Geography, access, urbanization, trade, and economic development

This paper examines the impact of geography, access, urbanization, and trade on per capita GDP in developing countries. Based on data from the World Bank and using a sample of sixty-six developing economies, we find that per capita GDP is linearly dependent upon geography and access as measured by the length of both the coastline and the land boundaries as well as the average distance to the capital city, infrastructure investments as measured by the number of airports as well as rail density and road density, the level of urbanization as measured by the agglomeration index, the percentage of the rural population with water access and sanitation services and that of the urban population with sanitation services, and trade as measured by external balance of goods and services as a percent of GDP.Infrastructure, Economic Geography, Urbanization, External Balance of Goods and Services, Agglomeration, Water and Sanitation Services, Developing Countries

Exports, imports, government consumption and economic growth in upper-middle income countries

Esfahani (1991) shows that the statistically significant correlation between export promotion and economic growth in semi-industrialized countries (SICs) has been mainly attributable to the role of exports in reducing import ‘shortages’, which have impeded output growth in these countries. As a result, export-promotion policies as a superior development strategy in SICs play an important role in those that cannot secure sufficient foreign aid or investment. Esfahani (1991) also develops a simultaneous equations model to address the simultaneity bias between GDP and export growth rates. In this article we extend the model developed by Esfahani (1991) by incorporating the contribution of government consumption to output growth and test it using a sample of 27 upper-middle income economies

The Role of Policy Fundamentals in Fostering Economic Growth in Developing Countries

This paper examines the role of policy fundamentals in fostering economic growth in developing countries. Based on data from the World Bank for the 2000-2011 period and a sample of sixty-two developing economies we find that the growth rate of per capita GDP is dependent on a country’s investments in human capital as measured by the share of the public sector in total health expenditure and by the relative size of public education in the government’s budget, on an enabling business environment as measured by two Doing Business indicators, namely the cost of starting a business as a percent of per capita income and the number of days required to enforce contracts, and by the share of losses due to theft, robbery, vandalism, and arson in sales as reported in the enterprise surveys, on the depth of the credit information index and the share of domestic credit provided by the banking sector in the GDP, on the initial level of per capita GDP, and on the share of the net inflow of foreign direct investment (FDI) in the GDP. We observe that the coefficient estimates of two explanatory variables, namely, the share of the public sector in total health expenditure and by the relative size of public education in the government’s budget, do not have their expected sign, possibly to the collinearity between these variables and the cost of starting a business as a percent of per capita income as well as with the initial level of per capita GDP. In addition, the share of the public sector in total health expenditure is not significant via using the t-test. We suspect that this is also due to the collinearity between this variable and the cost of starting a business as a percent of per capita income as well as with the initial level of per capita GDP. Statistical results of such empirical examination will assist governments in developing countries and focus on appropriate policy fundamentals in order to foster economic growth

Poverty in Agrarian Developing Economies

This paper examines the determinants of poverty in agrarian developing economies. Based on data from the World Bank and a sample of thirty agrarian developing economies we find that the fraction of the population below the national poverty line is linearly dependent on urbanization as measured by the fraction of the total population living in urban areas, the maternal mortality ratio, the level of development as measured by purchasing power parity per capita gross national income, and the fraction of births attended by skilled health staff. We observe that the coefficient estimate of one explanatory variable, namely, the fraction of births attended by skilled health staff does not have its expected sign, possibly to the collinearity between this variable and the maternal mortality ratio as well as with the level of purchasing power parity per capita GNI. Statistical results of such empirical examination will assist governments in agrarian developing countries focus on appropriate policies in order to reduce poverty

Poverty in Agrarian Developing Economies

This paper examines the determinants of poverty in agrarian developing economies. Based on data from the World Bank and a sample of thirty agrarian developing economies we find that the fraction of the population below the national poverty line is linearly dependent on urbanization as measured by the fraction of the total population living in urban areas, the maternal mortality ratio, the level of development as measured by purchasing power parity per capita gross national income, and the fraction of births attended by skilled health staff. We observe that the coefficient estimate of one explanatory variable, namely, the fraction of births attended by skilled health staff does not have its expected sign, possibly to the collinearity between this variable and the maternal mortality ratio as well as with the level of purchasing power parity per capita GNI. Statistical results of such empirical examination will assist governments in agrarian developing countries focus on appropriate policies in order to reduce poverty