Does Employment Status Determine Household Consumption Pattern in India: An Analysis through Dependency Approach

2020 ◽  
pp. 547-558
Keyword(s):  
Economic Growth ◽  
Employment Status ◽  
Household Consumption ◽  
Consumption Pattern ◽  
Household Expenditure ◽  
Dependency Ratio ◽  
Consumption Expenditure ◽  
Demographic Structure ◽  
Dependency Ratios ◽  
The Impact

Demographic structure determines the employment status in economic activity and household well-being. The wellbeing is positively associated with the household consumption expenditure and further relates to economic growth at the macro level. The demographic dependency ratio in this context is a widely used indicator to understand the impact of changing demographic structure on economic growth. This ratio estimates the possible potential of the productive workforce based on age criteria but ignores the actual engagement of the productive workforce. Therefore, the objective of the study was to compute the household economic dependency ratios and explore their trends and pattern for several quantiles of household consumption expenditure. For this purpose, this study utilized the NSSO (EUS), and Periodic Labor force survey data for the overall analysis and applied the OLS and quantile regression to perceive the relevance of employment status on the household consumption expenditure while controlling household characteristics. The findings implicate a positive relationship between employment status and household expenditure. The results also revealed an existing asymmetric relationship for dependency ratio and household expenditure ranging from lowest to highest dependency ratios. The individuals engaged in the human capital and domestic duties contribute most to the dependency ratios for a household. Moreover, the primary sector emerged as the major source of employment for the most vulnerable section, which represents the least household consumption expenditure

scholarly journals IMPACT OF INNOVATIONS UPON ECONOMIC GROWTH DURING RECESSION

2015 ◽  
Vol 21 (4) ◽  
pp. 626-642 ◽  
Author(s):  
Vytautas SNIESKA ◽  
Gitana VALODKIENE
Keyword(s):  
Economic Growth ◽  
Economic Recession ◽  
Household Consumption ◽  
Gdp Growth ◽  
Consumption Expenditure ◽  
Manufacturing Enterprises ◽  
Main Engine ◽  
The Impact

The role of the factors influencing economic growth during economic recessions and the role of these factors in separate economic phases are analysed. The purpose of the research is to assess the impact of innovations on economic growth during recession. The analysis of the situation in manufacturing sectors of Lithuania during economic recession in 2007 to 2009 has revealed several characteristics of innovations for this period due to which Lithuanian manufacturing enterprises managed to successfully function and remain competitive. The influence of household consumption expenditure on the growth of GDP in Lithuania is described by the function close to the linear, so we see a direct relation between these two variables. The influence of export on GDP is described by a convex function which has showed the declining influence of export on the GDP growth in the long-term perspective. Thus, contrary to a rather popular belief in transition countries, the main engine of growth in the long-term is not export. The long-term GDP growth is impossible without stimulating the growth in household consumption expenditure.

scholarly journals Population Migration and The Challenges of Economic Growth in North Sumatera in Year (1988-2020)

2021 ◽  
Vol 2 (3) ◽  
pp. 346-355
Author(s):  
Zulkarnain Nasution ◽  
Muhammad Ali Al Ihsan
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Population Increase ◽  
Dependency Ratio ◽  
Population Mobility ◽  
Dependency Ratios ◽  
Working Age ◽  
Negative Effect ◽  
The Impact

Population increase has the impact on demographic transition (changes in population structure). Indonesia is entering the demographic bonus period, there is the increase in the percentage of the working age population. According to theory, population can affect economic growth (in this study the effect on gross domestic product or GDP). One of the demographic components that affect population composition is population mobility or migration. This study used migration, risk migration and dependency ratios to show the latest patterns / trends of population mobility (last 20 years). The results showed that the variables in this study had a positive and negative effect on GDP growth. Of the three variables, the greatest influence is given by   percentage of dependency ratio variable. The results of this study showed that migration and risk migration had negative impact on economic growth while the dependency ratio had a positive impact on economic growth.  North Sumatra must be optimistic to increase economic growth by utilizing components that can boost the economy and one of them is the dependency ratio.

