Investment In Rural Areas Research Articles

Rural public investment and wage inequality under small‐scale agriculture modernization

Increasing rural public investment is crucial for sustainable rural development and can be an effective approach for reducing inequality. However, wage inequality has increased in some developing countries (e.g., China) after increasing fiscal support. This study explores how rural public investment influences skilled‐unskilled wage inequality by incorporating agricultural modernization in small‐scale agriculture. Agricultural modernization refers to introducing modern non‐agricultural intermediate inputs in agriculture. Owing to the small scale of agriculture, an intermediate sector, the agricultural producer service sector, is required to facilitate this process. We establish a three‐sector general equilibrium model with a two‐layer vertical production structure and investigate the effects of increased public investment in rural areas on the wage inequality between skilled and unskilled labour. The theoretical results show that while more rural public investment raises the wages of both skilled and unskilled labour, it also increases wage inequality. Overall, this study explains why inequality widens as rural public investment increases.

Equitable access to drinking-water: focus on European Union member states

ABSTRACT The European Union's (EU) 2020 Drinking Water Directive (DWD) requires member states to advance equitable access to drinking-water and to promote tap water. Although access to drinking-water is high in most EU member states, disparities still exist, for example, among vulnerable and marginalized groups such as the homeless, Roma, and traveller groups. To analyze challenges and measures taken in high-income EU member states, we reviewed national reports from the UNECE/WHO Protocol on Water and Health and conducted a survey and interviews among water regulators. Reported barriers include insufficient data, a lack of mechanisms to identify vulnerable and marginalized groups, a lack of investment in rural areas, affordability concerns, and limited coordination between institutions. Measures comprise improving data on access by vulnerable and marginalized groups, introducing or revising social tariffs, and directing funding to rural areas. As the barriers are crosscutting, the involvement of all relevant institutions is crucial, and coordination and cooperation between the national and local level is indispensable. The DWD creates momentum for progressing equitable access in the EU and is expected to foster evidence-based government actions to improve equitable access to drinking-water.

Welfare and Self-development of Rural Doctors in China from the Perspective of Social Justice Study

Since the beginning of China's new medical reform, the government has issued several policies to promote the development of primary medical care. As an important subject of primary medical care, rural doctors have also received extensive attention on their welfare and self-development. At present, rural doctors in China have problems such as low salaries, imperfect pension security, and hindered development, which is not conducive to the balanced development of the medical industry. Making appropriate adjustments and improvements to the policy of rural doctors is conducive to strengthening the construction of rural medical care and reducing the loss of rural medical talents, thereby promoting social equity and enhancing social stability. Based on these, this paper puts forward the following suggestions. On the one hand, the government should ensure the relative fairness of policies, measure the economic level of various localities, formulate reasonable salary, social security, and promotion systems for rural doctors, rationally use policy tools, and increase supervision over policy implementation. On the other hand, it is necessary to give certain policy preferences to rural areas, issue subsidies to rural doctors, and increase capital investment in rural areas, to reduce the gap between urban and rural areas and promote the balanced development of medical services.

Do hospitalizations push households into poverty in India: evidence from national data.

High percentage of OOP (Out-of-Pocket) costs can lead to poverty and exacerbate existing poverty, with 21.9% of India's 1.324 billion people living below the poverty line. Factors such as increased patient cost-sharing, high-deductible health plans, and expensive medications contribute to high OOP costs. Understanding the poverty-inducing impact of healthcare payments is essential for formulating effective measures to alleviate it. The study used data from the 75th round of the National Sample Survey Organization (Household Social Consumption in India: Health) from July 2017-June 2018, focusing on demographic-socio-economic characteristics, morbidity status, healthcare utilization, and expenditure. The analysis included 66,237 hospitalized individuals in the last 365 days. Logistic regression model was used to examine the impact of OOP expenditures on impoverishment. Logistic regression analysis shows that there is 0.2868 lower odds of experiencing poverty due to OOP expenditures in households where there is the presence of at least one child aged 5 years and less present in the household compared to households who do not have any children. There is 0.601 higher odds of experiencing poverty due to OOP expenditures in urban areas compared to households in rural areas. With an increasing duration of stay in the hospital, there is a higher odds of experiencing poverty due to OOP health expenditures. There is 1.9013 higher odds of experiencing poverty due to OOP expenditures if at least one member in the household used private healthcare facility compared to households who never used private healthcare facilities. In order to transfer demand from private to public hospitals and reduce OOPHE, policymakers should restructure the current inefficient public hospitals. More crucially, there needs to be significant investment in rural areas, where more than 70% of the poorest people reside and who are more vulnerable to OOP expenditures because they lack coping skills.

