Economic Underdevelopment Research Articles

Nduga Human Development Index 35.19 / 0.35: PENA as an Alternative to Human Resource Development in Mountainous Papua

This study examines alternative strategies for human resource development in Nduga Regency, Mountainous Papua, where the Human Development Index (HDI) is still very low. The region faces significant challenges, including economic underdevelopment, low access to education, and ongoing conflict. This research focuses on the efforts of the Tunas Harapan Papua Care Foundation (Pena Papua) in improving access to education for students from underprivileged backgrounds. Through qualitative descriptive methods, data are collected through interviews, observations, and document reviews involving stakeholders from foundations, students, and local communities. The findings show that Pena Papua has contributed significantly to improving access to quality education and character development among students. However, cultural erosion, particularly the loss of mother tongues, was identified as a critical problem. The study concludes that although foundations have made significant progress in developing human resources, the preservation of cultural identity remains a challenge that must be addressed along with educational initiatives.

The Interrelation Between Culturally Learned Helplessness and Economic Underdevelopment

This article offers insights into the interrelationship between culturally learned helplessness and economic underdevelopment. It is argued that the concept of learned helplessness offers noteworthy insights into the nature of economic underdevelopment, particularly in less developed countries where or if it has become a cultural phenomenon. This reasoning is based on a rationality that is spatially bounded and intrinsically connected to the nature, source and evolution of social and cultural norms. It is concluded that the integration of learned helplessness (or a behavioural theory in general) into the field of economic development offers significant potential for exploring and explaining long-term evolutionary patterns of development.

Detecting anomalies in currency market of BRICS countries: insights into emerging economies

PurposeThe primary motive of the research paper is to investigate the efficiency of currency market of emerging economies (BRICS countries), by analyzing the presence and consistency of calendar anomalies – specifically the day-of-the-week (DOW) effect, the January effect and the Turn-of-the-month (TOM) effect. Daily data of around 23 years and 4 months were examined for the purpose of study. Segmented data of 8-year intervals were also analyzed to observe the changes in the pattern over a period. The findings are intended to offer insights into market behaviors and potential trading strategies for astute traders.Design/methodology/approachThe study employed a quantitative research design utilizing ordinary least squares regression with dummy variables and Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) (1,1) model. To study the calendar anomalies, the daily closing price of five currency pairs has been taken from Bloomberg’s software. The Kruskal–Wallis test was conducted to validate and check the robustness of analysis.FindingsThere are mixed results regarding calendar anomalies in the BRICS currency markets. Analysis of aggregate data revealed that DOW effect is present in all the currencies except USDZAR, with Monday showing positive return. The segmented analysis showed the presence of DOW effect in USDCNY and USDINR, while other currencies lacked consistent patterns. The January effect was evident for Indian Rupees and Chinese Yuan but not for other currencies. TOM effect was present only in Chinese Yuan. Overall, the Indian Rupee and Chinese Yuan displayed inefficiencies, indicating potential for trading strategies, while other currencies appeared efficient and lacked consistent patterns.Originality/valueThe literature on currency pricing anomalies is sparse, particularly in the context of developing and underdeveloped economies. While some research exists on anomalies within the currencies of developed nations, there is a significant gap in studies focusing on emerging economies. This paper seeks to address this deficiency by investigating the presence of calendar anomalies in the currencies of BRICS countries, providing new insights into the behaviors of these emerging economies.

The Resource-Backed Lending Model: An Economic Limitation to Sovereignty of Developing States

