Capita Income Levels Research Articles

Türkiye'de orta gelir tuzağı sorununun ampirik analizi ve karşılaştırmalı değerlendirmesi

This study aims to determine the status of Türkiye's middle-income trap, which is classified as an upper-middle-income country according to The World Bank's income classification. Based on the approach of Robertson and Ye (2013), the United States is used as the reference country, and econometric analyses are conducted on Türkiye's per capita income levels from 1960 to 2021, using unit root tests that include both traditional and structural break models, following the study of Soreg (2017). The analyses conclude that, according to the method of Robertson and Ye (2013), Türkiye is not in a middle-income trap. In this approach, tests conducted with developed countries like the United States as a reference reveal that Türkiye is outside of this trap. However, an alternative method based on the global average per capita income indicates that Türkiye is in a middle-income trap. This result highlights that the evaluation model considering the global average per capita income offers a different perspective on whether Türkiye is in a middle-income trap.

Research on Child-Friendly Evaluation and Optimization Strategies for Rural Public Spaces

Public spaces are essential for the implementation of child-friendly principles and the development of child-friendly cities, with positive and healthy environments playing a crucial role in supporting children’s well-being and development. However, existing research on child-friendly public spaces predominantly targets economically developed urban areas with robust public service infrastructure, often neglecting rural areas with less advanced facilities. This study utilizes grounded theory and qualitative analysis to propose a child-friendly public space evaluation framework specifically for rural settings. The framework includes four primary indicators—safety, accessibility, comfort, and multifunctionality—and 19 secondary indicators, such as facility safety and plant safety. An empirical investigation was conducted in Baishoupu Town, a child-friendly pilot area within Changsha, China, which is designated as a United Nations Child-Friendly City, and the study encompassed an analysis of 11 rural villages within this area. The findings reveal that while Baishoupu Town demonstrates a relatively high level of child-friendly development, there is significant disparity among individual villages. Key determinants affecting the child-friendliness of rural public spaces include the type of rural industry, per capita income levels, and the degree of policy support. Specifically, the advancement of public service infrastructure and the tourism sector significantly influence the primary indicators. Moreover, while rural road infrastructure is positively correlated with accessibility, the presence of through traffic adversely affects safety indicators. Based on these insights, this study recommends enhancing child-friendliness in rural public spaces through strategic village planning, spatial design improvements, and ensuring child participation. This research provides valuable insights for government policy development and implementation and offers a replicable framework for child-friendly public space development in rural areas globally.

Does Engel's law work in central and Eastern European countries? The role of aspirations in determining food expenditures

Some of the CEE countries, despite rising per capita incomes and their gradual convergence to the levels of Western European countries, have recently experienced a stabilization or even an increase in share of food in total households’ expenditure. This is, of course, inconsistent with the Engel's Law, which postulates that share of food in total expenditure in these countries should gradually converge to the levels observed in the Western European countries, as the per capita income gap narrows. Using panel regressions it was shown that a factor explaining this anomaly may be aspirations among CEE countries to emulate the Western lifestyle reflected in the disproportionately high share of processed food in their total expenditure on food and non-alcoholic beverages compared to their per capita income level. The results obtained can be helpful in understanding food consumption patterns in catching-up economies, which is important for analyzing inflationary processes in these countries.

INTER-REGIONAL POVERTY DISPARITIES IN JAVA, INDONESIA: AN ANALYSIS OF KEY INFLUENCING FACTORS (2010-2020)

This study seeks to investigate the evolution of poverty in Java from 2010 to 2020, as well as the regional factors that contributing to disparities in poverty between regions. The results of the analysis indicate a downward trend in the number and proportion of poor people on the island of Java but a rise during the COVID-19 pandemic. There are regional distribution groups with high and low poverty rates. The results of the ANOVA reveal significant differences in the occurrence of urban poverty on the island of Java based on province and regional status but not by zone. Positively and negatively, the majority of the predictors have a very significant relationship with poverty. Six regional variables (level of consumption (expenditure), level of health (life expectancy), income per capita, level of education (number of years of schooling), population density (people/km2), and economic potential (GRDP at current prices)) account for 68.10% of the variation in the number of poor people in Java, while the remaining 31.9% is determined by other variables. The model of variation in Java's poverty is determined by three variables: per capita income, GRDP, and public consumption level.

