The Journal of Developing Areas最新文献

{"title":"Agrifood Market Participation and Household Livelihood Diversification: Evidence from Vietnam","authors":"Hiroyuki Takeshima","doi":"10.1353/jda.2022.0073","DOIUrl":"https://doi.org/10.1353/jda.2022.0073","url":null,"abstract":"ABSTRACT:Despite the growth of agrifood markets, and gradual structural transformation, smallholder farm households (SFHs) persist in Asia. Such patterns are at odds with the views that market growth should encourage more specialization whereby smallholders transition to either larger farmers or specialized non-farm households. Agrifood market participation is one of many factors that affect SFHs' expansion into the non-agricultural sector, including a range of other economic shocks or climate change, among others. Nonetheless, focusing explicitly on agrifood market participation is still important because of the particular economic pathways through which it potentially affects the economies of diversification into the non-agricultural sector. For example, market participation can transform households' economic environment by enabling them to exploit comparative advantage between food production and non-agricultural sector activities. At the same time, among various markets, participation in the agrifood market is unique in the sense that it is in the context of the consumption of \"food\" which is an absolute necessity, unlike the consumption of many other goods. In such a context, it is questionable whether SFHs are better off by fully specializing in non-agricultural sector activities and exiting from their own food production activities. Knowledge gaps, however, remain regarding the precise linkages between such agrifood market participation and SFHs' expansions into the non-agricultural sector. Using the panel household data in Vietnam, this study investigates how participation in agrifood markets affect smallholder households' economies of scope (EOS) in diversifying into agriculture and non-agricultural income-earning activities. We find that, greater agrifood market participation proxied by the increased food purchase is generally associated with increased EOS between agriculture and non-agricultural activities at the household level. Moreover, it leads to greater labor productivity in agriculture, and also increases female household members' diversifications into both agriculture and non-agricultural income-earning activities. These effects are relatively stronger and more consistent than conventional indicators of agrifood product sales or proximity to the market. The findings suggest that, in addition to focusing on income potentials of increased agrifood commodity sales, policies that facilitate SFHs' increased purchase of food items from the market can have further complementary effects on their livelihood improvements.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133312201","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":"On The Estimation of Tax-Spend Debate In Algeria: Evidence From Nardl Modelling and Asymmetric Causality Test","authors":"Ahlam Makhlouf, M. Dahmani","doi":"10.1353/jda.2022.0071","DOIUrl":"https://doi.org/10.1353/jda.2022.0071","url":null,"abstract":"ABSTRACT:Since its independence, the Algerian economy has dealt with many crises, especially those related to the global oil markets, which are witnessing severe fluctuations, and since Algeria is a rentier economy these crises have threaten its fiscal policy in the last four decades. In such cases, policy-makers have to think wisely about any possible negative effects that may impact the economy through fixing the issue of the adjustment to both spending and revenues. Previous literature assumes a symmetric linkage between government spending and revenue. However, a variation on public revenue does not necessarily have the same impact on public expenditure, or vice-versa. Considering this possible asymmetry between the variables, the main purpose of this study is to examine the asymmetric relationship between government expenditures and revenues in Algeria over the period 1970–2018, and to confirm one of the four hypotheses linked to the tax-spend debate. To characterize asymmetry, this study uses the nonlinear autoregressive distributed lags (NARDL) approach of cointegration developed by Shin et al (2014) between these two variables in the adjustment process of the budgetary. Furthermore, we applied the asymmetric causality approach test using bootstrap simulations with leverage adjustments popularized by Hatemi-J, 2012; Hacker and Hatemi-J, 2012 to determine the causal relationship between variables. The findings provide evidence that suggests that there is a long-run relationship between government expenditures and revenues. To put it differently, in the long run, positives changes in revenue dominate the response of government expenditure. The same applies to the response of spending since positive changes in government expenditure are greater than negative changes. Asymmetric causality results supported a bidirectional causality pattern between public expenditures and revenues in Algeria, thus it supports the fiscal synchronization hypothesis in Algeria. The results of the research are important to increase interest in fiscal policy in Algeria, where under this hypothesis, the fiscal authorities of Algeria must try to raise revenues and work to rationalize public spending simultaneously to control the budget deficit.