The 21st century developing and under-developed economies are being relegated to the status of neo-colonial states. Developed economies like China, Russia and the United States of America are really in the scramble for more neo-colonial states, mostly in Africa. This has presented itself through the economic relationship among states. The economic relationship under consideration here is taking new turns with emerging global trends and the desire of developing states to alleviate or eradicate poverty. The economic relationship between developed and developing states has grown from exchange of goods and investment to the execution of infrastructure loans on the understanding that the receiving states (borrower in this instance) shall mortgage its local resources to secure the loan. This is clearly the greatest limitation to the sovereignty of developed states under the guise of business agreements. The objective of this article is to examine a number of resource-backed lending systems between developed and developing states, delving more into the business relationship between China and Nigeria; this examination is further related to the relationship between China and states like Angola and Congo. The question sought to be answered is whether this system has proved to be beneficial or detrimental to the sovereignty of developing states is considered in this study. This is done by examining the Nigeria-China Bilateral Investment Treaty and the $400 million Loan Agreement (“Loan Agreement”) executed by the Ministry of Finance on behalf of Nigeria and the Export –Import Bank of China for the Nigeria National Information and Communication Technology (ICT) Infrastructure Backbone Phase II Project in 2018.

Spatio-Temporal Variations of Soil Conservation Service Supply–Demand Balance in the Qinling Mountains, China

The ecological conservation of nature reserves has garnered considerable attention and is subject to stringent management in China. However, the majority of these areas have a history of underdeveloped economies and require urgent improvements in the well-being of local communities. Effectively coupling and harmonizing the dynamic relationship between ecosystem services and socio-economic development has emerged as a crucial concern for nature reserves. Therefore, further exploration is needed to achieve a spatio-temporal balance and alignment between the supply and demand of ESs in nature reserves in China. Utilizing multiple datasets, RULSE, and bivariate autocorrelation methods, this study investigated the spatio-temporal evolution of the ecosystem services supply–demand ratio (ESDR) and supply–demand spatial matches for soil conservation services (SCSs) in the Qinling Mountains (QMs) from 2000 to 2020. The results indicated the following: (1) Over the years, the supply of SCSs exhibited a consistently high level, with an upward trend observed in 63.10% of the QMs, while the demand for SCSs is generally low, with a decreasing trend observed in 82.68% of the QMs. (2) The supply and demand of SCSs remained favorable, with a positive ESDR reaching 82.19% of the QMs. From 2000 to 2010, there was a significant decline in ESDR; however, a substantial rebound was observed in the ESDR across the region from 2010 to 2020. (3) Over years, the majority of counties and districts exhibited positive values in ESDR. When examining cities, Weinan, Xi’an, and Ankang demonstrated relatively consistent patterns with higher ESDR values over time. In 2000, the ESDR on the northern slope exhibited lower values than that on the southern slope; however, this situation subsequently underwent a reversal. (4) The spatial distribution of SCS supply and demand was predominantly characterized by matching regions exhibiting either High Supply–High Demand or Low Supply–Low Demand for years. This study suggests that the supply and demand dynamics of SCSs in the Qinling Mountains have been favorable in recent years, with consistent spatial supply–demand matches. These findings can provide valuable insights for similar nature reserves aiming to implement ecological environmental protection and achieve sustainable development. The future research endeavors, however, should strive to expand upon these findings by exploring the supply and demand patterns associated with other ESs across diverse nature reserves, while considering their unique geographical characteristics, in order to promote more rational ecological management strategies.

Measuring and optimizing the spatial accessibility of primary health care in remote and rural areas: a case study of Liannan Yao Autonomous County in China

The need for equitable access to primary healthcare services in the current global context has attracted widespread attention, prompting nations to continuously enhance their grassroots medical service levels. In response, China launched the "Healthy China" initiative, which prioritizes the enhancement of national health as a core goal of the healthcare system and uses this opportunity to deepen reforms aimed at strengthening primary care. However, in remote and rural areas, the optimization of medical resource allocation and the achievement of balanced service development remain critical challenges owing to limited resources. This study selected Liannan Yao Autonomous County, which is situated in the northwestern corner of Guangdong Province, as a case study due to its remote mountainous location, underdeveloped economy, and minority region characteristics. Through field research and interviews, this study thoroughly explored the needs of both supply and demand, factoring in elements such as the service capability of healthcare facilities and residents' travel thresholds to enhance the two-step floating catchment area model, thus making it more applicable to remote villages. By integrating electric bikes and cars, which are the primary means of transportation in rural areas, this study conducted a thorough analysis and comparison of the accessibility of medical services in Liannan Yao Autonomous County (Liannan County) . The results reveal significant disparities in healthcare accessibility, an uneven distribution of medical resources, and varying impacts of transportation conditions and facility service capabilities on accessibility. Notably, the study revealed that improving transportation conditions alone has limited effects in rural areas; the key lies in balancing medical service capabilities and the rationality of overall layouts. From the perspectives of equity and efficiency, this study employs the equitable coverage model and the efficiency-driven model to construct two scenarios, comparing accessibility changes in Liannan County under both conditions and proposing strategies to improve the spatial layout of local healthcare facilities. This research not only deepens the understanding of healthcare service accessibility in rural areas but also provides a scientific basis for optimizing resource allocation and enhancing primary medical services, offering valuable guidance and reference for Liannan County and other similar rural regions.