Assessing decarbonization: a comparison of the green sacrifice ratio for China and India

ABSTRACT Carbon mitigation and net-zero targets have an important place on the political agenda for all countries. Countries have been seeking to decouple economic growth and carbon emissions to achieve decarbonization. However, there is a cost of the decarbonization of economies, which can be called as Green Sacrifice Ratio (GSR), and this is critical for developing countries because they have been in the growing stage. By considering the critical role of GSR in achieving net-zero emissions by decarbonizing economies, the study comparatively examines how much environmental quality should be sacrificed for per capita economic growth in China and India. In line with this purpose, the study uses the Fourier-Shin cointegration test and various time series estimators with Fourier approximations for the period from 1989/Q1 to 2022/Q4. Estimation results are as follows: (i) all variables follow the non-stationary process, (ii) the long-run relationship exists between variables, and (iii) Estimation results show that GSR is 0.65% for China and 0.78% for India. Therefore, China and India sacrifice a significant amount of environmental quality for a 1% increase in per capita income level. Also, the ecological cost of increasing economic welfare in India is higher with regard to China. Besides, the results are robust according to the alternative method. Thus, the study recommends that both Chinese and Indian policymakers should revise the economic expansion structure with green growth strategies to prevent irreversible environmental degradation due to higher economic growth.

Does Declining Female Labour Force Participation Result in Fewer Gender Gaps?

South Asia has the second highest gender gap in8 major regions in the world. The highest gender gaps are for economic participation and political empowerment. Economic participation and opportunities grow as more women pursue professional and technical education. The over-all gender gap has marginally declined from 54.08 in 1998 to 50.8 in 2021. This indicate that the progress has been remarkably slow in terms of female labour force participation, with India, Pakistan, Afghanistan and Maldives on the lowest side. While South Asia is the fastest-growing region globally, the female labour force participation rate is only 23.6% versus 80% for men. There is a significant negative relationship between the two variables. With every increase in per capita income level in South Asia, labour force participation shows an inverted U relationship. This contradicts the empirical estimations in the literature showing a U shape relationship. The main finding is that gender gaps in employment, job characteristics, and working conditions are growing as per capita incomes rise. Further, per capita, income growth speeds up the reduction process of gender inequality and gender gaps. This again confirms the proposition that labour force participation does not directly lead to reduction in gender gaps. Reduction in gender gaps does lead to increased labour force participation. Effective implementation of gender-centric policies, creating a level playing field for women, accelerates the process of gender balanced opportunities and outcomes. Technological interventions cannot act as a substitute for policy interventions.

DISPROPORTIONS IN THE DEVELOPMENT OF THE NATIONAL REPUBLICS OF RUSSIA IN THE ASSESSMENTS OF RUSSIAN SOCIOLOGISTS: THE ETHNOSOCIAL ASPECT (USING THE EXAMPLE OF ASIAN RUSSIA)

The article is devoted to the problem of disproportion in the regional development of the national republics of Asian Russia: the Republic of Altai, the Republic of Buryatia, the Republic of Sakha (Yakutia), the Republic of Tyva, the Republic of Khakassia. The problems of demographic development of regions (decrease in average life expectancy and the share of the population, including Russian, “Western” migration trend), quality of life (decrease in income and employment), development of industry and agriculture are considered. The empirical basis of the study was a comparative analysis of indicators of average life expectancy at birth, average per capita income, employment and unemployment levels based on Rosstat data. The results of research by Russian sociologists studying these regions were used as secondary sources of information. A serious lag in the quality of life of the national regions of the Siberian and Far Eastern districts from the Russian average has been revealed. The conclusion is made about the need to overcome the view of Asian Russia as an exclusively resource storehouse.

