“Global value chains” (GVCs) participation brings countless economic and environmental benefits to “Belt and Road Initiative” (BRI) economies. As the nations associated with BRI are crucial members of GVCs, analyzing the influence of GVCs on environmental quality in BRI economies is of great significance. By joining regression models with “multi‐region input–output” analyses, current study inspects the influence of GVCs on environmental quality in 82 BRI economies from 2002 to 2018. This study considered different GVCs participation modes and national heterogeneity to check “pollution haven hypothesis and pollution halo hypothesis” theories. The GVC position worsened environmental quality in the full BRI panel and validated the pollution haven hypothesis theory. Forward and backward participation improves environmental quality and confirms the pollution halo hypothesis. Moreover, income‐specific outcomes showed divergent patterns related to GVCs and environmental quality. GVCs' position of GVCs promotes the environmental quality of developed and emerging countries and exacerbates that of developing and underdeveloped economies. Moreover, the links of forward and backward participation with environmental quality showed mixed results for the pollution haven and halo theories in all subpanels. The results propose that the BRI should focus on upgrading GVCs and adopting region‐specific green policies to ensure a sustainable environment.
{"title":"Pollution haven or pollution halo? The role of global value chains in Belt and Road economies","authors":"Muhammad Uzair Ali, Y. Wang","doi":"10.1111/rode.13041","DOIUrl":"https://doi.org/10.1111/rode.13041","url":null,"abstract":"“Global value chains” (GVCs) participation brings countless economic and environmental benefits to “Belt and Road Initiative” (BRI) economies. As the nations associated with BRI are crucial members of GVCs, analyzing the influence of GVCs on environmental quality in BRI economies is of great significance. By joining regression models with “multi‐region input–output” analyses, current study inspects the influence of GVCs on environmental quality in 82 BRI economies from 2002 to 2018. This study considered different GVCs participation modes and national heterogeneity to check “pollution haven hypothesis and pollution halo hypothesis” theories. The GVC position worsened environmental quality in the full BRI panel and validated the pollution haven hypothesis theory. Forward and backward participation improves environmental quality and confirms the pollution halo hypothesis. Moreover, income‐specific outcomes showed divergent patterns related to GVCs and environmental quality. GVCs' position of GVCs promotes the environmental quality of developed and emerging countries and exacerbates that of developing and underdeveloped economies. Moreover, the links of forward and backward participation with environmental quality showed mixed results for the pollution haven and halo theories in all subpanels. The results propose that the BRI should focus on upgrading GVCs and adopting region‐specific green policies to ensure a sustainable environment.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41494239","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Ricardian comparative advantage model suggests doing what you are best at. Meanwhile, many development experiences resulted in producing the impossible. Do the two prescriptions lead to an antagonism that the industrial policy must side by one? Or can industrial policy consider the current comparative advantage while aiming for significant changes in the export basket? This paper answers yes by suggesting a path to transformation through the tracks of current comparative advantage. I use the Product Space network to define the two attributes of a product: New products closer to the existing comparative advantage are easier to include in the export basket. On the other hand, central products in the core of the product space might be far from the export basket, but once added, they contribute more to the transformation and further diversification. Hence, a trade‐off exists between the proximity of a new product to the current export basket and its contribution to further diversification and transformation. I offer industrial policymakers to use a combination of product nearness and centrality. A policymaker seeking a gradual and secure transformation can prioritize nearness, while centrality can be given greater weight for rapid transformations.
