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Economic Development With Unlimited Supplies Of Labour
... The second stage involves a shift towards family-based migration, gradually leading to a "student flow", which consists of an increasing number of migrant children [4]. Since Lewis (1954) proposed the dual-sector model, rural-urban labor mobility has attracted extensive attention from scholars, resulting in a well-developed theoretical framework and analytical model [5,6]. However, studies focusing on rural-urban student mobility during the compulsory education phase (hereafter referred to as "RUSM") have been somewhat insufficient. ...
... The second stage involves a shift towards family-based migration, gradually leading to a "student flow", which consists of an increasing number of migrant children [4]. Since Lewis (1954) proposed the dual-sector model, rural-urban labor mobility has attracted extensive attention from scholars, resulting in a well-developed theoretical framework and analytical model [5,6]. However, studies focusing on rural-urban student mobility during the compulsory education phase (hereafter referred to as "RUSM") have been somewhat insufficient. ...
... Thus, it is evident that RUSM comprehensively impacts the allocation of the three core household resources of labor, land, and capital in rural households ( Figure 1). [5,6]. However, studies focusing on rural-urban student mobility during the compulsory education phase (hereafter referred to as "RUSM") have been somewhat insufficient. ...
The impact of rural-urban student mobility on the efficiency of resource allocation in China’s rural households is crucial for refining policies related to rural migrant settlement and the balanced allocation of urban and rural educational resources. Drawing on theoretical insights, this study employs a mixed methods approach—primarily qualitative, with quantitative support—to empirically test the impact of rural-urban student mobility on the resource allocation efficiency of rural households in China. Utilizing micro-survey data from China Family Panel Studies (CFPS), this study applies ordinary least squares (OLS) models, propensity score matching difference-in-differences (PSM-DID) models, and endogenous switching regression (ESR) models to ascertain the direction of this impact. Furthermore, this study incorporates in-depth interview data gathered from field research in D County to explore the dynamic mechanisms of resource allocation adjustments within these households. The results show that rural-urban student mobility significantly reduces the efficiency of labor resource allocation and agricultural production in China’s rural households. The impact is heterogeneous across different groups, most negatively affecting households with limited labor resources, lower educational levels, lower incomes, more productive fixed assets, and less self-owned land. Mobility leads to suboptimal occupational choices, resulting in decreased labor resource efficiency. Additionally, it distorts agricultural production by leading to labor loss, reduced investments in agricultural productivity, and misaligned land allocation decisions.
... One of the concerns of the classical theory of economic development was precisely to explain how countries undergoing a rapid industrialization process can increase their savings rate of 4-5% of GDP to levels above 15% of GDP within a few years (Lewis, 1954). The explanation given by Lewis was that in the early stages of the industrialization process, the existence of surplus labor in the subsistence or traditional sector allows employment in the modern or industrial sector to expand at larger rates with a virtually nil effect on the supply price of labor. ...
... Basically, productivity in manufacturing is higher than in agriculture because the transfer of resources from this sector to the industry provides a "structural change bonus." This "bonus" comes because of the transfer of labor from economic activities with low productivity to high productivity activities (Lewis, 1954). This automatically raises the overall productivity of the economy. ...
The Brazilian New Developmentalist School, also known as "consensus of São Paulo", can be understood as an approach to the deep determinants of economic development in which macroeconomic policy regime has a key role in explaining the long-term growth differentials among countries, notably middle-income countries. The school was originated from the seminal works of Bresser-Pereira (2006, 2007 and 2009) who defined new developmentalism as a set of proposals for institutional reforms and economic policies, whereby the middle-income countries seek to achieve the per-capita income level of developed countries. The first aim of this article is to present the theoretical foundations and the recent developments of the New Developmentalism School. Regarding the theoretical foundations, New Developmentalism is based on the so-called Structuralist Development Macroeconomics, which can be understood as a synthesis between Classical Development Theory, Latin American Structuralism and Post-Keynesian demand-led growth models. One of the most known and controversial features of new developmentalism is the key role of the manufacturing industry and real exchange rate in the process of economic development. The present article presents the state-of-the art reasoning of the New-Developmentalist school about why and how real exchange rate and manufacturing industry matters for long-run growth. Finally, the article discusses the convergences and divergences between New-Developmentalism and Balance of Payments Constrained Growth models, which are up today the major heterodox explanation for uneven development.
... Structural Transformation Theory proposed by Lewis (1954) is related to the service sector of Pakistan. This theory suggests that shifts in employment from agriculture to industry and services sectors contribute to economic growth. ...
... This theory found negative association between wage rate and per capita income. The results of this study also support "Structural Transformation Theory" of Lewis (1954) which suggests that shifts in employment from agriculture to industry and services contribute to economic growth. It means that the growth in services sector leads to higher wages which, in turn, leads to higher per capita income. ...
The purpose of this study is to investigate in the relationship between wage inequality, unskilled workers, inflation, foreign direct investment and low per capita income of workers in services sector. The author utilized time series secondary data of 20 years to examine empirical relationship between dependent variable, per capita income, and independent variables such as foreign direct investment (FDI), inflation, unemployment, population growth and wages. Different statistical tools such as ADF Test, Correlation matrix, ARDL Model, Error Correction Model, Granger causality and Ramsey Reset test were employed to analyze these relationships. The empirical findings reveal that FDI has positive association with dependent variable, per capita income, while population growth unemployment and wages have negative relationship with it. The study suggests that the Government of Pakistan should boost FDI, control population growth, inflation, wage rate and reduces unemployment to improve per capita income of workers in service sector.
... These developments have led to a marked improvement in living wages and an increase in labor productivity and output. Taken together, these factors have had a determining impact on the dynamics of economic growth and development (Lewis 1954;Chenery 1960;Kaldor 1966;Chenery and Syrquin 1980;Chenery 1982;Kuznets 1973;Young 1995;Berthélemy and Söderling 2001;Li 2009;Keho 2018). One of the most influential studies in this area was developed by Denison (1967), who, using decomposition techniques, determined that the reallocation of resources from agricultural to non-agricultural activities was one of the main factors that contributed to explain why the United States outperformed the United Kingdom in terms of growth between 1950 and 1962. ...
... This shift from an agricultural to an industrial and then to a tertiary economy promotes productivity, a crucial element of economic development (Kurose 2021). Lewis (1954) formalized the dual economy model of two sectors, a traditional one of low efficiency and a modern one of higher productivity. This model assumes an unlimited labor force in the traditional sector, which allows migration to the modern sector without affecting the production level of the traditional sector. ...
