Download Poverty Reduction and Beyond: Development Strategies for by Takashi Shiraishi, Tatsufumi Yamagata, Shahid Yusuf PDF

By Takashi Shiraishi, Tatsufumi Yamagata, Shahid Yusuf

This ebook highlights thoughts for poverty relief in constructing countries, with emphasis on the facility of the industry mechanism and vigour of the non-public area, focusing ODA on a number of long term demanding situations and leveraging advances in know-how to the fullest, and underlining the significance of human rights and protection.

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Additional info for Poverty Reduction and Beyond: Development Strategies for Low-Income Countries (Ide-Jetro Series)

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At this point, we simply have suggestive evidence in favor of a large causal effect of free markets on economic development. GDP includes public spending and production as well as private sector production. It would be nice to have private value added to trace the effect of business climate directly to private sector outcomes. Unfortunately, private sector GDP data are not available. 23 This reflects many different factors besides private sector value added: the transition from agriculture to manufacturing as countries develop, the many factors that influence openness to international trade and competitiveness in international markets, the gravity model of trade flows, etc.

3, suggesting that the endogeneity of the economic freedom measure was biasing downwards the coefficient. The instruments are also an alternative way to deal with the measurement error in economic freedom that may be correlated with the error term in the per capita income equation. 43)** Observations Robust t statistics in parentheses * significant at 5%; ** significant at 1% Memo: Beta coefficient on RHS variable F-statistic first-stage regression Instrument for RHS variable Distance from equator (latitude/90 degrees) Source: Author’s calculation.

Second, it is not even clear how to define what a free market “policy reform” is. As Pritchett (2007) argues, the most meaningful definition of a “policy” is not a single government action, but a mapping from different states of the world to government policy reactions. With this definition, single policy actions may be poor measures of “free market policy,” a system in which the government responds to preserve or increase economic freedom no matter what the states of the world with which it is confronted.

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