Questions tagged [development-economics]

Development economics is a branch of economics which deals with economic aspects of the development process in low-income countries.

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Why does HDI use log-transformed data for income index?

For calculation of HDI, the Income Index used is $\mathrm{I_{income} = \dfrac{ln(Income) - ln(min Income)}{ln(max Income) - ln(min Income)}}$. Why is the log transformed income used here? World Bank ...
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Will economic discrepancy between democratic and authoritarian states decrease over time? [closed]

The most popular explanation for the economic discrepancy between different states is that in the authoritarian states the leaders need corrupt extractive institution to preserve their power. However, ...
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Development economics papers that used Difference-in-Differences

I need to write an assignment paper in development economics that explains the concept of differences-in-differences estimation, and I feel like it can certainly be helpful to look at some examples ...
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Are democracies more economically productive than autocracies?

The book The Dictator's Handbook claims in several places that democracies are more productive than autocracies. It's central to their argument of lower taxation rate in democracies giving more wealth ...
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how can a developing country improve its infrastructure?

Developing countries have poor infrastructure, I know, but how can it increase its quality? Receiving aid is a solution that pops to mind first but are there any other solutions? I know that some ...
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131 views

Interpretation of a 2SLS Coefficient - Civil War Determinants

I am a bit confused because of the interpretation of a coefficient in my analysis. I am using 2SLS in two different subsamples with economic growth as endogenous variable. It is instrumented by a ...
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What is meant by changes in pattern of production

I'm doing development in economics and one way economic growth spurts development was accelerating changes in patterns of production. Does this mean different production methods getting improved so it ...
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28 views

Formalizing unorganized Sector

This is a fairly basic question. What are the real benefits of formalizing the unorganized sector? What does integrating these into the organized sector achieve other than maybe increased tax revenue ...
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Is investment in real estate a real investment?

In the book The Financial Crisis and the Free Market Cure in chapter 3 author said that investment in real estate is not really investment. It is jobs that create ...
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When is the upward economic convergence in the EU estimated to happen?

Although the regional cohesion, i. e. the socio-economical convergence of the East and the West has been one of the EU's main goals, some economists seem to dispute there's any evidence for them being ...
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108 views

Does development aid, negatively effect the development of developing countries?

Development aid Development aid or development cooperation (also development assistance, technical assistance, international aid, overseas aid, official development assistance (ODA), or foreign aid) ...
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What are some good resources to read on Development Economics from a neoliberal or Austrian perspective?

I have tried to look for development economics from a neoclassical (Chicago school) or Austrian School approach. However, I could not find any references for this topic. Is it possible that this ...
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Data on labour productivity in India

I am trying to find historical data at the district, or ideally at the city-level on labour productivity (by sector, with a special focus on agriculture) or perhaps data on a similar measure?
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Theory behind financial flows not going to the most developing nations even though they have the highest growth rates

I remember reading a bunch of articles on this a few years ago, but I can't find any of the references any more. It has been a while since I looked at this, so here is a rough paraphrase of the ...
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What books to read to learn about geography and how it affects economic development?

I saw youtube videos like how geography doomed Africa and heard how Japan's prosperity is an anomaly due to its isolation and they got me interested.
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What is the relationship between population growth and economic growth?

Population Growth is only one of several factors of influence on economic growth but it is not strictly necessary for the economy to grow. I have also heard of the term called the population bonus - ...
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Inequality and Growth: the Role of Democracy

In the Alesina and Rodrik (1994) study on the impact of inequality on growth, why did they include a dummy for democracies in their empirical estimation? In other words, why did they want to study ...
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Impact of reducing fertility rate of poor, high birth rate, agricultural country in Africa

In a poor, population-dense country in Africa with an economy based entirely on agriculture (like Burundi) and a high birth rate that is contributing to poverty due to existing food insecurity, what ...
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66 views

Where to find the latest statistics of brain drain in the world?

Where to find the latest statistics of brain drain in the world? I would appreciate your suggestions.
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Has an industry driven educational conditional cash transfer ever been done?

I've studied the educational conditional cash transfer literature and I know it has been popular amongst development economists. But it seems that underfunded and potentially corrupt bureaucracies of ...
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47 views

Why traditional banks tend not to provide finance to the poor?

As in title, quite a simple question - however looking for some more arguments and points of view. Mainly talking about the poor in developing countries, however if some arguments are more "applicable"...
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Is it possible that all countries become developed and rich? [duplicate]

In economics, we are taught that, or needs are infinite and resources are fixed. And each needs and resources have some associated value.. At global level, we know, there are some rich as well as some ...
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How can I model the impacts of improved agriculture technologies and food aid in a multimarket model?

Given a multimarket model for staple agricultural commodities wheat, rice, maize and sorghum, in a low-income economy, Im trying to figure out how I can use the multimarket framework to look at the ...
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what can be the proxy variable for measure of product innovation?