Agricultural subsidies on common prosperity: Evidence from the Chinese social survey

Based on the data from the Chinese Social Survey (CSS) of 13,359 interviewed farm households, the paper systematically evaluates the impact of agricultural subsidies on the farmers' common prosperity by measuring the development of common prosperity from the aspects of “comprehensive” prosperity and “universal” affluence. The research draws the following conclusions: (1) Agricultural subsidies significantly raises the per capita income level of rural households, reduces income inequality between households, contributes to “comprehensive” prosperity and “universal” affluence, and realizes the goal of common prosperity. Also, this paper uses 2SLS, LIML, GMM, replacement and combination of variables, simultaneous quantile regression, and exclusion of outliers to test the robustness of the baseline regression results, which remains robust after a series of tests. (2) The effect of agricultural subsidies on the farmers' common prosperity will show obvious heterogeneity phenomenon due to the differences in the natural conditions, economic development level, policy environment and agricultural business scale of the region, which need to be treated differently. (3) The transfer of agricultural land plays a mediating role. Agricultural subsidies will encourage farmers to enhance the transfer of agricultural land, thereby raising incomes and reducing income inequality, which will help farmers to realize common prosperity. Part-time farming plays a moderating role. The lower the degree of part-time farming, the stronger the effect of agricultural subsidies in promoting the common prosperity of farmers. Our study gives innovative experience and ideas for improving the agricultural subsidy policy system, optimizing the structure of agricultural subsidies, and then using agricultural subsidies to more comprehensively promote common prosperity in rural areas.

Determinants of Industrial Automation Adoption in Bangladesh’s Manufacturing: An Empirical Study

This study analyzes the potential factors that determine the adoption of industrial automation in the manufacturing industry in Bangladesh using modern time series econometric methodologies from 1991 to 2022. The empirical results indicate that the production volume is a potential determinant of automation adoption in the manufacturing sector. However, increasing per capita income levels may limit the adoption of automation. On the other hand, rapid industrial automation is expected to increase import volume while necessitating significant investment. This study suggests that although automation will improve export performance, further improving manufacturing export performance through product diversity is a prerequisite for an import-dependent economy, as frequent adoption of automation will result in increased import volume, and higher exports will help to stabilize the country’s trade imbalance. For responsible implementation of automation technology in Bangladesh, it is necessary to prioritize strategic planning, invest in education and training, and implement supportive policies. Collaboration between the government, businesses, and educational institutions is crucial to creating a favorable environment for adopting automation technologies. By doing so, Bangladesh can balance the challenges and opportunities for industrial automation utilization in manufacturing industries.

Aspirin for Secondary Prevention of Cardiovascular Disease in 51 Low-, Middle-, and High-Income Countries

Aspirin is an effective and low-cost option for reducing atherosclerotic cardiovascular disease (CVD) events and improving mortality rates among individuals with established CVD. To guide efforts to mitigate the global CVD burden, there is a need to understand current levels of aspirin use for secondary prevention of CVD. To report and evaluate aspirin use for secondary prevention of CVD across low-, middle-, and high-income countries. Cross-sectional analysis using pooled, individual participant data from nationally representative health surveys conducted between 2013 and 2020 in 51 low-, middle-, and high-income countries. Included surveys contained data on self-reported history of CVD and aspirin use. The sample of participants included nonpregnant adults aged 40 to 69 years. Countries' per capita income levels and world region; individuals' socioeconomic demographics. Self-reported use of aspirin for secondary prevention of CVD. The overall pooled sample included 124 505 individuals. The median age was 52 (IQR, 45-59) years, and 50.5% (95% CI, 49.9%-51.1%) were women. A total of 10 589 individuals had a self-reported history of CVD (8.1% [95% CI, 7.6%-8.6%]). Among individuals with a history of CVD, aspirin use for secondary prevention in the overall pooled sample was 40.3% (95% CI, 37.6%-43.0%). By income group, estimates were 16.6% (95% CI, 12.4%-21.9%) in low-income countries, 24.5% (95% CI, 20.8%-28.6%) in lower-middle-income countries, 51.1% (95% CI, 48.2%-54.0%) in upper-middle-income countries, and 65.0% (95% CI, 59.1%-70.4%) in high-income countries. Worldwide, aspirin is underused in secondary prevention, particularly in low-income countries. National health policies and health systems must develop, implement, and evaluate strategies to promote aspirin therapy.