{"title":"Finding the right products for export diversification","authors":"T. Yenilmez","doi":"10.1111/rode.13049","DOIUrl":"https://doi.org/10.1111/rode.13049","url":null,"abstract":"The Ricardian comparative advantage model suggests doing what you are best at. Meanwhile, many development experiences resulted in producing the impossible. Do the two prescriptions lead to an antagonism that the industrial policy must side by one? Or can industrial policy consider the current comparative advantage while aiming for significant changes in the export basket? This paper answers yes by suggesting a path to transformation through the tracks of current comparative advantage. I use the Product Space network to define the two attributes of a product: New products closer to the existing comparative advantage are easier to include in the export basket. On the other hand, central products in the core of the product space might be far from the export basket, but once added, they contribute more to the transformation and further diversification. Hence, a trade‐off exists between the proximity of a new product to the current export basket and its contribution to further diversification and transformation. I offer industrial policymakers to use a combination of product nearness and centrality. A policymaker seeking a gradual and secure transformation can prioritize nearness, while centrality can be given greater weight for rapid transformations.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46336766","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine the Indian economy during a peak period of high growth between 2005 and 2012 to analyse the nature and patterns of household‐level transitions across different sectors, characterised by varying degrees of formality/informality and various production structures and labour processes. We find that even within this brief period, there has been a huge volume of household‐level transitions across sectors. However, the overall economic structure, and its segmentations, has continued to be reproduced, along with a regeneration of ‘traditional’ non‐capitalist informal spaces. To ascertain the nature of household‐level transitions in terms of economic well‐being, we employ a counterfactual analysis. We find that majority of transitions in the economy have been ‘unfavourable’ in nature, with large proportion of households undergoing sectoral transitions that are not optimal for them, given their socio‐economic characteristics. Furthermore, the likelihood of ‘favourable’ versus ‘unfavourable’ sectoral transition, on average, significantly varies with household characteristics, some of which, like social caste, are structurally given and cannot be optimally chosen by households. Drawing upon this analysis, we reflect on the competing strands of literature that seek to explain the persistence of informality. Our analysis highlights the complexity of India's contemporary development trajectory, whereby the pre‐existing economic structure is reproduced, paradoxically, through a continuous reshuffling and reconstitution of economic spaces, accompanied by significant volume of ‘unfavourable’ household‐level sectoral transitions.
{"title":"Economic transition, dualism and informality in India: Nature and patterns of household‐level transitions","authors":"Surbhi Kesar","doi":"10.1111/rode.13040","DOIUrl":"https://doi.org/10.1111/rode.13040","url":null,"abstract":"We examine the Indian economy during a peak period of high growth between 2005 and 2012 to analyse the nature and patterns of household‐level transitions across different sectors, characterised by varying degrees of formality/informality and various production structures and labour processes. We find that even within this brief period, there has been a huge volume of household‐level transitions across sectors. However, the overall economic structure, and its segmentations, has continued to be reproduced, along with a regeneration of ‘traditional’ non‐capitalist informal spaces. To ascertain the nature of household‐level transitions in terms of economic well‐being, we employ a counterfactual analysis. We find that majority of transitions in the economy have been ‘unfavourable’ in nature, with large proportion of households undergoing sectoral transitions that are not optimal for them, given their socio‐economic characteristics. Furthermore, the likelihood of ‘favourable’ versus ‘unfavourable’ sectoral transition, on average, significantly varies with household characteristics, some of which, like social caste, are structurally given and cannot be optimally chosen by households. Drawing upon this analysis, we reflect on the competing strands of literature that seek to explain the persistence of informality. Our analysis highlights the complexity of India's contemporary development trajectory, whereby the pre‐existing economic structure is reproduced, paradoxically, through a continuous reshuffling and reconstitution of economic spaces, accompanied by significant volume of ‘unfavourable’ household‐level sectoral transitions.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45926315","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jonathan Atta‐Aidoo, Ester Cosmas Matthew, Abdulkarim Onah Saleh, Saidi Bizoza
Despite an improving financial inclusion situation across the developing world, there still exist wide gender gaps in financial inclusion, especially in fragile and post‐conflict countries. In our study, we designed and implemented a survey consisting of 860 households across urban and rural Burundi to examine the effect of financial inclusion on household asset‐based welfare from a gendered perspective. To address any endogeneity concerns, we apply the two‐stage least squares (2SLS) regression method. We find that most Burundian households prefer to save their money at home rather than at a financial institution. Also, mobile money is mainly employed as a means of receiving and withdrawing cash. Our 2SLS regression results reveal that improved financial inclusion has a greater effect on the welfare of female‐headed households than on male‐headed households. We recommend the use of social networks as an avenue to promote financial inclusion and literacy. Additionally, the Government of Burundi can collaborate with the telecommunication operators to institute small loan schemes through the mobile money platform to enhance access to credit, especially for women.