Transforming Traditional Farmers into Professionals: An Introduction to Human Resource Management in Rural

This research is focused on outlining experiences in rural human resource management through the introduction of a new professional farmer training process. The aim is to provide insights and references for developing countries in implementing farmer training and improving their human resource structure. The research methodology explores the literature combined with an inductive approach to describe and analyse experiences and lessons learned during training programmes to strengthen human resource capacity in the agricultural sector. The results of this study emphasise the importance of new professional farmer training in rural human resource management, with the Indonesian government prioritising the entire training process. The Indonesian government has taken strategic steps in farmer training, which include identifying appropriate training targets, selecting influential investment entities, developing practical training models, and designing supportive policies. These initiatives have significantly improved the quality and structure of rural human resources. The uniqueness of this research lies in its selection of topics that are less widely covered in the literature, especially regarding the training process and the new professional farmer model. This research is also important in enhancing the skills of rural individuals, increasing farmers' income, strengthening the role of agriculture, and supporting economic growth in rural areas. Furthermore, this research makes a significant contribution to the literature by enriching the theory of human capital investment in rural areas.

A digital infrastructure perspective for accelerated rural entrepreneurship

Within the technological context associated with the Fourth Industrial Revolution (4IR) as well as the technological implications of the Covid-19 pandemic, digitalization has increased. Given the that rural entrepreneurs have traditionally lagged behind in many facets of competitiveness, the purpose of this study was to explore the question: How can digital infrastructure accelerate small business entrepreneurship at a rural community in the Eastern Cape Province? The study was based on a qualitative design related to participant observations and document analysis. Participating in a meeting between entrepreneurs, academics and Small Enterprise Development Agency (SEDA) officials and analyzing the discussion areas and behaviors of participants allowed the objectives of the study to be achieved. It was found that virtual infrastructure development excited the respondents and inspired business and developmental aspirations of participants. Participants provided that that digital infrastructure development in rural Eastern Cape would foster economic development, close the digital divide, widens small enterprise development models, ensure inclusive economic participation and create new business opportunities. It was also provided that digital infrastructure creates entrepreneurial linkages that would promote business ecosystems in rural areas and foster general economic advancement in rural areas. This study resulted in the need to recommend government to increase digital support and investment in rural areas. Keywords: Virtualization, digitalization, entrepreneurship, small business, innovation, technology

A Comparative Study of Life Quality in Urban and Rural Areas of Afghanistan: A Case Study of Jawzjan Province

The difference between households in terms of quality of life has many economic, social, and cultural consequences. One of the factors behind the difference in the quality of life and the level of welfare among households is the place of residence. This article compares the quality of life and the level of welfare among households in rural and urban areas of Afghanistan. The data used in this research is first-hand, which was obtained by the self-made questionnaire of the researcher. The variables of this research include all the socio-economic characteristics of rural and urban households, and the variables of the quality of life and welfare of the households in terms of nutrition, cost, housing, housing facilities, ownership of durable consumer goods, etc., have been studied. The results show that in all indicators of quality of life and welfare, urban households have a much better situation than rural households. The most important factors affecting the low quality of life in rural areas are the low level of income in rural areas, the methods of earning income, the type of work, the lack of rural development policies in the country, the low level of investment in rural areas, the lack of development projects.