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114717813","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 Political Representation and Gender Attitudes in Rural India","authors":"Shatanjaya Dasgupta","doi":"10.1353/jda.2022.0069","DOIUrl":"https://doi.org/10.1353/jda.2022.0069","url":null,"abstract":"ABSTRACT:Various cultural and social values regarding gender roles have perpetuated gender inequality in India. One factor that can challenge stereotypical gender norms is increasing female political representation. Enacted in 1993, the 73rd Amendment to the Indian Constitution formalized local government structures in rural India. It also mandated that at least one-third of local political seats be reserved for women. This paper investigates the impact of this policy on the gender attitudes of resident women and men in rural areas. The empirical strategy relies on two sources of variation to identify the impact of introducing women in political leadership positions. First, there is considerable variation across states in the timing of the first election held under the purview of this legislative change. Second, the length of an individual's exposure to female leaders also varies based on their age. Data on timing of the first election with reserved seats for women is obtained from Iyer et al. (2012). Individual-level information comes from the 2015-16 round of the National Family and Health Survey, a nationally representative cross-sectional dataset. The survey interviewed women aged 15-49 years and men aged 15-54 years. Results from logistic regression models confirm that the gender attitudes of women and men are positively influenced by this legislative change, which is consistent with previous literature. Specifically, this study finds a lowering of stated son preference among men and women, a reduction in the justification of violence among women, and greater preference for involving women in household decisions particularly among men. These effects are likely driven by changes in norms and beliefs as well as the weakening of stereotypes about gender roles in the domestic sphere due to provision of female role models and exposure to female leadership. All in all, the results are notable since a move towards gender-egalitarian attitudes may amend various other gender unequal outcomes and behaviors.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124104655","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":"Coagglomeration of Formal and Informal Manufacturing in India","authors":"Aasheerwad Dwivedi, A. Dubey","doi":"10.1353/jda.2022.0065","DOIUrl":"https://doi.org/10.1353/jda.2022.0065","url":null,"abstract":"ABSTRACT:Most developing countries have large and persistent informal sector. Historically, the literature was dominated by strict duality viewpoint, where the formal and informal sectors are treated as two separate entities. However, in recent times, a new approach has developed where the formal and informal sectors are not binary but they often co-exist and feed into each other. Most academic work on agglomeration economies is based on developed countries where almost all production takes place in the formal sector. Apriori, there is no reason to believe that agglomeration economies do not extend to the informal sector. Hence, in this paper, we hypothesize that agglomeration economies can arise from the interaction between formal and informal firms as well. To check the validity of the hypothesis, we study the geographic distribution and Coagglomeration pattern between formal and informal manufacturing firms in India. Using the firm level National Sample Survey for unincorporated enterprises and Annual Survey of Industries data, we calculate the Ellison and Glaeser Coagglomeration index at 2-digit NIC level. Further, using the Marshall's theory of agglomeration, we create four kinds of linkages to capture the nature of interdependence between formal and informal firms, i.e. Buyer, Supplier, Labor and Technology. We find that there is heavy clustering of both formal and informal manufacturing firms in India, however, mostly in different areas, with few exceptions like Western Uttar Pradesh and Southern Tamil Nadu. Out of 22 major industries, we find high coagglomeration only in 7. The average value of coagglomeration index at aggregate level decreases from 0.00536 in 2000-01 to -0.0027 in 2015-16. This indicate towards reduced interdependence over time, however in few industries it remains high. The average value of labor linkage increased from 0.1889 in 2000-01 to 0.3651 in 2015-16, during the same period buyer linkage remained constant around 0.2481 and supplier linkage fell from 0.5755 to 0.2749. The technology linkage remained low throughout in the range of 0.02-0.03. Strong buyer and labor linkage mean subcontracting of inputs is the main motive driving the interaction between formal and informal firms.