Income inequality in the process of economic development : An empirical approach

This thesis studies the effect of income inequality on economic growth. This is done by analyzing panel data from several countries with both short and long time dimensions of the data. Two of the chapters study the direct effect of inequality on growth, and one chapter also looks at the possible indirect effect of inequality on growth by assessing the effect of inequality on savings. In Chapter two, the effect of inequality on growth is studied by using a panel of 70 countries and a new EHII2008 inequality measure. Chapter contributes on two problems that panel econometric studies on the economic effect of inequality have recently encountered: the comparability problem associated with the commonly used Deininger and Squire s Gini index, and the problem relating to the estimation of group-related elasticities in panel data. In this study, a simple way to 'bypass' vagueness related to the use of parametric methods to estimate group-related parameters is presented. The idea is to estimate the group-related elasticities implicitly using a set of group-related instrumental variables. The estimation results with new data and method indicate that the relationship between income inequality and growth is likely to be non-linear. Chapter three incorporates the EHII2.1 inequality measure and a panel with annual time series observations from 38 countries to test the existence of long-run equilibrium relation(s) between inequality and the level of GDP. Panel unit root tests indicate that both the logarithmic EHII2.1 inequality measure and the logarithmic GDP per capita series are I(1) nonstationary processes. They are also found to be cointegrated of order one, which implies that there is a long-run equilibrium relation between them. The long-run growth elasticity of inequality is found to be negative in the middle-income and rich economies, but the results for poor economies are inconclusive. In the fourth Chapter, macroeconomic data on nine developed economies spanning across four decades starting from the year 1960 is used to study the effect of the changes in the top income share to national and private savings. The income share of the top 1 % of population is used as proxy for the distribution of income. The effect of inequality on private savings is found to be positive in the Nordic and Central-European countries, but for the Anglo-Saxon countries the direction of the effect (positive vs. negative) remains somewhat ambiguous. Inequality is found to have an effect national savings only in the Nordic countries, where it is positive.

Ecological and Socio Economic Assesment of Varthur Wetlnd, Bengaluru (India)

Wetlands are the most productive ecosystems, recognized globally for its vital role in sustaining a wide array of biodiversity and provide goods and services. However despite their important role in maintaining the ecology and economy, wetlands in India are endangered by inattention and lack of appreciation for their role. Increased anthropogenic activities such as intense agriculture practices, indiscriminate disposal of industrial effluents and sewage wastes have altered the physical, chemical as well as biological integrity of the ecosystem. This has resulted in the ecological degradation, which is evident from the current ecosystem valuation of Varthur wetland. Global valuation of coastal wetland ecosystem shows a total of 14,785/ha US$ annual economic value. An earlier study of relatively pristine wetland in Bangalore shows the value of Rs. 10,435/ha/day while the polluted wetland shows the value of Rs.20/ha/day. In contrast to this, Varthur, a sewage fed wetland has a value of Rs.118.9/ha/day. The pollutants and subsequent contamination of the wetland has telling effects such as disappearance of native species, dominance of invasive exotic species (such as African catfish), in addition to profuse breeding of disease vectors and pathogens. Water quality analysis revealed of high phosphates (4.22-5.76 ppm) level in addition to the enhanced BOD (119-140 ppm) and decreased DO (0-1.06 ppm). The amplified decline of ecosystem goods and services with degradation of water quality necessitates the implementation of sustainable management strategies to recover the lost wetland benefits.

Ecological and socio-economic assessment of Varthur wetland, Bengaluru (India)

Wetlands are the most productive ecosystems, recognized globally for its vital role in sustaining a wide array of biodiversity and provide goods and services. However despite their important role in maintaining the ecology and economy, wetlands in India are endangered by inattention and lack of appreciation for their role. Increased anthropogenic activities such as intense agriculture practices, indiscriminate disposal of industrial effluents and sewage wastes have altered the physical, chemical as well as biological integrity of the ecosystem. This has resulted in the ecological degradation, which is evident from the current ecosystem valuation of Varthur wetland. Global valuation of coastal wetland ecosystem shows a total of 14,785/ha US$ annual economic value. An earlier study of relatively pristine wetland in Bangalore shows the value of Rs. 10,435/ha/day while the polluted wetland shows the value of Rs.20/ha/day. In contrast to this, Varthur, a sewage fed wetland has a value of Rs.118.9/ha/day. The pollutants and subsequent contamination of the wetland has telling effects such as disappearance of native species, dominance of invasive exotic species (such as African catfish), in addition to profuse breeding of disease vectors and pathogens. Water quality analysis revealed of high phosphates (4.22-5.76 ppm) level in addition to the enhanced BOD (119-140 ppm) and decreased DO (0-1.06 ppm). The amplified decline of ecosystem goods and services with degradation of water quality necessitates the implementation of sustainable management strategies to recover the lost wetland benefits.