Policy interventions and productive employment in rural sub-Saharan Africa: a gender-differentiated meta-analysis

PurposeThe farm sector is crucial for rural poverty alleviation, alongside the non-farm sector, which contributes to mitigating risks associated with crop failures. This paper investigates the effects of public policies on productive employment within both the farm and non-farm sectors in sub-Saharan Africa.Design/methodology/approachA meta-analysis is conducted exclusively on the results of the Partnership for Economic Policy (PEP)-funded studies under the Policy Analysis on Growth and Employment (PAGE II) initiative. Selected studies focused on the impact of public policies on productive employment in rural farm and non-farm sectors, encompassing a total of nine sub-Saharan Africa countries in: Benin, Burkina Faso, Cote d'Ivoire, Democratic Republic of Congo, Ghana, Lesotho, Nigeria, Senegal and South Africa.FindingsThe results indicate that public investments in rural areas and public policies that facilitate access to productive resources are likely to enhance productive employment. The overall effect size is positive and significant, ranging from 2% to 10% increases in productive employment. Sources of variation include the sector of activity and the policy instrument. In addition, the policy effects are gender-sensitive and seem more consistent in the non-farm sector.Research limitations/implicationsAlthough the selected working papers addressed several aspects of productive employment, other aspects warrant further investigation. Policies involving restrictions or regulations have received little attention in the impact analysis. Researches to fill this gap would be important. Another suggestion for further research is the analysis of the relative importance of non-farm employment in rural areas in developing countries. It is always assumed that rural households depend heavily on agriculture for their subsistence.Originality/valueThe contribution of the paper lies in the comparative analysis of numerous public policies implemented in nine distinct countries. By consolidating data from fourteen 14 different experiences into a single study, the paper offers valuable insights on factors that determine policy effectiveness and contribute to understanding what worked for whom and why.

Green Energy Optimization in Dinajpur, Bangladesh: A Path to Net Neutrality

Bangladesh has endured a significant power crisis as its economy grows. Hence, it is crucial to investigate the 40% expansion of renewable energy to attain the 2041 renewable energy goal as delineated by the government of Bangladesh. The study explores the current agricultural waste situation in rural areas of the Dinajpur District to propose a feasible alternative and integrated waste management system to meet the energy policy targets for animal waste and crop residues. It analyzed the spatial distribution of feedstocks, identified the optimal sites for the locations of biogas plants based on socioeconomic and environmental criteria and geographic information, and evaluated biogas production to satisfy electricity demand using geographic information system (GIS) suitability analysis and hotspot analysis by proposing six different scenarios. The results show that 2.81 million tons of total agricultural residues are sufficient to produce 11.31 million m3 per year of biogas in the study area. Furthermore, it is found that 21 biogas-based power plants using cattle manure and rice straw are spatially and technically feasible to produce 6389.14 kW of electrical energy per year, which meets 5.73% of the demand of the district in 2019. From the 6 proposed scenarios, number 4 can produce the maximum electricity, 3047.41 kW/year. The findings support the target of achieving a clean, green, sustainable energy system in Bangladesh while improving agricultural residue management. Estimating substrate availability and location is one of the first steps in promoting biogas-based energy from cattle manure and rice straw, which demands comprehensive technical, economic, and social policy reforms. Moreover, bioenergy expansion in Dinajpur District via biogasification represents a commitment to long-term investments in rural areas of Bangladesh.

IDENTIFICATION AND ANALYSIS OF ECONOMIC FACTORS AFFECTING RURAL UNDERDEVELOPMENT IN AFGHANISTAN

Developing countries often face the challenge of underdeveloped rural areas, resulting in adverse impacts such as poverty, unemployment and migration. Therefore, it is very important to prioritize rural development and improve the living conditions of rural residents. This research aims to identify and analyze economic factors that contribute to village underdevelopment in Afghanistan. This research uses a combination of field studies, Expert Choice software, interviews with experts, and credible library sources for data collection. The statistical population consists of experts, university professors, and individuals involved in rural economic development. We collected data through face-to-face interviews and questionnaires. We used confirmatory factor analysis and coefficient of variation for data analysis. These findings reveal that there are several factors that contribute to rural underdevelopment in Afghanistan. These factors include management problems, especially the prevalence of unskilled labor in rural economic activities. Financial problems, such as inadequate credit and investment in rural areas, also play a role. Limited social participation and low involvement of women in rural activities are other contributing factors. Environmental problems, such as inappropriate use of underground water resources, further exacerbate this problem. In addition, physical challenges, such as weak or non-existent rural-urban communication networks and other related problems, also contribute to rural underdevelopment. Addressing and overcoming these fundamental barriers and challenges is critical to achieving rural development and overall national development. Furthermore, this research identifies key factors of rural development in the economic sector.

