IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v55y2023i11p1184-1200.html
   My bibliography  Save this article

Effects of the rule of law and central bank independence on economic inequality and surplus value

Author

Listed:
  • Yosuke Tomita

Abstract

In this study, panel data, which were obtained from 36 countries, are utilized to empirically explore the factors that affect economic inequality before redistribution through taxes and social security. Our estimations reveal that legal origin influences the resolution of the paradox in which economic inequality before redistribution is high, although redistribution is low. Simultaneously, the Gini coefficient before redistribution can be lowered by strengthening the rule of law in countries with English legal origin, which is not the case in countries with other legal origins. In countries with French legal origins, strengthening the rule of law will increase the redistribution function. Furthermore, the rule of law, as well as central bank independence, can reduce economic inequality. The rule of law exhibits a negative relationship with the rate of surplus value, and the rate of surplus value exhibits a negative association with central bank independence. Simultaneously, the rule of law and central bank independence synergistically reduce economic inequalities. Thus, a weak rule of law, coupled with the absence of central bank independence, will promote monetary easing policies, which favours politicians. Moreover, inappropriate monetary easing policies would increase the control of companies over workers and promote exploitation.

Suggested Citation

  • Yosuke Tomita, 2023. "Effects of the rule of law and central bank independence on economic inequality and surplus value," Applied Economics, Taylor & Francis Journals, vol. 55(11), pages 1184-1200, March.
  • Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1184-1200
    DOI: 10.1080/00036846.2022.2096867
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2022.2096867
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00036846.2022.2096867?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1184-1200. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.