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on Central and Western Asia |
| By: | Rafael Repullo (CEMFI, Centro de Estudios Monetarios y Financieros) |
| Abstract: | This paper studies the strategic interaction between a bank whose deposits are randomly withdrawn, and a lender of last resort (LLR) that bases its decision on supervisory information on the quality of the bank's assets. The bank is subject to a capital requirement and chooses the liquidity buffer that it wants to hold and the risk of its loan portfolio. The equilibrium choice of risk is shown to be decreasing in the capital requirement, and increasing in the interest rate charged by the LLR. Moreover, when the LLR does not charge penalty rates, the bank chooses the same level of risk and a smaller liquidity buffer than in the absence of a LLR. Thus, in contrast with the general view, the existence of a LLR does not increase the incentives to take risk, while penalty rates do. |
| Keywords: | Central bank, lender of last resort, penalty rates, moral hazard, bank supervision, capital requirements, deposit insurance. |
| JEL: | E58 G21 G28 |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:cmf:wpaper:wp2005_0504&r=cwa |
| By: | Felicitas Nowak-Lehmann D.; Dierk Herzer; Immaculada Martínez-Zarzoso; Sebastian Vollmer |
| Abstract: | This paper investigates the trade effects of Turkey’s trade integration into the EU. To this end sectoral trade flows to the EU based on panel data from the period 1988 to 2002 are examined concentrating on Turkey’s sixteen most important export sectors. Emphasis is placed on the role of price competition, EU protection, and transport costs in the export trade between Turkey and the EU. The empirical model used is an extended version of the gravity model. This study is also a contribution to the current discussion of whether Turkey should be granted full EU membership or a privileged partnership with the EU, which for Turkey would mean improved access to the EU market for its products, among other benefits. Our investigation focuses on the latter policy outcome: the impact of deepening the Customs Union between Turkey and the EU and applying the Common Agricultural Policy (CAP) to Turkish agricultural exports. To this end, the impact of the 1996 Customs Union covering most industrial goods and processed agricultural goods, is evaluated on a sectoral level. We also perform simulations to quantify the impact of the potential inclusion of agricultural goods, as well as iron and steel and products thereof, into the full Customs Union between Turkey and the EU which is still to come. |
| Keywords: | Trade integration, gravity model, sectoral trade flows, price competition, transport costs |
| JEL: | F |
| Date: | 2005–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:got:cegedp:43&r=cwa |
| By: | Gupta Anil K; Mashelkar R A |
| Abstract: | Gender imbalance among various streams of professionals is a constant cause of concern to policy planners and institution builders. The situation becomes more serious when we notice that girls often perform much better academically at secondary school level and then there is a sharp decline in their performance at graduate and postgraduate levels. The situation in the field of science and technology is no less serious. There are very few scientific institutions, which have women scientists as directors, or senior leaders of programmes. In this paper, we compare our insights from the formal scientific sector with our investigations in informal scientific sector. The effort to blend excellence in formal and informal scientific sectors would require overcoming the gender imbalances in both these sectors. A review of the current status and offer of some policy and institutional suggestions are also included, which could help in overcoming asymmetry in the knowledge and power of women in formal and informal sciences. |
| Date: | 2005–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2005-05-02&r=cwa |
| By: | Sriram M S; Kumar Radha |
| Abstract: | The paper looks at some macro data on the availability of infrastructure, economic growth, density of population and the availability of formal financial services to examine if any of these factors explain the growth of microfinance in certain regions, while the other regions lag behind. For the study, data from the four southern states and three states from the western part of the country have been examined. We find that most of the indicators are not significant enough to explain the regional disparity in the growth of microfinance. However, anecdotal evidence and a perusal of the state policy pronouncements explain that the role of the state could be significant in promoting some of these initiatives. In case of Karnataka, we also find that the banking system seems to have played an additional role in rolling out microfinancial services. The paper concludes by indicating that possibly the sector is still insignificant in the rural economy to establish causality with macro variables. However, there could be possibility of growth in states like Rajasthan where most of the parameters that could foster microfinance seem to exist and with policy intervention on the routing of developmental projects, the movement could get a big boost. We also indicate that the existing network has the potential of unleashing more finance and financial products, and that initiative should be seized forthwith. |
| Date: | 2005–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2005-05-03&r=cwa |
| By: | Nil Demet Güngör (Middle East Technical University); Aysit Tansel (Middle East Technical University and IZA Bonn) |
| Abstract: | The study presents research findings on the return intentions of Turkish professionals residing abroad, where the targeted group comprises individuals working at a full time job abroad and possessing a tertiary-level degree. The data are obtained from an internet survey of Turkish professionals conducted by the authors during the first half of 2002. A total of 1224 usable responses were obtained from a combination of internet search and referral sampling methods. Student non-return appears to be more significant compared to professional migration, since participants with foreign degrees appear less likely to return. There is a strong, positive association between initial return intentions and current return intentions, although this weakens with the length of stay. The findings also tend to confirm that the recent economic crises in Turkey have had an adverse impact on the return intentions of university educated professionals working abroad. |
| Keywords: | skilled migration, brain drain, return intentions, higher education, Turkey |
| JEL: | F20 F22 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1604&r=cwa |
| By: | Aysit Tansel (Middle East Technical University and IZA Bonn); Fatma Bircan (Middle East Technical University) |
| Abstract: | There is an excess demand for university education in Turkey. Highly competitive university entrance examination which rations the available places at university programs is very central to the lives of young people. In order to increase the chances of success of their children in the university entrance examination parents spend large sums of money on private tutoring (dersane) of their children. In this study, we investigate the factors that determine participation in private tutoring and the effect of private tutoring on getting placed at a university program. We further examine the impact of private tutoring on the scores of the applicants in the university entrance examination. The results indicate that controlling for other factors those students who receive private tutoring perform better in the university entrance examination. |
| Keywords: | private tutoring, university entrance examination achievement, Turkey |
| JEL: | I2 J10 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1609&r=cwa |
| By: | Nobuhiko Fuwa (Agricultural Economics, Chiba University); Christopher Edmonds (Economics Study Area, East-West Center); Pabitra Banik (Indian Statistical Institute, Kolkata, India) |
| Abstract: | We focus on the impact of failing to control for differences in land types defined along toposequence on estimates of farm technical efficiency for small-scale rice farms in eastern India. In contrast with the existing literature, we find that those farms may be considerably more technically efficient than they appear from more aggregated analysis without such control. Farms planted with modern rice varieties are technically efficient. Furthermore, farms planted with traditional rice varieties operate close to the production frontier on less productive lands (upland and mid-upland), but significant technical inefficiency exists on more productive lands (medium land and lowland). |
| JEL: | O13 O33 Q12 Q16 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:ewc:wpaper:wp79&r=cwa |