Nonfarm diversification and the well-being of rural farm households in developing countries: Evidence from Ghana using new dataset

2018 ◽  
Vol 69 (3) ◽  
pp. 207-229
Author(s):  
Bernardin Senadza ◽  
Edward Nketiah-Amponsah ◽  
Samuel Ampaw
Keyword(s):  
Well Being ◽  
Household Consumption ◽  
Empirical Method ◽  
Farm Households ◽  
Consumption Expenditure ◽  
Switching Regression ◽  
Rural Ghana ◽  
Per Capita ◽  
Nationally Representative ◽  
The Impact

Abstract This paper examines the impact of participation in both farm and nonfarm activities on both household consumption expenditure per adult equivalent and household per capita income, in rural Ghana. The objective is to ascertain whether the results are sensitive to the choice of well-being measure. We use a nationally representative dataset on 8,059 rural farm households collected in 2012/13. In order to account for potential selectivity and endogeneity biases, which previous studies failed to correct for, we adopt the endogenous switching regression (ESR) estimation technique. We find diversified households to be systematically different from their undiversified counterparts in terms of socioeconomic and demographic centeracteristics, thus justifying the empirical method used. Our results indicate a higher observed mean consumption for the diversified sub-sample compared to its counterfactual, implying that households participating in nonfarm enterprise activities in addition to farming have greater mean consumption compared to households engaged solely in farming. Similar conclusions are reached when income instead is used as the well-being indicator. Our findings, thus, indicate that the well-being implication of farm-nonfarm diversification is insensitive to the choice of well-being measure.

scholarly journals DAMPAK BPNT TERHADAP KONSUMSI RUMAH TANGGA DAN POLA KONSUMSI RUMAH TANGGA PENERIMA BPNT, KECAMATAN MENGWI

2021 ◽  
pp. 839
Author(s):  
Luh Ade Yumita Handriani ◽  
Sudarsana Arka
Keyword(s):  
Path Analysis ◽  
Sample Size ◽  
Direct Effect ◽  
Indirect Effect ◽  
Household Consumption ◽  
Consumption Patterns ◽  
Consumption Pattern ◽  
Large Sample Size ◽  
Analysis Techniques ◽  
The Impact

This study aims to analyze the impact of the BPNT program on household consumption and consumption patterns of BPNT recipient households in Mengwi District, Badung Regency. This research was conducted in Mengwi District, Badung Regency using a questionnaire distributed to respondents with a large sample size of 96 KPM. This study uses path analysis techniques to analyze the direct effect and Sobel test to analyze the indirect effect. Based on path analysis, the results of the study concluded that the BPNT variable had a positive and significant effect on the consumption of BPNT recipient households in Mengwi District, Badung Regency. The BPNT variable has no effect on the consumption pattern of BPNT recipient households in Mengwi District, Badung Regency. The household consumption variable has a negative and significant effect on the consumption pattern of BPNT recipient households in Mengwi District, Badung Regency. The household consumption variable did mediate the effect of the BPNT Program on the consumption pattern of BPNT recipient households in Mengwi District, Badung Regency

Money and Household Consumption Expenditure in Developing Asia: Some Panel ARDL Evidence

2021 ◽  
pp. 001946622110624
Author(s):  
Ghanashyama Mahanty ◽  
Himanshu Sekhar Rout ◽  
Swayam Prava Mishra
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Household Consumption ◽  
Asia Pacific ◽  
Consumption Expenditure ◽  
Data Set ◽  
Final Consumption ◽  
Long Run ◽  
Short Run

