Theoretical and Applied Economics
No. 3 / 2024 (640), Autumn
Impact of population cycle on income sharing pattern of a capitalistic society
Balarampur College, India
Joy SARKAR
University of North Bengal, India
Abstract. In this paper, we have tried to explore how the fundamental structure of a capitalistic society affects income sharing within the society and widens the vertical disparity in income distribution. We argue that a capitalist in a free market uses various elements of an economy to continuously improve their profitability. Initial rising population is used as a tool to enhance profit and once the population starts declining, international trade is used as a substitute for population growth to further enhance their profit. Our empirical analysis was divided into two parts;(i) the correlation between income inequality (Gini coefficient) and population (total population & population growth rate) was investigated for closed economies namely Brazil, Moldova, Morocco, & Ukraine (ii) a multivariate OLS was run with Gini coefficient as the dependent variable while the ratio of CPI (Consumer Price Index) and Wage Rate, Export as a percentage of GDP (Gross Domestic Product), and population growth rate was used as regressors to understand how income sharing evolves in an open economy and subject of the study was U.S. The result was confirmatory to the theoretical framework and alternative hypothesis represented in the paper that income inequality is positively associated with population for a closed economy while two variables negatively correlated for an open economy. Further, a positive association was found between income inequality and the ratio of CPI and Wage Rate, and Export for an open economy.
Contents
Evaluating the International Financial Reporting Standards (IFRS) adoption in developing countries: an institutional theory review
Analyzing the impact of oil price fluctuations on economic growth in Algeria: an empirical study
Impact of population cycle on income sharing pattern of a capitalistic society
Understanding users' behavioral intention to use artificial intelligence for personal financial management: an innovation diffusion theory approach
Financial stability and monetary policy rules: evidence from Tunisia
The transfer between the spending habits of different generations-a debate between retail and E-commerce
Planning for economic integration: addressing trade challenges posed by the Ukraine-Russia conflict in Europe
Dynamics of the interplay between economic complexity, governance and economic growth in the BRICS countries: a panel GMM approach
The relevance of theories of foreign direct investment to mergers and acquisitions in Africa
The impact of employment in industry on income inequality in Great Britain
Structural transformation, poverty, and inequality in emerging countries
How work works for the new generations?
Assessing the nexus between market openness and economic growth: an emerging market perspective
The relationship between access to electricity, CO2 emissions, and economic growth in BRICS
Social aspects of the informal economy: evidence from EU countries
Tracing the path: testing the environmental Kuznets Curve in Algeria using ARDL bounds testing
Dynamic interactions among selected world stock indices: a VAR approach
Boosting human capital: how the COVID-19 pandemic accelerated agile methodology adoption in software development
Do gold, oil and bitcoins possess safe heaven attributes in times of crisis? Empirical evidence using a wavelet-based time-frequency dependency approach from the pandemic to the Russia–Ukraine crisis
Financial contagion and the circular economy paradigm: opportunities and challenges for Romania
The circular economy in Romania: a bibliometric study of innovation and sustainable practices