Активізація бізнес-процесів із залучення інвестицій на розвиток сільських територій України

Abstract. Introduction. The article examines the dominant factors of activation of business processes for attracting investments for the development of rural areas of Ukraine. It is substantiated that active business processes for attracting investments for the formation of the optimal level of functional potential of the economic system in rural areas have a logical relationship with the global socio-economic policy of European states and in the modern context of economic development, dependent on the quantitative and qualitative characteristics of the internal and outer space. Results. The typology of business processes for attracting investments into the economic system of rural areas has been determined. The system-forming values of the corporate sector in the integrated formation of active business processes for attracting investments for the development of rural ar-eas are presented. The method of calculating the integral indicator, which embodies the functional potential of the development of rural areas, taking into account its cost-resource, marketing, fi-nancial and investment components, as well as the index of the opportunities of the cooperative sector to attract investments on the market, is presented. The network of service cooperatives of rural areas was analyzed by types and areas of activity, as well as the amount of budgetary in-vestment in rural areas of Ukraine. From the standpoint of the process approach, an indicative assessment of the level of the functional development potential of rural areas based on indexes of productive, business, investment, and foreign economic activity of the subjects of cooperative management is proposed. Conclusions. The growth of the dominant factors for the activation of business processes for attracting invest-ments for the development of rural areas of a new type is aimed at increasing the amount of in-vestment resources and balancing the stimulators and destimulators of the security of functional potential with the corresponding social responsibility of the subjects of cooperative management.

The Rural Development Program as an Instrument to Support the Technological Modernization of Agriculture. Lubuskie Case Study

Abstract The article deals with the issue of supporting the technological modernization of agriculture by investing in infrastructure surrounding the farms with the use of a financial instrument in the form of the Rural Development Program (RDP) based on the Lubuskie Voivodeship. The article describes, among other things, the importance of infrastructure and support for its development in rural areas in the process of functioning and modernization of the agricultural sector. For the purposes of the article, the data obtained from the Department of Rural Development Programs of the Lubuskie Marshal’s Office on expenditure and effects of RDP use in 2007-2020, in infrastructure investments in rural areas of the Lubuskie Voivodeship was analysed. In the article, the authors attempted to present the instrument in the form of the Rural Development Program as a tool for indirect impact on the process of modernization and transformation of agriculture in the Lubuskie Voivodeship, primarily by changing the infrastructural conditions for the functioning and development of agricultural production in rural areas.

The role of investments in rural areas of Ukraine: problems and prospects

Introduction. In modern realities, when there is a rapid decline of the Ukrainian countryside, provoked by the demographic crisis and the economic decline of production in the countryside, the process of finding additional investments for the development of rural areas in accordance with European trends in economic development is gaining relevance. The purpose of the paper is to substantiate theoretical provisions regarding the role of investments in rural areas of Ukraine. According to the goal, the task of the paper is to determine the main problems and prospects of attracting investments in the development of rural areas of Ukraine. Research methodology. In the research process, the following methods were used: dialectical - when learning about investment processes and phenomena; abstract-logical – substantiation of theoretical provisions regarding the development of investment processes; economic and statistical – identifying trends and regularities in the investment process; graphic – estimates of the main indicators of the dynamics and structure of investments; strategic planning – when substantiating the investment forecast. Results. A brief review of theoretical provisions and methodological approaches regarding the assessment of the role of the investment process was conducted and the most important directions of its activation in the rural areas of Ukraine were substantiated. The main problems preventing the development of the investment climate in villages and regions have been identified. The prospects for the development of investment in rural areas and alternative options for the economic development of the village are analyzed in contrast to the stereotypical vision of the village as an exclusively subject of agricultural production. Conclusions. As a novelty of the research, the theoretical provisions regarding the economic essence of the investment process have been further developed, in particular, the definition of its concept in relation to rural areas, signs and directions of activation has been proposed. Practical significance. The results of the study can be used in the formation of the investment strategy of local self-government and state policy in agriculture.