The literature has mainly focused on analyzing the relationship of remittances with economic growth and social welfare, neglecting more complex aspects where remittances can have relevant implications. To contribute to the literature, the objective of this research is to examine the dynamic relationship between remittances, capital formation, structural transformation and economic growth in 15 Latin American countries during the period 1996–2019. To meet the objective, a panel vector autoregressive regression (PVAR) model was estimated, focusing on the analysis of the impulse-response function and variance decomposition. The results show a positive effect of remittances on economic growth and capital formation and a negative effect of remittances on structural transformation for initial periods and positive for later periods, framing a non-linear relationship. In addition, it was determined that structural transformation does not have a significant impact on economic growth. Finally, it was found that capital formation has a partial positive effect on economic growth. It is concluded that public policies should generate support mechanisms for the efficient channeling of these resources so that they become engines of growth.
... From the classical point of view income inequality is good for the development of the economy. According to them with wealth marginal propensity to save increases and hence an increase in MPS will lead to the increase in aggregate savings and capital accumulation and thus the result will be economic growth according to Lewis (1954). In the context of Keynes "the outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes" (Keynes, 1936b). ...
Inequality in income distribution has important ramifications for economic growth, development, and social justice (see Atkinson (2000), Piketty (2013), Milanovic (2016), etc.). Piketty (2013) explains the phenomena of growing income inequality in high-income countries by comparing the interest rates (r) and growth rates (g) over time. The crux of the argument is that since the upper income groups generate a significantly greater proportion of their income from investments as compared to lower income groups (due to higher savings rate compared to lower income group), interest rates performing better than the national income growth rates in the high-income countries in the post-cold war era (r-g) explain growing income inequality in these countries. This paper examines the use of this methodology to explain income inequality in Pakistan. It compares the evolution of income of the top 20 percent of Pakistan’s population with the income of the bottom 20 percent, using Piketty’s lens of interest rate growth rate dynamics. Empirical results show that r-g methodology does not capture the income distribution dynamics of Pakistan. Upper income group appears to be negatively affected by increases in interest rates as compared to the lower income group. Prices, international trade, taxes, and financial development tend to be the leading reasons for reducing the impact of r and g framework to explain the income distribution. This paper makes novel contributions to the methodology and implications of Piketty’s framework for studying income inequality in small, open, less developed countries like Pakistan.
... This study is based on the Lewisian dual economy model, which shows that surplus labor plays a critical role in explaining different economic growth paths and structural changes in both developing and developed countries (Lewis, 1954;Villamil et al., 2018). The model demonstrates the effect of surplus labor on economic growth and economic welfare in developed and developing countries. ...
Aim/purpose – This study investigated the nexus between labor force dynamics and economic performance in Nigeria, India, and China. Design/methodology – The study used annual time series data spanning from 1991 to 2021 obtained from World Development Indicators (WDI). After the unit root stationarity test, the Autoregressive Distributed Lag Model (ARDL) was used for the analysis. Findings – Findings from the study support a positive short-run relationship between labor force participation and economic growth in all three countries. However, in China, population growth impacts the economy positively in the long run, while life expectancy at birth negatively impacts the economy in the short run. This is because China’s popula- tion is aging. In India, employment in the industrial and service sectors positively impacts the economy in the long run. In the short run, life expectancy at birth influences the economy negatively. Furthermore, in Nigeria, the industrial and service sector employment impact the economy negatively in the long run, though there are positive effects in the short run. Research implications – The Indian government needs policy reforms in the areas of education and health to take advantage of the potential of its youthful population. The Nigerian government requires implementing a wide range of education, investment, and employment-generating policies to foster tangible economic growth. These reforms could help both India and Nigeria take advantage of the potential for demographic change. The Chinese government, already having policy reforms in place, is geared towards improved fertility and population growth for economic growth in the near future. These policies, coupled with the study’s findings, could provide a more comprehensive understanding of the implications of demographic change on economic performance. Originality/value contributions – This analysis explored and compared the demographic potentials of two young countries (India and Nigeria) and an aging, wealthy economy (China) from the working class. Policy lessons for the attainment of demographic divi- dends are borrowed from China. Keywords: labor force, economic performance, demographic change, population dynamics, ARDL model. JEL Codes: J10, J11
... Assous (2010), there are substantial differences linked to the marginal product of labor assumed by Lewis (1954). 8 This study emerged from a lecture he delivered in 1953 at the Center for Latin American Monetary Studies in Mexico City. ...
This article aims to delve into the contributions of Michal Kalecki to economic development through his seminal Departmental model. Essentially it aims to answer the following question: How does Kalecki's theoretical perspective of economic development enhance our comprehension of structural heterogeneity as defined by the Economic Commission for Latin America and the Caribbean (ECLAC)? In addition, we argue that Kalecki´s contributions to economic development by improving in our understanding of such heterogeneity, identifies ways to overcome.
... Untuk menjelaskan transisi dari ekonomi agraris ke industri, Lewis (1957) mengemukakan model pembangunan ekonomi dualistik. Model ini menggambarkan ekonomi yang terdiri dari dua sektor: sektor tradisional, yang biasanya terdiri dari pertanian dan memiliki surplus tenaga kerja, dan sektor industri yang lebih produktif, yang pada gilirannya mendorong pertumbuhan ekonomi. ...
Buku ini mengungkapkan secara rinci dan mendalam tentang perekonomian Indonesia, mencakup berbagai aspek mulai dari sistem, kebijakan serta struktur perekonomian di Indonesia, pembaca akan mengenal berbagai sektor ekonomi yang menjadi tulang punggung pertumbuhan ekonomi Indonesia, seperti sektor pertanian, perikanan, pertambangan, energi, manufaktur dan jasa. Pembaca akan dibawa dalam perjalanan yang mendalam untuk memhamai dinamika ekonomi Indonesia dengan data dan anaslisis yang terperinci mengenai investasi dan pembiayaan ekonomi, perdagangan internasional, ketenagakerjaan.
... By examining the specialty literature, especially the works related to migration theories relevant to the period, we can note that push-pull factors (Lee, 1966), neoclassical migration theory (Lewis, 1954), mobility gravity (Stouffer, 1940) or dual labour market theory (Piore, 1979) are the predominant frameworks for the 1960-2000 period. As such, pushing factors within the origin country and pulling factors from the origin one become intertwined and result in a migratory movement (Lee, 1966). ...
The current paper engages with the topic and patterns of migration flows to Europe from a historically driven critical perspective. The research is focused primarily on examining the intentions of European States and their immigration policies, either liberal or restrictive, throughout the ages across the pan-European area. The scope of the research is limited to historical migration in Europe, and we employ a retrospective approach to analyse it critically. It is done through the lens of the postcolonial school of thought, as it proves to be the most efficient when explaining fluctuations and 1 modulations recorded. These scholars underlined varying push and pull factors that led to migration toward Europe, especially during modern times. Furthermore, we interpret and overlook how the "united in diversity" desiderates are reflected across the EU's current undertakings, as we employ a critical approach to interpret recent evolutions and draw up prospective avenues holistically. In conclusion, we observe repeating patterns of exploitative systems in the European view of migration, especially toward worker migrants. Hence, we assert that colonial reminiscences remain across some sectorial levels. We advocate that collective intervention is required to eradicate these postcolonial approaches.
