The Journal of Developing Areas最新文献

{"title":"Financial Technology (Fintech) as a Driver for Poverty Reduction in Nigeria","authors":"Tarila Boloupremo, S. Ogege","doi":"10.1353/jda.2024.a931317","DOIUrl":"https://doi.org/10.1353/jda.2024.a931317","url":null,"abstract":"ABSTRACT:The human race has been confronting the issue of poverty which is threatening its continued existence for a long time. Poor access to finance can lead to poverty this breeds health issues, lack of access to social and recreational facilities, social delinquencies, reduced living standard, malnutrition and economic difficulties. The goal of defeating poverty in its various ramification remains a cardinal concern for policy formulators in the Nigerian state and international bodies such as the World Bank and United Nations. Following the thriving emergence of financial technology (fintech) in Nigeria, there exist a dearth in academic researches to examine how fintech can be a driver in the reduction of poverty. This study examined the impact of financial technology on poverty reduction in Nigeria. Data on poverty rate, financial technology, mortality rate, literacy rate and gross domestic products were obtained from the National Bureau of Statistics (NBS) in Nigeria and the Central Bank of Nigeria (CBN) statistical bulletin for the period of 1991 – 2021. This study employed the multiple linear regression estimation technique to analyse collected data as it examines a cross-section of major key independent variables across a time series data, on the premise of a common effect model. Data analysed indicates a negative and significant nexus between poverty rate and financial technology innovation. The result also suggest that literacy rate and poverty rate have a negative and insignificant relationship. The poverty rate was also found to be positively and insignificantly related to mortality rate and gross domestic products respectively. The study findings have several significant policy implications. Firstly, infrastructures that support internet and mobile telephony should be expanded by providing incentives for investment since technology is the backbone of the operations of fintech. Secondly, education on fintech, information communication technology and finance should be increased to fill the gap among citizens who are not technological inclined especially in the rural areas to increase the use of fintech. Lastly, there should be further regulatory interventions through reforms to remove the barriers to credit.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"8 16","pages":"77 - 87"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141686360","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Decreasing Productivity in the Primary Healthcare: A Study of the Brazilian Case","authors":"Thiago Costa Soares, Luckas Sabioni Lopes","doi":"10.1353/jda.2024.a931315","DOIUrl":"https://doi.org/10.1353/jda.2024.a931315","url":null,"abstract":"ABSTRACT:In 2015, the United Nations (UN) proposed the 2030 Agenda, a resolution that outlines the global goals for sustainable development. This report focuses on promoting health and well-being, emphasizing the importance of primary healthcare (PHC). However, Brazil faces challenges in managing its healthcare system, exacerbated by fiscal policy changes that have reduced public sector expenditures after 2015. This study was motivated by these recent changes in Brazil’s fiscal policy. We evaluated potential fluctuations in total factor productivity (TFP) in 5,524 Brazilian municipalities’ primary healthcare from 2015 to 2019. TFP, a measure of efficiency and production technology in PHC, was computed using the bootstrapping Malmquist productivity index (MPI) derived from the Data Envelopment Analysis (DEA) algorithm. This study focused on the economic recession and austerity measures initiated in 2015. Moreover, it’s essential to highlight that the SARS-CoV-2 pandemic in Brazil in 2020 brought significant changes to the country’s economic, social, and health dynamics. Therefore, this research intentionally concentrated on the pre-pandemic period. Our results revealed that TFP in the PHC sector in Brazil decreased between 2015 and 2019. It was possible to note that three out of every four Brazilian municipalities experienced either stagnation or a decline in the TFP of primary healthcare, with more pronounced challenges in the Midwest and Northeast regions. Looking at the TFP elements, we could see a continuous drop in technical efficiency everywhere in the country, markedly in the Midwest and Northeast. Conversely, there was a considerable uptick in Brazil’s technological component. These results implied that there might have been advancements in PHC’s technological infrastructure, preventing even less favorable outcomes in the TFP indicator. We concluded that the productivity of primary healthcare in Brazil declined when the 2015 fiscal ceiling was implemented. This decrease in performance was evident in the sluggish growth rate of primary healthcare inputs, a diminution in vaccination coverage indicators, and an increase in hospitalizations for preventable causes. Given that health is a crucial component of social well-being, it is vital to highlight the need for comprehensive efforts to guarantee the effective operation and advancement of primary healthcare services, even during economic downturns.