Development Economics Research Articles

Micro and Small Companies: Economic Impacts of Differentiated Legislation and Government Interventions

Objective: The objective of this study is to investigate the economic analysis of law as a methodological framework to evaluate state intervention in favor of micro (ME) and small businesses (EPP), with the aim of understanding how such interventions can influence growth, the innovation and competitiveness of these companies, as well as their contribution to economic development. Theoretical Framework: In this topic, the main concepts and theories that underpin the research are presented. Public policy theories, development economics and organizational theory stand out, providing a solid basis for understanding the impact of state interventions on ME and EPP. Theoretical models and case studies illustrate a variety of approaches and results. Method: The methodology adopted for this research comprises a deductive study, using both quantitative and qualitative data. Data collection was carried out through documentary analysis, semi-structured interviews and questionnaires applied to ME and EPP representatives, in addition to statistical analyzes to evaluate indicators of growth, innovation, employment capacity and financial sustainability. Results and Discussion: The results obtained revealed that state intervention, through subsidies, advantageous tax policies, training programs and facilitating access to public purchases, can have significant impacts on ME and EPP. The analysis showed sustainable growth, innovation and job creation, although the effectiveness of interventions is intrinsically linked to factors such as appropriate policy design, effective coordination between government bodies and the ability to adapt to the specific needs of each sector and region. Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of economic development and public policy for ME and EPP. These implications could range from improving existing policies, formulating new state intervention strategies, and identifying areas for future research. Originality/Value: This study contributes to the literature by highlighting the importance of the economic analysis of law in the evaluation of public policies aimed at ME and EPP. The relevance and value of this research are evidenced by the innovative approach and findings that can impact the formulation and implementation of effective policies, promoting the sustainable growth and competitiveness of these companies.

The effect of transport parameters on regional economic development: The case of the Ural Federal District

The transport has a special role to play in the regional socioeconomic development, which changes depending on the prevailing trends for population mobility, introduction of advanced technologies, extension of economic connections, and growth in regional production. The study explores the problem of the interface between transport and regional economy on the example of the Ural Federal District. Methodologically, it relies on the theories of spatial development and regional economics. The main method of research is correlation and regression analysis. The evidence is the socioeconomic data on transport as well as values of gross regional product of the Ural Federal District for 2010–2020 sourced from the Federal State Statistics Service of the Russian Federation. The paper develops a model for forecasting GRP. The analysis indicates the presence of the relationship between the socioeconomic metrics of the transport sector and gross regional product of the Ural Federal District. In particular, there is the correlation between the indicators “density of public roads with hard surface”, “deaths in road accidents per 100,000 population” and gross regional product of the Ural Federal District. The paper concludes about the need to develop a composite indicator for assessing the transport sector that will reflect the ongoing digital modernisation and introduction of innovations.

MSMEs and Rural Prosperity: A Study of their Influence in Indonesian Agriculture and Rural Economy

This research delves into the influence of Micro, Small and Medium Enterprises (MSMEs) on the progression of agriculture and the rural economy in Indonesia. MSMEs hold a pivotal position in the Indonesian economy, significantly contributing to job creation and economic expansion. Despite this, their potential to stimulate agricultural growth and enhance the rural economy remains largely uncharted. The investigation of this study centers on the mutual relationship between MSMEs and the agricultural sector. It emphasizes how MSMEs can instigate innovation, augment productivity, and pave the way for rural farmers to access markets. The study also scrutinizes the part MSMEs play in rural development by evaluating their role in boosting income, mitigating poverty, and empowering socio-economic aspects in rural regions. Furthermore, this study identifies the obstacles MSMEs encounter in their contribution to agricultural and rural economic development. These challenges include access to finance, technology, and a complex workforce. The report puts forth policy recommendations to surmount these hurdles and tap into the potential of MSMEs for the advancement of agriculture and rural economic growth in Indonesia. The study enriches the literature on MSMEs, agricultural development, and rural economics. It offers valuable insights for policymakers, practitioners, and researchers who are keen on promoting sustainable development in Indonesia. The findings of this research underscore the necessity of fortifying MSMEs to attain agricultural development and rural economic prosperity in Indonesia.