... Simultaneously, with the continuous outflow of surplus agricultural labor in rural areas, the marginal productivity of agricultural labor gradually increased. Moreover, as the level of remuneration of agricultural workers approaches the level of industrial wages, the characteristics of the dual economic structure are slowly disappearing; and the transformation of industrialization and urbanization is basically realized (Lewis, 1954). ...
Purpose
This study investigates whether, how and under what circumstances off-farm work induces farmland abandonment, which is of great importance for developing countries to cope with food security.
Design/methodology/approach
Exploiting large-scale panel data from the newly released Chinese Family Database, this study employs a two-way fixed effects model to empirically estimate the causal relationship between off-farm work and farmland abandonment.
Findings
In the context of large-scale labor migration in rural China, current off-farm work leads to an increase in the probability and area of farmland abandoned due to insufficient agricultural labor. However, off-farm work does not harm farm households in plain areas, or villages with land rental markets, abundant agricultural labor, and agricultural machinery, while it harms others. Moreover, farmers who work off-farm in the local area are less likely to abandon their farmland than those in other areas. Additionally, when the number of off-farm workers in a household exceeds two, the probability and area of farmland abandonment will miraculously decline, as the household will no longer live entirely on agriculture.
Originality/value
This study may fill the gap in clarifying the relationship between off-farm work and farmland abandonment, and identify scenarios where off-farm work may not cause farmland abandonment through multiple dimensions, providing insights into the governance of farmland abandonment during rural-urban transformation in developing countries.
... However, notwithstanding a significant decrease in the contribution of agricultural sector towards gross domestic product, it continues to be the main source of employment employing around 45 per cent of the total workforce, and is the key to the reduction of poverty and ensuring food security (Ahluwalia, 1978;Ravallion and Dutt, 1996;World Bank, 2008;Christiaensen and Martin, 2016). The role of agriculture in fostering overall economic development of an economy has long been recognised and discussed in the theoretical literature (Lewis, 1954;Johnston and Mellor, 1961;Mellor, 1976;Kaldor, 1967;Kuznets, 1968;Kalecki, 1960;Ranis and Stewart, 1993). Indian agriculture over the years has made rapid strides and has been transformed from a food deficit one to food surplus one owing to rapid technological, institutional and policy changes. ...
... O novo-desenvolvimentismo complementa as teses do desenvolvimentismo clássico e cepalino (isto é, as teses de Raúl Prebisch e dos economistas da Comissão Econômica para a América Latina e o Caribe), segundo as quais o desenvolvimento econômico efetiva-se como um processo de profundas mudanças estruturais em que os recursos produtivos (notadamente trabalhadores) deslocam-se do setor primário tradicional, de baixa produtividade, para a indústria de transformação, de elevada produtividade. A tese central do desenvolvimentismo clássico, comum a autores como Paul Rosenstein-Rodan (1943), Arthur Lewis (1954), Albert Hirschman (1958), Gunnar Myrdal (1959), Raúl Prebisch (1949, 1973, Celso Furtado (1952Furtado ( , 1959Furtado ( , 1961 e outros, é que o setor manufatureiro opera como motor do desenvolvimento econômico, porque, diferentemente da agropecuária e dos serviços tradicionais, ele gera e difunde progresso técnico para a economia como um todo, sustentando o crescimento e o avanço da produtividade do trabalho no longo prazo. ...
Neste ensaio, sintetizo as proposições do novo-desenvolvimentismo, corrente de pensamento econômico da qual o economista brasileiro Luiz Carlos Bresser-Pereira se destaca como o principal formulador. O argumento central do novo-desenvolvimentismo é que, nos países em desenvolvimento, trajetórias bem-sucedidas de alcance de renda per capita e de padrões de bem-estar para níveis médios prevalecentes nos países desenvolvidos (ou seja, a efetivação do catching-up) dependem da harmonização das políticas públicas (particularmente, as políticas industrial e tecnológica lato sensu e o regime macroeconômico), destinadas a sustentar o crescimento econômico e a promover a diversificação da estrutura produtiva e da pauta exportadora. Arranjos inadequados de política econômica podem fazer com que a rota inicialmente exitosa de catching up nos países em desenvolvimento seja desviada para longos períodos de estagnação, como tem sido o caso do Brasil e de diversos outros países em desenvolvimento nas últimas décadas. O artigo mostra que o principal avanço do novo-desenvolvimentismo em relação ao desenvolvimentismo clássico e cepalino é o esforço de integrar a macroeconomia à teoria do desenvolvimento econômico. Neste estudo, analiso as teses principais do novo-desenvolvimentismo, especialmente sua crítica à estratégia de crescimento com poupança externa e à não-neutralização da doença holandesa, “políticas habituais” observadas no Brasil e em outros países em desenvolvimento que, ao sobrevalorizar a moeda doméstica em relação às moedas dos parceiros comerciais, leva à desindustrialização e à estagnação econômica. No final, os comentários críticos a pontos que, a meu juízo, merecem aprimoramento na teoria novo-desenvolvimentista em nada afetam a validade e robustez de suas principais teses analisadas neste ensaio.
... Population urbanization, transferring people from rural areas to cities and towns, significantly impacts economic development. Lewis detailed his theory of dual economic structure in his 1954 book, Economic Development under an Unlimited Supply of Labor [35]. It explains how population migration can contribute to the growth of a city's size and economic development, thereby increasing demand in the logistics industry and yielding increased economic benefits. ...
New urbanization in counties and the logistics industry are closely related and are essential in promoting regional economic and social development. There are specific challenges and obstacles to revealing the interaction mechanism and system state measurement between the two. This paper explains the two coupling mechanisms and constructs the evaluation index system. It proposes a new analysis method based on the coupling coordination degree model, the spatio-temporal evolution analysis, and the grey prediction model. The goal is to learn more about and fully realize the coordinated development mechanisms of the two. It then uses the Hebei province of China as an example to empirically analyze its systematic cross-sectional data from 2013 to 2022. Research findings: (1) In Hebei province, the new urbanization in counties and the logistics industry have a systematic coupling relationship. However, the logistics industry’s comprehensive development level is relatively lagging. The two systems have been at a high-level coupling stage for the last decade and maintain a high coupling status. The coupling coordination has shown significant improvement. (2) Although the geographical distribution of the coupling and coordination degree of the new urbanization in counties and logistics industry system has short-term volatility, it is still stable in the long term and presents economic-related spatial characteristics. (3) Over the next five years, the coupling coordination of 11 cities in Hebei province will steadily grow. There will be greater harmonization between the two systems. (4) From the analysis results, the evaluation index system of the coupled system constructed is scientific and reasonable. The analysis method can not only measure the system’s coupling degree, but it can also predict the development trend and analyze the spatial evolution. The technique has novelty and validity, which can be used as a reference for analyzing and making decisions about similar systems.