The role of money in influencing real economic activities has been a long-standing debate in macroeconomics. As per the Keynesian theory, household consumption expenditure plays a significant role in promoting economic growth. Given the rapid consumption-led growth pattern in the emerging Asia Pacific region, in this article, we attempt to assess the role of money in influencing household consumption expenditure, which propels economic growth. We employ a panel data set from 2005–2018 for 10 emerging Asian economies, covering Bangladesh, Cambodia, India, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam. Given the region’s heterogeneous nature, we employ a variant of the popular St Louise equation model with autoregressive distributed lag model (ARDL) panel framework based on pooled mean group (PMG) and dynamic fixed effect (DFE) models developed by Pesaran and Shin to study the underlying relationships. Both PMG and DFE models suggest a strong positive relationship between money and household consumption expenditure both in the long run and short run. After allowing for control variables such as government final consumption expenditure and interest rate, the relationships continue to hold steady. Further, the relationship holds true across both narrow (M1) and broad money (M3) measures. The government final consumption expenditure and interest rates do not have influence on household consumption expenditure in the long run, but they have an influence in the short run. JEL Codes: C23, O16, O47, E51, E31, E21

scholarly journals THE impact of remittance inflows on poverty in Botswana: an ARDL approach

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Mercy. T. Musakwa ◽  
N. M. Odhiambo
Keyword(s):  
Mortality Rate ◽  
Infant Mortality ◽  
Household Consumption ◽  
Infant Mortality Rate ◽  
Series Data ◽  
Consumption Expenditure ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
The Impact

AbstractThe growing pressure on governments to reduce poverty among other Sustainable Development Goals (SDGs) through harnessing domestic and foreign sources has motivated studies on the relationship between poverty and different economic variables in many developing countries. This study investigates the impact of remittance on poverty in Botswana, employing time-series data from 1980 to 2017. The study employs two poverty proxies—household consumption expenditure and infant mortality rate to capture poverty in its multidimensional form and improve the robustness of the results. Using the autoregressive distributed lag (ARDL) approach, the study finds that remittance inflows reduce poverty in Botswana—both in the short run and in the long run when infant mortality rate is used as a proxy. However, when poverty is measured by household consumption expenditure, remittance was found to have no impact on poverty in the short run and in the long run. The study, therefore, concludes that remittance inflows play a crucial role in reducing poverty and that Botswana can benefit immensely from the surge in remittance inflows by putting in place policies and structures that support remittance inflow.

The role of governance in economic development

2014 ◽  
Vol 41 (12) ◽  
pp. 1265-1278 ◽  
Author(s):  
Muhammad Azam ◽  
Chandra Emirullah
Keyword(s):  
Economic Growth ◽  
Inflation Rate ◽  
Gdp Per Capita ◽  
Dependency Ratio ◽  
Control Variables ◽  
Content Type ◽  
The Pacific ◽  
Per Capita ◽  
Openness To Trade ◽  
The Impact

Purpose – The purpose of this paper is to explore the impact of corruption as an important element of weak governance, with control variables such as inflation rate, openness to trade and dependency ratio on gross domestic product (GDP) per capita income of nine selected countries in Asia and the Pacific. Design/methodology/approach – This study is based on an annual panel data covering the period from 1985 to 2012, and a simple multiple regression for empirical investigation is used. Both fixed effects and random effects models were used as analytical techniques. Findings – The study reveals that both corruption and inflation rate are negatively related to GDP per capita and are statistically significant. As to the impacts of the control variables i.e., dependency ratio is found to be negative and openness to trade to be statistically significant which shows a positive impact on GDP per capita. Practical implications – The results resoundingly confirmed the importance of good governance, therefore, reducing endemic corruption and controlling inflation needs to be among the foremost factors for consideration for policymakers in adopting and implementing macroeconomic and public policies. In order to be most effective in tackling corruption, it is important to get to the root of the problem. In light of the study findings, it is suggested that corruption need to be put under control and economies be made more open to attain more benefits and accelerate economic growth and development. Originality/value – Explicitly, this study provides some valuable evidence on the linkage between endemic corruption and economic growth in some Asia and the Pacific countries in particular and on developing world in general. Presumably, this is the first inclusive investigation on the subject under the study in the context of Asia and the Pacific countries and will emphatically contribute to the literature as well.

