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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Interpreting the regression results

This might be a basic question. The article given below checks the relationship between crime and income inequality. https://www.sciencedirect.com/science/article/pii/S0165176508001110. Both crime and ...
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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 ...
3 votes
1 answer
279 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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Why did capitalism not lead to improved wages for centuries after its inception?

I'm reading the following paper by Sullivan & Hickel (2023): Their main claim is that capitalism did in fact not improve wages of low skilled labourers but in fact reduced them. They also make ...
3 votes
1 answer
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Banerjee and Duflo - Do Firms Want to Borrow More? - Theoretical model

I am reading Banerjee and Duflo's (2014) seminal paper on credit constraints faced by firms in India. In their theoretical model (see page 11, namely figure 1), they show that, if firms are credit not ...
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1 answer
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Why are subscriptions to the World Bank's IBRD measured in 1944 US dollars? How is this calculated?

Several official documents published by the World Bank's 'International Bank For Reconstruction and Development' (IBRD), such as https://pubdocs.worldbank.org/en/795101541106471736/...
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What cause the capital-output ratio to be low in developing countries?

I'm now studying economic development and I wonder what is the causes of low ICOR in developing countries and high ICOR in advanced countries. Because it's about economic development so I need some ...
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What should policymakers do to increase national savings rate of a developing economy to decrease risk of volatility in ER due to withdrawl of FPIs?

Case in point is a developing country who find it's domestic savings insufficient and in turn depends on Foreign portfolio investment to increase it's productivity, wages and drive it's economic ...
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Knitting empirical results in development economics together

Development Economics, to my knowledge, has become a mostly empirical field, with RCTs and other quasi-experimental techniques yielding a huge body of empirical knowledge about specific policies and ...
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The labour share of Cuban national income

According to the World Bank, Cuban GDP capita was \$9,477/year in 2020. On the other hand, Wikipedia suggests that Cuban factory workers earn about \$204/year; and that Cuban doctors earn about \$360/...
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What should I gain out of second year classes?

I'm in my second year. Most of my classes are just introduction to a bunch of papers and models. I'm not sure what I should be gaining out of these papers. What are the skills I should be picking up? ...
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Equation for pure wage contracts in the land market

I am reading "Development Economics" by Debraj Ray. I need to understand the different kinds of contracts in the land market. Chapter 12.3.1 explains the contract forms. The general equation ...
2 votes
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How can qatar afford 220 billion dollar world cup?

Qatar's gdp is just 146 billion dollar . But the cost to organize world cup 2022 is projected to be 220 billion dollars. It's just impossible to imagine for me. I don't think qatar gets imf bailout or ...
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Career prospects as development economist

I'm studying economics and I'm finding myself more and more wanting to specialize in development economics. However, I'm feeling uncertain about the job prospects in this regard. Are there any career ...
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Can Autarky be prosperous?

In light of the recent economic sanctions on the Russian federation, I would like to know, if it is theoretically possible for a country like Russia, with a high level of natural resources and ...
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Can I use difference in difference if some households in treatment group become part of control group?

I have data on households which can be eligible for a conditional cash transfer (CCT) if household income is below a threshold. The CCT is introduced in year t for eg. Now some households which have ...
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How to Measure foreign Aid dependency

I am writing a paper regarding foreign aid dependency, and I would like to classify countries as being aid dependent or independent. Is there any criteria in the literature that can be used to ...
5 votes
1 answer
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Literature recommendation on organised crime

I am trying to write a term paper on organized crime analyzing European countries. I would appreciate it if anyone would suggest good literature on violent crime, good governance (gov't integrity, the ...
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4 answers
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Most notable papers in Economics in 2021

This question is based on this one in Math Overflow I understand that I can't simply 'translate' the question into the area of economics. Thus, I'm open to improvements on the question framework. Here'...
1 vote
1 answer
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How *should* weigh income/consumption at different income levels (esp. to the very poor vs poor) ... perhaps in a 'social welfare function'?

What is the best analysis/literature/text, that gives a theoretical justification for approaches that can be used in practice, for How we should weight income/consumption at different income levels (...
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How *do* NGOs, think tanks, and governments weigh income/consumption tradeoffs/transfers at different income levels?

In considering policies and transfers, how do we (economists, NGOs, governments & think tanks) weigh income (consumption) tradeoffs between the poor & the very poor? E.g., 'is giving 100 USD/...
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How does foreign aid money help another country develop?

How does fiat currency help a country's economic growth? For example, if a certain country such as the U.S or Brazil gives 1billion dollars to a developing country like Angola or Congo, how does that ...
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1 answer
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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 ...
1 vote
3 answers
621 views

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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1 answer
488 views

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 ...
16 votes
1 answer
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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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1 answer
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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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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 ...
4 votes
1 answer
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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 ...
5 votes
1 answer
285 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 ...
1 vote
0 answers
39 views

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?
1 vote
1 answer
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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 ...
5 votes
2 answers
2k views

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 ...
8 votes
3 answers
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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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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 ...
1 vote
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113 views

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 ...
2 votes
1 answer
189 views

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 ...
1 vote
1 answer
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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 ...
5 votes
2 answers
544 views

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.
2 votes
1 answer
429 views

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 - ...
1 vote
1 answer
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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 ...
3 votes
1 answer
108 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.
2 votes
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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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74 views

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 ...
1 vote
1 answer
50 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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2 answers
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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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1 answer
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Theories relevant to institutional quality and economic development [closed]

I want to write a term paper on institutional quality and economic development. What will be its possible theoretical framework?