Fundamental implications of the neglect of servicisation by development economists

Abstract The article deploys servicisation as a case study to discuss economists’ methods and the confirmation bias issue. Data show the average pattern of structural transformation in developing countries has since the early 1990s been servicisation, and the faster the growth, the greater the servicisation. Data also show that servicisation has been an extremely under-researched topic compared with industrialisation. This is an example of confirmation bias—weak links between theory and facts—that erodes the plausibility of policy advice. The paper analyses methods and their policing, and points to issues to address to reduce risks of confirmation bias by strengthening ‘the power of facts’.

What politics does to the economic analysis of the employment relationship: a critical perspective on personnel economics

Abstract Personnel economics has undoubtedly been one of the major developments in mainstream labour economics in recent decades. Its aim is not simply to report on firms’ actual labour management practices but also to prescribe the optimal practices for managers to adopt. The pursuit of this goal has led it to close itself off from other approaches to the analysis of the employment relationship. Drawing on concepts from political science, we show that personnel economics is imbued with a particular conception of politics, even though it goes unacknowledged. Making this point visible enables us to show that other conceptions of politics than that to which personnel economics refers are possible and leads to the acknowledgement of the legitimacy of other points of view in matters of labour management.

Normative empirical concepts – a practical guiding tool for economists

ABSTRACT Economists use a variety of normative empirical concepts because the economy and morality are intertwined. Often, this normativity is intended and widely acknowledged, signaling the relevance and meaning of research. Sometimes, the objectivity of research and the findings obtained by using normative concepts is problematic. Written from the perspective of a practicing economist, the article offers a practical guiding tool to economists, suggesting how to be responsible in developing and using normative empirical concepts. It is based on valuable insights from the philosophy of science and codes of conduct. It illustrates the use of the guiding tool with the example of a normative empirical concept that is widely used in development economics: ‘ethnic fractionalization’. The conclusion is that applied economists should be more involved in being accountable for the normativity in our work and that we should ensure that, by using the tool, the normative concepts that we use are acceptable.

Decolonial economics: Insights from an Indigenous-led labour market study

Globally, Indigenous peoples are overrepresented in unemployment rates, low income, poverty, low education, and other social indicators. Mainstream measures to address these things still maintain the terms of the conversation within a colonial/neoliberal framework, perpetuating inequities and coloniality. We document an attempt to overcome this by Anishinaabe First Nations in the Canadian context via a decolonial labour market study. The study shows how quantitative methods and market failure analysis can be both decolonial and useful for policy analysis and implementation when such things are directed by Indigenous organizations and undertaken with community participation. These results contribute to the development of an Indigenous economics, or a decolonial economics, that begins with different assumptions and goals than would a mainstream market analysis, but that does not exclude the use of tools from welfare economics.

The Convergence of COSYSMO Parametric Cost Estimation with Model‐Based Systems Engineering

AbstractThe promise of Model‐Based Systems Engineering (MBSE) and its advertised benefits hinge on the ability of our profession to integrate engineering disciplines and project management across the system life cycle. In particular, connecting system architecture and design decisions to the economics of the system's development is a critically important topic, but has often been overlooked by the system engineering community. Achieving such integration requires two key elements: (1) the standardization of multidisciplinary terms and functions, and (2) the establishment of rules governing relationships between cross‐functional models and modeling environments. This paper contributes to these areas by (1) establishing common terminology describing systems engineering and cost estimating, and (2) proposing specific cost drivers and counting rules within an MBSE environment that can be applied to estimating systems engineering effort using the COSYSMO cost model. COSYSMO is a systems engineering cost model, originally developed in 2005, and was grounded on document‐based systems engineering methods. This paper facilitates the convergence of COSYSMO and MBSE by updating the COSYSMO counting rules to specifically address size driver selection and assessment in a SysML model. It illustrates how advanced modeling tool features streamline and automate cost estimation activities, while queries and crosscutting views offered by modern MBSE tools enhance the completeness, quality, and consistency of parametric cost estimation process. Additionally, it provides guidelines for identifying system model content and level of detail for cost estimating, and proposes an approach to link attributes and properties in a system model to the variables in the COSYSMO cost estimating relationship.