Analyzing developmental strategies and the role of ICT in underdeveloped economies: implications for North Korea

We analyze developmental strategies in various sectors in countries with underdeveloped economies and their implications for North Korea. We investigate the development plans of four underdeveloped transitional economies during the 1990s using the World Bank’s engagement reports. We find an emphasis on energy, transportation, and agriculture in those countries, while development strategies in North Korea focused on ICT in addition to energy, transportation, and agriculture during the same period. Statistical regression analysis reveals that ICT has the greatest potential impact on economic growth. Historically, domestic and external constraints have limited the performance of North Korea’s ICT policy. However, we recommend that ICT should have high priority in North Korea’s strategic development plan for the following reasons: the socio-economic environment is changing; ICT service trade across borders has been increasing; the population is aging; and our analysis identifies disruptive

Domestic Private Investment and Selected Macroeconomic Indicators in Nigeria:An Econometric Analysis

Domestic private investment (DPI) plays significant role in economic growth of any economy. It helps in mobilizing domestic resources for socio-economic advancement. Domestic Investment and its determining factors remains one recalling issues in the field of economics and international finance. This is based on the fact that aggregate investment plays a dominant role in stimulating economic growth and development of every nation. However, most of the developing and underdeveloped economies have witnessed low domestic investment and consequently slow economic growth. Therefore, this study investigates the relationship, trends, and impact of domestic private investment and selected macroeconomic indicators in Nigeria, a developing economy. The study analyzed data gotten from the CBN Statistical Bulletin for the duration of 1991-2020. The statistical package used for the study is Econometric Views (E-Views 9.0). Multiple regression techniques via OLS, Augmented Dickey Fuller (ADF) test and Granger causality procedure was applied to determine causalities while Johansen Co-integration test was administered to verify sustainability of the long-run relationships. The result revealed that there exist short and long-run relationships between domestic private investment and key macroeconomic variables- Inflation, Lending rates, gross domestic savings, real gross domestic product, money supply in Nigeria. Vector error correction model was also adopted to determine the speed of adjustment between the independent variables and the dependent variables. The OLS result revealed that there exist a positive and significant relationship among GDSA, BMOS, RGDP and PDIV, negative and significant relationship among PLER, INFR, and PDIV. Therefore, the study recommends among others that Nigerian government must be resolute in their resolve to drive private domestic investment in the country by implementing appropriate monetary and fiscal policies that address inflation, interest rate, domestic savings and money supply. This will no doubt fast track inclusive growth.