Spatial–Temporal Evolution and Driving Factors of Economic Dual Circulation Coordinated Development in China’s Coastal Provinces

China’s coastal area is an important node, carrying the connection between internal and external circulation. It is of great significance to explore the spatial and temporal evolution of economic dual circulation coordinated development and its driving factors. In this paper, the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) evaluation model based on the Criteria Importance Though Intercriteria Correlation and entropy (CRITIC-entropy) weight method, coupling coordination model, standard deviation ellipse and exploratory spatial data analysis were used to analyze the spatial and temporal evolution characteristics of economic dual circulation coordinated development of China’s coastal area. In addition, the geographical detector was employed to identify its driving factors. The results showed that: (1) The development level of internal and external economic circulation in China’s coastal area was mainly stable and rising in a fluctuating manner, and the level of internal circulation was higher than that of external circulation. The overall coupling coordination degree of economic dual circulation exhibited a positive trend. (2) There was regional heterogeneity and spatial correlation in the coupling coordination degree of economic dual circulation in the coastal area of China, and the spatial distribution pattern showed the characteristic of being “strong in the internal and weak in the external”. (3) The coordinated development of economic dual circulation was driven by multiple factors. Regional technological innovation capability, per capita income level, circulation development level, marketization process, digitization level and financial development level were the core driving forces. Based on the findings of this paper, a series of policy recommendations for improving the coordination development between internal and external economic circulation was proposed.

From pollution to progress: Exploring the role of cleaner technology, energy efficiency and sustainable production in reducing PM2.5 levels in China

AbstractAir pollution, particularly particulate matter (PM2.5) levels, was a significant focus at the COP26 summit. Rampant production practices and changing lifestyles contribute to the issue globally. China's rapid urbanization and reliance on fossil fuels significantly threaten global health sustainability. This study aims to evaluate China's environmental agenda and offer policy recommendations for achieving a green and clean environment. To accomplish this, the study assesses the crucial factors contributing to China's air pollution levels, focusing specifically on fine PM2.5 from 1975 to 2020. By implementing the ARDL bounds testing approach, the study confirmed a non‐linear relationship between per capita income and PM2.5, demonstrating an inverted U‐shaped curve with a turning point observed at a per capita income level of US$3030 in the short run. Furthermore, a positive correlation between these variables was detected in the long run. The study also revealed that rapid urbanization initially leads to increased PM2.5 concentrations, whereas it has a decreasing effect in the long term. To progress towards sustainable production and consumption, China has embraced efficient environmental technologies and increasing clean energy sources in its production mix. Leveraging these strategies, the country strives to achieve its decarbonization agenda and ensure a cleaner future. By conducting an ex ante analysis, this study identified ecological technologies, renewable energy demand and oil resource rents as critical influencers on China's air pollution levels over the next decade. The findings underscore the pressing need to embrace alternative energy sources, eco‐friendly technologies and resource conservation to tackle air pollution effectively and accomplish China's decarbonization objectives. It is imperative to prioritize adopting sustainable practices, ensuring a cleaner environment for current and future generations.

The Impact of Digital Innovation on Economic Growth

Purpose: This study aimed to examine the impact of technology infrastructure, digital lending, and digital payments on real per capita income, public health, and education levels. Theoretical framework: This study is built on the relationship between technology infrastructure, digital lending, and digital payments and their impact on economic and social outcomes. The study draws on theories of technology adoption and diffusion, financial inclusion, and human development. Design/methodology/approach: This study used quantitative research to examine how technology infrastructure, digital lending, and digital payments affect income, health, and education. The sample was data from 2015-2020, cleaned and analyzed using regression analysis in E-views. Findings: The findings revealed that technological infrastructure has a significant positive effect on real per capita income and public health, but a negative and insignificant effect on the education level. Digital lending was insignificantly positive for real per capita income and negatively insignificant for public health and education levels. In contrast, digital payments had a positive and significant impact on the health and education levels but a negative and insignificant effect on real per capita income. Research, Practical & Social implications: The study suggests that governments should prioritize the development of information technology infrastructure for SMEs to increase real per capita income and public health. Furthermore, relevant laws and regulations should be improved to ensure the development of digital payments, credit investigation systems, and standardized digital payment transactions to maintain financial security and stimulate consumer demand, ultimately promoting sustainable economic development. Originality/value: The originality of this study lies in its investigation of the impact of both technology infrastructure and digital finance on income, health, and education. Additionally, the study highlights the importance of addressing regulatory issues to ensure the safe and effective use of digital finance.

