Country Income Groups Research Articles

How Robust is the Finance-Growth Nexus in Small Developing Countries? Empirical Evidence from Fiji

Does finance really lead to economic growth? A growing strand of literature finds positive and strong link between finance and growth. On the other hand, research has also questioned the robustness of the finance – growth nexus. Generally, however, there is some consensus that finance – growth link might be more meaningful in the case of developing and lower income group of countries, where the capacity for financial development might be much larger compared to developed and/or higher income countries. Financial deepening and broadening are thus likely to contribute to the Pacific Island countries developing economies such as Fiji to move out of poverty and inequality towards economic growth. Accordingly, this paper provides fresh evidence of the finance – growth link from Fiji using a composite index developed to measure financial development. Results show that financial development has made a small contribution to economic growth in Fiji during the period under study. However, there is no evidence of a robust relationship using two different measures of financial development.

Socioeconomic position and incidence of gastric cancer: a systematic review and meta-analysis

BackgroundLow socioeconomic position (SEP) has been associated with increased risks of morbidity and mortality from many diseases. We investigated the associations between gastric cancer incidence and education, occupation and income...

Using Dynamic Panel Methods to Estimate Shadow Economies Around the World, 1984–2006

The article estimates the size of shadow economy for 111 countries for the years 1984–2006 based on the currency demand approach. An important innovation is our use of dynamic panel data methods, which allows us to make several important contributions. First, we estimate the shadow economy for a range of heterogeneous countries that previously could not be included in the same regression. Second, we include variables that measure institutional quality in countries, including a variable that measures enforcement efforts. Third, we account for the persistence of currency demand as it evolves over time. Our results indicate a substantial shadow economy across countries, ranging from 10 to 86 percent of gross domestic product (GDP), with some tendency to grow over time. We also find that the shadow economy varies significantly by country income group. The mean shadow economy is 17 percent of GDP for Organisation for Economic Co-operation and Development (OECD) countries, 24 percent for non-OECD high-income countries, 33 percent for upper-middle-income countries, 37 percent for lower-middle-income countries, and 38 percent for low-income countries.

Drop out from out-patient mental healthcare in the World Health Organization's World Menta Health Survey initiative

Previous community surveys of the drop out from mental health treatment have been carried out only in the USA and Canada. To explore mental health treatment drop out in the World Health Organization World Mental Health Surveys. Representative face-to-face household surveys were conducted among adults in 24 countries. People who reported mental health treatment in the 12 months before interview (n = 8482) were asked about drop out, defined as stopping treatment before the provider wanted. Overall, drop out was 31.7%: 26.3% in high-income countries, 45.1% in upper-middle-income countries, and 37.6% in low/lower-middle-income countries. Drop out from psychiatrists was 21.3% overall and similar across country income groups (high 20.3%, upper-middle 23.6%, low/lower-middle 23.8%) but the pattern of drop out across other sectors differed by country income group. Drop out was more likely early in treatment, particularly after the second visit. Drop out needs to be reduced to ensure effective treatment.

Socioeconomic inequalities in risk factors for non communicable diseases in low-income and middle-income countries: results from the World Health Survey