... (.) is the indicator function which takes the value 1 when the condition in the parenthesis is satisfied and 0 otherwise. The vector , includes: the growth rate of real per capita GDP, because low growth is associated with greater income inequality (Piketty, 2014); the rate of inflation, because inflation adds to economic uncertainty and can depress both average incomes and the incomes of the poor (Romer and Romer, 1999); the ratio of foreign trade to GDP, because theory and much empirical evidence supports the view that trade liberalization is poverty-alleviating in the long run and on average (Winters et al., 2004); and the ratio of government final consumption to GDP, because the median voter theory of government size predicts that greater inequality leads to greater demand for redistribution and larger government (Meltzer and Richard, 1981), and the growth of the working population because large available supplies of labor will maintain downward pressure on wages until much of that supply has been absorbed (Lewis, 1954). Data on GDP per capita growth, foreign trade, government consumption, and inflation are from the World Bank's World Development Indicators (WDI) database. ...
We identify the optimal level of financial development for income inequality in a panel of countries employing a non-linear panel Generalized Method of Moments approach. The impact of financial development is statistically significant above and below the optimal level, but its impact on income inequality is not asymmetric, with the costs of financial ‘under-development’ being greater than those for ‘over-development’.
... Therefore, if growth is to be expected for exports, the lack of rapid growth in export revenues is predicted. The fourth fact is the labor force: the labor force of the developing countries is often employed in the agricultural sector, so their final production is negligible, zero or even negative (Lewis, 1954). At the moment, the fact that the workforce in the developing countries suffers from excess supply or unemployment is fully accepted. ...
In the development literature, the emphasis is always on the international trade policies. In the global experience, a group of middle-income developing countries are successful in the world trade, and larger number of developing countries have been excluded. This paper uses the simultaneous equation system to examine the relationship between economic and political development with international trade policies during the period 2006_2014 in two groups of selected developing and developed countries. The results of this research show a direct and positive impact of political development on the international trade liberalization policies and the effect of this this policy on economic development. Therefore, based on the present evidence, sustainable development can be created by establishing appropriate platforms and solidarity between political and economic development with international trade.
... However, in the long run, the income gap should be narrowed in order to realize the common prosperity, but never the average prosperity. Lewis [27] introduces the theory of "Urban-Rural Dualism", positing that in developing countries, an imbalance in development leads to the emergence of two distinct economic structures. This dualism is reflected in variations in the mode of production and lifestyles. ...
This paper examines the impacts of government-market relation (measured by the degree of marketization) on the link between financial deepening and income growth of rural residents. Using macro panel data covering a period from 2010 to 2021 across 31 provincial administrative regions in China, we create an interaction variable that captures the interplay between financial deepening and the degree of marketization. Employing a fixed effects model and a dynamic panel regression model, we derive three robust findings from the regression analysis: (1) the higher the degree of marketization, the stronger the promotion effect of financial deepening on the growth of rural residents' income, with a one-year lag effect; (2) the higher the degree of marketization, the stronger the promotion effect of financial deepening on the wage income of rural residents, with a one-year lag effect; (3) the higher marketization fails to create the promotion effects of financial deepening on the net business income and net property income of rural residents. These results suggest that financial deepening aimed at raising rural residents' incomes in provinces, where China's marketization has slowed down, stagnated, or retrogressed, will have difficulty reaching its goals, and that some of the financial and economic problems affecting the growth of rural residents' business and property incomes remain unresolved.
... Particularmente, em Rosenstein-Rodan (1943), Lewis (1954), Hirschman (1958) Procedimentos médicos e cálculos de engenharia são exemplos de conhecimento tácito. ...
A magnitude das assimetrias tecnológicas pode ser fator determinante para o padrão de crescimento desigual entre os países. Sendo esta uma importante dimensão da reflexão econômica heterodoxa no contexto dos modelos de crescimento restrito pelo balanço de pagamentos, é oportuna uma investigação a respeito da dinâmica do gap e do nível de intensidade tecnológico observado entre países do Norte e do Sul. Este é o esforço empreendido neste ensaio para a totalidade de países da América Latina e do Caribe. Partindo de um modelo de regressão linear para dados em painel, foi possível observar que a dinâmica temporal do nível médio de intensidade tecnológica dos países avaliados tende para um equilíbrio próximo da intensidade observada em países como Portugal e Nova Zelândia. Apesar disso, os valores encontrados situam-se distantes de países no topo da classificação estabelecida pelo Índice de Complexidade Econômica (ECI), indicando a necessidade de intervenções públicas para aprimorar as capacidades produtivas de cada país ao longo do tempo.
... The idea that development entails a decline in agriculture's share of employment and output, while manufacturing's importance first rises and then falls in favour of services was already discussed in the seventeenth century by Sir William Petty (Clark 1957), and was later further expanded by many notable economists (Lewis 1954(Lewis , 1955Clark 1957;Kuznets 1966;Syrquin 1988), who wrote about the observed pattern of the reallocation of workers from traditional agriculture to 'modern' industry in Europe and North America and predicted a similar path for other developing regions. ...
Structural transformation is among the core questions in development economics, but in recent decades, the discipline has shifted its focus away from production and transformation in favour of analyses on exchange, growth and productivity. Yet, the structural transformation question remains central, and needs to be confronted with the main changes in the global economic and political landscape, such as the emergence of the Belt and Road Initiative (BRI). With its emphasis on an infrastructure-based connectivity agenda, the BRI opens the space for a paradigm shift in development, and for a renewed emphasis on structural transformation. This article introduces a special issue that explores the role of the BRI in promoting structural transformation in low- and middle-income countries, to understand if and under which conditions the BRI creates pathways that can change the structure of the economies. Through an explicit focus on the role of BRI on transformation in low- and middle-income countries, this special issue examines how domestic institutions regulate and coordinate production diversification, national and international sectoral specificities, and drivers and barriers to technological innovation and trade. In this sense, the special issue sheds light on new conceptualisations and empirical examples of industrial policies.
... However, the impact of aid or any other monetary inflows on the growth rate of the recipient economy depends on the investment or consumption nature of this money transfer. In this view, Lewis (1954) argues that the key to economic development lies in increasing investment. Similarly, Rostow (1960) perceives that the question of how to change an underdeveloped country into a developed economy depends on increasing investment (Raimi & Ogunjirin, 2012). ...