Do growth-promoting factors induce income inequality in a transitioning large developing economy? An empirical evidence from Indian states

We examine the role of the enforcement of property rights, human capital formation, and the efficiency of various components of state governments' developmental expenditure on states’ economic growth and interstate income inequality. Together with private sector investment in rural areas, property rights enforcement, human capital, government expenditures on economic services, and health and education are found to have positive effects on states’ growth. We also observe that the interstate difference in the provisioning of government economic services is the leading factor in contributing to interstate income divergence in India. These findings can serve as vital technical inputs for formulating economic policies to achieve faster economic growth and mitigate regional income inequality in transitioning developing economies like India and hold greater relevance for other developing economies on their way to experiencing similar social and economic transitions.

Strategic Management of the Investment Process in the Agricultural Sector (for Example, Agricultural Enterprises and the Food Industry)

The article presents the results of a study of the nature and characteristics of investment processes in the agricultural sector (by the example of agriculture and food industry in Ukraine), as well as recommendations on the modernization of the mechanisms for strategic management of these processes. It is noted that the restoration and development of Ukraine is possible on the basis of the effective development of agricultural entrepreneurship, which can be achieved through the use of a set of interrelated measures of a financial, economic, industrial, technical, organizational and social nature, aimed at the withdrawal of such anti-crisis and restoration organizations or their achievement profitability and competitiveness. The state policy for the development of agricultural enterprises should provide for the creation of a favorable investment climate for domestic and foreign investment. The authors note that in modern conditions of development of the national macroeconomic environment, the solution of this problem involves not only the development and formulation of market strategies, but primarily the solution to the problem of creating and implementing an effective mechanism for implementing intra-industry strategic decisions. At the same time, it should be taken into account that many issues of the formation and implementation of the state policy for regulating the development of agricultural enterprises in the face of institutional uncertainty and financial instability have not yet received adequate coverage. the authors concluded that direct government subsidies for agribusiness in Ukraine are harmful. They are distributed opaque, distort competition, produce corruption and nervousness. As a result, the interest of diligent agricultural producers is declining. Corruption and opacity lead to an unreasonable increase in prices for agricultural products. Based on the analysis, it is shown that the best way of state support for agricultural production is investment in rural areas - an increase in investment costs for roads or education in rural areas. It should also be taken into account that one of the tasks of state policy is to increase employment in rural areas, therefore it is necessary to support not only individual producers, but also “non-agricultural” employment, for example, “green tourism”. Also, government support should be distributed “automatically”, and not selectively. For this, it is important to develop and implement appropriate criteria. the economic security of economic entities in the agricultural sector should be the subject of an economic strategy in the food industry. The reduction or exclusion of business entities from participation in many areas of intra-industry life creates enormous economic risks (threats) for the near and long-term prospects of the food industry. Therefore, in order to ensure socio-economic development in the food industry, it is necessary to develop and introduce intra-industry socio-economic policies that will ensure the growth of key indicators in the national macroeconomic environment.

Study Regarding the Possibility of Use the Alternative High Efficiency Systems for Increasing Energy Performance in Suburban Areas

Energy efficiency is often characterized as the most valuable form of energy, since it reduces costs and the negative impact on the environment associated with energy consumption, but also the dependence on energy imports. The highest potential for increasing energy efficiency in Romania is found in the heating of buildings, in the transformation of primary energy resources into electricity. In Romania, 86% of the built area is represented by residential buildings. From the 8.1 million housing units, single-family homes are dominant, accounting for 61% of these. The article aims to highlight the importance of investments in rural areas in order to increase energy efficiency. The energy from renewable sources is not adequately considered in the rural development programming exercise. The energy efficiency measures provide medium-term gain opportunities and long, by promoting saving solutions by reducing production and consumption costs, reducing the environmental impact and at the same time ensuring the promotion of economic and social development. The results of this study show the possibility of developing the “what-if” analysis, which can help the decision makers to choose the best adaptation strategy. In order to be able to make the best investment decisions in equipment and choose the right energy sources, consumers need access to the alternative energy sources (especially in rural areas) and quality information on the options they have and to financing opportunities. Soon, it will be necessary to support the cogeneration systems based on biomass and biogas in semi-urban areas, with the centralized distribution of the thermal agent.