BackgroundMonitoring inequalities in non communicable disease risk factor prevalence can help to inform and target effective interventions. The prevalence of current daily smoking, low fruit and vegetable consumption, physical inactivity, and heavy episodic alcohol drinking were quantified and compared across wealth and education levels in low- and middle-income country groups.MethodsThis study included self-reported data from 232,056 adult participants in 48 countries, derived from the 2002–2004 World Health Survey. Data were stratified by sex and low- or middle-income country status. The main outcome measurements were risk factor prevalence rates reported by wealth quintile and five levels of educational attainment. Socioeconomic inequalities were measured using the slope index of inequality, reflecting differences in prevalence rates, and the relative index of inequality, reflecting the prevalence ratio between the two extremes of wealth or education accounting for the entire distribution. Data were adjusted for confounding factors: sex, age, marital status, area of residence, and country of residence.ResultsSmoking and low fruit and vegetable consumption were significantly higher among lower socioeconomic groups. The highest wealth-related absolute inequality was seen in smoking among men of low- income country group (slope index of inequality 23.0 percentage points; 95% confidence interval 19.6, 26.4). The slope index of inequality for low fruit and vegetable consumption across the entire distribution of education was around 8 percentage points in both sexes and both country income groups. Physical inactivity was less prevalent in populations of low socioeconomic status, especially in low-income countries (relative index of inequality: (men) 0.46, 95% confidence interval 0.33, 0.64; (women) 0.52, 95% confidence interval 0.42, 0.65). Mixed patterns were found for heavy drinking.ConclusionsDisaggregated analysis of the prevalence of non-communicable disease risk factors demonstrated different patterns and varying degrees of socioeconomic inequalities across low- and middle-income settings. Interventions should aim to reach and achieve sustained benefits for high-risk populations.

LEARNING FROM 20 YEAR TRENDS IN UNINTENTIONAL CHILD INJURY MORTALITY

BackgroundThe relative significance of child injury as a cause of preventable death has increased as the ability to control infectious diseases has improved. Unintentional child injuries are now a major...

Taking the long view: a systematic review reporting long-term perspectives on child unintentional injury

ObjectiveThe relative significance of child injury as a cause of preventable death has increased as mortality from infectious diseases has declined. Unintentional child injuries are now a major cause of...

Socioeconomic inequality in the prevalence of noncommunicable diseases in low- and middle-income countries: results from the World Health Survey.

BackgroundNoncommunicable diseases are an increasing health concern worldwide, but particularly in low- and middle-income countries. This study quantified and compared education- and wealth-based inequalities in the prevalence of five noncommunicable diseases (angina, arthritis, asthma, depression and diabetes) and comorbidity in low- and middle-income country groups.MethodsUsing 2002–04 World Health Survey data from 41 low- and middle-income countries, the prevalence estimates of angina, arthritis, asthma, depression, diabetes and comorbidity in adults aged 18 years or above are presented for wealth quintiles and five education levels, by sex and country income group. Symptom-based classification was used to determine angina, arthritis, asthma and depression rates, and diabetes diagnoses were self-reported. Socioeconomic inequalities according to wealth and education were measured absolutely, using the slope index of inequality, and relatively, using the relative index of inequality.ResultsWealth and education inequalities were more pronounced in the low-income country group than the middle-income country group. Both wealth and education were inversely associated with angina, arthritis, asthma, depression and comorbidity prevalence, with strongest inequalities reported for angina, asthma and comorbidity. Diabetes prevalence was positively associated with wealth and, to a lesser extent, education. Adjustments for confounding variables tended to decrease the magnitude of the inequality.ConclusionsNoncommunicable diseases are not necessarily diseases of the wealthy, and showed unequal distribution across socioeconomic groups in low- and middle-income country groups. Disaggregated research is warranted to assess the impact of individual noncommunicable diseases according to socioeconomic indicators.

The impact of information and communication technology on economic growth: evidence from developed and developing countries

This study examines whether, and to what extent, information and communication technology (ICT) has helped to improve economic growth. We adopt the traditional growth model as a framework to estimate contributions of labor, ICT, and non-ICT capital to economic growth in developed and developing countries. The estimates of the growth model by using time-series cross-country data of a total of 62 countries for the period of 2000–2006 reveal that economic growth effect of ICT differs across different income groups of countries. The paper concludes that ICT plays a major role in the growth of high and upper-middle income groups, but fails to contribute to the growth of the lower-middle income group countries. Such findings suggest that the level of investment in ICT is not the cause of slow growth in lower-middle developing countries as previously thought.

