GLOBAL POVERTY REDUCTION AND PARETO-IMPROVING REDISTRIBUTION

Can a transfer of wealth from the United States to the least developed countries be Pareto improving? We analyze this question in an open-economy R&D-based growth model, in which the high-income (low-income) country produces innovative (homogeneous) goods. We find that wealth redistribution to the low-income country simultaneously reduces global inequality and increases economic growth through an increase in labor supply in the high-income country. Given that the market equilibrium of R&D-based growth models is usually inefficient due to R&D externalities, the wealth redistribution may lead to a Pareto improvement, which occurs if the discount rate is sufficiently low or R&D productivity is sufficiently high.

Download Full-text

Why Choose to Cycle in a Low-Income Country?

Sustainability ◽

10.3390/su12187775 ◽

2020 ◽

Vol 12 (18) ◽

pp. 7775

Author(s):

Rahat Sabyrbekov ◽

Indra Overland

Keyword(s):

Air Pollution ◽

Low Income ◽

Developing Economies ◽

Developed Countries ◽

Environmental Benefits ◽

Income Country ◽

Factors Affecting ◽

Low Income Country ◽

Mode Of Transport ◽

Lower Income Countries

Research on the adoption of the bicycle as a means of transport has been booming in high-income countries. However, little is known about bicycle adoption in lower-income countries where air pollution is high and cycling infrastructure is poor. Understanding the drivers of cycling adoption in developing economies can increase the efficiency of transport policies while reducing local air pollution, improving health, and cutting greenhouse gas emissions. The objective of this study is to identify the factors affecting cycling uptake in a low-income country using the city of Bishkek in Kyrgyzstan as a case study. The analysis is based on the Theory of Planned Behavior, a questionnaire-based survey of 900 respondents, factor analysis, and a logit model. In contrast to studies carried out in developed countries, this study finds that students are less likely to adopt cycling than other population groups. Other findings suggest that support for public transport, a desire for regular exercise and perceptions of the environmental benefits of cycling increase the probability of the use of cycling as a mode of transport in a low-income country. The paper also identifies positive and negative perceptions of cycling among cyclists and non-cyclists.

Download Full-text

Operating Across Levels in the Global Economic Hierarchy

The Oxford Handbook of Management in Emerging Markets ◽

10.1093/oxfordhb/9780190683948.013.36 ◽

2018 ◽

pp. 796-820

Author(s):

Helena Barnard ◽

Theresa Onaji-Benson

Keyword(s):

South African ◽

Low Income ◽

Developed Countries ◽

High Income ◽

Low Income Countries ◽

Least Developed Countries ◽

Pecking Order ◽

Middle Income ◽

Middle Income Countries ◽

Emerging Multinationals

The categories “emerging” and “advanced” multinationals gloss over the “middleness” of multinationals from and even in middle-income countries. Middle-income countries face weaker institutions and smaller markets than high-income countries, but conditions are better than in low-income, typically least developed countries. Similarly, skills levels and wages are higher than in low-income countries, but lower than in high-income countries. We argue that this “middleness” matters. Emerging multinationals leverage their position in the global economic hierarchy as brokers working with lead firms, local optimizers operating only downstream, specialist niche providers working only upstream, and sometimes global consolidators operating across the hierarchy. Advanced multinationals use the global economic hierarchy to expand as lead firms in global value chains or pecking order exploiters that enter low-income countries through middle-income countries. Our research, using evidence from South African multinationals, expands our understanding of multinationals’ operations, especially in Africa.

Download Full-text

Export Markets and Labor Allocation in a Low-Income Country

The American Economic Review ◽

10.1257/aer.20141096 ◽

2018 ◽

Vol 108 (7) ◽

pp. 1899-1941 ◽

Cited By ~ 30

Author(s):

Brian McCaig ◽

Nina Pavcnik

Keyword(s):

Labor Productivity ◽

Low Income ◽

Bilateral Trade ◽

Trade Agreement ◽

The United States ◽

Income Country ◽

Formal Sector ◽

Labor Allocation ◽

Low Income Country ◽

Bilateral Trade Agreement

We study the effects of a positive export shock on labor allocation between the informal, microenterprise sector and the formal firm sector in a low-income country. The United States-Vietnam Bilateral Trade Agreement led to large reductions in US tariffs on Vietnamese exports. We find that the share of manufacturing workers in Vietnam in the formal sector increased by 5 percentage points in response to the US tariff reductions. The reallocation was greater for workers in more internationally integrated provinces and for younger cohorts. We estimate the gap in labor productivity within manufacturing across the informal and formal sectors. This gap and the aggregate labor productivity gain from the export-induced reallocation of workers across the two sectors are reduced when we account for worker heterogeneity, measurement error, and differences in labor intensity of production. (JEL F16, J24, O14, O17, O19, P23, P33)

Download Full-text

RECENT TRENDS IN THE EDUCATION SYSTEM IN ETHIOPIA

Psychology and Education Journal ◽

10.17762/pae.v57i9.2726 ◽

2021 ◽

Vol 57 (9) ◽

pp. 6281-6287

Author(s):

Chala Wata Dereso

Keyword(s):

Low Income ◽

Education System ◽

Developed Countries ◽

Rapid Expansion ◽

Least Developed Countries ◽

Low Income Country ◽

The World Bank ◽

The World ◽

Recent Trends ◽

The Government

Ethiopia is the second-largest country in African content with a population of 905 million whereas Nigeria occupied first place with a population of 105 million. As per the Human Development Index, Ethiopia ranked as 173rd position out of 189 countries. It is one of the least developed countries (LDCs) in the world. Presently, Ethiopia has been facing various challenges an efficient education system and the rapid expansion of the population in Ethiopia. As per the African standards, by 2050 the population of Ethiopia will be raised to 191 million and less than 15 years of age people more than 40%. Ethiopia is one of the faster-growing economies during the last decade about the fivefold raised i.e., from USD136 to USD 768. As per the World Bank, Ethiopia is one of the disadvantaged countries during the 20th century due to a lack of efficiency and shortage of teachers. This paper focuses on the recent trends in low-income country of Ethiopia primary, secondary, higher education, to investigate the expenditure incurred by the government influencing the growth of the economy and to give appropriate suggestions for the improvement of the education system in Ethiopia.

Download Full-text