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on Central and Western Asia |
| By: | Signe Krogstrup (IUHEI, The Graduate Institute of International Studies, Geneva); Linda Matar (UN-ESCWA, Beirut) |
| Abstract: | Arab countries have been performing very poorly in attracting FDI inflows relative to other developing countries since the early 1990s. Arab countries might hence be missing out on growth and development, if FDI is associated with positive externalities. The recent empirical literature on FDI and growth shows, however, that the latter is not always the case, and that FDI is more likely to have positive externalities in countries with a certain level of absorptive capacity for FDI. This paper looks at FDI and growth through absorptive capacity in the Arab world, given the available data on four different aspects of absorptive capacity: the technology gap, the level of workforce education, financial development and institutional quality. The results turn out to be highly sensitive to the specific measure of absorptive capacity used, but one conclusion is unambiguous. It is unlikely that the average Arab country currently stands to gain from FDI. As a consequence, costly financial incentives to attract more FDI might hence be wasteful, if not welfare reducing in Arab countries. |
| Keywords: | Foreign Direct Investment; Growth; Regional Integration; Middle East; Arab Countries |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:gii:giihei:heiwp02-2005&r=cwa |
| By: | Aykut Kibritcioglu (Ankara University) |
| Abstract: | In Turkey, the financial sector is traditionally dominated by banking activities, and the banking sector experienced several systemic crises since late 1970s. This paper reviews and summarizes the major banking sector problems in the country. It also outlines the latest regulations and reform attempts in Turkey, with particular reference to Turkey's future EU membership. |
| Keywords: | Banking sector, financial fragility, banking crises, banking regulations, Turkey |
| JEL: | E44 G21 |
| Date: | 2005–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0505006&r=cwa |
| By: | Prabal Roy Chowdhury (Indian Statistical Institute, New Delhi) |
| Abstract: | We examine group-lending under sequential financing. In a model with moral hazard, social capital and endogenous group formation, we identify conditions such that sequential financing with joint liability leads to positive assortative matching between borrowers with and without social capital and, moreover, `bad' borrowers are partially screened out, thus resolving the moral hazard problem to some extent. Further, if the later loans are not too delayed, then under these conditions the expected payoff of the bank is greater compared to that under joint liability lending. Positive assortative matching or sequential financing (specially in the absence of joint liability) are no panacea though. |
| Keywords: | Group-lending; sequential financing; joint liability; social capital; assortative matching; endogenous group formation |
| JEL: | G2 O1 O2 |
| Date: | 2004–10 |
| URL: | http://d.repec.org/n?u=RePEc:ind:isipdp:04-23&r=cwa |
| By: | Bharat Ramaswami (Indian Statistical Institute, New Delhi); Pratap Singh Birthal (National Centre for Agricultural Economics and Policy Research); P.K. Joshi (International Food Policy Research Institute) |
| Abstract: | This paper is an empirical analysis of the gains from contract farming in the case of poultry production in the state of Andhra Pradesh in India. The paper finds that contract production is more efficient than noncontract production. The efficiency surplus is largely appropriated by the processor. Despite this, contract growers still gain appreciably from contracting in terms of lower risk and higher expected returns. Improved technology and production practices as well as the way in which the processor selects growers is what makes these outcomes possible. In terms of observed and unobserved characteristics, contract growers have relatively poor prospects as independent growers. With contract production, these growers achieve incomes comparable to that of independent growers |
| Keywords: | Contract Farming, Contracting, Poultry, Vertical Integration |
| JEL: | L23 L24 Q13 |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:ind:isipdp:05-01&r=cwa |
| By: | Vidya Mahambare (Cardiff Business School); V. N. Balasubramanyam (Lancaster University) |
| JEL: | F1 F2 |
| Date: | 2005–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpit:0505007&r=cwa |