Pakistan’s path to universal health coverage: national and regional insights

BackgroundUniversal Health Coverage (UHC) is a common health policy objective outlined in the Sustainable Development Goals. With provincial governments taking the initiative, Pakistan has implemented and extended UHC program amid a complex public health landscape. In this context, we assess Pakistan’s progress toward achieving UHC at the national and subnational level.MethodsWe use data from the Demographic and Health Surveys and the Household Integrated Economic Survey to construct a UHC index at the national and subnational level for 2007, 2013, and 2018. Furthermore, we use Concentration Index (CI) and CI decomposition methodologies to assess the primary drivers of inequality in accessing medical services. Logistic regression and Sartori’s two-step model are applied to examine the key determinants of catastrophic health expenditure (CHE).ResultsOur analysis underscores Pakistan’s steady progress toward UHC, while revealing significant provincial disparities in UHC progress. Provinces with lower poverty rate achieve higher UHC index, which highlights the synergy of poverty alleviation and UHC expansion. Among the examined indicators, child immunization remains a key weakness that one third of the children are not fully vaccinated and one sixth of these not-fully-vaccinated children have never received any vaccination. Socioeconomic status emerges as a main contributor to disparities in accessing medical services, albeit with a declining trend over time. Household socioeconomic status is negatively correlated with CHE incidence, indicating that wealthier households are less susceptible to CHE. For individuals experiencing CHE, medicine expenditure takes the highest share of their health spending, registering a staggering 70% in 2018.ConclusionPakistan’s progress toward UHC aligns closely with its economic development trajectory and policy efforts in expanding UHC program. However, economic underdevelopment and provincial disparities persist as significant hurdles on Pakistan’s journey toward UHC. We suggest continued efforts in UHC program expansion with a focus on policy consistency and fiscal support, combined with targeted interventions to alleviate poverty in the underdeveloped provinces.

Trends and drivers of global dietary methylmercury exposure during 1995–2020

Methylmercury (MeHg) exposure primarily comes from diet, posing serious health risks. However, the trends of global dietary MeHg exposure and underlying drivers remain unknown. This study reveals the recent global trend in dietary MeHg exposure (expressed in per capita probable daily intake of MeHg), and the sources and drivers of exposure changes. Results show that global dietary MeHg exposure has increased by 29 % during 1995–2020, especially in South Asia (203 %), Southeast Asia (104 %), and Sub-Saharan Africa (77 %). Freshwater fish consumption was the main source for increased MeHg exposure. The increase in food consumption was the main driver of the growth in global dietary MeHg exposure, while dietary structure transition was the primary driver of its decline. The changes in MeHg concentrations of foods have mitigated dietary MeHg exposures in developed economies, but aggravated them in underdeveloped economies. Our findings can guide decision-making on managing increasing dietary MeHg exposure.

Research on the Effective Sheltering Rates of Public Buildings in Villages in Western Sichuan, China—A Case Study of Ganbao Tibetan Village

The western region of Sichuan Province, located in the Hengduan Mountains, is one of China’s most seismically active zones. Due to limited land resources, many villages in western Sichuan Province are situated in mountainous and valley areas, facing harsh climatic conditions, lagging economic development, and insufficient infrastructure. After experiencing seismic disasters, these villages often encounter challenges, such as cut-off mountain roads, difficulties in delivering relief supplies, and sharply a significant drop in nighttime temperatures due to the high-altitude climate. Consequently, in the case of the economic underdevelopment and limited resources, how to repurpose existing buildings for disaster relief has become a crucial issue for disaster prevention and mitigation in these villages. This paper takes Ganbao Tibetan Village, located in the alpine gorge regions of western Sichuan Province, as a case study. It evaluates the interior space utilization status of different types of existing public buildings during disasters, calculates the effective utilization rate of interior space disaster reduction conversion based on the spatial layout model, and extracts the typical interior space dimensions that are conducive to disaster relief and conversion of public buildings based on the interior space utilization characteristics of disaster relief. This study provides a reference for the design of public service buildings considering the requirements of disaster resilience transformation.

The Impact of Religion and Culture on Political Corruption in Akinyele Local Government Area of Oyo State: A Case Study of 2015 General Elections