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"25 45","pages":"43 - 60"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141685266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Impact of the National Export Strategy on the Plastics and Packaging Industry in Malawi","authors":"Yassin Mwachande, Kotie Viljoen, Marinda Pretorius","doi":"10.1353/jda.2024.a931322","DOIUrl":"https://doi.org/10.1353/jda.2024.a931322","url":null,"abstract":"ABSTRACT:Export-led industrialization is crucial for economic growth, emphasizing the shift from primary production to manufacturing. Malawi aims for industrialization through its National Export Strategy (NES), focusing on oilseed and sugarcane products and manufacturing. However, research gaps exist on export promotion programs’ impact, especially in less developed countries like Malawi and specific sectors like plastics and packaging. A mixed-method approach was employed, combining qualitative and quantitative methods for robust analysis. All 13 firms in Malawi’s plastics and packaging industry were surveyed in Blantyre and Lilongwe to assess the impact of the National Export Strategy (NES). A questionnaire with 37 questions across six sections, adapted from prior research, was used to gather comprehensive data on various aspects such as employment, production, and investment. Ethical clearance was obtained, and completed questionnaires underwent thorough review before data analysis. Results are presented in subsequent sections. The impact of Malawi’s National Export Strategy (NES) on its plastics and packaging industry highlights vital challenges. Employment suffers from a lack of skilled labor, stemming from a mismatch with training institutions. Firms struggle with limited access to finance and high borrowing costs, hindering investment. High taxes and duties hamper export competitiveness, while unreliable energy supply increases operational costs. Additionally, transportation expenses impede raw material imports, exports, and local distribution. These findings underscore the need to address skill mismatches, enhance financial access, reduce trade barriers, and improve infrastructure to bolster the industry’s resilience and competitiveness under the NES. Policy implications include collaborating with financial institutions to enhance access to grants and affordable credit, imposing higher import taxes on finished products to protect local producers, improving energy supply, enhancing transportation infrastructure, introducing incentives for investment in support services, raising awareness of NES benefits, and establishing industry-specific meetings to address sector-specific issues. These measures aim to bolster the plastics and packaging industry’s competitiveness and support its growth under the NES.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"31 34","pages":"241 - 254"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141685296","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Effects of Conflict-Induced Food Price Shocks on Food Security Outcomes of the Households in Nigeria","authors":"Chioma Adekunle, Kao Papa, S. Akinbode, Edmee Ndoye","doi":"10.1353/jda.2024.a931320","DOIUrl":"https://doi.org/10.1353/jda.2024.a931320","url":null,"abstract":"ABSTRACT:Among major development organizations, the unchallenged consensus is that war and conflict are development issues ravaging local economies, often leading to forced migration, refugee populations, and acute food insecurity. Food insecurity when caused by a rise in food prices is a threat for violent conflict. This study was conducted in Nigeria using three types of quantitative data which are the general household panel data, monthly retailed commodity prices, and violent conflict data from 2010 to 2019. This study examines the linkages between conflict, food price shocks, and food security outcomes of households in Nigeria. Per capita daily calorie intake, household dietary diversity, and per capita monthly food consumption were the three food security outcomes used for this study. Fixed effects panel regression models were used to determine the effects of conflict-induced food price shocks on the food security outcomes of households. I was found that dietary diversity appeared to be higher in the first wave than in the other three waves. The measure of dietary diversity for the post-harvests were slightly higher than the post-plantings. The high dietary diversity associated with the post-harvest periods is partly related to the relatively higher net value of foods consumed during the same season. This is because the amount of food calories consumed during the post-harvest periods are relatively lower than the amount consumed during the post-planting periods. Regardless of the conflict level in Nigeria, an increase in conflict-induced price shock of wheat, and rice is associated with a decline in calorie intake, dietary diversity, and the actual food value consumed. The conflict-induced price shocks of other cereals negatively influence the actual food value consumed, and dietary diversity. It is concluded that violent conflict influences some aspects of food insecurity, through adjustment in diets in response to price increases. Conflict-induced price shocks is a necessary condition for food security. Therefore, policy issues aimed at improving the food security outcomes of households in the face of conflict-induced price shocks should focus on price scheme that will stabilise price placing a price floor on food commodities.