Lower-middle Income Economies Research Articles

Global urbanization and ruralization lessons of clean energy access gap

While energy access is improving across economic groups globally, here remains the monumental challenge of clean energy inequality that has further aggravates climate-related problems. To further address clean energy inequality, this study offers novel understanding on the forces behind clean energy access divide associated with urbanization and ruralization by employing the case of the high, low, lower-middle, and upper-middle income economies in the period 2010 to 2021. By using empirical analysis, the results reveal that (i) annual growth in the economy, and (ii) literacy parity between male and female further worsen clean energy access between urban and rural population. Contrarily, innovative activities reduce urban-rural clean energy access by an elasticity of 3.510. These findings, in theory and practice, provide policy insight toward specifically achieving the United Nation's Sustainable Development Goals 7 and 10, and other global challenges.

Factors that determine Islamic entrepreneurial intention: an empirical investigation using two country samples

Purpose Islam describes business as a legitimate means of halal income. However, little is known about what attracts people towards Islamic entrepreneurship or halalpreneurship. By applying the theory of planned behaviour, this study aims to contribute to this underexplored area by investigating the factors that affect Islamic entrepreneurial intention (IEI). Design/methodology/approach This study examined a mediation model using two country samples. First, the hypotheses were tested on a sample recruited from a high-income economy (i.e. Saudi Arabia) using structural equation modelling in AMOS V26. The authors then conducted a replication study to investigate the robustness of the findings using a sample recruited from a lower-middleincome economy (i.e. Bangladesh) and a different analysis technique, the PROCESS mediation model in SPSS V25. Findings The findings suggest that IEI depends on four antecedents, namely, attitude towards Islamic entrepreneurship, general entrepreneurial self-efficacy, Islamic entrepreneurial self-efficacy and perceived halal income. These antecedents also mediate the relationship between moral judgement and IEI. Research limitations/implications This study offers an empirical framework that captures several perspectives on the formation of IEI. The findings contribute to entrepreneurial intention and motivation research by suggesting factors that motivate individuals to engage in Islamic entrepreneurship. Originality/value The findings imply that the framework of IEI can withstand diverse socioeconomic contexts. A novel perspective of this study is that Muslims who are motivated by perceived halal income show greater interest in becoming Islamic entrepreneurs.

Does Social Media Penetration Enhance Democratic Institutions? Evidence from Varieties of Democracy Data

AbstractWe examine whether social media enhances democracy using cross-sectional data from 145 countries. We used Facebook penetration as a proxy for social media. Also, based on the complex definition of democracy, high-level indices, such as egalitarian, participatory, liberal, electoral, and deliberative democracies, were used to capture democracy. Our endogeneity-corrected results documented that high social media penetration, on average, enhances all forms of democracy. In descending order, social media penetration has contributed more to enhancing democracy in high-income economies, followed by lower-middle and upper-middle income economies. In low-income economies, social media penetration has a negative effect on democracy indices. We also documented heterogeneity in the findings based on regions. Marginal analysis also revealed that the positive effect of social media on democracy is higher in countries with higher internet penetration. We suggest that with appropriate interventions, policymakers could leverage social media to enhance democratic institutions.

Pengaruh Industri Dan Pendapatan Perkapita Terhadap Penerimaan Pajak Dengan Kualitas Peraturan Sebagai Pemoderasi

This study aims to determine the effect of the industrial sector's contribution to GDP and per capita income on tax revenues moderated by regulatory quality. The data used is data taken from the World Bank Open Data in the period 2002 to 2019, while the objects studied were 37 countries with the lower-middle income economy category. The method used is a quantitative method with multiple linear regression of panel data with a random effect model. The results of this study indicate that simultaneously, all variables have a positive and significant effect on tax revenues. Partially, the industry's contribution to GDP on tax revenues has a significant negative effect, then after being moderated by the quality of regulations it has no effect. Income per capita has a significant positive effect, but after being moderated by the quality of regulations it actually reduces the level of influence. Furthermore, the quality of the regulations themselves has no effect on tax revenues. This can be overcome by improving regulations to provide ease of doing business and ease of obtaining services from the government.

