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IPAID

Institute for Poverty Alleviation and
International Development

Yonsei University

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Volume 10 Number 1 June 2019
Explaining Catch-Up in Human Development: A Political Economy Comparison of the Philippines and Viet Nam Since 1986
Author_ Bob Baulch
Pages 01-18
Abstract_ This paper examines the Philippines and Viet Nam’s contrasting human development and growth experiences since 1986 from a political economy perspective. By a sequenced combination of market liberalization, land reform, and public investments in health and education, plus large aid and foreign direct investment inflows, Viet Nam generated broad-based, sustained, and rapid economic growth. Viet Nam’s authoritarian but socially inclusive governments then used progressive taxation and inter-provincial transfers to translate this growth into human development outcomes. In contrast, in the Philippines, traditional elites were able to dominate the democratic process, capture rents and divert resources away from investment in human development and infrastructure, thereby stifling a short-lived growth acceleration. The Philippines was also caught in a low-revenue, low-expenditure trap due to its porous and regressive tax system and self-reinforcing internal revenue allotment mechanism. While not without difficulties in terms of rising vertical and horizontal inequalities, economic growth and human development in Viet Nam have therefore been more inclusive, as well as faster, than in the Philippines.
Keywords_ Human development, Economic growth, Political economy, Philippines, Viet Nam
 
Volume 10 Number 1 June 2019
Structural Change: Is South Korea a Good Model for Developing Countries?
Author_ Richard Grabowski
Pages 19-29
Abstract_ South Korea’s structural change process seems to have been the result of an unbalanced growth strategy in which the agricultural sector was basically ignored for several decades while investment was focused on manufacturing. It has been argued by some scholars that for many of today’s developing countries this sort of development strategy is likely to be successful. However, it is argued in this paper that the early success of this unbalanced approach based on manufacturing rather than agriculture is not a good model for others to follow. Specifically, commodity aid (food and raw materials) was critical for South Korea’s unbalanced growth strategy. Without access to such significant amounts of aid most developing countries are unlikely to achieve successful structural transformation. As a result, agriculture must play a key role in the structural change process in many of today’s developing countries.
Keywords_ Structural change, South Korea, Unbalanced growth, Agriculture
 
Volume 10 Number 1 June 2019
Are Saving and Bequest Constraints the Only Reasons for Child Labor? Evidence from Bangladesh
Author_ Md. Deen Islam
Pages 30-42
Abstract_ This paper proposes a two-sector model of child labor to argue that income channels are necessary but not sufficient to explain the high incidence of child labor that we currently observe in less developed countries. In addition to income channels, the model in this paper uses two extra channels: parental optimism regarding the future and child’s scholastic ability, which affects the costs of education in terms of money and time. The model’s predictions are tested using data from the child labor survey of Bangladesh. Empirical results provide strong support in favor of the model's predictions that non-income channels have significant effects on the amount of time worked by child workers.
Keywords_ Child Labor, Household Poverty, Parental Perception, Informal Sector, Returns to Education, Heterogeneous Ability
 
Volume 10 Number 1 June 2019
The Impact of Migration and Migrant Remittances on Household Poverty in Bangladesh
Author_ Nahid Akhter and Md. Kamrul Islam
Pages 43-59
Abstract_ Bangladesh is one of the major suppliers of migrant workers especially to the Middle East, and the flow of remittances has increased from $2.8 billion in 2002 to $13.52 billion in 2017, which is more than 5 per cent of the country’s GDP. This article investigates the impact of domestic and international migration and subsequent remittances on poverty. The empirical analysis reveals that there is a significant relationship between growth in remittances and different outcome variables in the economy with positive impact on poverty, household income and financial inclusion. The results indicate that both domestic and international remittances have positive impact on poverty alleviation; and these results are statistically significant. International migration and remittance supplies are important pathways out of poverty for the poor households. Considering the impact of remittances on poverty and economic outcomes, appropriate technical and vocational training are needed to utilize the full potential of the migrant workers and maximize the contributions of remittances to the domestic economy.
Keywords_ Remittances, Savings, Migration, Income, Poverty, Bangladesh
 
Volume 10 Number 1 June 2019
Changes in Women’s Operation of Agricultural Units in Peru: Economic Advance or Impoverishment of Female Farmers?
Author_ Eduardo Zegarra
Pages 60-69
Abstract_ Figures from the last two agricultural censuses in Peru indicate significant changes in the presence of women conducting agricultural units. Altogether, women went from controlling 20% in 1994 to 31% of total agricultural units in 2012. In the conventional discourse, this is mostly assumed to be clear evidence for the “economic advance for women”, linked mainly to the increased access to agricultural land. This trend, however, can also be associated with a process of impoverishment, especially if women control increasingly smaller and low productivity agricultural units, and face unsurmountable barriers for better education, financing of high value crops and cattle, formal titling and other key services. In this paper we use a panel of districts from these two censuses to disentangle the occurrence of both processes in the asset and market access dimensions. We find evidence of very different processes occurring for women with and without male partners. We conclude that more control of agricultural units by women does not necessarily imply greater economic progress, especially if there are not specific policies in place to offset gender biases in the access to key agricultural assets, rural institutions and markets.
Keywords_ Agricultural feminization, Gender analysis, Women economic advance, Rural Impoverishment, Peru
 
 
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IPAID

Institute for Poverty Alleviation and International Development (IPAID) at Yonsei University

1, Yonseidae-gil, Wonju-si, Gangwon-do, South Korea

강원도 원주시 연세대길1 연세대학교 미래캠퍼스 정의관 316호 빈곤문제국제개발연구원

Phone: +82-33-760-2534, 760-2577, 760-2554, 760-2527  |  Fax: +82-33-760-2572  |  E-mail: ipaid@yonsei.ac.kr

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Yonsei University