Open AccessEconomic Growth and Income Inequality in ASEAN-5 Countries
Publication year - 2021
Publication title -
international journal of advanced research in economics and finance
Language(s) - English
Resource type - Journals
ISSN - 2682-812X
DOI - 10.55057/ijaref.2021.3.4.4
Subject(s) - economics , inflation (cosmology) , economic inequality , government (linguistics) , harm , panel data , government spending , macroeconomics , development economics , inequality , public economics , economic policy , welfare , political science , market economy , mathematical analysis , linguistics , philosophy , physics , mathematics , theoretical physics , law , econometrics
This study aims to analyze the effect of economic growth, inflation, and expenditure on income in ASEAN-5 by using the ARDL panel analysis model. The data panel in this study is from 1985-2019 and covers five countries for 175 observations. The results of this study indicate that in the long-run economic growth and inflation harm income while government spending is positive with concerns. Meanwhile, economic growth, inflation, and government spending are positive with concerns in the short term. This study recommends that the government focus on standard policies rather than selective for poor areas in each country, improve employee performance, implement education reforms, and support tax efficiency and governance in general. If this policy is implemented correctly, it will not burden public finances in the long term, so that it will have a positive impact.