  
Young Generation ◽  
Unequal Income Distribution ◽  
Economic Injustice ◽  
The Impact ◽  
Distribution Of Income

To realize economic and social sustainability, it is necessary to avoid economic injustice and therefore too unequal a distribution of income and wealth. In this paper we investigate the extent to which oligopolies contribute to an unequal income distribution, and the consequences of enforcing more market competition. For this purpose, an overlapping generation growth model is developed with imperfect competition to derive the influence of market concentration on economic growth and the distribution of income. We investigate the influence of market concentration on the inter- and intra-generational distribution of income and economic growth. We show that political lobbying and corruption are important reasons for missing competition in markets. While an increasing market concentration leads to a more unequal intra-generational distribution and to a redistribution of income from the old to the young generation, the impact on economic growth is in general ambiguous, and specifically depends on the cost of lobbying.

scholarly journals The Capitalist Spirit and Endogenous Growth

2022 ◽  
Vol 15 (1) ◽  
pp. 27
Author(s):  
Ronald R. Kumar ◽  
Peter J. Stauvermann ◽  
Frank Wernitz
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Market Power ◽  
Imperfect Competition ◽  
Relative Income ◽  
Young Generation ◽  
Income Ratio ◽  
Capitalist Spirit ◽  
The Impact ◽  
Distribution Of Income

The aim of the study is to investigate the influence of the capitalist spirit in conjunction with the distribution of income on economic growth. The capitalist spirit is represented by the fact that savings rates increase with increasing relative income. We extend an endogenous AK growth model in an overlapping generational framework by implementing imperfect competition and Cournot competition. Using this model, we investigate the influence of profits on the intra- and inter-generational distributions of income and economic growth. While increasing incomes lead to a more unequal intra-generational distribution and to a redistribution of income from the old to the young generation, the impact on economic growth is in general ambiguous, although under specific assumptions it becomes positive. Furthermore, the model shows that increasing market power of firms is associated with declining labor and capital shares, declining interest rates, and an increased wealth-to-income ratio.

scholarly journals THE IMPACT OF TAX POLICY ON ECONOMIC GROWTH, INCOME DISTRIBUTION, AND ALLOCATION OF TAXES

2006 ◽  
Vol 23 (2) ◽  
pp. 28-52 ◽  
Author(s):  
James D. Gwartney ◽  
Robert A. Lawson
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Income Tax ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Income Groups ◽  
Marginal Tax Rates ◽  
Tax Changes ◽  
The Impact ◽  
Distribution Of Income

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes.

The Evolution of Plant Breeding: From the Farmer to the Industry

LAW REVIEW ◽  
2018 ◽  
Vol 37 (01) ◽  
Author(s):  
Harish Chandra Pandey
Keyword(s):  
Economic Development ◽  
Plant Breeding ◽  
Market Competition ◽  
Market Concentration ◽  
Societal Welfare ◽  
Globalized World ◽  
The Impact ◽  
Plant Components

The use of biotechnological tools and other techniques to improve crops has given rise to a significant increase in the patenting of plant components and plants. As a result of these trends, it becomes critical to examine the impact of concentration on market competition. This is especially important in a globalized world, where seed varieties are continuously imported and exported by countries with various levels of economic development. This aspect of globalization should be kept in mind while analyzing the consequences of market concentration on societal welfare.

scholarly journals Oligopoly competition on market with food products

2011 ◽  
Vol 57 (No. 12) ◽  
pp. 580-588 ◽  
Author(s):  
L. Severová ◽  
L. Kopecká ◽  
R. Svoboda ◽  
J. Brčák
Keyword(s):  
Imperfect Competition ◽  
Market Competition ◽  
Market Model ◽  
Oligopolistic Competition ◽  
Food Sector ◽  
Dominant Firm ◽  
Dominant Position ◽  
Food Market ◽  
Oligopoly Competition ◽  
The Impact

Oligopoly can be defined as a market model of the imperfect competition type, assuming the existence of only a few companies in a sector or industry, from which at least some have a significant market share and can therefore influence the production prices in the market. Many models of oligopoly that differ from one another mostly in the nature of the competitive companies’ behaviour can be found through the study of oligopolistic structures. Some models describe only the behaviour of two companies in the monitored market (duopoly), others describe several companies of the same power (cartel), still others assume that one of the companies has a dominant position in the market, etc. The text of this article deals with oligopolistic competition in the food market in the terms of the behaviour of grocers and with the impact of this competition upon the market competition in the sector. First, it mentions the agreements on common cooperation and procedure, when cartel market structure originates. It also analyzes the examples of behaviour of oligopoly with a dominant firm on the market with products in the food sector, with the goal of detecting whether the market with these products is significantly influenced by the oligopolistic behaviour of companies.  

