Increasing Income Inequality Through Globalization And Financialization: Evidence From OECD Countries

Muhammad Budi Utama, Miftakhul Choiti — Sun, 21 Jul 2024 00:00:00 +0700

Globalization, financialization, and digital technology are expected to help economic sectors run more effectively so that they can be distributed to a country's people, which will reduce inequality. However, this is not the case in some countries, where globalization, financialization, and digital technology can worsen income inequality. Therefore, this study aims to see how far globalization and financialization can reduce income inequality by adding the effect of digital technology. This study was conducted in 10 OECD countries for 12 years, starting from 2010-2021, and was processed using the Eviews statistical tool. The results show that globalization worsens income inequality in OECD countries, financialization can reduce income inequality, and digital technology impacts income inequality in OECD countries.

Macroeconomics, Domestic Credit and Institutional Quality on Foreign Direct Investment in ASEAN

Muhammad Rafiuddin, Hikmah Endraswati, Muhammad Ghafur Wibowo — Tue, 16 Jul 2024 00:00:00 +0700

Foreign Direct Investment (FDI) is one of the external capital flows that has many benefits for the host country in closing the savings and investment gap. The purpose of this study is to examine and explain the factors that affect the inflow of foreign capital to ASEAN countries from 2013-2022 through a fixed effect model approach. This study found that economic growth, open trade, and total domestic credit have a significant positive effect while institutional quality has a significant negative effect on FDI inflows in ASEAN countries. The findings of this study provide implications that can be taken into consideration for government agencies to make policies that are on the conditions of each country to attract investors to invest in ASEAN countries, especially in maintaining the country's economic growth rate, ease of access to global trade and finance followed by improvements in terms of bureaucratic reform of institutional quality.

Jurnal Ilmu Ekonomi JIE

Increasing Income Inequality Through Globalization And Financialization: Evidence From OECD Countries

Macroeconomics, Domestic Credit and Institutional Quality on Foreign Direct Investment in ASEAN