Integrated Model for Predicting Demand of Supersonic Transports Under Low-Boom Constraint

Commercial supersonic aircraft could return between 2035 and 2040 due to the desire for fast travel and advancements in technology that could reduce the cost of supersonic transport. Nevertheless, several challenges remain to make supersonic travel a reality. This paper presents an integrated model that ties the aircraft preliminary design process, the economics of aircraft development and operations, and passenger preferences to estimate worldwide demand for subsonic overland, Mach cutoff, and low-boom aircraft design concepts. This comprehensive and iterative methodology takes into account the uncertainty of market demand for supersonic travel and the complexities of supersonic network operations. Based on the study of four conceptual supersonic designs, we found that low-boom aircraft could attract 28% more demand worldwide compared to an optimized Mach cutoff design because of the additional time-saving benefits on overland routes. The results of this work offer valuable guidance to aircraft designers by explicitly tying the technical parameters of a design and the potential market demand. In addition, the integrated model developed may streamline the initial design development cycle by quantifying fleet size as part of an integrated modeling process.

Development of managerial economics as a component of economic theory

The object of research is managerial economics, which is considered as a component of economic theory. The scientific problem is that there are such concepts as management and managerial economics, which are tangential and somewhat overlapping. Managerial economics is included in the structure of the economic system as a separate component. It is also proven that managerial economics is a systemic entity and has the following levels: global, macro-, meso-, micro- and nano-. The study defined these levels and outlined the use of the global (international) and macro levels. Analysis of these categories is necessary for understanding the governance and governance conditions of global and national economies. The essence of the obtained results is that the existing system of managing international relations is inflexible and difficult to solve the global problems of humanity. And the management of national economies must correspond to the strategic development plans of a particular nation. These obtained results can be explained by the immobility of management structures and the need to revise the global economic order. At the state level, there should be levers for regulating economic relations. It was noted in the work that society is a set of people united at a certain stage of historical development by one or another economic relations that determine all other social relations. The economic life of society consists of various phenomena and processes, the essence of which must be sought in social production. The concept of «managerial economics» is often used to characterize the regulation of social production. There are different approaches to defining the content of managerial economics. First, managerial economy is considered as regulation by a set of industries and types of material production. Secondly, a system of regulation of productive forces and production relations is usually associated with managerial economics. Thirdly, managerial economics regulates the conditions for achieving equilibrium and cyclicality of social production.

Tutorial Environmental Integration in Development Strategy and Economic Growth: A Macroeconomic Perspective

Tutorial Environmental Integration in Development Strategy and Economic Growth: A Macroeconomic Perspective

Impactful Contributions: Sharia Banks in Advancing Agricultural and Agribusiness Development, Empowering MSMEs and Enhancing Human Resources Management

The development of Islamic economics and Sharia banking has a long history, with many believing its origins trace back to the time of the Prophet Muhammad. Sharia banks now play a role in financing the agricultural industry for micro, small, and medium enterprises in countries with the largest Muslim populations and are agriculture-based. At the same time, there are challenges in terms of improving management in the human resources aspect. For example, intention and awareness are two things that have been revealed by many previous studies in maximizing market and customer control, especially in Sharia banking. Intention and awareness were reportedly influenced by religiosity, product knowledge, and word of mouth. This research tries to review how Islamic banks operate; their role in agriculture and agribusiness; and their role in developing MSMEs. Finally, examining the relationship between intention and awareness is reported to be influenced by religiosity, product knowledge, and word of mouth in Islamic banking. Using a systematic review approach based on secondary data in the form of reputable international journals registered in international databases. There are 15 journals related to the development of Islamic economics and the role of Sharia financial financing. The role of Islamic banks in the development of agriculture and agribusiness is 36 journals. The role of Islamic banks in developing MSMEs is 46 journals. There are 64 journals covering the topic of Sharia banking human resource development. The results of the analysis found new information in terms of theoretical and practical development, that Islamic banks have proven to play a role in the development of agriculture and MSMEs, but there are still weaknesses in terms of service innovation. Then, in terms of human resources for Sharia banking services, it focuses on Total Quality Management, that Sharia banks must improve human resource capabilities in service with the main topic of analysis "the influence of religiosity, product knowledge and word of mouth in forming the intentions and awareness of sharia bank customers".