scholarly journals THE ESSENCE OF THE CATEGORY OF SMALL AND PRIVATE ENTREPRENEURSHIP AND ITS SPECIFICITY

2020 ◽  
Vol 01 (01) ◽  
pp. 85-94
Author(s):  
Akmal Yorievich Ostanov ◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Market Competition ◽  
Economic Life ◽  
Private Enterprises ◽  
Private Entrepreneurship ◽  
The Republic ◽  
Employment Needs ◽  
The Impact

Small and private entrepreneurship is becoming increasingly important in the world economy. International experience shows that the impact of small and private entrepreneurship on economic growth through the creation of new jobs is very important. The role of these enterprises is growing, especially as economic development progresses towards services and information technology. Small and private enterprises are becoming economic entities where new techniques and technologies are rapidly introduced, advanced management methods are rapidly applied and effective in the short term. Indeed, the role of employment in economic growth through the development of small and private entrepreneurship is immeasurable.In particular, entrepreneurship plays an important role not only in the socio-economic life of the republic, but also in the regions. Entrepreneurship is a source of endless opportunities for the development of market relations, ensuring the stability of the economy, attracting investment from domestic and foreign sources, as well as meeting the growing employment needs of the population. Indeed, the origin of small and private enterprises is a reflection of a complex set of needs of different composition, primarily due to the need to increase the number of enterprises that can influence and withstand market competition in the country's economy; second, it is characterized by the fact that small and private businesses are the cheapest, preferred, and preferred method of recruiting the population. The article summarizes the laws of emergence and formation of entrepreneurship. In particular, it was found that the emergence of criteria based on the number of employees as well as production indicators has made small and private entrepreneurship an important phenomenon of economic development. Accordingly, it is proposed to improve the characteristics of small and private entrepreneurship using both criteria, and a new, improved definition of the concept of "entrepreneurship" and "entrepreneur" applied to employment. The article consists of an introduction, goals and objectives, methods, results and comments, and a conclusion.

scholarly journals AN ANALYSIS OF THE IMPACT OF CHINA'S REGIONAL AGRICULTURAL EXPORT TRADE ON ECONOMIC GROWTH

2019 ◽  
pp. 23-32
Author(s):  
FENGHE ZHANG ◽  
VIKTORIIA MEDVID
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
International Trade ◽  
Correlation Analysis ◽  
Market Competition ◽  
Agricultural Science ◽  
Agricultural Products ◽  
Export Trade ◽  
Agricultural Export ◽  
The Impact

Since the reform and opening up, especially since its accession to the WTO, China has become an important agricultural trade country in the world. As China's agriculture and the entire national economy share the benefits of global economic integration, they must also meet the impact of fierce market competition, price fluctuations and industrial restructuring caused by this. This study puts the export trade of agricultural products into the national economic growth system and explores the impact and contribution of agricultural export trade to China's economic growth. Based on the theory of international trade in agricultural products and economic growth, the paper analyzes the analysis framework of the impact of international trade in agricultural products on China's regional economic growth. First, based on the realistic understanding of the development of China's agricultural export trade, comprehensive and systematic analysis of the characteristics of China's agricultural export trade development to determine the future trend of it. Secondly, the correlation analysis of SPSS software is used to verify the impact of agricultural export trade on economic growth. Third, based on the test and analysis of the research results, systematically evaluate the contribution of agricultural export trade to China's economic growth. Studies have shown that the increase in agricultural export trade has made great contributions to China's economic development and has become increasingly prominent in economic development. This paper uses the economic data from 2010 to 2017. According to China's 31 administrative divisions and the three economic divisions of the eastern, central and western regions, the technical methods such as absolute value increment analysis and correlation analysis are used to explain the promotion of regional agricultural products to economic development. To this end, China needs to increase investment in agricultural science and technology, promote the development of agricultural industrialization, improve the circulation of agricultural products, reduce the transaction costs of agricultural products, improve the efficiency of international trade in agricultural products, and continuously improve the comprehensive production capacity and international competitiveness of Chinese agricultural products. Keywords: China, regional agricultural products, exports, economic growth, correlation analysis, impact.

scholarly journals The Economic Informallity Opposite Fiscal Policy and the Legal Vacuum Issues. the Features of the Tourism Sector Informallity in Albania

2015 ◽  
Vol 2 (1) ◽  
pp. 77
Author(s):  
Teuta Balliu ◽  
Aida Gaçe Llozana ◽  
Mimoza Kotollaku
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Fiscal Policy ◽  
Informal Economy ◽  
No Reduction ◽  
Market Competition ◽  
Tourism Sector ◽  
Domestic Tourism ◽  
Distribution Of Income ◽  
Efficient Distribution

Economists and researchers increasingly debate regarding costs, benefits and even measurements of the informal economy. Such discussions are also indisputable part of our country reality. They evidence more and more the influence that the informal economy occupies in the gross domestic product of a country. Others consider informal economy as lubricating social welfare. Nowadays taking into account the economic situation in Albania, the informal economy is considered blow in the market competition, this competition which in turn is considered of particular importance for the economic development of the country. Throughout the paper we will look at whether the policies and strategies of a state, undertaken in the framework of economic growth, do not bring a reduction in unemployment and efficient distribution of income then there will be no reduction of informality. In terms of tourism sector it will be concluded that it is this informality which deviates the so much required standards in domestic tourism. In the region, the lodging taxes are estimated at 1 euro, while in our country it varies no more than 5% of the price of the room. This is why it remains difficult to calculate costs, which amounts millions of euros just in this part of the tourism sector.