Social Determinants of Smoking in Low- and Middle-Income Countries: Results from the World Health Survey

IntroductionTobacco smoking is a leading cause of premature death and disability, and over 80% of the world's smokers live in low- or middle-income countries. The objective of this study is to assess demographic and socioeconomic determinants of current smoking in low- and middle-income countries.MethodsWe used data, from the World Health Survey in 48 low-income and middle-income countries, to explore the impact of demographic and socioeconomic factors on the current smoking status of respondents. The data from these surveys provided information on 213,807 respondents aged 18 years or above that were divided into 4 pooled datasets according to their sex and country income group. The overall proportion of current smokers, as well as the proportion by each relevant demographic and socioeconomic determinant, was calculated within each of the pooled datasets, and multivariable logistic regression was used to assess the association between current smoking and these determinants.ResultsThe odds of smoking were not equal in all demographic or socioeconomic groups. Some factors were fairly stable across the four datasets studied: for example, individuals were more likely to smoke if they had little or no education, regardless of if they were male or female, or lived in a low or a middle income country. Nevertheless, other factors, notably age and wealth, showed a differential effect on smoking by sex or country income level. While women in the low-income country group were twice as likely to smoke if they were in the lowest wealth quintile compared with the highest, the association was absent in the middle-income country group.ConclusionInformation on how smoking is distributed among low- or middle-income countries will allow policy makers to tailor future policies, and target the most vulnerable populations.

Differences in the availability of medicines for chronic and acute conditions in the public and private sectors of developing countries

To investigate potential differences in the availability of medicines for chronic and acute conditions in low- and middle-income countries. Data on the availability of 30 commonly-surveyed medicines - 15 for acute and 15 for chronic conditions - were obtained from facility-based surveys conducted in 40 developing countries. Results were aggregated by World Bank country income group and World Health Organization region. The availability of medicines for both acute and chronic conditions was suboptimal across countries, particularly in the public sector. Generic medicines for chronic conditions were significantly less available than generic medicines for acute conditions in both the public sector (36.0% availability versus 53.5%; P = 0.001) and the private sector (54.7% versus 66.2%; P = 0.007). Antiasthmatics, antiepileptics and antidepressants, followed by antihypertensives, were the drivers of the observed differences. An inverse association was found between country income level and the availability gap between groups of medicines, particularly in the public sector. In low- and lower-middle income countries, drugs for acute conditions were 33.9% and 12.9% more available, respectively, in the public sector than medicines for chronic conditions. Differences in availability were smaller in the private sector than in the public sector in all country income groups. Current disease patterns do not explain the significant gaps observed in the availability of medicines for chronic and acute conditions. Measures are needed to better respond to the epidemiological transition towards chronic conditions in developing countries alongside current efforts to scale up treatment for communicable diseases.

International Emission Inequality and Per Capita Abatement Schemes

ABSTRACT Carbon dioxide emission inequalities between and within five income groups of countries are computed. The revealed dominant inequality between the high income groups and the low and middle income groups and its likely intensification by an internationally uniform abatement rate constitute a case for using per capita figures in assessing countries' unilateral and internationally cooperative abatements. Our analysis suggests that the cooperative expected net benefit maximizing abatement can be smaller than the unilateral abatement for weak countries and for countries with high ability and inclination to politically and economically reward other countries.

Can Governance Indicators Make Sense? Towards a New Approach to Sector-Specific Measures of Governance

Governance indicators have come under fire in recent years, especially the World Governance Indicators. Critics present these indicators as atheoretical and biased. Critics of the critics counter that no better alternatives exist. The authors suggest otherwise, arguing that more appropriate “governance” indicators will: have theoretical grounding; focus on specific fields of engagement; emphasize outcomes; and control for key contextual differences in comparing countries. Such constructs can help indicate where countries seem to have governance problems, allowing second-stage analyses of where and what these problems are; they do not directly point to the presence or nature of problems or provide a measure of the governance concept. Under-5 mortality rates adjusted for country income groups are shown as an example of such a measure, and data presented for contextually compared outcomes in this specific field to show where governance seems better and worse. The USA is shown up as relatively weak, whereas a country such as Pakistan seems to have better governance in this sector than other low-income countries. The indicator has its weaknesses and is partly presented as an illustrative example of a new approach, but also allows questions about why governance of this sector might be problematic in certain contexts and easier in others.

