Thye, Goh Lim and Kumari, Selvarajan Sonia and Lu, Yong Sook and Muhairah, Shahabudin Sharifah (2021) The impacts of external and internal uncertainties on income inequality in the ASEAN 5 countries. International Journal of Economics and Management, 15 (3). pp. 351-375. ISSN 1823-836X,
Full text not available from this repository.Abstract
From a theoretical standpoint, increasing uncertainty causes delays in additional investment and hiring. Thus, income gaps between rich and poorer groups are expected to stretch further in times of uncertainty. Given that the causal relationship between uncertainty and income inequality poses an area of concern. This study utilised the Autoregressive Distributed Lag (ARDL) estimation technique on data ranging from 1961 to 2020 to examine the possible impact of external uncertainty (world uncertainty) and internal uncertainty (within-country uncertainty) on income inequality in the ASEAN 5 countries. The results demonstrate that, in the long run, the income inequality of the ASEAN 5 countries was more sensitive to external uncertainty shocks (world uncertainty) than to internal uncertainty shocks (within-country uncertainty). More specifically, external uncertainty was a significant determinant of income inequality of all ASEAN 5 countries. In contrast, internal uncertainty only mattered for the income inequality levels of Malaysia and Thailand. On the other hand, in the short run, while external uncertainty affected Thailand’s income inequality level significantly, internal uncertainty was found to matter for the income inequality level of Malaysia, Singapore and Thailand. Thus, the results reflect that the impact of uncertainties on income inequality on the ASEAN 5 countries was more significant in the long run than in the short run © 2021. International Journal of Economics and Management. All Rights Reserved.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Uncontrolled Keywords: | Uncertainty;Income inequality;ARDL;ASEAN 5 |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HM Sociology |
| Divisions: | Faculty of Business and Economics |
| Depositing User: | Ms Zaharah Ramly |
| Date Deposited: | 03 Nov 2022 01:38 |
| Last Modified: | 03 Nov 2022 01:38 |
| URI: | http://eprints.um.edu.my/id/eprint/36063 |
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