{"title":"A gendered analysis of the effect of financial inclusion on household welfare in Burundi","authors":"Jonathan Atta‐Aidoo, Ester Cosmas Matthew, Abdulkarim Onah Saleh, Saidi Bizoza","doi":"10.1111/rode.13046","DOIUrl":"https://doi.org/10.1111/rode.13046","url":null,"abstract":"Despite an improving financial inclusion situation across the developing world, there still exist wide gender gaps in financial inclusion, especially in fragile and post‐conflict countries. In our study, we designed and implemented a survey consisting of 860 households across urban and rural Burundi to examine the effect of financial inclusion on household asset‐based welfare from a gendered perspective. To address any endogeneity concerns, we apply the two‐stage least squares (2SLS) regression method. We find that most Burundian households prefer to save their money at home rather than at a financial institution. Also, mobile money is mainly employed as a means of receiving and withdrawing cash. Our 2SLS regression results reveal that improved financial inclusion has a greater effect on the welfare of female‐headed households than on male‐headed households. We recommend the use of social networks as an avenue to promote financial inclusion and literacy. Additionally, the Government of Burundi can collaborate with the telecommunication operators to institute small loan schemes through the mobile money platform to enhance access to credit, especially for women.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46882162","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Asset building and financial inclusion programmes have contributed to the enhancement of consumers' welfare through asset accumulation. Employing the FinScope consumer survey for South Africa, we extended the analysis of the relationship between financial inclusion and asset holding by examining whether this, in turn, improves consumers' subjective well‐being (SWB). Financial inclusion was captured by credit, savings, and insurance whereas multiple correspondence analysis was employed to compute an asset index that captured indicators of individual material possessions. Results from the partial least squares path model suggested that financial inclusion had an indirect positive association with consumers' SWB through increased asset holding, but the association was more pronounced via formal channels of saving, credit, and insurance. As such, social policymakers are encouraged to integrate access to insurance, credit, and savings through formal channels in poverty interventions since this has a greater indirect association with consumers' SWB via increased asset ownership.
{"title":"Asset accumulation, financial inclusion and subjective well‐being: The role of financial formality in South Africa's households","authors":"K. J. Chipunza, A. Fanta","doi":"10.1111/rode.13044","DOIUrl":"https://doi.org/10.1111/rode.13044","url":null,"abstract":"Asset building and financial inclusion programmes have contributed to the enhancement of consumers' welfare through asset accumulation. Employing the FinScope consumer survey for South Africa, we extended the analysis of the relationship between financial inclusion and asset holding by examining whether this, in turn, improves consumers' subjective well‐being (SWB). Financial inclusion was captured by credit, savings, and insurance whereas multiple correspondence analysis was employed to compute an asset index that captured indicators of individual material possessions. Results from the partial least squares path model suggested that financial inclusion had an indirect positive association with consumers' SWB through increased asset holding, but the association was more pronounced via formal channels of saving, credit, and insurance. As such, social policymakers are encouraged to integrate access to insurance, credit, and savings through formal channels in poverty interventions since this has a greater indirect association with consumers' SWB via increased asset ownership.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44303743","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhamadu Awal Kindzeka Wirajing, Ali Haruna, Tii N. Nchofoung
The 2023 Sustainable Development Goal Report reveals that Africa is still struggling in its pursuit to achieve universal healthcare coverage. However, financial risk protection and human capital development could come to the rescue by facilitating the attainment of quality healthcare services. This study examines the effect of financial inclusion on healthcare in Africa, spanning from 2000 to 2021. Healthcare is proxied by life expectancy at birth, the immunisation rate, and the lifetime risk of maternal death. Financial inclusion is approached through access and usage of financial services. After controlling for the problem of potential endogeneity through the system generalised method of moment (GMM), the findings reveal that financial inclusion enhances healthcare in Africa, signifying that financially included individuals have a higher conditional probability of spending more on improving their health relative to the financially excluded individuals. Moreover, the findings indicate that education and technology diffusion are imperative in the quest for enhancing healthcare in Africa. In addition, after testing for sensitivity analysis by adopting different indicators of healthcare, the results remain consistent throughout the study, confirming the role of financial inclusion in enhancing healthcare in Africa. After computing the marginal effects, the findings depict that education and financial inclusion interact to produce positive synergy effects, signifying that the positive role of financial inclusion and education in enhancing healthcare outweighs the negative conditional effect. The results recommend policymakers establish a framework that promotes financial literacy for the enhancement of healthcare in Africa.