In developing countries like Bangladesh, foreign capital inflows, such as remittances, are a vital source of funds that can bridge the domestic investment gap. Previous empirical results from developing countries show that remittances are widely consumed and seldom used for investment purposes. Therefore, the objective of this study is to identify the link between remittances and investment at the household level in Bangladesh. Based on a large-scale and nationally representative crosssectional secondary data set of the Bangladesh Bureau of Statistics and employing the ordinary least square (OLS) regression model, this study helps to explore the link between remittances and investment at the household level in Bangladesh. The result of this study reveals that remittances positively affect the housing, land, agriculture, business, and valuable investment decisions at the household level, and significantly impact various types of investment. Therefore, it can be said that in the least developed countries like Bangladesh, remittance does act as credit insurance and works as a riskspreading strategy to secure and increase income and acquire capital for investment. The demographic characteristics of the household head, such as gender and marital status, have a significant impact on household investment.
... The Kuznets curve associated with such a process has been extensively studied and remains at the heart of a large literature. The classic papers in this literature areKuznets (1955) andLewis (1954). For a recent analysis of Kuznets curves (in the context of China), seeRavallion and Chen (2022). ...
Empirical findings suggest a positive correlation between inequality and social immobility, a phenomenon coined the Gatsby curve. This paper answers a simple question: When do Gatsby curves exist? We build a theoretical n-income environment in which parental investment and education improve the economic prospects of children. Gatsbian economies and Gatsby curves are formally defined, and we characterize the conditions under which they arise. A Gatsby curve arises when immobility (Trace of the transition matrix) and inequality (Gini coefficient) both change in the same direction following a change in an exogenous variable (an income level, the level of education).When an exogenous variable changes, the impact on inequality depends on a standard direct effect and on an indirect (composition) effect which accounts for the changes in the proportions of individuals with various incomes. We show that following an increase in some high income, immobility and inequality both increase if the indirect effect goes in the same direction as the direct effect. Thus, in such a case, the economy moves up a Gatsby curve. We also demonstrate that if the indirect effect goes in the same direction as the direct effect, and if education is a substitute to parental investment, then an increase in education leads to the economy moving down a Gatsby curve where it experiences both lower inequality and immobility. Finally, we show that an economy may go from being Gatsbian to non-Gatsbian, and vice versa.
... The field of development economics has introduced various theories regarding the impact of RUM on farm production. According to Lewis' dual economy model, farm production remains largely unaffected by RUM due to the presence of surplus farm labor with zero marginal productivity in agriculture, a characteristic of developing countries [14,15]. Similarly, the agricultural household model (AHM) suggests that production decisions of farmers are independent of consumption and off-farm employment [16]. ...
Over the past three decades, China has shifted from a relatively immobile society to one where rural migrant workers are dispersed throughout urban areas, resulting in significant changes in rural family structure. Previous studies have tended to approach migrant workers as homogeneous groups within families. In contrast, our attention turns to the diversity among individuals and the complex interactions within families. Based on a survey of rice farmers in five provinces of China, this study aims to explore the heterogeneous impact of changes in rural family structure on the single-factor (i.e., land, labor, and capital) productivity and technical efficiency (TE) of rice production. Methodologically, we calculated the productivity indicator through the Cobb–Douglas production function. Following this, a one-step stochastic frontier approach (SFA) was employed to assess the production frontier and estimate inefficiency. To address self-selection bias in family migration behavior, we applied the propensity score matching method (PSM). The results reveal that significant outcomes are observed only with certain types of changes in rural family structure. The production decisions of rural families are influenced by the migration regions of their family members. Compared to non-migrating families (NM), families with couples’ joint migration outside the province show higher single-factor productivity and TE. We used multiple approaches to examine the results and came to similar conclusions. Therefore, enhancing social security measures and employment opportunities for migrant workers, with specific attention to supporting migrant couples, can have a positive impact on sustainable urban and rural development, as well as food security.
... They also examined forms of production organization and the essential stages for achieving successful economic development, as detailed in Rostow (1956). Special attention was given to the transition of labor from traditional to modern sectors and its implications for capital accumulation and reinvestment, as observed in Lewis (1954). ...
... The neo-classical theory of migration states some of the issues concerning rural-urban migration. Rural-urban migration is seen as a part of the development process in which surplus labour in the rural sector supplies the workforce for urban industrial economy (Lewis, 1954). Material progress is associated with shifting of economic agents from traditional agriculture based rural economy to industry based urban economy (Todaro, 1969). ...
Migration of young men has several social, economic and welfare impacts on the families of the migrants. This paper focuses on the social as well as welfare impacts that male outmigration have on the lives of the families of the migrants. This paper aims to study the impact of migration on changing decision-making roles of women in both farming and household spheres. It also covers the felt changes by the migrant families on family expenditure, social status and overall welfare. Migration increases the role of women in household decision making and in farming activities. The negative impacts of male outmigration include shortage of labour and increased workload on women. The positive impacts include improvement in quality of food intake, healthcare of the pregnant women and elderly and increased emphasis on the education of girl children.
... Theories of UE were developed to elucidate the imperialistic nature of commercial relations between transnational corporations and economically disadvantaged countries, resulting in the conceptualization of a global value transfer in the form of imperial rent (Hobson, 1917;Lenin, 1950). Subsequently, the concept took its modern form primarily through two distinct theoretical approaches: the Structuralist perspective, associated with the prominent figures of Lewis, Prebisch and Singer (Lewis, 1954;Prebisch, 1959;Singer, 1950), and the Marxist viewpoint, with Emmanuel and Amin as its leading proponents (Amin, 1978;Emmanuel, 1972). From there, "the term unequal exchange became widespread in the 1970 s through Marxist debate on underdeveloped countries and their falling terms of trade" (Brolin, 2007). ...
There is an imperative need to transition towards sustainable societies to mitigate the consequences of the ongoing social-ecological crisis. This transition not only requires technical advancements, but also the reconsideration of our environmental paradigms and policies shaping the interrelationships between human societies and natural ecosystems. The perspective of "ecologically unequal exchange" is receiving increasing attention in the academic debate, highlighting the unequal distribution of environmental costs and benefits across different regions, social groups, and generations. This theory posits that such inequalities arise from unaccounted dynamics of global development perpetuated by current environmental and trade policies. Through these, regions of the Core have achieved high levels of consumption and economic growth by exploiting the natural resources and labor of the global Periphery and Semi-periphery, while leaving behind a legacy of ecological degradation, social injustice, and debt. This article contributes to the understanding of ecologically unequal exchange theories, their evolution over time and related implications for sustainability policies. To do so, we perform a bibliometric analysis to assess the evolution and trends of ecologically unequal exchange literature in English-language journals followed by a literature review illustrating the origins of the concept, the theoretical debate, and empirical advances in the field. We find ecologically unequal exchange to be a rising research area with increasing empirical focus, fostered by interdisciplinary collaboration. Moreover, we juxtapose theories of ecologically unequal exchange with the contrasting paradigm of "Ecological Modernization" and the narratives of green growth and decoupling that underpin contemporary global sustainability policies, to elucidate key distinctions.