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"359 18","pages":"149 - 165"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141686428","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An ARDL Approach to Investigate the Effectiveness of Fiscal and Monetary Policies in Making Bangladesh, A Role Model of Development","authors":"Sukanta Chakraborty","doi":"10.1353/jda.2024.a931314","DOIUrl":"https://doi.org/10.1353/jda.2024.a931314","url":null,"abstract":"ABSTRACT:The purpose of the study is to analyze the relative efficacy of monetary and fiscal policies in fostering economic growth in Bangladesh concerning predictability, speed, and magnitude. Moreover, it aims to find the relationship between the economic boom of Bangladesh and two measures of macroeconomic management i.e., monetary and fiscal policy. The ARDL model and bound test are applied to examine the long-term link between monetary policy, fiscal policy, and economic growth. Data is obtained from the World Development Indicator (WDI) for Bangladesh for the period 1974 to 2022. Several diagnostics tests like CUSUM and CUSUMQ are used to identify both the strengths and weaknesses of the models. The findings demonstrated a long-term correlation between the two policies and economic growth. According to the calculated short-run coefficients, the short-term effect of fiscal policy is mentionable but the effect of monetary policy is negligible in the short term. But over time, the immediate effects become noteworthy. The long-term outcomes indicated that both fiscal and monetary policies have a favorable and substantial long-term impact on economic growth. The result shows fiscal policy is more effective compared to monetary policy for making Bangladesh, a role model of Bangladesh. Furthermore, all the diagnostics tests showed the stability of the estimated ARDL model. Expansionary fiscal and monetary policies lead to higher government spending and an increase in the money supply, which raises GDP levels. Conversely, if government spending and the money supply decline (contractionary fiscal and monetary policies), the GDP level falls. As a result, this study suggests using expansionary policies to boost Bangladesh’s economy.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"29 3","pages":"29 - 41"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141684653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Economic and Governance Dimensions of ESG Performance: A Comparative Study in the Developing and European Countries","authors":"Lemuel Kenneth David, Jianling Wang, Victor David","doi":"10.1353/jda.2024.a931312","DOIUrl":"https://doi.org/10.1353/jda.2024.a931312","url":null,"abstract":"ABSTRACT:This research delves into the impact of Environmental, Social, and Governance (ESG) metrics on economic practices, focusing on a comparative analysis between developing countries and Europe from 1960 to 2021. It explores how ESG metrics, once peripheral in economic analyses, have become pivotal in shaping economies and societies globally. The study highlights the emerging importance of ESG in understanding economic resilience, societal well-being, and investment priorities, especially in the context of a globalized landscape. Employing a robust mixed-methods approach, the study integrates quantitative and qualitative analyses to examine ESG metrics’ evolving role. Utilizing World Bank data, it encompasses a comprehensive review of 239 regions and nations over a span of six decades. The quantitative component includes descriptive and time series analyses, alongside correlation and regression techniques. Complementing this, a qualitative cultural and economic synthesis provides deeper insight into the data, positioning ESG criteria at the crossroads of financial imperatives, societal obligations, and cultural dynamics. The study uncovers significant correlations between higher Gross Domestic Product (GDP) levels and advanced ESG practices in Europe, indicative of societal values that emphasize sustainability. It reveals varying ESG performances across Western and Eastern European countries compared to developing nations, influenced by distinct cultural economies. The research highlights how regional geopolitical events, cultural norms, and values have shaped diverse trajectories in ESG metrics’ evolution. These findings offer nuanced insights into the complex influences of ESG metrics across different economic, sociopolitical, and cultural landscapes. The study’s outcomes are vital for policymakers and investors, unveiling the intricate nuances and implications of ESG trends. It underscores the need for nuanced policy strategies that consider the unique cultural and economic backgrounds of regions, particularly in developing countries. The research advocates for a cultural-economic perspective in sustainable development, emphasizing the dynamic interplay between society, culture, and economy. The findings suggest that embracing diverse ESG applications can lead to more effective and culturally sensitive approaches to economic development and governance. Conclusively, this research offers a comprehensive cultural-economic perspective on the role of ESG metrics in shaping sustainable development. It serves as a foundational analysis for future studies and policy formulations, aiming to enhance the understanding and application of ESG criteria in diverse economic and cultural settings.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"13 19","pages":"221 - 240"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141685977","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Dissimilar Market Volatility in Neighboring Financial Markets: An Empirical Study Using A Multivariate Garch Model","authors":"Albert Wijeweera, R. Goonetilleke, Namwoon Kim","doi":"10.1353/jda.2024.a931316","DOIUrl":"https://doi.org/10.1353/jda.2024.a931316","url":null,"abstract":"ABSTRACT:Conventional knowledge of market volatility represents that two proximate financial markets operated in the same country would display a similar pattern in their time-varying volatility. In this paper, we propose that the heterogeneity in financial policy orientation of stock markets creates significant inter-market differences in terms of the volatility of stock returns, even if they are culturally and geographically linked to each other. For the empirical investigation of our proposition, the volatility data from two major stock exchanges in the Middle East, the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) are