The contribution of the history of economic thought and economic history to the development of economics in the Third Polish Republic. A concise overview of academic centres, research output, and international impact

The contribution of the history of economic thought and economic history to the development of economics in the Third Polish Republic. A concise overview of academic centres, research output, and international impact

Classification of contracts used in agriculture based on literature review

This literature review aims to present a comprehensive overview of contracts used in agriculture, focusing on their development, usage, and impacts in Bulgaria and other countries, and based on it make a classification of the contracts. The research is grounded in the broader field of agricultural economics, rural development and instructional economics, emphasizing the shift in use in contracts in agriculture in Bulgaria after the accession of the country in the EU. It delves into various types of contracts used in agriculture. The classification that is created is illustrating a detailed framework that organizes these agreements based on their focus and functionality.

Research on the Path of Digital Enabling New Quality Productivity in Yangtze River Delta

As one of the most economically developed regions in China, the Yangtze River Delta (YRD) region has always been in the leading position in the country in terms of economic development. However, with the changes in the global economic situation and the promotion of scientific and technological innovation, the Yangtze River Delta region is also facing new development challenges and opportunities. Digital empowerment, as an important driving force of the new round of technological revolution, is of great significance to the development of new quality productivity in the Yangtze River Delta region. As new quality productivity has become the buzzword of China's economic development, how can the Yangtze River Delta recognize the timing and take the pulse of development? Therefore, this study aims to deeply explore the path of digitally-enabled new quality productivity in the Yangtze River Delta region, and provide theoretical and practical support for the sustainable development of the regional economy. By analyzing the impact of digital empowerment on new-quality productivity in the Yangtze River Delta region, this study intends to explore the mechanism of the role of digital empowerment in enhancing new-quality productivity and propose corresponding paths and strategies. Specific research questions include: what is the current status of digital empowerment in the Yangtze River Delta region? What is the impact mechanism of digital empowerment on new quality productivity? How should the path of digital empowerment of new quality productivity in the Yangtze River Delta region be constructed?

Effective Packaging Design as an Empowerment Strategy for Household MSMEs: A Participatory Learning and Action Approach

Empowering Household Micro, Small, and Medium Enterprises (MSMEs) is a primary focus in local economic development and community economics. One crucial aspect in enhancing the competitiveness and capabilities of Household MSMEs is effective packaging design. Packaging design is not merely about visual aesthetics but also about functionality and interaction with consumers. The Participatory Learning and Action (PLA) method is utilized to develop effective packaging designs, involving MSME actors, consumers, and other relevant parties. This PLA approach is expected to assist Household MSMEs in facing tight market competition. This research proposes community empowerment activities through the production of Rempeyek products in one of the MSMEs in Majalengka, using the PLA method. The success evaluation of the activities is conducted through the four-level evaluation model (Kirkpatrick), covering reaction, learning, behavior, and results. The evaluation results show an improvement in participants' knowledge, understanding, and skills in packaging design. The overall scores indicate that these activities successfully achieve the Kirkpatrick evaluation goals. Recommendations to enhance the implementation of this service development include increasing the capacity of project participants, addressing deeper issues, local government support, and support for domestic industries. This research demonstrates that training and mentoring in packaging design can provide significant benefits to Household MSMEs, enhancing product quality, market value, and competitiveness in a competitive market.