Tracing carbon emissions and intensity in relational global value chain activities

Existing studies on emission accounting in global value chains (GVCs) have not focused on the relational nature of GVC activities manifested as the interaction of intermediate goods between enterprises. This paper proposes a relational GVC emissions accounting framework based on an inter-country input-output (ICIO) model distinguishing between domestic-owned enterprises (DOEs) and foreign-invested enterprises (FIEs), which is classified as trade-based, investment-based and hybrid-based emissions. Using AMNE-ICIO tables from 2005 to 2016, this paper traces emissions and carbon intensity in relational GVC activities at the global, economic, and industry levels. We find the following: (1) Investment-based emissions accounted for about 94.15% of the increase in relational GVC emissions, of which more than half comes from the interactive activities between DOEs and FIEs. (2) For the United States, high-income economies, and high-tech manufacturing, investment-based emissions were higher than trade-based emissions, and the reverse was true for upper-middle and lower-middle income economies and China. (3) Although relational GVC carbon intensity was high, the trend of decline was significant. (4) Compared to trade activities, investment-based activities were less carbon intensity in China and upper-middle income economies due to the interaction of production between FIEs and DOEs. The findings add new insights into the coordination of global emissions reductions and the allocation of emissions responsibility.

Does tourism reduce the shadow economy? An international evidence

This paper investigates one of the positive contributions of tourism to the economy through the lens of its influences on the shadow economy. Specifically, our study analyzes the effects of five indicators of tourism consumption (including domestic tourism spending, international travel and tourism consumption, business tourism spending, leisure tourism spending, and outbound tourism spending on the percentage of shadow economy to GDP) in 129 economies between 1996 and 2015. We find interesting results that contribute to the existing literature about tourism economics. Firstly, the development of the inbound tourism industry reduces the shadow economy significantly, while outbound tourism causes higher underground economic activities. Secondly, the influence of tourism on the shadow economy is significant in both the short-run and long run with a stronger effect in the long run. Thirdly, the effect of tourism on the shadow economy is more significant in the 42 High-Income Economies and 54 Low and Lower-middle Income Economies, while it is less obvious in the 33 Upper-Middle Income Economies. These findings have been checked by a battery of robustness checks ensuring their statistical consistency.

Moderating impact of FDI on the growth-environment nexus in the pre-COVID-19 eras

This paper aims to investigate the moderating presence of FDI in the nexus between economic progression and quality of environment in 115 countries, and various income panels of countries from 1992 to 2019, based on a theoretical underpinning of the Environmental Kuznets Curve (EKC). The results reveal a significant positive influence of energy consumption on CO2 discharges across all income panels. The interaction between FDI and square of GDP leads to a decrease in CO2 emissions for low and lower-middle income countries, whereas a drop in PM2.5 discharges is distinctively recorded for low, lower middle, high income, and overall income levels. Likewise, the interaction of FDI with manufacturing growth exhibits a negative influence on CO2 emissions reduction in both low and lower-middle income economies, and a reduction in CH4 discharges for upper-middle, high income, and overall income levels. All these results support the EKC hypothesis and offer a useful insight for countries that intend to pursue green economic growth with due consideration for energy consumption and environmental pollution.

Environmental effect of high-, upper, and lower middle-income economies’ energy mix: Is there a trade-off between unemployment and environmental quality?

The fact that scenarios of high unemployment potentially offer the opportunity for improved environmental sustainability remains a dilemma. In instances when environmental sustainability is triggered by increased unemployment, that poses a challenge in the simultaneous achievement of sustainable development goals (SDGs) 8 (decent work and economic growth) and 13 (climate action). On the basis of this concern, in this study, we examine whether a swap association exists between unemployment and environmental quality vis-à-vis the environmental Phillips curve (EPC) hypothesis for high-, upper, and lower middle-income (HUmLmI) economies (comprising both developed and developing countries) over the period 1990–2020. We used the novel dynamic autoregressive distributed lag simulation approach. From the findings, the EPC hypothesis is not valid in high-income (developed) economies in the short and long term. However, the validity of the EPC hypothesis was upheld in the upper and lower middle-income (developing) economies. This implies that the lack of decent work opportunities/high unemployment rates hampers environmental quality in high-income countries, promotes environmental quality in upper middle-income countries, and does not drive environmental quality in lower middle-income countries. In addition, economic growth and the use of fossil energy exacerbate environmental degradation. On the other hand, the consumption of renewable energy sources reduces environmental woes by −0.22, −0.54, and −1.15 in HUmLmI countries, respectively. This shows that renewable energy sources adapt to the environmental sustainability motive. These results imply that policy instruments to drive SDGs 8 and 13 in these income-categorized economies should be case specific rather than taking a unilateral policy approach.