{"title":"Financial inclusion and healthcare in Africa: Examining the moderating role of education","authors":"Muhamadu Awal Kindzeka Wirajing, Ali Haruna, Tii N. Nchofoung","doi":"10.1111/rode.13043","DOIUrl":"https://doi.org/10.1111/rode.13043","url":null,"abstract":"The 2023 Sustainable Development Goal Report reveals that Africa is still struggling in its pursuit to achieve universal healthcare coverage. However, financial risk protection and human capital development could come to the rescue by facilitating the attainment of quality healthcare services. This study examines the effect of financial inclusion on healthcare in Africa, spanning from 2000 to 2021. Healthcare is proxied by life expectancy at birth, the immunisation rate, and the lifetime risk of maternal death. Financial inclusion is approached through access and usage of financial services. After controlling for the problem of potential endogeneity through the system generalised method of moment (GMM), the findings reveal that financial inclusion enhances healthcare in Africa, signifying that financially included individuals have a higher conditional probability of spending more on improving their health relative to the financially excluded individuals. Moreover, the findings indicate that education and technology diffusion are imperative in the quest for enhancing healthcare in Africa. In addition, after testing for sensitivity analysis by adopting different indicators of healthcare, the results remain consistent throughout the study, confirming the role of financial inclusion in enhancing healthcare in Africa. After computing the marginal effects, the findings depict that education and financial inclusion interact to produce positive synergy effects, signifying that the positive role of financial inclusion and education in enhancing healthcare outweighs the negative conditional effect. The results recommend policymakers establish a framework that promotes financial literacy for the enhancement of healthcare in Africa.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43117616","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The agricultural sector holds paramount implications in the economies of BRICS (Brazil, Russia, India, China, and South Africa) countries. Nevertheless, the escalating effect of climate change shows a significant and alarming threat to the actual environmental conditions required to sustain agricultural production. This study examines the potential contribution of demographic dividends, digitalization, and energy intensity in facilitating the attainment of environmental sustainability and agricultural productivity by BRICS economies from 1996 to 2020. The study first tested cross‐sectional dependence, then unit roots, cointegration, and long‐run elasticities using suitable econometric approaches to explore possible links between the study variables. The empirical results from the long‐run estimators stated that digitalization improves agricultural production and the environment; contrarily, demographic dividend and energy intensity contribute to environmental degradation. Furthermore, the long‐term improvement of agricultural production is supported by demographic dividend, GDP per capita, energy intensity, and digitalization. Also, the study reached a broad inference emphasizing bidirectional causal associations between demographic dividend, energy intensity, GDP per capita, the environment, and agricultural production. In conclusion, the study has identified robust policy options for BRICS economies that can serve as valuable guidance for policymakers in making informed decisions and implementing effective practices.