used. Both the ADX and DFM stock exchanges operate in the same country, the United Arab Emirates (UAE). The ADX is based in Abu Dhabi, the administrative capital, while the DFM is based in Dubai, the commercial and business hub of the UAE. They were both established in the year 2000, and their operational headquarters are located about 150 km from each other. This paper uses a multivariate GARCH model, in particular a diagonal VECH GARCH (1, 1) model to estimate volatility measures for stock returns between ADX-listed and DFM-listed stocks. The paper finds that the stock returns are significantly less volatile in the ADX compared to those in the DFM suggesting that the volatility transmission is incomplete between these two neighboring financial markets. This difference in volatility can potentially be attributed to the relatively conservative financial policies adopted by the oil-rich emirate of Abu Dhabi compared to the more market-oriented economic policies of Dubai, the country’s financial and commercial hub. Our findings have considerable implications for portfolio managers in ascertaining risk premiums when allocating investments across the two stock exchanges. For instance, this disparity in volatility should be taken into account by investors and policymakers when designing risk management strategies because it suggests that investors in the DFM may be exposed to higher levels of risk and uncertainty compared to their counterparts in the ADX. Investors operating in the DFM may require more robust risk management strategies, such as asset diversification and hedging, compared to their ASX counterparts.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"9 22","pages":"61 - 76"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141684131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Female Employment and Economic Integration in Central America","authors":"Luis Rene Caceres","doi":"10.1353/jda.2024.a931318","DOIUrl":"https://doi.org/10.1353/jda.2024.a931318","url":null,"abstract":"ABSTRACT:Extensive literature has shown that women’s employment contributes to increasing rates of household savings and economic growth. Likewise, evidence has been reported that in an economic integration scheme, such as that of Central America, the strong economic interdependence existing between countries, because of their relatively high trade flows of imports and exports, gives rise to the spread of economic developments occurring in a country. This paper investigates the extent to which the increase in female employment in the countries of the Northern Triangle of Central America (Guatemala, El Salvador, and Honduras) leads to the increase in growth rates in the other countries (Nicaragua, Costa Rica, and Panama). For this purpose, principal components, which is a data compression methodology, is used. The variables that are included in the vector of principal components are the female-to-male employment ratios in the industrial sectors of the Northern Triangle countries. All data used in the analyses were taken from the World Bank’s World Development Indicators. The first principal component of these variables explains 77 percent of the variance, and its decrease represents the deindustrialization of the respective countries. The second principal component accounts for 17 percent of the variance, and its increase represents the expansion of the service sector in the countries. The estimation of error correction equations showed that the first principal component of the female-to-male employment ratios of the industrial sector in Guatemala, El Salvador, and Costa Rica, exerted positive impacts on the economic growth rates of Nicaragua, Costa Rica, and Panama, while the second principal component exerted negative impacts. The results also showed that the ratios of female to male industrial employment, as well as the first principal component, fell as tariffs on imports were reduced, reflecting a process of deindustrialization which has led to losses in economic growth, and a decrease in trade flows, and rising youth unemployment and increases of the underground economy with adverse impacts on productivity. Likewise, trends towards economic stagnation and rising unemployment have led to increases in irregular emigration and remittances. Another important result is that the process of deindustrialization, fueled by the extreme openness of economies, has generated a substantial increase in the homicide rate. In summary, the results show that female employment generates increases in the economic growth rate of the respective country and in the other member countries. However, this process of regional employment induction is undermined by the extreme openness of economies, which means that the main beneficiaries of the economic dynamism imparted by the increase in female employment may be the countries from which it is imported. In other words, “globalization” or “openness” frustrates national efforts at economic and social development. It shoul","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"1 5","pages":"130 - 89"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141684341","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do Protective Tariffs Influence Firms’ Competitive Stance? Application of a Competitive Leverage Model in The Presence of Simultaneous Equation and Sample Selectivity Bias","authors":"Fidel Ezeala-Harrison, John Baffoe-Bonnie","doi":"10.1353/jda.2024.a931313","DOIUrl":"https://doi.org/10.1353/jda.2024.a931313","url":null,"abstract":"ABSTRACT:We propose a Competitive Leverage model, and apply it to analyze the impact of tariffs on the attitudes of domestic import-competing firms, especially regarding their disincentives to maintain a Competitive Stance against foreign competitors