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I read a sentence in The Hindu which was:

This, in turn, continues to dog demand in the hinterland for manufactured goods.

I know "dog" hasn't been used here in the literal sense. But even its figurative sense (to hound by or as if by dogs, thus causing continual trouble) does not make much sense to me. So, is there something that I'm missing?

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dog (v): 1.1 (of a problem) cause continual trouble for.

The metaphorical definition of "dog" meaning "to follow closely and persistently" makes sense, as this is typical dog behavior. However the origin of the twist on this, "to cause trouble for," is less clear.

In any case, this nuance exists, and makes sense in your example. The writer is saying that some issue has led to a continual and persistent lack of demand for manufactured goods in that particular region -- perhaps like a dog that keeps hanging around even though you wish it would go away.

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