... The www.carijournals.org 7 theory posits that technological advancements play a crucial role in driving this transformation by facilitating shifts in employment patterns and sectoral composition (Lewis, 1954). According to Lewis, as technology improves and productivity increases in the industrial sector, labor is drawn away from agriculture towards more productive and higher-paying manufacturing jobs. ...
Purpose: This study sought to examine the impact of technological advancements on work and employment patterns. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to the role of religion in shaping social attitudes towards LGBTQ+ rights. The study provided comprehensive insights into the transformative effects of technology on the labor market. Through an analysis of existing literature and empirical studies, the research highlighted the emergence of job polarization, non-standard forms of employment, and the growing importance of education and skills development in the digital economy. The findings emphasized the need for proactive policy responses to address the challenges posed by technological change while harnessing its benefits for inclusive and sustainable economic growth. Overall, the study contributed valuable knowledge to the understanding of how technological advancements shape work and employment patterns, guiding future efforts to navigate the complexities of the digital age. Unique Contribution to Theory, Practice and Policy: The Structural Transformation theory, Skill- Biased Technological Change theory and Institutional theory may be used to anchor future studies on technological advancements on work and employment patterns. The study provided recommendations that contributed to theory, practice, and policy. It called for further research to explore the mechanisms underlying the relationship between technology and employment. Additionally, the study emphasized the importance of investing in education and skills development to prepare the workforce for the challenges of the digital economy. From a policy perspective, proactive measures were recommended to promote inclusive and sustainable employment growth, including strategies to support workers through transitions and ensure equitable distribution of benefits. Collaboration between stakeholders and ongoing monitoring and evaluation of policy interventions were also highlighted as crucial for addressing the socio-economic implications of technological change.
... Since a considerable number of theoretical analyses advocate for capital accumulation as a reliable factor for growth, proponents of foreign build on this postulation to argue that because foreign aid can improve capital accumulation (Lewis, 1954;Nurkse, 1953;Rosenstein-Rodan, 1943), and technical knowledge in under-developed or developing economies it, therefore, can stimulate economic growth (Pankaj, 2005). Accordingly, some studies document results suggesting aid promotes growth and contributes to poverty reduction (see Alvi & Senbeta, 2012;Dong & Fan, 2020;Hirano & Otsubo, 2014;Kaya et al., 2013). 1 Despite the seemingly cogent analysis that proponents of foreign aid outline on how it can be essential to economic growth, it is not without criticism. ...
This paper adopts a micro‐level analysis to assess the effect of aid from China and the World Bank on the wealth of locals residing near aid project sites. We match geospatial data on aid projects financed by China and the World Bank in 35 African countries between 2008 and 2014 to respondents from rounds 5 and 6 of the Afrobarometer survey. The results indicate that aid from these two donors increases the wealth of the local population. Our transmission mechanism test suggests that aid impacts wealth by promoting employment opportunities.
... The dual economy models that emerged from this shift to society-wide divisions between social groups added a macro-level, economy structure focus to the original theory of noncompeting groups micro-level market focus. A transition figure was W. Arthur Lewis who advanced such a theory in his dual sector model of developing nations' economic growth (Lewis 1954). ...
Stratification economics (SE) investigates how economies are organized around group inequalities, especially by race and gender but also by ethnicity, national origin, religion, sexual orientation, etc. Its historical origins and theoretical foundations have both a structural strand that addresses how and a social behavioral strand. SE’s structural strand goes back to Ricardo and Marx regarding the relationship between growth and distribution, and then draws on recent economic theory of noncompeting groups and dual economy models of labor market segmentation. SE’s structural strand produces an inequality-based understanding of economics’ standard goods taxonomy. The social behavioral strand builds on Du Bois’s psychological wage concept, Veblen’s social ladders theory of emulation, Blumer’s theory of prejudice and stereotyping, and current social identity theory. SE’s social behavioral strand makes it possible to explain how discrimination selectively stigmatizes people’s social identities in order to reinforce existing intergroup inequalities.
... The oldest and probably the most well-known theory is that offered by neoclassical economics, which was originally developed to explain labour migration. In fact, the neoclassical theory of international migration stemmed from models intending to justify the movement of people from the countryside to the city in the so-called dual economies; that is, developing economies where the expansion of one sector, the modern one, takes labourers from the traditional one (agriculture-based), (Lewis, 1954;Harris and Todaro, 1970). It focuses on wage differentials, the conditions and probability of employment and the costs of migration. ...
Although much research on migration has been carried out over the years, the focus of the attention has been mostly on immigration and its effects on the host countries and the economic drivers for choosing migration. Italian emigration abroad in post-World War II (1946-73) and in the 21 st century (2004-19) forms a key part of Italy's recent history. Converging and diverging trends in Italian emigration have not received enough attention in literature to date. The aim of this study is to compare the two periods of mass emigration, highlighting differences and similarities by analysing the emigration trends from the various Italian Regions, using percentage values, as opposed to absolute values, which can often distort the true picture. The study provides a historical overview of the changes in Italian emigration on both the macro-area and regional levels. The use of secondary literature and data allowed for an analysis between the different regional origins of the migrants and the emigration trends in the regions, as well as for the formulation of hypotheses regarding the emigrants' migration motives. This research helps fill the gap in literature through the comparison of the 1946-1973 and 2004-2019 periods of Italian mass emigration. The findings reveal the scale of this emigration, the various regional origins of the emigrants, the regional differences in the trends, the attitude to emigration in sender societies and also the potential reasons behind the emigrants' departure. Results provide enough information to affirm that today Ital-ian emigration is due to the increased movements of people in a globally interconnected labour market, but, unlike the 1946-1973 mass migration, it pertains mainly to higher-income Italian regions, highlighting the importance of the need to look beyond the purely economic drivers and determinants to better understand the reasons behind the choice to emigrate.
... Kuznets, Lewis, Meier and other economists have shown that the growth of population has been an important factor in the growth of "developed" countries (Jhingan, 2007). Other proponents of this assertion are Bloom and Freeman (1998), Coale and Hoover (1958), Friedberg and Hunt (1995), Nurkse (1951) and Lewis (1954). However, notable economists such as Malthus (1798), Gerald and Meier (1995) and Martin (2009) believe that population growth has an inverse relationship with economic development. ...
This paper investigates the potency of increasing population on economic development in Nigeria hinging the background of analysis on Malthusian population theory. It is important to emphasize that while Malthus believes that increase in population leads to underdevelopment, other economists like Marx and Engels see it otherwise especially with regards to socialist and capitalist economies. Using the Vector Error Correction (VEC) Mechanism to estimate a time series covering a 31 year period of 1982-2012, the study found out that population growth has no significant impact on economic development in Nigeria within the study period-giving credence to the theoretical underpinning. The study recommends among others that the government should embark on enlightening campaigns to intimate the populace on the dangers of overpopulation and its attendant consequences. Also, the continuous benefits of modernization in terms of improved health care services and other social securities should be made available to the populace, the majority whom are poverty stricken. Finally, the pursuit of diversifying the economy should be relentless, so that the channels of stimulating growth and development will not be neglected. ________________________________________________________________________________________
... Long-standing beliefs about the macroeconomic dynamics of the growth process claimed that increasing savings, when turned into productive investment, would help in economic "take-off" Harrod (1939); Domar (1946); Lewis (1954) and Solow (1956). Endogenous growth theorists like Romer (1986); Lucas (1988) and Barro (1991) supported the idea that investments in physical capital are the main source of sustainable economic growth. ...