My objective is to prove that international trade leads human capital formation which leads to economic growth. I am regressing GDP on multiple variables among which Human capital is one. According to ...
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The Household Production Function

I was wondering whether someone can explain the household production function (HPF). Specifically, the variant presented in Patanayak et al (2005). The paper uses the HPF to determine household ...
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Emergence of notion "primitive business" in the era of Industry 4.0 and globalization

It has always been the conventional wisdom that businesses should be fit to survive in the market competition, that only the best businesses can survive beyond horizon of several years, that survival ...
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Can I draw a smaller sample from one treatment group?

in an RCT, I have 3 different treatment groups and one control group. The size of the control group is around 1000 while the size of other groups are just above 300. To test balance I used ANOVA and ...
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Finding an economic policy that worked in a developed country but failed in a developing one

As the term paper of development economics in BSc, I am assigned this topic but I have no idea where to begin with. Of course I can’t look up every economic policy that was ever made then check ...
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Does brain drain really affect a nation's growth trajectory?

Take India as an example. India has been losing most of its bright minds to the west. India also ranks low in development. I would like to get a definitive answer to this cause-effect type question. ...
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why doesn't every country scale up the prices to the international level?

I live in an Asian country in which the average monthly salary is maybe 300-400 dollars but things (apart from exported goods like laptops or smartphones) are reasonably cheap compared to their price ...
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Deaton's AIDS/QAIDS model [closed]

Im new to economics and want to understand the AIDS/QAIDs model of Angus Deaton. Can anyone suggest possible readings for the same as a background knowledge??
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Panel econometrics for marketing mix analysis: how to include spending that affects all the individuals of a panel?

Dear stack exchangers, in the course of an internship at a microfinance bank in Tajikistan, I have been tasked with assessing the efficiency of different marketing expenses. I will try to expose the ...
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When can we expect China to become a developed country?

China has the 2nd largest GDP in the world and also has a high GDP growth rate. According to Richard Lynn's IQ and Global Inequality, the Chinese have a mean IQ of 105, which is one of the highest in ...
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Which Gini is more reliable, CIA or World Bank?

I would like to ask you a super-basic question. I need to use Gini coefficient as moderator to examine well-being, resilience and other variables in Immigrants. Which Gini index is more reliable or ...
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313 views

What is the fundamental problem with Pakistan's economy?

Why is Pakistan repeatedly defaulting? 2008 - Pakistan seeks USD9 billion IMF bailout to avert crisis 2013 - Saudi Arabia come to Pakistan’s Rescue with USD15 Billion Energy Bailout Deal 2014 - ...
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Why are countries in the Gulf rich but lagging in technological innovation?

Countries in the gulf are oil rich. But they are lagging in R&D sector. Governments do not spend much on R&D. Most countries employ foreign contractors or import technologies. What is the ...
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When countries industrialise, why do jobs from agriculture shift to manufacturing?

This is a historical trend whether it may 18th century Britain or 19th century America or what's currently happening in China. What I am confused is by the fact that manufacturing jobs such as ...
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73 views

Which measures are there to evaluate a country economical development? [duplicate]

I'm familiar with the measures of Gross domestic product (GDP PPP) total, per capita and GDP nominal total and per capita. But I'm not sure if these measures evaluate the economical development of a ...
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32 views

Developmental studies and industrial policy for the highly developed countries - research trends?

Developmental studies usually is field of reasearch whose object is developing countries and industrial policy studies similarly are attributed to the developing countries or the things of the past. ...
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What is the danger of (China's) investment-led growth as opposed to consumption-led growth?

I keep reading that China must switch to consumption-led growth or productivity-led growth, that investment-led growth is 'dangerous.' I understand that it is probably not sustainable in the sense ...
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Is the capital-output ratio in developing countries low or high?

For a developing economy, I've seen sources claiming that the capital-output ratio (more commonly known as ICOR) is high (e.g. here and here), while other sources claiming that it's low, like below (...
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When and why women left the labour market?

It is well documented that women in now developed countries entered the labour market all thoughout the 20th century. As such, female labour participation have consistently increased. For example, ...
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Is there proof that today more than 50% of the lowest income society lives worse than 50 years ago

The Economist on 12.11.2016 number (first number after getting US election results) wrote: "In real terms median male earnings are still lower than they were in the 1970s. In the past 50 years, ...
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The underlying force for creating specialized areas in the cities of developing economies

Big cities in developing countries often have streets or quarters that specialize in selling a particular type of good like: books, musical instruments; or giving a specialized service like: haircuts, ...
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Are real wages a good measure of economic progress?

Why do we tend to use Real GDP Per Capita instead of the real wage? What is the issue of using the real wage instead?
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Economics of grid extension versus off-grid electrification in developing countries

Quite a bit of research is available on the local economic effects of electrification in communities in developing countries (this article and its references go into quite a bit of detail on the topic)...
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How can a citizen contribute to get his country out of the poverty trap?

I am from Madagascar. We are in what is called a "povery trap". Building a business is very difficult because the population is agglomerating in the capital and the competition is very high. Moreover, ...
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In the discussion about why and how countries develop or industrialize, is there a debate about “related” or “linked” industries?

There is a fairly recent literature about "networks" (Barabasi, “Linked” 2003, Basic Books; Hausmann et al. “The Atlas of Economic Complexity 2014, MIT Press) that emphasize that some industries are ...
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What separates "rich" developing nations from "poor" developed nations?

What separates relatively high income developing nations, such as Argentina, from relatively low income developed nations, such as Portugal? If you look at things like HDI numbers, Argentina and ...
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Eric Reinert's conspiracy theory?

After read Eric Reinert's "How Rich Countries Got Rich ... and Why Poor Countries Stay Poor", I've got the question: Reinert theory is: Rich West countries are investing to advanced branches at ...