Annotated bibliography on socio-economic and ecological impacts of marine protected areas in Pacific Island countries

The bibliography is to highlight impacts on fisheries and livelihoods attributed to coral reef marine protected areas in Pacific Island countries and territories. Included in this collection is literature that reports various forms of reef area management practiced in Pacific Island countries: reserves, sanctuaries, permanent or temporary closed areas, community and traditional managed areas. (Document contains 36 pages)

Overview and bibliography of the literature of socio-economic relevance to the fisheries of Lake Victoria

An overview is provided of the literature of socio-economic relevance to the fisheries of Lake Victoria. It covers the following areas: marketing studies; management; changes to the structure of the fishery; and, base-line studies. The bibliography provides a guide to the more important documents on Lake Victoria's socio-economy and includes a total of 177 references

Socio-economic vulnerability of African Americans in the Gulf coast counties

The states bordering the Gulf of Mexico i.e. Texas, Louisiana, Mississippi, Alabama, and Florida have been historically devastated by hurricanes and tropical storms. A large number of African Americans live in these southern Gulf States which have high percentages of minorities in terms of total population. According to the U.S. Census, the total black population in the United States is about 40.7 million and about one-fourth of them live in these five Gulf States (U.S. Census, 2008). As evidenced from Hurricane Katrina and other major hurricanes, lowincome and under-served communities are usually the hardest hit during these disasters. The aim of this study is to identify and visualize socio-economic vulnerability of the African American population at the county level living in the hurricane risk areas of these five Gulf States. (PDF contains 5 pages)

Socio-economic implications of the fish export trade on the fishers and fisheries of Lake Victoria in Uganda

The purpose of this study was to investigate the implications of the fish export trade on the fishers and the fisheries resources of Lake Victoria, Uganda with respect to sustainability. Eight fish processing factories and ninety fishers were qualitatively investigated. Socio-economic characteristics of fishers and the economic characteristics of fish factories formed a basis for the analysis. Results of the research indicate that there is a relationship between the growth in fish export trade, particularly the growth in industrial fish processing (for export) and declining fisheries resources of the lake. However, whether or not that impact is positive or negative, and to what extent there is an impact, is highly dependent upon the underlying socio-economic considerations of the fishers to the process. The fish-ban imposed by the European Union countries was particularly decried by fishers and factory owners as the main cause for the present poverty among the fishers. Fundamentally, several conflicting issues: ecological, physical and economic activities are a threat to the sustainability of the Lake Victoria fisheries, and for all that depend on and interact with the lake. There is urgent need to address the immediate issue of the growing riparian population and the global fish trade, to educate and train all the relevant actors in appropriate fisheries management techniques. Attitudes of fishers towards the fish factory developments are positive and this is a way forward for co-management for the sustainability of the fisheries resource.

Extending the Bajo de Sico, Puerto Rico, Seasonal Closure: An Examination of Small-scale Fishermen’s Perceptions of Possible Socio-economic Impacts on Fishing Practices, Families, and Community

Despite considerable conservation efforts, many reef fish fisheries around the world continue to be in peril. Many are vulnerable to overexploitation because they have predictable and highly aggregated spawning events. In U.S. Caribbean waters, fishery managers are increasingly interested in advancing the use of closed areas as a means for rebuilding reef fisheries, protecting coral reef habitats, and furthering ecosystem-based management while maintaining the sustained participation of local fishing communities. This study details small-scale fishermen’s views on the Caribbean Fishery Management Council’s proposals to lengthen the current Bajo de Sico seasonal closure off the west coast of Puerto Rico to afford additional protection to snapper-grouper spawning populations and associated coral reef habitats. Drawing on snowball sampling techniques, we interviewed 65 small-scale fishermen who regularly operate in the Bajo de Sico area. Snowball sampling is a useful method to sample difficult-to-find populations. Our analysis revealed that the majority of the respondents opposed a longer seasonal closure in the Bajo de Sico area, believing that the existing 3-month closure afforded ample protection to reef fish spawning aggregations and that their gear did not impact deep-water corals in the area. Whilst fishermen’s opposition to additional regulations was anticipated, the magnitude of the socio-economic consequences described was unexpected. Fishermen estimated that a year round closure would cause their gross household income to fall between 10% and 80%, with an average drop of 48%. Our findings suggest that policy analysts and decision-makers should strive to better understand the cumulative impacts of regulations given the magnitude of the reported socio-economic impacts; and, more importantly, they should strive to enhance the existing mechanisms by which fishermen can contribute their knowledge and perspectives into the management process.