Status-Based Asymmetries in Relative Deprivation During the COVID-19 Pandemic

The COVID-19 pandemic has amplified existing inequalities by disproportionately affecting marginalized groups, which should differentially affect perceptions of, and responses to, inequality. Accordingly, the present study examines the effects of the pandemic on feelings of individual- and group-based relative deprivation (IRD and GRD, respectively), as well as whether these effects differ by ethnicity. By comparing matched samples of participants assessed before and during the first 6 months of the pandemic (Ntotal = 21,131), our results demonstrate the unique impacts of the pandemic on IRD and GRD among ethnic minorities and majorities. Moreover, our results reveal the status-based indirect effects of the pandemic on support for both collective action and income redistribution via IRD and GRD. As the pandemic rages on, these results foreshadow long-term, status-specific consequences for political mobilization and support for social change. © The Author(s) 2023.

Fiscal Space Policies for Sustainable Development and Debt Relief: Empirical Analysis in West African Countries

The uncertainty that the COVID-19 pandemic has brought demonstrates that income redistribution and traditional debt relief mechanisms are insufficient to meet public spending needs, mitigate external debt, and comply with the UN's Sustainable Development Goals (SDGs), which aim to reduce multilateral debt to sustainable levels. Also, West African countries have focused their attention on the long-term fight against poverty and inequality and strengthening their social programs, especially in primary health care and macroeconomic stability. However, for more than a decade, the developing and least developed countries of West Africa have faced rapidly weakening macroeconomic conditions, combining several interrelated crises such as the sharp decline in oil prices, volatile financial markets and tourism disruptions, a global recession, the crisis of climate change, and shortages of food and energy, along with the economic contraction of COVID-19. Data from these countries show that health spending increases economic growth, minimizes infant mortality rates, and reduces debt. Furthermore, increasing government spending efficiency reduces the total debt and improves the health sector, in particular.

Towards a Multidimensional Model for Evaluating the Sustainable Effect of FDI on the Development of Host Developing Countries: Evidence from Africa

This study aims to comprehensively evaluate the sustainable impact of FDI on the development of host African countries. Previous empirical studies seem to have overestimated the impact of FDI by limiting its effects to one aspect or sub-aspect of sustainable development. This study focuses on the sustainable/net effect of FDI on development in Africa. To achieve this, a multidimensional model that combines two opposing views (mainstream theory of economic development and dependent theory) was tested. Panel data of 35 African countries with the PMG/ARDL approach were used to probe the sustainable effect of FDI from 1990 to 2020. The key findings of this study reveal that the overall estimated sustainable effect of FDI on real GDP per capita is statistically minuscule for the entire sample. Thus, the effect of FDI on the development of host African countries is not inherently more important. The most striking result that emerged from the data is that environmental degradation is the dominant variable that adversely influences overall development in Africa. Another striking finding that emerged from the data is that income inequality, in general, has a significant negative impact on real GDP per capita in the long run. More importantly, the results of this study confirm that CO2, GINI, and GOV play important roles in the relationship between FDI and African development. Estimates of the error correction term for each specific country are negative and statistically significant. The fastest speed of adjustment was observed in Morocco, while the lowest was recorded in South Africa. Furthermore, this study presents different policy implications based on the long-term results.

The Influence of Taxation on Income Inequality: Analysis of the Practice in the EU Countries

The growing economic inequality around the world is recognized as a global problem of mankind. At the same time, the key tool for reducing inequality and ensuring the achievement of sustainable development goals is the taxation system given its distributive function. That is why this paper puts forward and proves a scientific hypothesis according to which direct taxation has a significant impact on economic inequality, with its scale and sphere depending on the level of economic development and the specific architecture of the tax system adopted in a particular country. The study relies on data from 28 European Union countries, including the United Kingdom, whose tax systems are not identical but harmonized in accordance with European Union directives, the same as the legislation in other economic sectors. Accordingly, it can be concluded that similar institutional characteristics are present. We have used the method of two-stage cluster analysis, which is meant for identifying the natural splitting of the mass of data into groups, then carried out regression analysis and built some models. The contribution of the study is revealing a number of important regularities that are significant for characterizing the dependence of income inequality on direct taxation as well as formulation recommendations for improving the tax policies of European Union countries, with the potential of policy implications. The results obtained can play a significant role in the development and further harmonization of tax systems and resolving the global problem of increased inequality within and between countries.

INCOME INEQUALITY SHIFT PARADIGM. FROM ECONOMIC APPROACH TO SHARING RESPONSIBILITIES

This paper investigates the dynamics associated with inequality in EU member states. The variation of the Gini coefficient is analyzed from different perspectives: economic growth, certain macroeconomic variables, socio-demographic environment and historical, political and cultural environment. The use of the panel data regression model allows country specific effects control, the results showing that in the context of European convergence, the historical, political, cultural and socio-demographic factors have the greatest impact in terms of income distribution. Starting from the complex analysis of the evolution of inequalities in the last half century and from the experts' opinions regarding the relationship between the last two crises (from 2008 and the current pandemic), we notice important changes, there is a paradigm shift. The paper proposes a new approach to the economic growth paradigm, based on reversing the dynamics of income inequality in the 21st century and outlines our own vision on support policies to mitigate rising inequalities, in the context of designing a robust resilience strategy and sustainable post-pandemic development.