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Economies, Volume 12, Issue 12 (December 2024) – 2 articles

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21 pages, 1554 KiB  
Article
Shifts in the Boot: Understanding Inequality’s Impact on Interregional Migration Patterns in Italy
by Giacomo Di Pasquale and Elisa Parazzi
Economies 2024, 12(12), 317; https://doi.org/10.3390/economies12120317 (registering DOI) - 21 Nov 2024
Abstract
Italy has long experienced a significant developmental gap between its northern and southern regions, with the latter being less developed. The 2007–2008 financial crisis accentuated this gap, leading to distinct patterns of interregional migration. This paper aims to investigate the effects of past [...] Read more.
Italy has long experienced a significant developmental gap between its northern and southern regions, with the latter being less developed. The 2007–2008 financial crisis accentuated this gap, leading to distinct patterns of interregional migration. This paper aims to investigate the effects of past migration flows and income inequality on interregional mobility in Italy, using a gravity model with bidirectional dyads and three different measures of inequality as dependent variables: Gini Index, Relative Poverty, and Income Ratio. Previous research has shown that living in highly unequal regions is associated with increased mistrust and anxiety about social status, contributing to unhappiness among residents. Using bilateral gross migration flows for the period 2007–2018, the study aims to control for the potential endogeneity between interregional mobility and inequality. The results indicate a positive relationship between high levels of inequality and interregional out-mobility, underscoring the need for policies aimed at reducing both horizontal and vertical inequality within and among Italian regions. Full article
(This article belongs to the Section International, Regional, and Transportation Economics)
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17 pages, 1439 KiB  
Article
The Path to Poverty Reduction: How Do Economic Growth and Fiscal Policy Influence Poverty Through Inequality in Indonesia?
by Agussalim Agussalim, Nursini Nursini, Sultan Suhab, Randi Kurniawan, Salman Samir and Tawakkal Tawakkal
Economies 2024, 12(12), 316; https://doi.org/10.3390/economies12120316 - 21 Nov 2024
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Abstract
One of the factors impeding the decline in poverty in Indonesia is the government’s lack of attention to the need to reduce income inequality. Fiscal policy and economic growth can effectively reduce poverty by lowering income inequality, so the inequality channel must be [...] Read more.
One of the factors impeding the decline in poverty in Indonesia is the government’s lack of attention to the need to reduce income inequality. Fiscal policy and economic growth can effectively reduce poverty by lowering income inequality, so the inequality channel must be considered. Socioeconomic and infrastructure differences between provinces can influence the effectiveness of economic growth and fiscal policy in reducing poverty. This study aimed to assess the effects of economic growth and fiscal policy regarding spending and taxes on direct and indirect poverty reduction through lowering income inequality, as well as considering how these variables influence poverty by province. This study employed secondary data, including panel data for 2010–2023 from 34 provinces in Indonesia, which were analyzed using autoregressive cross-lagged SEM. This study found that economic growth and fiscal policy regarding spending on education and health are statistically significant in directly reducing poverty in regions outside Java but do not affect it through income inequality. Taxes increase income inequality, and the social safety net does not reduce poverty outside Java. The increased spending on education and health should continue, but improvements are needed in terms of targeting social safety nets and tax reforms to strengthen the system and reduce inequality. Full article
(This article belongs to the Section Economic Development)
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