Low rates of optical coherence tomography utilization in the diagnosis and management of retinovascular diseases in a lower middle-income economy.

Optical coherence tomography (OCT) is widely used as the standard of care in evaluating macular and retinovascular diseases. However, the degree of OCT utilization is yet to be researched in a resource-limited country where wide gaps exist in access to healthcare. To determine the rate of utilization of the OCT in diagnosis, pre-treatment, and post-treatment evaluation of macular and retinovascular diseases treated with intravitreal anti-vascular endothelial growth factor injection (IVI). Retrospective, consecutive, and non-comparative case series of eyes diagnosed and treated from Jan 2017 to Jan 2022 for seven macular and retinovascular diseases in five eye clinics in Nigeria. Data extracted include demographics, indication for IVI, eye treated, use or non-use of OCT at the diagnosis (pre-treatment) and after the last IVI (post-treatment), and central macular thickness (CMT) of pre-treatment OCT scans. Seven hundred and forty two eyes were diagnosed with retinovascular and macular diseases (389 right eyes and 353 left eyes).The male to female ratio was 430: 312 eyes. The mean age was, 63.89 years (SD 12.58). Four hundred and fifty two eyes (60.9%) had a pre-treatment OCT, 235 eyes (31.7%) had a post-treatment OCT, and 190 eyes (25.6%) had both pre- and post-treatment OCTs. The rate of pre-treatment OCT varied with the diagnosis (P = 0.000); DME had the highest rate, 74.4%, and HRVO had the lowest, 40%. Post-treatment OCT rate varied with the diagnosis (P = 0.009); non-AMD CNVM had the highest rate, 49.1%, and PCV had the lowest, 24.6%. Pre-treatment OCT rate was influenced by clinic location (P = 0.000); higher in clinics having an OCT. Post-treatment OCT was not influenced by clinic location (P = 0.37). A CRVO eye had the highest maximum CMT (1031 microns) of all the pre treatment eyes and the lowest minimum CMT of all the pre treatment eyes was in a BRVO eye (138 microns). Mean CMT was highest in HRVO (475.33 microns) and lowest in CNVM (307.62 microns). Though OCT is the standard of care for managing retinovascular and macular diseases, this research quantifies the extent of its use in Nigeria and finds it to be low. A post-treatment OCT rate of 32% suggests that urgent steps are required to improve access to OCT for IVI patients.

The role of economic growth, information technologies, and globalization in achieving environmental quality: a novel framework for selected Asian countries.

This study examines the impact of information and communication technologies (ICT), GDP growth, population, and globalization on the environmental quality of 31 Asian economies (i.e., categorized as lower middle-income, upper middle-income, and high-income groups Asian economies). This analysis employed the time series data from 1990 to 2018. The robust second-generation econometric technologies are used in this analysis. This study applied the Environmental Kuznets curve (EKC) premises under the extended "STIRPAT model" to add population and GDP (per capita) and information technologies (ICTs) by employing ecological footprint. To estimate, the estimators of this study used the CS-ARDL estimates, and for robustness check, this study used the augmented mean group (AMG) test. The co-integration test found the long-run association between ecological footprint and its main determinants. The results of CS-ARDL have confirmed the imperative role of information technologies in mitigating the ecological footprint in the higher, upper-middle, and lower-middle-income economies of Asian economies. The statistical findings of this study are robust to diagnostic tests and alternative estimation proxies and techniques. Moreover, policymakers need to identify the direction of the information technology-ecological footprint nexus through cooperation in combating climate change with financial assistance in the ICT sector.