The present research paper tries to explore the causal relationship between savings and investment in India using a time series dataset spanning the years 1960 to 2021. The entire dataset is divided into two distinct sub-periods: the pre-liberalization (1960–1990) and the post-liberalization (1991–2021). The empirical analysis is done through correlation matrix, unit root analysis, cointegration analysis, VAR Granger causality, and pairwise Granger causality. The correlation matrix indicates that the
association between GDS and GDI is positive throughout the duration and sub-periods. Further, the unit root test outcomes exhibit that the variables are stationary at their first differences. The results from the cointegration analysis establish the existence of a long-term relationship between variables, VAR Granger causality test brings to light a one-way connection from GDS to GDI, whereas, the pairwise Granger causality test validates the findings obtained from the VAR Granger causality approach. Overall, the study concluded that the classical notion of planned savings always being equal to planned investment is not valid even after the liberalization of the Indian economy.
The aim of this article is to analyze the role of exchange rate misalignment in explaining the effects of foreign direct investment (FDI) on industrial development in Sub-Saharan Africa. To this end, the ARDL model was used to analyze the nature of exchange rate misalignment, before mobilizing spatial econometrics to examine its role in explaining the effects of FDI on industrial development. The estimates show that: (1) the exchange rate of SSA countries registers positive deviations (overvaluation) and negative deviations (undervaluation) of the exchange rate, and that these effects are more pronounced in countries with fixed exchange rate regimes; (2) FDI has positive effects on industrial development, but undervaluation amplifies these effects, while overvaluation attenuates them. The article recommends adopting exchange rate undervaluations and improving the business climate to encourage massive FDI inflows and job creation in the manufacturing sector.
This paper investigated the effect of foreign debt on the literacy rate in Kenya. In the fiscal year 2021/2022, public debt as a percentage of gross domestic product was 67 per cent, which was higher than the debt ceiling of 55 per cent of gross domestic product. External debt accounted for 52% of this total debt as of 2022, exhibiting a consistent increase since 2013, surpassing domestic debt. The burden of servicing foreign debt may subsequently pose a challenge to the government in fulfilling its commitments in the education sector. Consequently, lower literacy rates impede a nation's socioeconomic progress as literacy is critical for promoting peace and adopting new technologies, both of which drive development. This study used the primary school completion rate as a proxy for literacy. Secondary data published in international and national organizations from 1990 to 2021 was employed for analysis. The study's theoretical framework was pegged on a consumer utility maximization of a merit-good education constrained by the government's financing. The relevant time series and diagnostic tests were performed on the data series and models. Auto Regressive Distributed Lag model was used for estimation using ordinary least squares. The findings were that foreign debt hurt the literacy rate in the long run and had a positive effect in the short run. The study recommends prudent management of foreign debt, so that it can facilitate improvements in the education sector.
p>This paper investigated the effect of foreign debt on literacy rate in Kenya. In the fiscal year 2021/2022, public debt as a percentage of gross domestic product was 67 per cent, which was higher than the debt ceiling of 55 per cent of gross domestic product. External debt accounted for 52% of this total debt as of 2022, exhibiting a consistent increase since 2013, surpassing domestic debt. The burden of servicing foreign debt may subsequently pose a challenge to the government in fulfilling its commitments in the education sector. Consequently, lower literacy rates impede a nation's socio-economic progress as literacy is critical for promoting peace and adopting new technologies, both of which drive development. This study used the primary school completion rate as a proxy for literacy. Secondary data published in international and national organizations from 1990 to 2021 was employed for analysis. The study’s theoretical framework was pegged on a consumer utility maximization of a merit-good education constrained by the government's financing. The relevant time series and diagnostic tests were performed on the data series and models. Auto Regressive Distributed Lag model was used for estimation using ordinary least squares. The findings were that foreign debt hurt literacy rate in the long run and had a positive effect in the short run. The study recommends prudent management of foreign debt, so that it can facilitate improvements in the education sector.
JEL: I25; H63; O55; C22
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In this paper we set up a theoretical model of labour migration by extending the basic Harris Todaro (1970) model to incorporate the recent empirical findings on migration. We consider a closed developing economy with a dual structure. The urban formal sector has heterogenous firms producing varieties similar to the Melitz (2003) framework but with skill, wage and quality hierarchy. There is an urban informal sector producing an inferior good and a rural sector producing an essential good. The labourers are heterogeneous as well and there is both skilled and unskilled migration. Finally, in this structure we observe the effect of an infrastructural development policy in the form of reduction in fixed cost of migration. We find that both the sectors in the urban area expands while the rural sector shrinks. Furthermore, both skilled and unskilled migration increases. So, encouraging migration through infrastructural development by reducing cost of migration is beneficial as it leads to urbanisation.
JEL Classification: J24, J61, L22
This chapter discusses the concept of Transnational Emigration State (TES) and its role in the management of emigration and the transnational flows it generates. It highlights the influence of international organisations in shaping the TES and the ways in which public authorities perceive and manage emigrants. The paper illustrates the theoretical considerations by investigating the diverse set of policies and institutions in Morocco responsible for migration issues, covering economic, social, cultural, religious and diplomatic aspects. It shows how TES policies target migrant social institutions such as transnational families, businesses and organisations to enhance financial and other beneficial forms of remittances while taming adverse political influence and contestation of state authorities. It does so by establishing relay institutions in settlement areas and by developing a political economy of transnational morality to influence the behaviour of expatriated nationals.
The social division of labor and the relationship between capital and labor are at the core of capitalism. Chapter 9 introduces these aspects and discusses national differences in the institutional design of labor regimes, such as the role of trade unions, informality, and wage systems. These are expressed in different reform paths and adaptation processes to the pressure to liberalize through the processes of globalization and digitalization and have a decisive influence on growth and development prospects. The chapter also refers to the transnational character of the social division of labor with regard to migration movements and their effects on both home and host countries. Finally, the chapter highlights the (transnational) attempts to regulate and control labor standards, particularly in global value chains.