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"149 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130945104","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 Relationship Between Public Social Security Expenditures and Poverty, Income Inequality, and Gdp Growth: An Empirical Case Study of Bangladesh","authors":"Mohammad Abdul Hannan Pradhan, Rahim Quazi","doi":"10.1353/jda.2022.0064","DOIUrl":"https://doi.org/10.1353/jda.2022.0064","url":null,"abstract":"ABSTRACT:During recent years, public social security programs for the poor and vulnerable groups in Bangladesh have grown both in number and size. The primary goal of these programs is to lift people out of poverty and to contribute to national economic development. The objective of this article is to quantify the relationship between public social security expenditures and poverty, income inequality, and GDP growth in Bangladesh. The study uses multivariate time series data from 1991 to 2019 and applies the Johansen cointegration test and the Vector Error Correction (VEC) modeling methodology. There are three dependent variables-poverty rate, Gini coefficient, and GDP growth rate, while public social security expenses, GDP per capita, active working-age population aged 1564, elderly population aged above 65, gross capital formation, share of population aged 25-64 with tertiary (post-secondary) education, inflation, and export earnings as a share of GDP are used as the explanatory variables. The estimated results suggest that public social security expenditures have significant effects on gross capital formation, but not on either poverty or income inequality in the short run in Bangladesh. In addition, capital formation, public social security expenditures, elderly population, and export earnings are found to have significant positive effects on GDP growth in the long run. Higher levels of GDP should generate more resources for the government coffers, enabling the government to expand the social security programs by targeting higher numbers of beneficiaries and offering higher amounts of benefits, which in turn can contribute to further GDP growth. This study also finds that public social security expenditures have no significant effect on income inequality in Bangladesh in either short run or long run. However, the general hypothesis is that social security transfers to lower-income groups may help with reducing income inequality. In many developing countries, governments allocate and distribute inadequate amounts of money to targeted communities, which results in only marginal changes in inequality. The lesson for the policymakers in Bangladesh is to overhaul the existing social security programs that evidently have had marginal effects on reducing income inequality, and may even have worsened poverty in the long run.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133550319","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":"Leaders' Visits and Foreign Debt","authors":"Oasis Kodila‐Tedika, S. Khalifa","doi":"10.1353/jda.2022.0078","DOIUrl":"https://doi.org/10.1353/jda.2022.0078","url":null,"abstract":"ABSTRACT:This paper examines the effect of a visit by a country's leader to the U.S. on the ability to attract foreign loans. The difficulty is the issue of endogeneity. As the leader's visit may attract foreign loans, leaders may also be tempted to visit countries known to be major creditors. To deal with potential endogeneity, we introduce a novel instrumental variable for the number of leader's trips. The instrument is urban distance defined as the gap between the level of urban development in the country of the leader relative to that in the United States. We conduct a Two-Stage-Least-Squares estimation (2SLS) and the Limited Information Maximum Likelihood (LIML) estimation where the urban distance serves as a source of exogenous variation in leader's trips. The data for leader's trips is derived from the historical archives of the U.S. State Department. The estimation provides evidence of a statistically significant positive coefficient of leader's trips. This result implies that these trips by the leaders signal to the creditors their commitment to use the borrowed funds properly and to repay these funds in due time. Our results are robust even after the inclusion of other control variable, using alternative samples, and accounting for the potential of instrument weakness. Borrowers ought to consider the beneficial effect of a visit by their leaders to their creditors. These trips allow the leaders to present to foreign creditors the projects that need to be financed in their countries, to persuade them to extend a loan to their country with concessionary terms, to highlight the future benefits of the loan, and to reassure them of the ability of the borrower to repay the principal and interest in due time.