This study examines the impact of religion and culture on political corruption in Akinyele Local Government Area of Oyo State in reference to 2015 general elections. Many local governments in Nigeria lack many developments, social amenities, health facilities, rural development and power supply due to the syndrome of corruption and autonomy independence to control their resources without the state interference due to that scenario, lack of accountability, lack of credible leadership, instability of political and socioeconomic development as take place. Culture and religion as influenced voting patterns of the electorate during the 2015 Presidential general elections. The impacts of corruption on the politics of the country include the crisis of legitimacy, lack of party ideology, weak political institutions; economic underdevelopment and political violence and the role of “Godfatherism” as initiated electoral corruption. Some power brokers with sufficient financial muscles sponsored their anointed godsons for political offices in return for lucrative contracts and spoils of the public treasury looting. They sponsored thugs, bribed the electoral stakeholders, and influenced voters through vote buying and all sorts of electoral manipulation to ensure that their candidates scale through and control power at all levels. The questionnaire and the structured questions formulated by the researchers were given to project supervisor, who criticized and that the instruments are validated, for they were seen measuring what were expected to measure. Findings revealed that a total number of 30 respondents represented (22.3%) candidate’s choice, 27 respondents represented (20.1%) election campaign, 23 respondents represented (17.1%) family background, while 54 respondents represented (40.2%) religious belief. This implies that majority of the respondents in this study agreed that religious belief is the means by which religion and culture influenced the voting pattern of Akinyele Local Government Area in the 2015 general elections. The study recommends that all candidates contesting for any political office must declare their assets publicly to avoid cases of corruption.

Does macro-prudential regulation lead to low interest rate? An empirical analysis based on the transnational panel model

Based on a simple theoretical analysis, this paper constructs a transnational panel model based on the macroeconomic variable data of 131 countries from 2007 to 2020 for empirical analysis, so as to systematically explore the potential impact of macro-prudential policy regulation on the evolution of interest rates. It is found that the nominal interest rate of developed economies is closer to the lower bound of interest rate than that of underdeveloped economies, and the implementation of macro-prudential policies in the world generally shows a tightening trend, and the tightening degree of macro-prudential policies in developed economies is higher. Macro-prudential regulation has significantly exacerbated the evolution of global low interest rates, but the interest rate evolution of different types of economies is heterogeneous under the influence of macro-prudential regulation, especially in developed economies. Based on these insights, the paper proposes several policy recommendations: firstly, strengthen the precision of the implementation of macro-prudential policies to avoid “one-size-fits-all” policy implementation; secondly, refine macro-prudential policy regulation to be more scientific and prevent policy overshoots that could inadvertently harm the real economy; thirdly, attach great importance to the potential constraints of the low interest rate environment, and use diversified means to get rid of the lower bound of the nominal interest rate.

Guest editorial: The double-edged sword of inward FDI for the growth and sustainability of emerging, developing, and under-developed economies

Guest editorial: The double-edged sword of inward FDI for the growth and sustainability of emerging, developing, and under-developed economies

The resource curse in energy-rich regions: Evidence from China's ultra-high voltage transmission

Coordinating the energy mix transition with environmental protection is essential for reducing climate risks. Long-term fossil fuel exploitation and utilization result in increasing ecological risks in energy-rich regions. While ultra-high voltage (UHV) transmission is considered a key tool for promoting long-distance energy consumption, its ecological impact has received little attention. Using city-level panel data from 2005 to 2019 in China, this study examines the impact of UHV transmission on eco-environmental quality in energy-rich regions. The empirical results show that UHV transmission reduces eco-environmental quality in energy-rich regions. This effect is particularly pronounced in regions with more abundant fossil energy sources, underdeveloped economies, and weak environmental regulations. Mechanism analysis finds that UHV transmission promotes the expansion of power generation in energy-rich regions, followed by lagging industrial structure, weakening eco-environmental governance and intensifying resource exploitation. These findings suggest that increasing the utilization of renewable energy and strengthening environmental regulation are essential for achieving sustainable development in energy-rich regions.

THE DEVELOPMENT OF THE SAWTOOTH WAGES MODEL OF INFLATION

This paper covers the development of the sawtooth wages model, a graphical representation of the behavior of periodically adjusted fixed nominal wages under persistent inflationary conditions. Ranging from the immediate postwar years to the late 1980s, our narrative covers the history of the model, underscoring Bent Hansen’s (1951) contribution, followed by several improvements that aimed to incorporate into inflation theory several institution-specifc traits of underdeveloped economies. The diagram had a lukewarm reception in the 1960s but managed to defend its legacy until the 1980s, as the inertial inflation hypothesis gained terrain in the debate on economic stabilization in Latin America. Under the widespread diffusion of indexation practices, the model was then fully rehabilitated as a workhorse for theoretical and policy analysis in Brazil until a succesful stabilization was achieved in 1994 under the Real plan.