Labor Market Transition and the Impact of Education on Real Per Capita Household Consumption Expenditure in Vietnam

2011 ◽  
Vol 32 (1) ◽  
pp. 96-108
Author(s):  
Hoang Van Kinh ◽  
Daniel Westbrook
Keyword(s):  
Labor Market ◽  
Educational Attainment ◽  
Transition Period ◽  
Household Consumption ◽  
Substantial Part ◽  
Consumption Expenditure ◽  
Market Activity ◽  
Per Capita ◽  
The Impact ◽  
Labor Market Activity

The degree to which the impact of schooling on real per capita household consumption expenditure (rpce) depends on the intensity of local labor market activity was estimated and changes in that relationship during a substantial part of Vietnam’s transition period (1993–2004 were documented). Key variables in the analysis are the years of schooling attained by the best-educated member of each household, an index of labor market activity at the commune level, and the interaction between the two. As schooling is likely to be endogenous, average educational attainment of others in the same age, gender, and commune cohort was used as an instrumental variable (IV). The estimated impact of educational attainment on rpce is economically substantial, statistically significant, increasing over time, and is powerfully enhanced by increasing labor market activity.

scholarly journals QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter II – 2012

2012 ◽  
Vol 15 (1) ◽  
pp. 1-2
Author(s):  
Author Team of Quarterly Report Bank Indonesia
Keyword(s):  
Economic Growth ◽  
Global Economy ◽  
Household Consumption ◽  
The Other ◽  
Partner Country ◽  
Business Climate ◽  
Equipment Investment ◽  
Slowing Down ◽  
High Consumption ◽  
The Impact

During the increasing uncertainty of the global economy, Indonesia is still able to grow by 6.4% (yoy). The main source of the economic growth is domestic demands, which are the increasing household consumptions and investments. The high household consumption is in accordance with the consumers’ confidence and stable consumers’ purchasing power, as indicated from the high sales of retailer. The high consumption and conducive business climate lead to the increase of investment. This condition is supported by business agents’ optimism. Meanwhile, the export growth slowed rapidly as the impact of the slowing down global economy that leads to decreasing demand of the main trading partner country and the low price of commodities. On the other hand, import increase along with the increase of investment activities, particularly machinery and conveyance equipment investment. In the future, the prospect of Indonesian economy would remain strong by 6.3-6.7% in 2012; even several factors of risk should be monitored.

scholarly journals The impact of foreign capital inflows on poverty in Vietnam: An empirical investigation

2021 ◽  
Vol 7 (2) ◽  
pp. 31-49
Author(s):  
Mercy T. Musakwa ◽  
Nicholas M. Odhiambo ◽  
Sheilla Nyasha
Keyword(s):  
Foreign Capital ◽  
Household Consumption ◽  
Capital Inflows ◽  
Infant Mortality Rate ◽  
Consumption Expenditure ◽  
Poverty Measure ◽  
Long Run ◽  
Short Run ◽  
Foreign Capital Inflows ◽  
The Impact

Abstract This study investigates the impact of foreign capital inflows on poverty in Vietnam, using annual time series data from 1990 to 2018. The study was motivated by the need to establish if burgeoning foreign capital inflows in Vietnam can support the poverty alleviation agenda. Foreign direct investment (FDI) and external debt were used as proxies for foreign capital inflows; and infant mortality rate, Human Development Index (HDI) and household consumption expenditure were used as poverty proxies. Using the autoregressive distributed lag (ARDL) approach, the study found foreign direct investment to reduce poverty in the short run and long run when household consumption expenditure was used as a poverty measure. However, the study found FDI to worsen poverty in the short run when infant mortality rate and HDI were used as poverty proxies. The study found external debt to have poverty mitigating effect in the short run regardless of the poverty measure used and in the long run only when household consumption expenditure was used as a poverty measure.

Sign in / Sign up

Export Citation Format

Share Document