Assessing the implementation of the IMF’s 2007 surveillance decision

On June 15, 2007, the International Monetary Fund (IMF) adopted the “2007 Decision on Bilateral Surveillance over Members’ Policies,” a landmark reform that modernizes the general principles of the IMF’s bilateral surveillance. This paper assesses the first year of the Decision’s implementation in Article IV reports. We develop a questionnaire based on the key aspects of the Decision, which is used to evaluate Article IV reports published before and after the adoption of the new Decision for twenty-four countries. We find that the Decision has significantly increased the overall quality of Article IV reports, with improvements noted in emerging-market, advanced, and developing countries. Bilateral surveillance is more focused on external stability and core macroeconomic policies. Exchange rate analysis, in particular, has improved significantly. We note, however, that the integration with multilateral surveillance remains relatively weak and that cross-country spillovers still do not receive sufficient attention. Moreover, while most reports examine domestic stability in some detail, the link between domestic stability and external stability is not adequately analyzed. On the issue of the even-handed application of the Decision, we conclude that implementation has been broadly similar across country income groups, although differences remain for specific aspects of the Decision.

Diffusion of information and communication technologies: a takeoff analysis

In an increasingly global economy, Information and Communication Technologies (ICTs) are critical for nations to participate in trade and reap the benefits of access to world markets. Economists call for investments in technologies that enable innovations and spur economic development in the country. In addition to being the source of innovation, economic growth also depends on the ability of nations to absorb and apply new innovations that germinated elsewhere. Despite accumulating evidence that several factors play an important role in the assimilation of new technologies, the drivers of the adoption of digital technologies are not well understood and the findings remain inconsistent. Based on theories of economic growth and innovation diffusion theory, and using the well-known takeoff phenomenon as the underpinning, we hypothesise and empirically examine the relationships between human capital (literacy, life expectancy), cost, international trade (foreign direct investment), communications infrastructure (television and telephone) and the takeoff of digital technologies. Our findings confirm that important differences exist among the high-, medium- and low-income countries with respect to the takeoff times for ICT. In addition, our study reveals the differential impact of the factors on takeoff for the three income groups. Policy implications include the need for tailoring the adoption programmes based on country income group, technology type and adoption stage (before or after takeoff).

Worldwide stroke incidence and early case fatality reported in 56 population-based studies: a systematic review

This systematic review of population-based studies of the incidence and early (21 days to 1 month) case fatality of stroke is based on studies published from 1970 to 2008. Stroke incidence (incident strokes only) and case fatality from 21 days to 1 month post-stroke were analysed by four decades of study, two country income groups (high-income countries and low to middle income countries, in accordance with the World Bank's country classification) and, when possible, by stroke pathological type: ischaemic stroke, primary intracerebral haemorrhage, and subarachnoid haemorrhage. This Review shows a divergent, statistically significant trend in stroke incidence rates over the past four decades, with a 42% decrease in stroke incidence in high-income countries and a greater than 100% increase in stroke incidence in low to middle income countries. In 2000-08, the overall stroke incidence rates in low to middle income countries have, for the first time, exceeded the level of stroke incidence seen in high-income countries, by 20%. The time to decide whether or not stroke is an issue that should be on the governmental agenda in low to middle income countries has now passed. Now is the time for action.

