|
on China |
| By: | Niny Khor (Stanford University); John Pencavel (Stanford University and IZA Bonn) |
| Abstract: | Though much has been written about annual income inequality in China, little research has been conducted on longer run measures of income inequality and on income mobility. This paper compares income mobility of urban individuals in China and the United States in the 1990s. The following questions are taken up. To what extent are measures of annual income inequality misleading indicators of long-run income inequality? How much income mobility was there in China in the first half of the 1990s and how did this compare with mobility in other countries? Have real income increases been greater for the poor or the rich? How important is the variation in permanent incomes in China and how has this changed? |
| Keywords: | income inequality, income mobility, China, United States |
| JEL: | D31 D63 O15 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2003&r=cna |
| By: | Weili Ding (Queen's University); Steven Lehrer (Queen's University) |
| Abstract: | Peer effects have figured prominently in debates on school vouchers, desegregation, ability tracking and anti-poverty programs. Compelling evidence of their existence remains scarce for plaguing endogeneity issues such as selection bias and the reflection problem. This paper is among the first to firmly establish the link between peer performance and student achievement, using a unique dataset from China. We find strong evidence that peer effects exist and operate in a positive and nonlinear manner; reducing the variation of peer performance increases achievement; and our semi-parametric estimates clarify the tradeoffs facing policymakers in exploiting positive peers effects to increase future achievement. |
| Keywords: | Peer Effects, Ability Grouping, Selection on observables, China, Academic performance, Teacher quality |
| JEL: | I2 Z13 P36 |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1047&r=cna |
| By: | Willem THORBECKE |
| Abstract: | East Asia is characterized by intricate production and distribution networks. Higher skilled workers in Japan, South Korea, and Taiwan produce sophisticated technology-intensive intermediate goods and capital goods and ship them to China and ASEAN for assembly by lower skilled workers and reshipment throughout the world. These networks have promoted economic efficiency and functioned as an engine of growth. They have also been accompanied by large trade imbalances with the U.S. that could cause Asian currencies to appreciate against the dollar. This in turn would alter relative exchange rates in Asia, given the variety of exchange rate regimes in the region. This paper investigates how such exchange rate changes would affect trade within Asia and between Asia and the U.S. The results indicate that exchange rate changes can cause significant declines in exports of intermediate and capital goods from developed Asia to developing Asia. This evidence implies that exchange rate appreciations in developed Asia relative to developing Asia would disrupt the complimentary relationship that exists between these countries in the trade of sophisticated technology-intensive goods. The results also indicate that exchange rate elasticities for trade between Asia and the U.S. are not large enough to lend confidence that a depreciation of the dollar would improve the U.S. trade balance with Asia. This evidence implies that policymakers in the U.S. should not expect too much from an appreciation of Asian currencies and should focus instead on shortfalls of saving relative to investment if they are concerned about their trade imbalances. |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:06009&r=cna |
| By: | Duo Qin (Queen Mary, University of London); Marie Anne Cagas (Asian Development Bank (ADB), and University of the Philippines); Geoffrey Ducanes (Asian Development Bank (ADB), and University of the Philippines); Nedelyn Magtibay-Ramos (Asian Development Bank (ADB)); Pilipinas Quising (Asian Development Bank (ADB)) |
| Abstract: | This paper compares forecast performance of the ALI method and the MESMs and seeks ways of improving the ALI method. Inflation and GDP growth form the forecast objects for comparison, using data from China, Indonesia and the Philippines. The ALI method is found to produce better forecasts than those by MESMs in general, but the method is found to involve greater uncertainty in choosing indicators, mixing data frequencies and utilizing unrestricted VARs. Two possible improvements are found helpful to reduce the uncertainty: (i) give theory priority in choosing indicators and include theory-based disequilibrium shocks in the indicator sets; and (ii) reduce the VARs by means of the general→specific model reduction procedure. |
| Keywords: | Dynamic factor models, Model reduction, VAR |
| JEL: | E31 C53 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp554&r=cna |
| By: | Chandra Pankaj |
| Abstract: | Small producers face a variety of challenges - some related to markets and others related to capabilities. Inability to develop technological capabilities has often restricted small firms from growing large. In this paper, we present learning from three global networks , i.e., TAMA in Japan, Wenzhou in China and Rajkot in India, that have adopted a variety of mechanisms of coordination between small producers and has led to both capability enhancement and demand enhancement. We argue that the capability enhancement effects play as significant a role as demand enhancement effects in the growth of small firms. Coordination that allows firms to improve their capabilities enhances both productivity as well as innovative capabilities to develop new products and processes. The paper, with the help of these three case studies, presents a generic model for SME development that is based on acquiring distinctive capabilities and linkages with other small producers or other members of the supply chain. We propose distinctive determinants of a collaborative model for engaging SMEs in technological innovation over a period of time. These are : Focus of the Firm, Interactive Producers, Processing and Product Manufacturing, Innovation Investment, Markets, Market Makers (and market making processes), and Regulatory Support. |
| Date: | 2006–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2006-03-02&r=cna |
| By: | Duo Qin (Queen Mary, University of London); Marie Anne Cagas (Asian Development Bank (ADB)); Geoffrey Ducanes (Asian Development Bank (ADB)); Xinhua He (Institute of World Economics & Politics (IWEP), Chinese Academy of Social Sciences (CASS)); Rui Liu (Institute of World Economics & Politics (IWEP), Chinese Academy of Social Sciences (CASS)); Shiguo Liu (Institute of World Economics & Politics (IWEP), Chinese Academy of Social Sciences (CASS)); Nedelyn Magtibay-Ramos (Asian Development Bank (ADB)); Pilipinas Quising (Asian Development Bank (ADB)) |
| Abstract: | This paper describes a quarterly macroeconometric model of the Chinese economy. The model comprises household consumption, investment, government, trade, production, prices, money, and employment blocks. The equilibrium-correction form is used for all the behavioral equations and the general→simple dynamic specification approach is adopted. Great efforts have been made to achieve the best possible blend of standard long-run theories, country-specific institutional features and short-run dynamics in data. The tracking performance of the model is evaluated. Forecasting and empirical investigation of a number of topical macroeconomic issues utilizing model simulations have shown the model to be immensely useful. |
| Keywords: | Macroeconometric model, Chinese economy, Forecasts, Simulations |
| JEL: | C51 E17 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp553&r=cna |