Mining the informal empire: Sino-Japanese relations and ironmaking in Manchuria, 1909–1931

This article examines the history of ironmaking in Anshan in southern Manchuria (Northeast China) between 1909 and 1931, utilising Japanese and Chinese sources. I argue that the history of Anshan embodies the ambiguous statuses of Japan and China in the global economic order of the early twentieth century. Japan, despite being the only non-Western imperialist power, had a relatively underdeveloped economy and continued to import industrial technologies from the West, with heavy state intervention often driven by non-economic goals, particularly by the military. China, despite being a site of the Western and Japanese informal empires, pushed for catch-up industrialisation and resistance against foreign economic intrusions. The in-between statuses of Japan and China resulted in constant negotiations to define and redefine Japan’s informal empire in Manchuria, involving complex interplays of collaboration and resistance in business enterprises such as Anshan Ironworks.

The Path Innovation of Regional Economic Growth: Data Analysis Based on China

AbstractInnovative development to some extent overcomes the path-dependent characteristics of knowledge proximity, and the diversity and complexity of regional knowledge and technology foster regional economic growth. This study constructs a dynamic mechanism for maximizing the enterprise profit to explore the conditions enabling regions that can achieve knowledge accumulation and technological leapfrogging. Utilizing the fitness landscape methodology based on customs data from 30 provinces in China and employing genetic algorithms, we analyze two modes of enterprises with similar and different initial conditions under varying leapfrogging scenarios. By applying profit maximization rules within the fitness landscape of the product space, we examine how to promote regional industrial transformation and upgrade. The results indicate that a larger leap range in the production of products by enterprises, reflecting stronger innovative capabilities, significantly enhances the region’s ability for industrial transformation and upgrade. There is a strong positive relationship between the initial industrial foundation and regional economic development. When regions share a similar industrial base, the complexity of regional knowledge becomes more critical. Therefore, an increase in the foundational development of industries and technology-intensive products can enhance the potential for regional path innovation. Past research has primarily been based on the path dependence theory, emphasizing that the most crucial aspect for underdeveloped economies is the accumulation and development of foundational capabilities. However, our study contends that, for emerging economies, it is crucial to enhance the diversity and complexity of knowledge and technology. Particularly, it is essential to, based on a comprehensive understanding of their own strengths, open up new areas and new arenas in development, continually shaping new growth drivers and new strengths. This emerges as a significant factor in regional growth and leapfrog development.

Women’s economic underdevelopment in Pakistan: The intersection of gender and female labour force participation

BACKGROUND: Women’s low economic participation in Pakistan and even lower in the formal sector is a perpetual phenomenon leading to their underdevelopment, which has microeconomic and macroeconomic implications. Therefore, the purpose of this study is to investigate the nature of women’s work and the intersection of their non-market and market activities at micro, meso, and macro levels which influences women’s chances and choices of decent economic participation. OBJECTIVE: This study aims to investigate the interdependence of women’s market and non-market work to explore how gender intersects with their economic autonomy. METHODS: Using qualitative approach, in-depth interviews of 30 purposely selected respondents from the informal sector were thematically analysed. RESULTS: Results indicated that the interdependence of women’s non-market and market work is the outcome of the gendered dichotomy that creates work-life conflict to create women’s economic dependence and male hegemony. Moreover, although a common phenomenon, women from underprivileged backgrounds are more likely to bear the brunt of systemic deprivation leading to economic underdevelopment. CONCLUSIONS: Pakistan’s inherently masculinised society and economy mutually benefit from women’s unpaid and informal work. Facilitated through gender norms, the patriarchal social ideology and the capitalist economic system collaborate to exploit women and their work in both domains.

The Underdeveloped Economy of Mayurbhanj

The Underdeveloped Economy of Mayurbhanj