Both Institutions and Policies Matter but Differently for Different Income Groups of Countries: Determinants of Long-Run Economic Growth Revisited

Summary This paper revisits the recent debate on the determinants of long-run economic growth with the simple idea that different factors matter at different country groups classified by income levels. This paper improves on the methodology by conducting not only cross-section estimations but also fixed-effects panel and system-GMM estimations. The results suggest that new policy variables such as technology and tertiary education, as well as institutions, matter as the determinants of long-run economic growth. In addition, this paper finds that while secondary education and institution turn out to be important for lower-income countries, an emphasis on technology and higher education appears to be effective in generating growth for the upper middle- and high-income countries but not for the lower middle and low-income countries.

Inequalities in selected health-related Millennium Development Goals indicators in all WHO Member States

The objective of this study was to quantify inequalities in selected Millennium Development Goal (MDG) indicators in all the 192 WHO Member States using descriptive statistics, the Gini coefficient and the Theil coefficient. The data on all the indicators were obtained from The World Health Report 2004. The main findings were as follows: (i) generally, all the MDG indicators are significantly worse in low-income countries than in the other three income groupings; (ii) for all the MDG indicators, there are inequalities within individual countries, within the four income groups, and across income groups of countries; (iii) the inequalities in the MDG indicators are higher among the low-income countries than in high-income countries; and (iv) the ranking of income groups, by various indicators, is fairly stable whether one employs the Gini coefficient or Theil coefficient. As Member States strive to expand the effective coverage of strategies and interventions (including health promotion, primary and secondary prevention, treatment, and care) geared at reducing child mortality; improving maternal health; combating HIV/AIDS, malaria and TB; and ensuring environmental sustainability (through reduction in the use of solid fuels and expansion in access to improved water and sanitation), it is vitally important to ensure that they are implemented in a manner that redresses the inequalities in various MDG indicators. Thus, it is vital for countries to systematically monitor not only the changes in various MDG indicators but also the inequalities across the various income quintiles. In addition, at the regional and global levels, it is necessary to set up mechanisms for rigorous monitoring of the inequalities in the MDG indicators across the income groups of countries. The lessons learnt from the monitoring processes should inform the design and targeting of the various MDG-related policies, strategies and interventions with a view to eradicating the inequalities. African Journal of Health Sciences Vol. 14 (3-4) 2007: pp. 171-186

Epilepsy Care in the World: Results of an ILAE/IBE/WHO Global Campaign Against Epilepsy Survey

Information about existing resources available within the countries to tackle the huge medical, social, and economic burden caused by epilepsy is lacking. To fill this information gap, a survey of country resources available for epilepsy care was conducted within the framework of the ILAE/IBE/WHO Global Campaign Against Epilepsy. The study represents a major collaborative effort involving the World Health Organization (WHO), the International League Against Epilepsy (ILAE) and the International Bureau for Epilepsy (IBE). Data were collected from 160 countries representing 97.5% of the world population. The information included availability, role, and involvement of professional and patient associations for epilepsy, epilepsy treatment and services including antiepileptic drugs, human resources involved in epilepsy care, teaching in epileptology, disability benefits, and problems encountered by people with epilepsy and health professionals involved in epilepsy care. The data confirm that epilepsy care is grossly inadequate compared with the needs in most countries. In addition, large inequities exist across regions and income groups of countries, with low-income countries having extremely meager resources. Complete results of this survey can be found in the Atlas: Epilepsy Care in the World. The data reinforce the need for urgent, substantial, and systematic action to enhance resources for epilepsy care, especially in low-income countries.

Analysis of CO 2 emissions in APEC countries: A time-series and a cross-sectional decomposition using the log mean Divisia method

We decompose the changes of CO 2 emissions in APEC countries over time as well as the differences of CO 2 emissions among three income groups of APEC countries at a given period of time based on the logarithmic mean Divisia decomposition approach. Among the major findings of the paper the growth in per capita GDP and population are the two dominant contributors to the increase in CO 2 emissions in most cases. Furthermore, energy efficiency and fuel switching are found to be the two most promising fields for possible cooperation between APEC member countries.