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"111 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124110887","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":"Crowding-in or Crowding-Out? Complementarity and Substitutability Between Public and Private Investment in Pakistan","authors":"Jaya Jha","doi":"10.1353/jda.2022.0075","DOIUrl":"https://doi.org/10.1353/jda.2022.0075","url":null,"abstract":"ABSTRACT:Starting in the early 1990s, Pakistan initiated a comprehensive program of deregulation and privatization. The program focused on deregulating the energy, finance, and banking sectors as well as privatization of hundreds of state-owned enterprises, finally broadening to increased opportunities for private sector firms in areas previously reserved for public sector firms such as airlines, ports, shipping, highways, and telecommunications. The deregulation and privatization programs succeeded in raising the real gross fixed capital formation in the private sector by 133% from 1991 to 2018. Yet, as a share of GDP, private investment in Pakistan has remained relatively stable at around 13% of national output, while public investment has remained around 2.8% of GDP. This paper investigates the debate on complementarity versus substitutability between public investment and private investment in Pakistan. A structural vector error correction model (SVECM) is estimated to examine how the relationship between public and private investment in Pakistan has evolved over time. Using the \"great ratio\" of output and investment, a stationary long-term relationship between output, public and private investment is embedded in the modeling framework, and identification of the SVECM is achieved by decomposing structural innovations into those producing temporary and permanent effects on the system. Applying the empirical framework to data from the World Bank over the 1964–2019 period, it is shown that while public investment may crowd out private investment temporarily in the short run, its effects on output are positive both in the short run and in the long run. Economic growth is the most important source of growth in private investment, even as private investment itself does not appear to contribute to economic growth in a major way. These findings have important policy implications. First, policies that increase government spending on public capital are likely to enhance productivity and output growth in the short and long run. Moreover, this effect may more than offset the negative impact of debt-financed government consumption. Second, a full accounting of investment undertaken by Pakistan's military-owned (but privately listed) companies may correct for the potential underestimation of the positive effects of public investment on output and private investment.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126957081","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":"Postponing the Inevitable: Can Monetary Policy Promote Environmental Sustainability in Southern Africa?","authors":"O. Shobande","doi":"10.1353/jda.2022.0045","DOIUrl":"https://doi.org/10.1353/jda.2022.0045","url":null,"abstract":"ABSTRACT:Globally, stakeholders are desperate in search of appropriate monetary policy for promoting environmental sustainability and countering the threat of climate events. They have attempted to identify some mechanisms such as climate lending system, sound financial development, and interest rate to adjust pollution to tackle climate-related risk. These advocates of the monetary environment nexus proposed three key strategies. First, banks should lower rates to financing climate-related lending criteria. Second, consider lower financing rates for firms that embrace carbon footprints. Third, central banks (CBs) must reconsider financing condition-based threshold of lending and climate risk disclosure. To heighten the debate, the central banks are advised to favour green policies, even if there is a need to compromise stability and productivity to realise the objectives. However, the question of whether it is appropriate to include climate mandates as part of the central bank operational mandate remains controversial. This is because the CBs, climatologists and scientists are divided in opinion with regards to using monetary policy to promote environmental sustainability without creating distortion in the system. More so, the persistent questions include how fast and at what cost can a monetary policy promote environmental sustainability. The extent of the aftermath, which is associated with the failure of monetary authorities in encouraging sustainability and the complications arising during economic activities in Africa, remains unknown. In addition to physical risk, bubble assets, slow farm productivity, prolonged growth, and other factors remain a concern. Although climate change is widely believed to impact only agriculture and energy, the banking sector is insecure due to the risk of imminent financial crises. This study investigates whether a monetary policy can promote climate financing in the Southern African Development Community (SADC). The SADC is selected as the candidate of inquiry because it has been identified as a potential hotspot of climate events. The empirical evidence is based on Westerlund cointegration that accounts for cross-sectional dependency and the Panel Vector Autoregressive/ Panel Vector Error Correction methodology. The findings indicate that a long-lasting relationship exists among the factors; however, the monetary policy induces sustainability with a feedback effect on the economy. Therefore, the mandates of CBs differ and handling financial stability as well as climate-related concerns may cause distortions that go beyond existing monetary instruments.