THE IMPACT OF SOCIAL TRANSFERS ON INEQUALITY (GINI), HUMAN DEVELOPMENT INDEX (HDI) AND POVERTY – CASE OF NORTH MACEDONIA
Research Article
THE IMPACT OF SOCIAL TRANSFERS ON INEQUALITY (GINI), HUMAN DEVELOPMENT INDEX (HDI) AND POVERTY – CASE OF NORTH MACEDONIA
ABSTRACT
Based on the HDI, Poverty, Risk of Poverty, Inequality, and other important life-being and well-being indicators, North Macedonia has made significant and solid progress. However, much more is needed, and a lot of work to be done. The study of poverty elements and other related markers in this research paper such as GINI, Poverty, and HDI, it is assumed that are interlinked to the social transfers, however not with singular limitations to the above. Data from the year 2013 to the year 2018, claims that about one in five people in North Macedonia is living in poverty, also, one out of three children is living in poverty. At the very edge of poverty are the most vulnerable segments of the population, the unemployed, with risk of circa 42% of poverty. Also of great concern is the household poverty rate in general, consisting of almost 20% of parents with two children at risk of poverty. These indicators alone are of great concern, and pretty much very far from the EU median and parameters. Given this situation, North Macedonia has lots of work to do. (Ramadani-Mehmedi, 2022) Social transfers are a methodology or a process of financial support, or goods transfers from a group of people, also institutions, and organizations to recipients who are benefiting from these goods. The purpose of this study is to measure the impact of social transfers on the increased rations of HDI, decrease in inequality, and reduction of the poverty rate in North Macedonia. This paper by using the OLS methodology will study the impact of social transfers on HDI, GINI, and poverty rate in North Macedonia from 2008-2019. Secondary data about GINI Index is taken from the World Bank World Development Indicators data series, along with the Poverty rate and HDI from Countyeconomy. The results of the time series regression OLS technique suggest a positive and significant relationship between social transfers and HDI, and inverse relation between social transfers and GINI, and social transfers and poverty in North Macedonia.
RAMADANI MEHMEDI, B.,
(2022). THE IMPACT OF SOCIAL TRANSFERS ON INEQUALITY (GINI), HUMAN DEVELOPMENT INDEX (HDI) AND POVERTY – CASE OF NORTH MACEDONIA. Trends in Economics, Finance, and Management Journal, 4(2), 56-64. Arrival Date Posted By:https://tefmj.ibupress.com/articles/the-impact-of-social-transfers-on-inequality-gini-human-development-index-hdi-and-poverty-case-of-north-macedonia