Monopoly and corporate innovation: evidence from antitrust law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minggui Yu ◽  
Yujing Huang ◽  
Huijie Zhong ◽  
Qing Zhang
Keyword(s):  
Economic Growth ◽  
Law Enforcement ◽  
Market Competition ◽  
Private Enterprises ◽  
Chinese Government ◽  
Antitrust Law ◽  
Content Type ◽  
Innovation Activities ◽  
Corporate Innovation ◽  
The Impact

Purpose There are two opposite views about whether the Antitrust Law is conducive to the development of the economy. One view is that the Antitrust Law can restrain monopoly, maintain market competition and benefit economic growth. The other view is that the Antitrust Law inhibits innovation by monopolistic firms and fosters rent-seeking, which is bad for economic growth. To provide a possible perspective for clarifying the controversy, this paper aims to answer the following two questions: first, will the Antitrust Law inhibit corporate innovation? Second, does the antitrust enforcement agency discriminate against private enterprises? Design/methodology/approach Based on the samples of A-share listed companies from 2003 to 2013, the authors use the implementation of China’s Antitrust Law in 2008 as a policy shock, take the monopoly enterprises in each industry as the treatment group and competitive enterprises as the control group, using the difference-in-differences method to test the impact of the implementation of the Antitrust Law on corporate innovation activities. Findings The results show that compared with competitive enterprises, the patent output of monopolistic enterprises was significantly reduced after the implementation of the Antitrust Law, which indicates that the Antitrust Law does inhibit the innovation activities of monopolistic enterprises. Further research finds that the innovation suppression effect of the Antitrust Law is more prominent in state-owned enterprises, which means that the government does not have “selective law enforcement” against private enterprises in the process of law enforcement. Therefore, the results provide evidence for the idea that government intervention is neutral. Originality/value First, the paper enriches and expands the research on the factors affecting corporate innovation from the perspective of market structure. Second, it enriches and expands relevant research on the consequences of implementing the Antitrust Law from the perspective of corporate innovation. Third, it not only provides the relevant empirical evidence for clarifying the dispute about the Antitrust Law but also is helpful to clarify whether the Chinese Government has “selective law enforcement” against private enterprises.

scholarly journals An assessment of the debates over income distribution and growth in the Neo-Kaleckian literature

2021 ◽  
Vol 41 (4) ◽  
pp. 782-796
Author(s):  
SULAFA NOFAL
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Income Distribution ◽  
Aggregate Demand ◽  
Economic Thought ◽  
Theoretical Discussion ◽  
Distributional Effects ◽  
Economic Issues ◽  
The Impact ◽  
Distribution Of Income

ABSTRACT Kaleckian literature is considered an important theme in the post-Keynesian school of economic thought. In the aftermath of the financial crisis, the endeavors of forming a new consensus regarding essential economic issues, in particular achieving economic growth became a need. Thus, the Kaleckian models returned to be in the spot since these models tackle the impact of changes in the distribution of income and address the question whether a redistribution of income away from wages and towards profits is capable of boosting growth. In this sense, this paper return to Kaleckian insights and offers a theoretical discussion of the distributional effects on aggregate demand and economic growth. Moreover, through the lens of neo-Kaleckian tradition, the evolution of the debate on wage-led and profit-led regimes in recent decades can be traced.

scholarly journals INTELLECTUAL PROPERTY AND PRODUCT MARKET COMPETITION REGULATIONS IN A MODEL WITH TWO R&D PERFORMING SECTORS

2018 ◽  
pp. 1-22
Author(s):  
Vahagn Jerbashian
Keyword(s):  
Economic Growth ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Long Run ◽  
Endogenous Growth Model ◽  
The Impact

I analyze the impact of intellectual property and product market competition regulations on innovation and long-run growth in an endogenous growth model with two R&D performing sectors. I show that strengthening intellectual property rights and competition in a sector increases its R&D investments. However, these policies adversely affect R&D investments in the other sector because of increased factor competition between the sectors. As a result, the overall impact of such policies on economic growth is ambiguous. I perform a numerical exercise in an attempt to resolve this ambiguity. This exercise suggests that strengthening intellectual property rights increases economic growth, but higher competition has a very limited effect on growth.

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