{"title":"Agricultural productivity‐environmental sustainability nexus through the lens of digitalization and energy intensity in BRICS countries","authors":"Junkai Qi, J. Hussain, Yexing Yin, Anwar Khan","doi":"10.1111/rode.13045","DOIUrl":"https://doi.org/10.1111/rode.13045","url":null,"abstract":"The agricultural sector holds paramount implications in the economies of BRICS (Brazil, Russia, India, China, and South Africa) countries. Nevertheless, the escalating effect of climate change shows a significant and alarming threat to the actual environmental conditions required to sustain agricultural production. This study examines the potential contribution of demographic dividends, digitalization, and energy intensity in facilitating the attainment of environmental sustainability and agricultural productivity by BRICS economies from 1996 to 2020. The study first tested cross‐sectional dependence, then unit roots, cointegration, and long‐run elasticities using suitable econometric approaches to explore possible links between the study variables. The empirical results from the long‐run estimators stated that digitalization improves agricultural production and the environment; contrarily, demographic dividend and energy intensity contribute to environmental degradation. Furthermore, the long‐term improvement of agricultural production is supported by demographic dividend, GDP per capita, energy intensity, and digitalization. Also, the study reached a broad inference emphasizing bidirectional causal associations between demographic dividend, energy intensity, GDP per capita, the environment, and agricultural production. In conclusion, the study has identified robust policy options for BRICS economies that can serve as valuable guidance for policymakers in making informed decisions and implementing effective practices.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48890434","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The welfare impacts of electrification are well documented in the literature, including the effects of electricity on school enrolment. However, the spillover effects of electrification on children's achievement levels are scarce. We use three complementary but distinct econometric models to establish a causal relationship between electrification and test scores using nationally representative household panel data from India. We find positive results irrespective of the choice of econometric model, and these results seem to be mediated by changing time‐use patterns of children with access to electricity. We first exploit the plausibly exogenous variation in access to electricity due to a universal electrification program in the state of West Bengal in India and we find positive effects of electrification on children's test scores. By age group, we find that younger cohorts benefit more in terms of their reading scores than older cohorts. Then, to ascertain external validity of these results, we replicate them over a nationally representative sample using fixed effects and instrumental variables estimation and find similar results. At the intensive margin, we find that access to more hours of electricity positively affects test scores. We identify an increase in time spent by children on study‐related activities as the potential channel for these results.
{"title":"(En‐)‘lightening’ children: Assessing the impacts of access to electricity on learning achievement levels","authors":"Somdeep Chatterjee, Shiv Hastawala, Jai Kamal","doi":"10.1111/rode.13042","DOIUrl":"https://doi.org/10.1111/rode.13042","url":null,"abstract":"The welfare impacts of electrification are well documented in the literature, including the effects of electricity on school enrolment. However, the spillover effects of electrification on children's achievement levels are scarce. We use three complementary but distinct econometric models to establish a causal relationship between electrification and test scores using nationally representative household panel data from India. We find positive results irrespective of the choice of econometric model, and these results seem to be mediated by changing time‐use patterns of children with access to electricity. We first exploit the plausibly exogenous variation in access to electricity due to a universal electrification program in the state of West Bengal in India and we find positive effects of electrification on children's test scores. By age group, we find that younger cohorts benefit more in terms of their reading scores than older cohorts. Then, to ascertain external validity of these results, we replicate them over a nationally representative sample using fixed effects and instrumental variables estimation and find similar results. At the intensive margin, we find that access to more hours of electricity positively affects test scores. We identify an increase in time spent by children on study‐related activities as the potential channel for these results.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43215567","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Despite previous studies investigating the impacts of various factors such as peace years, natural resources, and the rule of law on foreign direct investment (FDI), empirical findings remain inconclusive. Therefore, this study investigates the interplay between these factors in shaping host country conditions that facilitate FDI inflows. Using generalized additive models, we examine the simultaneous effects of peace years, oil wealth, and the rule of law on FDI inflows in a sample of non‐OECD countries from 1970 to 2009. Our results reveal that established peace is a critical factor in attracting FDI inflows for both oil‐exporting and non‐oil‐exporting countries. However, the effects of the rule of law vary depending on oil wealth. Oil‐exporting countries receive more FDI inflows when they have a weak rather than a strong rule of law, while non‐oil‐exporting countries tend to receive more foreign investments when they have a moderately strong rule of law. We argue that countries with oil wealth combined with a moderately weak rule of law provide an environment that is conducive to multinational corporations (MNCs) in extractive industries seeking monopoly rents. Conversely, countries without oil wealth should create stable yet efficient environments that protect property rights and promote labor market flexibility to appeal to non‐resource‐seeking MNCs.