Urban Human Settlement Vulnerability Evolution and Mechanisms: The Case of Anhui Province, China

In this paper, taking the jurisdiction of Anhui Province as the research area, a vulnerability assessment index system of human settlements was constructed from “exposure–sensitivity–coping ability”. Based on the GIS spatial analysis method, the spatial and temporal evolution characteristics of human settlements in Anhui Province were analyzed. The influences of human factors and natural factors on the spatial differentiation of human settlement vulnerability were explored by using geographic detectors, and the driving mechanism of the evolution of human settlement vulnerability was analyzed. An analysis of the results showed the following: ① With a change in the time scale, the human settlement vulnerability index showed a trend of decreasing year by year, the exposure and sensitivity show a downward trend year by year in the three major subsystems, and the coping ability shows an upward trend year by year. ② The evolution of the vulnerability subsystems of exposure, sensitivity, and coping ability in human settlement environments showed the directions of “medium–high–low (M-H-L)” in the early stage, “low–high–medium (L-H-M)” in the middle stage, and “low–medium–high (L-M-H)” in the later stage. ③ The causes of high vulnerability were as follows: The leading factors in the early stage were natural factors, the leading factors in the middle period were natural and human factors, and the leading factors in the later stage were human factors. ④ One-factor and two-factor interactive detection using a geodetector showed that urbanization, industrialization, land use control, and per capita income levels have become key and “short-board” factors that control the vulnerability of human settlements.

Examining the Effects of Relative Advances in Higher Mobility Roads over Higher Accessibility Roads and Income Inequality on the Relationship between Car Ownership and Economic Growth

This study examined the effects of relative advances in the ratio of higher mobility roads over higher accessibility roads (MPA) and income inequality on growth of passenger car ownership in relation to economic growth. (MPA is calculated by dividing the total length of higher mobility roads [tolled expressways, national highways, and other main road networks serving medium- to high-speed traffic] by the total length of higher accessibility roads [secondary and regional road networks] in that country in a specific year.) Specifically, we employed the Gompertz function to model changes in the growth rate of car ownership and the income elasticities. The analysis used a panel data between 1963 and 2013 for 53 countries with various income levels. Results revealed that passenger car ownership rate is consistently higher at most of the per capita income levels under mid-range MPA and lower income inequality conditions. As expected, income elasticities were found varied for groups of countries experiencing different MPA and income inequality conditions under different economic developmental levels. Aside from contributing to the highest passenger car growth, the combined effect of mid-range MPA and lower income inequality conditions was also associated with higher income elasticity at higher per capita GDP. In contrast, countries with extreme MPA under higher income inequality conditions generally have the lowest passenger car growth but highest income elasticity at lower per capita GDP. The implications of these findings on private transportation policies relate to measures to control increased car ownership as well as to reduce road casualties.

Foreign Direct Investment (FDI), Abundance of Natural Resources, and Economic Growth

The impact of foreign direct investment (FDI) on the host country’s economic growth is often discussed without considering the abundance of natural resources in the host country. The present study examines the relationship between FDI and economic growth while considering the presence of natural resources. Using panel data regression with data from 124 countries, the study finds that FDI inflows are increasing significantly, with pronounced differences between countries based on their per capita income levels. The results of the panel data regression analysis show that both FDI and natural resources positively affect economic growth. However, an increase in natural resources reduces the overall impact of FDI on economic growth. This result suggests that countries should attract FDI in sectors outside of natural resources to maximize the positive effects of FDI on economic growth.JEL Classification: F43, O4, P28, P45, Q0How to Cite:Fajrian, M. A., Achsani, N. A., & Widyastutik. (2023). Foreign Direct Investment, Abundance of Natural Resources, and Economic Growth. Signifikan: Jurnal Ilmu Ekonomi, 12(1), 11-26. https://doi.org/10.15408/sjie.v12i1.29975.