Factors affecting acceptance of electric two-wheelers in India: A discrete choice survey

Government of India has adopted policies to grow the share of electric vehicles (EVs) to ‘de-carbonize’ India's transport sector and reduce import dependence for oil. For the lower-middle income economy two-wheelers play a significant role in the private vehicle market. This paper focuses on the effectiveness of some of the demand incentives; roles of infrastructure, market visibility; and peer effects on acceptance of electric two-wheelers in India. It utilizes a discrete choice survey to collect responses from Indian residents. Respondents in six different choice scenarios chose between two categories of petrol vehicles and an EV. Results from the random-parameter logit model indicate that price, refueling time, availability of infrastructure, vehicle taxes, and fuel prices are significant determinants of two-wheeler choice. Further, estimates suggest that consumers are willing-to-pay INR 567 to save in fuel cost by INR 1 per 100 kms, INR 997 for every percentage point reduction in taxes, INR 316 to save an additional minute of charging time, and INR 879 to increase the charging infrastructure by an additional percentage point. Government policies involving price subsidies, preferential tax treatments and improvements in infrastructure should continue. Differential pricing of petrol and electricity can also make electric two-wheelers more attractive.

Influence of internet and mobile usage on the institutional quality: An environmental perspective

Internet and mobile usages require digital tools that became familiar to all of us but whose industries create significant amount of CO2 emissions. The growing importance of communication channels usually enhances the institutional quality but it also generates a gradual increase in activities producing CO2 that, in turn, negatively affect the institutional quality – This embedded relationship led us to study conjointly these aspects in our empirical study. In this context, this article examines the influences of Internet usage, Mobile usage, and CO2 emissions on the institutional quality for a global sample of 87 economies. Through a two-step system GMM estimator, we show that Internet and mobile usage have a significant positive impact on the institutional quality while the CO2 emissions has a significant negative influence. The results are robust across six different institutional indicators and three subsamples including Low and Lower-Middle Income, Upper-Middle Income, and High-Income Economies. Our empirical research explores and discusses the complex influence of Internet and mobile usages on institutional quality through their environmental impacts suggesting that the latter jeopardizes the initial positive impact of Internet/mobile usage on institutional quality.

Does the energy transition alleviate environmental degradation? Evidence from the high income, upper and lower middle income economies

To better understand the impact of the energy transition on the environment, this study examines the impact of structural changes in energy (renewable), economy (industrialization), society (urbanization), and trade (trade openness) on environmental degradation in lower-middle-income, upper-middle-income and high-income countries and regions between 1995 and 2014. The econometric model consists of the ecological footprint as a proxy variable for environmental degradation, as the explained variable, and the explanatory variables are simultaneously set as threshold variables in the proposed panel threshold regression model. The results for all countries show an inverted U-shaped relationship between renewable energy and ecological footprint. The results from the panel of income groups indicate that the offsetting effect of renewable energy on the ecological footprint is most significant in the upper-middle-income and lower-middle-income countries, while the development of renewable energy can effectively mitigate environmental degradation in these two income groups. Urbanization and trade freedom contribute significantly to the increased ecological footprint of the three income groups, while industrialization contributes insignificantly. Thus, in the context of an increasingly diverse energy transition, the study suggests policy guidelines for countries and regions in the three income classifications, particularly for lower-middle-income and upper-middle-income economies.

Health Burdens and Labor Productivity in Africa’s Middle- and Low-Income Economies: Implication for the COVID-19 Pandemic

The effect of health burdens on labour productivity in Africa's middle and low-income economies in the advent of Covid-19 pandemic was investigated in this paper. It employed Common Correlated Effects (CCE) estimation of Heterogeneous Dynamic Panel data Models to estimate a sample of 45 African countries with 30-panel series from 1990 to 2020. The authors discovered that the Covid-19 epidemic has aggravated the catastrophic health burdens (morbidity and mortality rates) in the panel countries. It shows that health burden has dynamic negative long-term spilling effect on labour productivity, such that a 1% increase in health burden, ceteris paribus, would reduce labour productivity by 13% in the upper middle income economy, 17% in the lower middle income economy, and 19% in the low-income economy, respectively. The findings also show divergence effects; with low- and lower-middle-income nations bearing the highest brunt of health burden crises due to Covid-19 pandemic and its mitigation measures, even in the face of inadequate health systems, lowering their labour productivity. As a result of this finding, an increase in health burdens devalues these countries' labour assets and raises the health risk of overburdened economies. The paper proposes that Africa countries should develop a regional inclusive health scheme with a financing target to raise the health system with particular attention to the low and lower-income countries. A healthy child grows into a productive adult in the future; hence the African Union should enact and enforce a regional health program that provides free child healthcare.