INVESTMENTS IN WATER MANAGEMENT IN RURAL AREAS

The aim of this study is to evaluate the implementation of environmental investments in rural areas and prepare a ranking of voivodships. Detailed studies covered Polish rural areas according to voivodship division and were focused on environmental investments related to water management: the sewage network, water supply systems, collective and individual sewage treatment plants, water treatment plants and flood embankments. The research period covered the years 2010-2019. The research uses indicators characterizing investments in water management. The method of zero unitarization was used, which allowed to compare the values of the adopted indicators and establish a synthetic indicator determining a ranking of voivodships according to the implementation of environmental investments. Research shows that more than half of all expenditure are investments related to the sewage and water supply network. The exceptions are the Łódzkie and Podkarpackie voivodships, where greater expenditure is incurred on collective treatment plants than on the water supply network. The values of the synthetic index make it possible to determine the regions where the most and least environmental investments were implemented. The highest values of the synthetic index are found in the Mazowieckie, Wielkopolskie and Małopolskie voivodships. The lowest values of the indicator are recorded for the Opolskie, Podlaskie, Świętokrzyskie and Śląskie voivodships, where the least environmental investments were implemented.

EUROPEAN UNION REGIONAL POLICY SUPPORT FOR INVESTMENTS IN RENEWABLE ENERGY IN RURAL AREAS OF THE MAZOVIAN VOIVODSHIP

EU regional policy funding was said to be a significant source of co-financing renewable energy investments in Poland, however, what has not yet been investigated thus far is the impact of such financing in rural areas of the Mazovian Voivodship, the biggest in the country. Thus, the aim of the paper is to explore the main outcomes of using this funding for RE investments in rural areas of the Mazovian Voivodship and look into the relations between these outcomes and important factors determining them. The study is based on qualitative and quantitative data from the SIMIK 2007-2013 data base of the Ministry of Development, Local Data Bank of Statistics Poland, data from 3 classifications of communes and a questionnaire survey. Findings prove that RE investments in the rural Mazovian Voivodship differ from investments in other rural areas of Poland as they only used wind and solar RE, were carried out only by local self-governments and enterprises, and obtained EU co-funding only from regional operational programmes. The similarities between RE investments in the rural Mazovian Voivodship in other rural areas of the country indicate an insufficient adjustment of eligible costs to total costs and a lower than available share of EU funding in eligible costs, both significantly increasing the share of non-EU funding necessary to carry out projects. The shortage of funding was indicated by local authorities and the respondents of the survey as the main obstacle in supporting local development and was the reason for taking other than RE investment development priorities. The paper concludes with recommendations on an increase of RE investments in the rural Mazovian Voivodship.

Rural household energy consumption characteristics and determinants in China

For a developing country with a large rural population, to understand the rural households' energy consumption characteristic and energy consumption determinants for further public policy design is of increasing importance. Therefore, this paper provides a detailed analysis of the characteristics of rural households’ energy consumption. Simultaneously, based on the data of 1472 rural households from the Chinese General Social Survey of 2015, the energy consumption determinants of rural households are estimated by Tobit model. Results reveal that rural households with a healthy and old household head reduce the share of coal consumption, and household labors with an off-farm job and high level of education, and a large household size increase the share of LPG and electricity consumption. The good economic condition of rural households contributes to the reduction of biomass consumption. Given the results, the government should work for poverty reduction, subsidies for modern equipment purchase, policies of effective and renewable energy technologies, and educational investment in rural areas, which may help for a positive transition in energy consumption for rural households.

Targeting Agricultural Investments and Input Subsidies in Low-Income Lagging Regions of India

Poverty in India has been declining consistently over the years, yet it is home to 172 million poor people. Most of India’s poor are concentrated in rural areas and are dependent on agriculture. This poses a serious challenge to the exploration of potential pathways that could effectively eradicate poverty and accomplish the United Nations Sustainable Development Goals. We estimate the effects of various types of investment in rural areas in accelerating agricultural productivity and reducing rural poverty, and find differential impacts of investments and subsidies across low-, middle-, and high-income states. Private investment in minor irrigation, public investments in agricultural research and development, and subsidies on irrigation and electricity have the highest marginal returns in low-income states. Further, the payoffs from additional spending in promoting agricultural income are also higher in low-income states, suggesting targeting these locations with strategic investments and subsidies to improve agricultural productivity and reduce poverty.