Economic freedom for women and fertility

AbstractNumerous studies in the development economics literature examine the connection between fertility and economic development. The consensus in the research is that as a nation develops and incomes rise, fertility rates decline. However, economic freedom and policies aimed at generating economic opportunities for women may also affect fertility rates. This article utilizes the Economic Freedom of the World Index, and the associated Gender Disparity Index to discuss how economic freedom and, specifically, economic freedom for women is related to fertility, and other fertility‐related outcomes.

A Bibliometric Analysis Of Green Accounting Research

The primary goal of green accounting is to address social issues impacting global sustainable development and to influence corporate actions towards social and environmental concerns. This research aims to map the concept of green accounting and describe its impact on science. This research is a literature review using bibliometrics. Bibliometrics helps map research related to developing green accounting research trends published by leading journals from 1992 to 2023, which have been indexed by Scopus as many as 233 articles, using VosViewer software. The analysis is focused on keyword trends, authors, and institutions. The results show that the number of articles discussing the theme of green accounting has been increasing yearly, which aligns with the development of economics and the environment. The most popular keywords are sustainable development, environmental management, and environmental economics. The most published writer is Markandya. Meanwhile, the most popular organization is Fondazione Eni Enrico Mattei (FEEM). This study provides valuable insights for researchers focusing on green accounting. Therefore, this theme has the potential to be further developed in the future.

An Estimation of the Monetary Value of the Person-Sievert Useful for Occupational Radiological Protection within the Healthcare System of Sweden.

The As Low As Reasonably Achievable (ALARA) principle includes taking into account economic and societal factors. To consider these factors, decision-aiding techniques such as cost-benefit analysis were introduced by the International Commission on Radiological Protection (ICRP) 50 y ago. Over the years, developments in health economics have led to new ways of deriving the concept of a value of a statistical life (VSL), which now is influencing the monetary value assigned to a unit of collective dose for radiological protection purposes (the α value) used in cost-benefit analyses. The aim of the present study was to estimate an α value useful for occupational radiological protection within the healthcare system of Sweden. A survey based on the stated preference approach was developed and sent to staff who are exposed to ionizing radiation at their work in Region Västra Götaland (Sweden). The survey essentially contained two scenarios: the respondents' willingness to pay for measures against radon exposure at home and their willingness to accept compensation for x-ray exposure at work. Answers from 718 respondents were collected. In the sensitivity analysis of the survey, the overall median VSL based on the two scenarios was calculated to be $50 million (IQR $10 to 363 million). The corresponding α value was established to $1,600 person-mSv -1 ($2,100 person-mSv -1 if excess burden of taxes is excluded). The recommended α value is in the high end compared to other studies but within the interval of values being used by nuclear utilities today. The α value should be seen in the light of ICRP's recommendation about stakeholder involvement as an important part of the optimization process.

The influence of robot applications on rural labor transfer

Employment is a pivotal driver for ensuring and enhancing people’s livelihoods, with stable employment forming the bedrock for achieving high-quality economic development. In this study, CMDS data from 2014–2018, IFR data, and micro-data from China’s Second National Economic Census were utilized to analyze the impact of robot applications on rural labor migration in China, exploring both theoretical and empirical dimensions, particularly the crowding-out effect. The research findings suggest that robot applications influence labor demand through expansion and substitution effects. The results show robot applications significantly increased the probability of rural labor considering re-migration, with a 1% increase in urban robot density resulting in a 0.249% increase in the likelihood of rural labor re-migration. In addition, robot applications were found to reduce the migration rate of urban labor and increase the probability of rural laborers returning to the agricultural sector. Based on mechanism analyses, robot applications were found to have pronounced passive effects in accelerating rural labor migration, particularly among groups with lower skill levels, individuals aged over 44, those in low-skilled occupations, those possessing strong mobility, and those residing in economically developed areas. The conclusions of this study provide new insights for stabilizing employment and optimizing rural labor migration in the context of artificial intelligence development.