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The per capita income and provincial GDP estimates of Azad Kashmir are comparatively underrated when compared with development in other regions of the country although Azad Kashmir notably has a literacy rate that is substantially above the national average.
Larger programs began in the 1930s with the Bonifica Integrale land reclamation program (or so-called "Battle for Land"), which was employing over 78,000 people by 1933; the Mezzogiorno policies to modernise southern Italy and attack the Mafia - per capita income in the south was still 40% below that of the north; the electrification of the railways and similar transport programs; hydroelectrical projects; the chemical industry; automobiles; steel.
(That is, the proportionate demand for each good becomes more similar, for example following Engel's law on food and non-food spending.)Econometric test of the hypothesis has been difficult because countries with similar levels of per capita income are generally located close to each other geographically and distance is a very important factor in explaining the intensity of trade between two countries.