in the domestic market. We propose that tariffs are a disincentive to the pursuit and maintenance of production efficiency in firms and industries. When countries implement tariff protection for their domestic firms, the most common excuse sounds reasonable, except that it is also economically flawed. While the short-run impacts of such a measure might seem plausible, its long-term effects appear to be less than favorable, and may, in fact, turn out to be damaging to the economy. The paper applies the competitive leverage concept in a unique way to highlight how tariffs distort the output levels of domestic firms, and gives an empirical analysis of the model, using USA data to verify the predictions of the model. Particularly, we develop a Cournot-competition type Competitive Leverage model, and use it to examine the role played by tariffs as a disincentive to a typical firm’s pursuit and maintenance of production efficiency. The competitive leverage model is formulated and applied to verify the effects of tariff protection from the typical domestic firm’s strategic interaction standpoint. We further apply cross-sectional data to carry out an empirical analysis of the model, to verify how tariffs impact the domestic firm’s output and pricing decisions. Our findings would enable us to contribute to the debate about the need to remove protective tariffs, on the grounds that tariffs do not only enable domestic firms to operate inefficiently, but also tends to distort the output and pricing outcomes that would otherwise have been realized in the free market. The results from the study are used to propose some major policy implications of imposing tariff protection, among which are that there is need for implementation of more deliberately sustained Research and development program on the part of domestic firms in the economy, to enable them withstand vigorous competition in a free-trade world. Also, since protective tariffs significantly increase firms’ profit rates, which in turn enables them to unduly earn and accumulate economic rents that amount to inefficiencies and distortions in free-market prices and quantities outcomes, governments should always resist any pressures from big businesses to impose protective tariffs against competition from international rivals. Yet a clear public policy implication from this paper is that, at the macro level, as the results suggest that a government policy that aims at protecting domestic firms through imposition of tariffs may have an adverse effect on the firms’ competitive stance in the industry, a practical message is for the government to impose only a moderate tariff at the most, if it must, especially as it relates to agricultural products.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"53 10","pages":"1 - 27"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141688358","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Foreign Aid, Economic Growth, and Poverty Reduction in Bolivia","authors":"Antonio N. Bojanic","doi":"10.1353/jda.2024.a931311","DOIUrl":"https://doi.org/10.1353/jda.2024.a931311","url":null,"abstract":"ABSTRACT:Foreign aid has been a critical instrument in addressing economic development and poverty reduction in many low-income countries. This article investigates the relationship between foreign aid, economic growth, and poverty reduction in Bolivia, shedding light on how various factors, including institutional quality, human capital, economic freedom, and the level of democracy influence the effectiveness of foreign aid. Employing smooth transition autoregressive models, the analysis highlights the intricate interplay between foreign aid, economic growth, and poverty reduction. The empirical findings provide evidence that foreign aid exerts a positive influence on both economic growth and poverty reduction, especially when aligned with investments in human capital and the enhancement of economic freedom. However, the revelations brought forth by this study challenge the conventional wisdom, revealing that these relationships are not linear. In emphasizing the nuanced nature of aid’s impact on economic development and poverty reduction, this study contributes significantly to the ongoing discourse on foreign aid efficacy. It underscores the importance of tailoring aid interventions to the specific contextual intricacies of the recipient country. The interplay between foreign aid, institutional quality, human capital, economic freedom, and democratic governance makes clear that a tailored, context-specific approach is needed for foreign aid to have the best possible impact. If the case of Bolivia serves as a useful example for other developing nations, the principal recommendation emanating from these findings is that foreign aid must be carefully tailored to the unique needs and challenges of the recipient nation. A one-size-fits-all approach is insufficient in harnessing aid’s full potential to foster sustainable economic growth and meaningful poverty reduction. The findings presented here serve not only as a contribution to the academic literature but also as a roadmap for policymakers and development practitioners navigating the complex terrain of foreign aid. By emphasizing the intricate dynamics of foreign aid and other important institutional, economic, and human capital factors, the empirical findings in this article advance the understanding of foreign aid’s role as a catalyst for transformative change and set the stage for more targeted, effective interventions in the pursuit of economic development and poverty eradication.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"2 10","pages":"189 - 220"},"PeriodicalIF":0.0,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141686206","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}