Comparative Study on Lower-Middle-, Upper-Middle-, and Higher-Income Economies of ASEAN for Fiscal and Current Account Deficits: A Panel Econometric Analysis

For the last three decades, ASEAN has been facing a persistent fiscal deficit. However, the impact of fiscal deficit on the current account deficit in the sub-groups of ASEAN is still unknown. This study aims to investigate the impact of fiscal deficit on current account deficit and their relationship among the three sub-groups of ASEAN which are based on gross national income (GNI), i.e., lower-middle-, upper-middle-, and higher-income countries. The analysis covers the panel data collected over the span of the last three decades (1990–2020) for ten Southeast Asian nations (ASEAN). The analyses incorporate the panel methodology for data analysis such as panel unit root for checking data stationarity, cointegration testing, panel autoregressive distributed lag (PARDL) for short- and long-run analysis, cointegration regression (fully modified and dynamic ordinary least squares) for significance, the panel Dumitrescu and Hurlin Granger causality test for examining causal relationships in tested variables, and stability diagnostics and CUMSUM and CUSUMSQ techniques for structural breaks and coefficient stability in the model. In lower-middle-income economies (LMIE), results indicate the existence of a unidirectional causal relationship from the current account deficit (CAD) to the fiscal deficit (FD), suggesting a reverse causal relationship from CAD to FD. In the long run, FD does not significantly induce CAD, while real interest rate (RIR) and exchange rate (EXC) influence CAD. In upper-middle-income economies (UMIE), results specify that there is no causality between FD and CAD. The RIR, EXC, and FD are significant to CAD in the long run. In higher-income economies (HIE), RIR and FD have an influence on CAD in the long run period. Moreover, from CAD to FD, a unidirectional causal association exists, and likewise for LMIE. This is a reverse causal relationship from CAD to the FD, supporting the current account targeting hypothesis (CATH) in both the LMIE and HIE groups. This study recommends that the LMIE and HIE groups can use the fiscal deficit as a tool to eliminate the unfavorable current account position. Policymakers can target EXC and RIR to stabilize CAD in long run. In UMIE and HIE, policymakers must consider FD alarming, as it can induce CAD in the long run. The RIR can be the targeted factor in the sub-groups of ASEAN.

Modified Borggreve–Van Nes-Winkelmann rotationplasty for surgery in developing countries

BackgroundAmputation is still the most common therapy for patients suffering from osteosarcoma in Myanmar, despite the fact that limb salvage surgery e.g. Borggreve–Van Nes-Winkelmann rotationplasty for malignant tumors located within the distal femur or proximal tibia is the current state-of-the-art reconstructive procedure. A safe and reliable operation technique is crucial in order to perform a complex surgical procedure like the rotationplasty in lower-middle income economies with limited infrastructure and resources. The authors present seven cases of patients with osteosarcomas that received a Borggreve–Van Nes-Winkelmann rotationplasty with an evaluation of the procedures focusing on safety and sustainability.MethodsFrom 2019 until 2020, seven young patients with osteosarcomas of the distal femur or proximal tibia were treated with Borggreve–Van Nes-Winkelmann rotationplasties in the Orthopaedic Hospital in Mandalay, Myanmar. As modification of the standard procedure the dissection and subsequent clamping of the femoral artery in order to minimize blood loss as well as the formation of an adipocutaneous flap that minimizes swelling and decreases the pressure on the vessels were successfully performed. This modified procedure resembles a safe and simplified surgical technique that is feasible under the circumstances of lower-middle income economies with good outcomes.ResultsAll patients showed good functional and aesthetic results. One of the seven patients needed secondary wound closure due to wound dehiscence.ConclusionsA simplified and safe operation technique for the performance of the Van Nes-Borggreve rotationplasty was adapted to the given constraints in lower-middle income economies and proved to be successful.Trial registration All patients approved to participate in the study and have given consent to publication.

Modelling the Asymmetric Relationship Between Urbanization, Energy Consumption and CO2 Emissions: A Study of Income Classified Economies

This study investigates how CO2 emissions behave with the increase or decrease in urbanization and energy consumption, employing pooled ordinary least square (OLS) estimator on a panel of 137 countries from 1961–2019. The findings indicate that there is asymmetry between the process of urbanization, energy consumption and CO2 emissions. From a global perspective, the asymmetry of urbanization on CO2 emissions is more prominent than energy consumption, although CO2 emissions are more responsive towards energy consumption in symmetric cases. For low-income economies, urbanization does not exhibit any significant impact on carbon emission, but energy consumption does. For lower-middle income economies, a lower level of urbanization has a greater impact on CO2 emission than an increase in urbanization, but carbon emissions are more reactive towards energy consumption. Moreover, both urbanization and energy consumption posit a significant impact on carbon emission for upper-middle income economies. Therefore, environment-friendly urbanization and efficient energy consumption should be prioritized to offset the negative externalities.