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130462815","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":"Efficiency of Investment in Agricultural R & D in Relation to Food Production Index: A Malmquist Index Analysis for the West-African Countries","authors":"Thomas Bilaliib Udimal, Zhiyuan Peng, Chao Cao, Liangang Zhang","doi":"10.1353/jda.2022.0042","DOIUrl":"https://doi.org/10.1353/jda.2022.0042","url":null,"abstract":"ABSTRACT:Investment in R & D in the agricultural sector is one of the means to propel the growth of the sector, but failure to ensure the efficient use of resources allocated to agricultural R & D would lead to wastage and underproduction. Based on this, the paper seeks to look at the efficiency of investment in agricultural R& D in relation to the food production index in the West Africa sub-region. To achieve this objective, the number of full-time researchers and spending in terms of percentage of the share of agriculture to GDP were treated as inputs and the food production index as an output (agriculture output). The study used panel data from 2009 to 2014. The Malmquist index approach was adopted to measure the efficiency of food production in selected West African countries. The mean Malmquist index of 0.991, 1.032, 0.976, 0.995, 1.051, 0.908, 0.966, and 0.961 for Ghana, Benin, Burkina-Faso, Ivory Coast, Niger, Nigeria, Senegal, and Togo, respectively, were recorded. Benin and Niger experienced growth in food production within the period. The remaining countries, however, did not experience growth in food production as their respective means were less than 1 (Mi <1), which was an indication of inefficiencies in the application of investments committed to agricultural R & D. To help identify the role played by various components, technical efficiency change and technological progress change for the respective countries were also calculated. The results of the study show the need to go beyond mere allocation of resources to the agricultural sector and push towards efficient use of resources. The allocation of resources without measures to ensure their proper use would not yield the desired outcome. Various countries exhibited some levels of inefficiency across the dimensions assessed. This, therefore, calls for close attention to the use of agricultural resources. There is a need to ensure efficient use of resources committed to agricultural research and development across respective countries. Measures should be put in place to reduce wastage and redundancy in the allocation of resources for agricultural research and development, to improve efficiency and productivity in the agricultural sector.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"269 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125891648","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":"Public-Private Partnerships in Infrastructure Projects: The Role of Ida Status of a Country","authors":"Mohammad Taslim Uddin","doi":"10.1353/jda.2022.0057","DOIUrl":"https://doi.org/10.1353/jda.2022.0057","url":null,"abstract":"ABSTRACT:Public-private partnerships (PPPs) are increasingly promoted by advocates as an innovative policy tool for redressing inefficiency in traditional public procurement mechanisms. Governments, operating on razor-thin budgets in many developing countries, also pursue PPPs on the grounds that they will bridge their countries' infrastructure gaps. This paper empirically investigates the main incentives that motivate both public and private entities to pursue PPPs as an infrastructure investment tool, focusing on the International Development Association (IDA) status of a country. This study uses a cross-country panel regression for 36 developing countries over 1990-2019, where the outcome variable is the project count as well as the level of PPP investment (PPI). For the regression of the former the study applies Zero Inflated Poisson (ZIP), while for the latter it uses tobit model. While IDA status is negatively associated with PPPs, GDP per capita, economic growth, market size, M2 money supply and inflation are all positively related with PPPs. While volatile exchange rates discourage risk-averse investors, fuel export and foreign aid encourage them to participate in PPPs. Findings also suggest that private investors are less inclined toward PPPs in highly indebted and effectively governed countries. Although the years of PPP experience initially attract more PPPs, further experiences are proving to be frustrating and discouraging of future PPPs. The size of the market, purchasing power in terms of per capita GDP, and inflation all emerge as the most relevant factors in attracting PPPI. Countries with substantial foreign exchange reserves and higher fuel exports are found to attract greater PPPI. Similarly, crisis-ridden nations also pursue more PPPIs. Finally, government effectiveness is found to exert a negative impact on PPPI. The findings could be useful for governments of these countries to guide the design and implementation of policies conducive to a sound investment environment. The prevalence of PPPs in richer countries and the private sectors' preference for higher inflation and less effective government hint a rent-seeking motive on the part of private entities. Alternatives should, therefore, be investigated before pursuing the PPP route. If governments opt to engage in PPPs, they have to pay attention to certain macro conditions.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"116 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124757476","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}