{"title":"Predicting FDI inflows: Exploring a nonlinear relationship between peace years, oil wealth, and the rule of law","authors":"Hyeuk Kim, J. Ryu","doi":"10.1111/rode.13036","DOIUrl":"https://doi.org/10.1111/rode.13036","url":null,"abstract":"Despite previous studies investigating the impacts of various factors such as peace years, natural resources, and the rule of law on foreign direct investment (FDI), empirical findings remain inconclusive. Therefore, this study investigates the interplay between these factors in shaping host country conditions that facilitate FDI inflows. Using generalized additive models, we examine the simultaneous effects of peace years, oil wealth, and the rule of law on FDI inflows in a sample of non‐OECD countries from 1970 to 2009. Our results reveal that established peace is a critical factor in attracting FDI inflows for both oil‐exporting and non‐oil‐exporting countries. However, the effects of the rule of law vary depending on oil wealth. Oil‐exporting countries receive more FDI inflows when they have a weak rather than a strong rule of law, while non‐oil‐exporting countries tend to receive more foreign investments when they have a moderately strong rule of law. We argue that countries with oil wealth combined with a moderately weak rule of law provide an environment that is conducive to multinational corporations (MNCs) in extractive industries seeking monopoly rents. Conversely, countries without oil wealth should create stable yet efficient environments that protect property rights and promote labor market flexibility to appeal to non‐resource‐seeking MNCs.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46621839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Qiubo Zhu, Mariska van der Voort, Guangcheng Ren, Junfei Bai
Abstract Based on a panel data from National Rural Fixed Point Survey (NRFP), this study explored the effects of information and communication technologies (ICTs) on the fertilizer and pesticide use efficiency of China's grain production and the mechanisms using stochastic frontier analysis (SFA) and two‐way fixed‐effects model with two‐stage least square (2SLS) estimation. The results show that the average fertilizer use efficiency (FE), pesticide use efficiency (PE) and comprehensive fertilizer and pesticide use efficiency (CFPE) of grain production were 0.286, 0.404, and 0.364 respectively during 2003–2011. It should be noted that the CFPE decreased by 48.39% during 2003–2011 and showed a descending trend in all regions. ICTs had significant positive effects on FE, PE, and CPFE which could be explained by providing farmers more sustainable knowledge and hence shifting farming practices from overusing fertilizer towards using farmyard manure as a substitute. ICTs' positive effects were more pronounced for farmers with higher‐level education and in central region. Additionally, ICTs had significant spillover effects, extending from users to nonusers within the villages. These results suggest that ICTs could be considered as an effective way to increase the fertilizer and pesticide use efficiency and promote the sustainable development of agriculture in China.
{"title":"Impact of information and communication technologies on fertilizer and pesticide use efficiency of China's grain production","authors":"Qiubo Zhu, Mariska van der Voort, Guangcheng Ren, Junfei Bai","doi":"10.1111/rode.13039","DOIUrl":"https://doi.org/10.1111/rode.13039","url":null,"abstract":"Abstract Based on a panel data from National Rural Fixed Point Survey (NRFP), this study explored the effects of information and communication technologies (ICTs) on the fertilizer and pesticide use efficiency of China's grain production and the mechanisms using stochastic frontier analysis (SFA) and two‐way fixed‐effects model with two‐stage least square (2SLS) estimation. The results show that the average fertilizer use efficiency (FE), pesticide use efficiency (PE) and comprehensive fertilizer and pesticide use efficiency (CFPE) of grain production were 0.286, 0.404, and 0.364 respectively during 2003–2011. It should be noted that the CFPE decreased by 48.39% during 2003–2011 and showed a descending trend in all regions. ICTs had significant positive effects on FE, PE, and CPFE which could be explained by providing farmers more sustainable knowledge and hence shifting farming practices from overusing fertilizer towards using farmyard manure as a substitute. ICTs' positive effects were more pronounced for farmers with higher‐level education and in central region. Additionally, ICTs had significant spillover effects, extending from users to nonusers within the villages. These results suggest that ICTs could be considered as an effective way to increase the fertilizer and pesticide use efficiency and promote the sustainable development of agriculture in China.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135653316","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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