Nuclear energy transition and CO2 emissions nexus in 28 nuclear electricity-producing countries with different income levels.

BackgroundNuclear energy carries the least environmental effects compared to fossil fuels and most other renewable energy sources. Therefore, nuclear energy transition (NET) would reduce pollution emissions. The present study investigates the role of the NET on CO2 emissions and tests the environmental Kuznets curve (EKC) in the 28 nuclear electricity-producing countries from 1996–2019.MethodsAlong with a focus on the whole panel, countries are divided into three income groups using the World Bank classification, i.e., three Lower-Middle-Income (LMI), eight Upper-Middle-Income (UMI), and 17 High-Income (HI) countries. The cross-sectional dependence panel data estimation techniques are applied for the long and short run analyses.ResultsIn the long run, the EKC is corroborated in HI countries’ panel with estimated positive and negative coefficients of economic growth and its square variable. The Netherlands, Sweden, Switzerland, and the USA are found in the 2nd stage of the EKC. However, the remaining HI economies are facing 1st phase of the EKC. Moreover, economic growth has a monotonic positive effect on CO2 emissions in LMI and UMI economies. NET reduces CO2 emissions in UMI and HI economies. On the other hand, NET has an insignificant effect on CO2 emissions in LMI economies. In the short run, the EKC is validated and NET has a negative effect on CO2 emissions in HI countries and the whole panel. However, NET could not affect CO2 emissions in LMI and UMI countries. Based on the long-run results, we recommend enhancing nuclear energy transition in UMI and HI economies to reduce CO2 emissions. In addition, the rest of the world should also build capacity for the nuclear energy transition to save the world from global warming.

Comprehensive disaster resilience index: Pathway towards risk-informed sustainable development

The occurrence of natural hazards on the earth is as universal as this universe. Though difficult to avoid or control, however, increasing resilience remains a crucial coping mechanism for disasters. This study focuses on the first target (SDG-13.1) of “Climate Action” which entails strengthening country-specific resilience and adaptive capacity towards natural disasters. Thus, we develop a novel comprehensive disaster resilience index that captures economic stability, emergency workforce, agricultural development, human capital, digitalization, infrastructure, governance, social capital, and women empowerment. We apply IMF index-making methodology using panel data of 62 indicators from 1995 to 2019 across 24 developed and 67 developing countries. Resilience index was higher in high-income countries (0.674) followed by upper-middle (0.463), lower-middle (0.372), and low (0.314) income economies. The top 5 countries with high resilience scores include Switzerland (0.789), Germany (0.777), France (0.751), New Zealand (0.749), and Australia (0.733). Disaster resilience score in 2019 was (a) greater than 0.7 for 9 countries, (b) between 0.5 and 0.7 for 31 countries, (c) between 0.3 and 0.5 for 44 countries, and (d) less than 0.3 for 7 countries. Our study recommends improvement in disaster resilience through risk-informed strategies (i.e., rescue and medical care services, early warning systems, training, and the latest technologies). It is recommended for low resilience countries to (a) increase the health budget and upgrade hospitals, (b) ensure economic stability and food security through agricultural growth and financial development, (c) enhance social and human capital, (d) introduce institutional reforms, and (e) empower women. Thus, improving resilience for preparedness, restoration, and loss minimization underpin the pathway towards risk-informed sustainable development.

Liquidity Shocks and The Bank Lending Channel: Evidence from Lower-Middle Income Economies

This paper examines the impacts of central banks’ liquidity injections on commercial banks’ credit supply in thirty-two lower-middle income economies over the period 1990 until 2020. We use a SVAR panel model to analyze the dynamic interactions between the central bank balance sheet policy, bank liquidity, and bank lending. The results show that liquidity injections have a non-significant impact on the credit to the private sector and a persistent positive impact on banks’ liquid reserves. These results confirm the inefficiency of the bank lending channel in transmitting the central bank balance sheet monetary policy to the real economy in the considered LMIC’s.