Income inequality dynamics in ASEAN-5: a panel data approach using CS-ARDL to examine macroeconomic factors
Abstract Part of the critical goal for achieving sustainable development is to address income inequality, which often poses a barrier to economic growth. The current study aims to explore the dynamics of income inequality in ASEAN-5 economies by analyzing the impact of critical macroeconomic factors...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Springer
2025-05-01
|
| Series: | Discover Sustainability |
| Subjects: | |
| Online Access: | https://doi.org/10.1007/s43621-025-01068-1 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850105504006668288 |
|---|---|
| author | Mohsen Ayyash Siok Kun Sek Ali Kole |
| author_facet | Mohsen Ayyash Siok Kun Sek Ali Kole |
| author_sort | Mohsen Ayyash |
| collection | DOAJ |
| description | Abstract Part of the critical goal for achieving sustainable development is to address income inequality, which often poses a barrier to economic growth. The current study aims to explore the dynamics of income inequality in ASEAN-5 economies by analyzing the impact of critical macroeconomic factors. These indicators include economic growth to validate the Kuznets curve hypothesis (KCH), gross capital formation (GCF), inflation, trade openness, and unemployment. Utilizing panel data from 1991 to 2023, the study employs a robust econometric approach, including cross-sectional dependency tests (CSD), slope homogeneity tests, and second-generation unit root tests. The Cross-sectionally Augmented Auto-regressive Distributed Lag (CS-ARDL) econometric methodology is applied to estimate the short-run and long-run parameters while accounting for slope heterogeneity and CSD. This study demonstrates convincing evidence that the KCH holds for the ASEAN-5 nations in the short and long terms. In the long term, macroeconomic factors, including GCF, inflation, unemployment, and population growth, increased income inequality, while trade openness reduced it. However, trade openness consistently mitigated it in the short term while unemployment has a marginal effect. The short-term effects of GCF, inflation, and population growth were insignificant. The originality of this research lies in its provision of new insights into the macroeconomic indicators that contribute to income inequality in the ASEAN-5 economies, utilizing the CS-ARDL technique, which effectively accounts for CSD and slope heterogeneity. The insights gained from this study could inform policymaking to foster inclusive economic growth and reduce income disparities within the ASEAN-5 region. |
| format | Article |
| id | doaj-art-b73161f00a694e8bb951beeb00ad2192 |
| institution | OA Journals |
| issn | 2662-9984 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Springer |
| record_format | Article |
| series | Discover Sustainability |
| spelling | doaj-art-b73161f00a694e8bb951beeb00ad21922025-08-20T02:39:03ZengSpringerDiscover Sustainability2662-99842025-05-016111810.1007/s43621-025-01068-1Income inequality dynamics in ASEAN-5: a panel data approach using CS-ARDL to examine macroeconomic factorsMohsen Ayyash0Siok Kun Sek1Ali Kole2School of Mathematical Sciences, Universiti Sains MalaysiaSchool of Mathematical Sciences, Universiti Sains MalaysiaSchool of Mathematical Sciences, Universiti Sains MalaysiaAbstract Part of the critical goal for achieving sustainable development is to address income inequality, which often poses a barrier to economic growth. The current study aims to explore the dynamics of income inequality in ASEAN-5 economies by analyzing the impact of critical macroeconomic factors. These indicators include economic growth to validate the Kuznets curve hypothesis (KCH), gross capital formation (GCF), inflation, trade openness, and unemployment. Utilizing panel data from 1991 to 2023, the study employs a robust econometric approach, including cross-sectional dependency tests (CSD), slope homogeneity tests, and second-generation unit root tests. The Cross-sectionally Augmented Auto-regressive Distributed Lag (CS-ARDL) econometric methodology is applied to estimate the short-run and long-run parameters while accounting for slope heterogeneity and CSD. This study demonstrates convincing evidence that the KCH holds for the ASEAN-5 nations in the short and long terms. In the long term, macroeconomic factors, including GCF, inflation, unemployment, and population growth, increased income inequality, while trade openness reduced it. However, trade openness consistently mitigated it in the short term while unemployment has a marginal effect. The short-term effects of GCF, inflation, and population growth were insignificant. The originality of this research lies in its provision of new insights into the macroeconomic indicators that contribute to income inequality in the ASEAN-5 economies, utilizing the CS-ARDL technique, which effectively accounts for CSD and slope heterogeneity. The insights gained from this study could inform policymaking to foster inclusive economic growth and reduce income disparities within the ASEAN-5 region.https://doi.org/10.1007/s43621-025-01068-1Income inequalityMacroeconomic factorsKuznets hypothesisCS-ARDLPanel dataASEAN-5 countries |
| spellingShingle | Mohsen Ayyash Siok Kun Sek Ali Kole Income inequality dynamics in ASEAN-5: a panel data approach using CS-ARDL to examine macroeconomic factors Discover Sustainability Income inequality Macroeconomic factors Kuznets hypothesis CS-ARDL Panel data ASEAN-5 countries |
| title | Income inequality dynamics in ASEAN-5: a panel data approach using CS-ARDL to examine macroeconomic factors |
| title_full | Income inequality dynamics in ASEAN-5: a panel data approach using CS-ARDL to examine macroeconomic factors |
| title_fullStr | Income inequality dynamics in ASEAN-5: a panel data approach using CS-ARDL to examine macroeconomic factors |
| title_full_unstemmed | Income inequality dynamics in ASEAN-5: a panel data approach using CS-ARDL to examine macroeconomic factors |
| title_short | Income inequality dynamics in ASEAN-5: a panel data approach using CS-ARDL to examine macroeconomic factors |
| title_sort | income inequality dynamics in asean 5 a panel data approach using cs ardl to examine macroeconomic factors |
| topic | Income inequality Macroeconomic factors Kuznets hypothesis CS-ARDL Panel data ASEAN-5 countries |
| url | https://doi.org/10.1007/s43621-025-01068-1 |
| work_keys_str_mv | AT mohsenayyash incomeinequalitydynamicsinasean5apaneldataapproachusingcsardltoexaminemacroeconomicfactors AT siokkunsek incomeinequalitydynamicsinasean5apaneldataapproachusingcsardltoexaminemacroeconomicfactors AT alikole incomeinequalitydynamicsinasean5apaneldataapproachusingcsardltoexaminemacroeconomicfactors |