DETERMINAN PEMEKARAN WILAYAH DAN FRAGMENTASI PEMERINTAHAN DI INDONESIA

The phenomenon of making new autonomous local government is increasingly widespread in line with the policies of regional autonomy and fiscal decentralization in Indonesia. Many literatures show the local government proliferation in Indonesia is one of the fastest and largest in the world. This study aims to examine the determinants of local government proliferation and government fragmentation in Indonesia. Using panel data from 32 provinces in Indonesia for the period 2001-2013 with fixed effect model (FEM) analysis techniques. The study found that population density, per capita income level, and political aspects are factors that significantly affect territorial splits and government fragmentation in Indonesia. Meanwhile, fiscal capacity, ethnic diversity and income inequality have not been shown to significantly affect the level of fragmentation. The impetus for territorial splits is seen to increase in areas with low population density, high per capita GRDP levels, and high percentage of votes for political parties winning legislative elections. The level of Government Fragmentation in Indonesia is also higher after the implementation of the direct election system for local government head.

Has China's OFDI promoted the upgrading of manufacturing structure-- Research based on interprovincial panel model

With the take off of the Chinese economy, more and more enterprises are investing resources in OFDI, and OFDI and its related economic factors have also had a certain impact on the upgrading of the manufacturing industry. This article studies panel models of 31 provinces in China from 2014 to 2019 using relevant data sources such as the National Bureau of Statistics and the Guotai An Database, and explores the impact of OFDI and its related economic factors on the manufacturing structure. Research has found that OFDI and international trade factors can significantly inhibit the upgrading of manufacturing structure; The per capita income level will have a positive impact on the upgrading of the manufacturing industry structure; The impact of FDI and government fiscal expenditure on the upgrading of manufacturing structure is not significant. In view of the above research results, this paper suggests that the government should adopt appropriate policies to guide OFDI in the manufacturing industry, encourage it to focus on technology intensive or capital intensive industry, and avoid its negative impact leading to "hollowing out" of the manufacturing industry; Enterprises should also optimize their business structure, relocate unnecessary or outdated businesses, invest their main resources in local businesses, and focus on technological upgrades to avoid the adverse effects of OFDI.

Study on the Effect of Rural Low Carbon Logistics Industry Development on Rural Economic Growth

The development of rural low-carbon logistics industry has become the main factor affecting the rapid development of China’s rural economy. From the perspective of low carbon economy, based on the analysis of the development level of rural low carbon logistics, this paper uses the theory and method of spatial measurement to analyze the interactive effect of rural low carbon logistics development and rural economic construction in 31 provinces of China from 2002 to 2019, and then analyzes the mechanism of different factors on rural economic development. The results show that: first, China’s rural low-carbon logistics development provinces have an obvious geographical agglomeration trend. The main distribution characteristics of rural low-carbon logistics development in China’s provinces and regions are "high-high" clustering and "low-low" clustering. Second, there is a long-term and sustainable interaction between the development of China’s rural low-carbon logistics industry and rural economic growth. Third, the income of rural residents in the eastern, central and western regions has an important positive impact on the improvement of rural economic growth. In the eastern region, the growth of the financial industry has the largest pulling effect on rural economic growth. In the central region, the per capita income and education level of farmers have the greatest impact on rural economic growth. In the western region, the increase of income is the most important influence factor of low-carbon logistics on rural economic growth.

Statistical Analysis of Factors Influencing Economic Growth in Zambia

Abstract: The focus of this research is to investigate the factors influencing the economic growth in Zambia. The motivation of this research is due to the unsustainable growth trends that Zambia has been experiencing in recent years. There is an assessment on whether it’s a Least Developed Country status is beared on the vulnerability to a Mid Income Trap therefore by using adapted unit root model, Granger causality tests were conducted to establish which variables affect Zambia's Gross Domestic Product (GDP) per capita income level and predispose it to the Middle Income Trap (MIT). Thus, per capita income, labor productivity, agriculture share to GDP, and manufacturing industry share to GDP were investigated. The results have shown that agriculture share of GDP strongly affects GDP per capita income while manufacturing share of GDP has a weaker effect on GDP per capita. The results obtained further indicate that a change in agriculture share of GDP strongly affects the manufacturing output. Therefore, Zambia should increase investment in agriculture and manufacturing to maintain a positive GDP per capita income growth and to catalyze growth in the secondary sectors