The government’s environmental protection policy can significantly contribute to alleviating resource shortages and curbing environmental pollution, but the impact of various policy instruments implemented by the government on energy efficiency is unclear. Based on the panel data of 30 provinces in China from 2005 to 2021, this paper analyses the impact of environmental regulation and the industrial structure on energy efficiency from the perspective of resource taxes. The U-shaped relationship between environmental regulation and energy efficiency and between the optimization of industrial structure can significantly improve energy efficiency, and the optimization of industrial structure is conducive to weakening the initial inhibitory effect of environmental regulation. In addition, the analysis of regional heterogeneity showed that the impact of environmental regulation was stronger in the central and western regions, while the impact of industrial structure was stronger in the eastern and western regions. The conclusions of this study can help to expand the understanding of the relationship between environmental regulation and industrial structure on energy efficiency, provide policy enlightenment for the realization of green development and high-quality development, and provide Chinese examples and experiences for developing countries to improve energy efficiency.
Urbanization reflects economic growth to a considerable extent. As China’s GDP and per capita GDP do not always reveal the full picture of development, the level of urbanization generally can and should act as a key supplement when we are trying to gauge the efficiency of economic growth. Since reform and opening-up, the pace of urbanization in China has far surpassed both the world average and that of any individual country. From 1978 to 2018, China’s urbanization increased by 230.5%. Within the same timeframe, the world’s average urbanization grew by 43.4%. The figure for high-income countries was 14.4%; for upper-middle-income countries it was 90.2%, for lower-middle-income countries 60.8%, and for low-income countries 69.7%.
Thailand has experienced a decline in income inequality coupled with unimpressive economic growth since the end of the 1997/98 Asian financial crisis. This paper uses the structuralist approach to understand how these concurrent economic phenomena have become deeply intertwined. We argue that this intertwining results from Thailand’s economic structure, manifesting two types of dualism: (i) the dualism of the formal–informal sectors and (ii) the dualism of the dynamic–stagnant sectors. A decline in the informal sector in recent years coincides with a decrease in income inequality. Further, the second type of dualism between the dynamic and stagnant sectors has emerged since 2000. The stagnant sectors’ employment share has grown faster than that of the dynamic sectors, resulting in a slowdown in economic growth and less inequality. The decline of the informal sector and the rise of the stagnant sectors are the primary engines weighing down economic growth and reducing income inequality in Thailand.
Purpose
The participation of females in economic activity remains a challenge, and received a lot of attention for a better labor policy discourse. The empirical research focused widely on the relationship between female labor force participation (FLFP) and economic development, called the feminization U-shape hypothesis. However, the linear/nonlinear relationship has been questioned due to empirical and methodological anomalies. Hence, this study aims to extend the previous work by reexamining this relationship in Pakistan.
Design/methodology/approach
The annual data from 1980 to 2021, the unit root tests augmented Dickey–Fuller and Phillips and Perron, the conventional autoregressive distributed lag bound test approach by including the quadratic-term of GDP per capita and the novel Sasabuchi–Lind–Mehlum (SLM) U test (2010) used for empirical estimation.
Findings
The findings revealed the prospects of a long-run nonlinear association between FLFP and economic development in Pakistan. However, an inverse U-shape exists between the female labor force participation rate (FLFPR) and GDP per capita, predicting that FLFP may decline in the future.
Research limitations/implications
The traditional feminization U-shape hypothesis has little empirical support in the case of Pakistan. Therefore, the Government of Pakistan should enhance the enabling environment for females through the provision of better job opportunities, technical skills, on-the-job training and social security benefits during all phases of economic development.
Originality/value
The conventional approach of testing U-shape is insufficient. To the best of the authors’ knowledge, therefore, this study incorporated a wider data set in a time series that is less evident, an advanced methodology SLM U test (2010), to validate the feminization U-shape hypothesis in Pakistan for the first time.
Agriculture is a very important sector in Africa's economic development, particularly in Burkina Faso, as it employs a large proportion of the population. Given the importance of labor in this sector, a good allocation of the different types of labor could help increase agricultural productivity in Burkina Faso. This research contributes to the literature by determining the specific contributions of each type of labor in enhancing cotton productivity. The sample of this research is 477 cotton farms, and a semiparametric stochastic frontier model has been used in the analysis. The results show that the proportion of wage labor has a nonlinear effect and contributes to improving cotton productivity when the number of educated people in the household increases. But family labor decreases cotton productivity when the number of educated people in the household increase. The comparison between the findings of the semiparametric and parametric frontier shows that technical efficiency is 72.44% when education is used as the channel through which production factors affect cotton productivity. However, this technical efficiency is 54.96% when production factors directly affect cotton productivity in the parametric frontier model. Promoting education in rural areas will help to increase the number of people educated and consequently improve cotton productivity.
Se aborda el análisis de los factores que explican la evolución de corto plazo de las tasas regionales de pobreza en México entre 2002 y 2014. El estudio enfatiza los vínculos que existen entre los cambios en las tasas de pobreza, los contrastes en el crecimiento económico de las regiones y los canales que modifican la distribución del ingreso en México. Se muestra cómo las diferencias regionales en las tasas de pobreza se ven determinadas por las características del mercado laboral en términos de la dualidad: formalidad-informalidad. Se demuestra, además, la estrecha vinculación en la economía mexicana entre el papel que desempeña la informalidad como obstáculo del crecimiento regional y su papel detonante de la desigualdad.
This paper evaluates a large urban public works program randomly rolled out across neighborhoods of Addis Ababa, Ethiopia. We find the program increased public employment and reduced private labor supply among beneficiaries and improved local amenities in treated locations. We then combine a spatial equilibrium model and unique commuting data to estimate the spillover effects of the program on private sector wages across neighborhoods: under full program rollout, wages increased by 18.6 percent. Using our model, we show that welfare gains to the poor are six times larger when we include the indirect effects on private wages and local amenities. (JEL H76, I38, J22, J31, O15, O18, R23)
Development should improve all aspects of human living for local community including economic, social, and cultural aspects. In the context of development in Papua, under the centralization system, the Province remained poorly developed compared to other regions in Indonesia. Papua received special autonomy in 2001, and under this status, the local government has implemented development based on adat spliting the region into five clusters of development, namely Mee Pago, La Pago, Mamta, Saireri, and Anim Ha. The main reason for this type of development is due to the local government's perspective that the development in Papua has a little success which has caused Papuans' beliefs that the Papuans' cultural aspects are never considered and sensitized in initiating the development. By using secondary data published by the Development Planning Agency (Bappeda) of Papua Province, this research explores the implication of economic development and social indicators in five clusters of development in Mee Pago, La Pago, Mamta, Saireri and Anim Ha regions based on economic growth, income per capita, poverty rate, and Gini ratio. The results show that the development based on adat perspectives possesses huge challenges, one of which is when initiating the development in conflict zones. Despite economic potentials in some regions being tried to increase its growth, some are not consistently developed while some others are no longer operated; even if operated, safety issues require more practical steps towards a better solution. Thus, empowering local economy by pursuing peace among the community should become a priority program to improve the welfare of Papuans.
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