nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2005‒10‒04
nineteen papers chosen by
Nurdilek Hacialioglu
Open University

  1. Social group disparities and poverty in India By Rohit Mutatkar
  2. The Political Economy of Elite Dominance and Ethnic By Sarmistha Pal; Sugata Ghosh
  3. Dairy Markets in Asia: An Overview of Recent Findings and Implications By Beghin, John C.
  4. Birth Spacing and Child Survival: Comparative Evidence from India and Pakistan* By Pushkar Maitra; Sarmistha Pal
  5. Organisational morphology of rural industries in liberalised India: A study of West Bengal By Dibyendu S. Maiti
  6. POVERTY AND ENVIRONMENTAL DEGRADATION IN RURAL INDIA: A NEXUS By Prof. Purusottam Nayak
  7. The Dragon vs the Elephant: Comparative analysis of innovation capability in the telecommunications equipment industry in China and India By Sunil Mani
  8. GENDER AND SUSTAINABLE DEVELOPMENT IN MINING SECTOR IN INDIA By Prof. Purusottam Nayak; Prof. S.K. Mishra
  9. USE OF WATER RESOURCE FOR AGRICULTURAL PRODUCTION IN NORTH-EAST INDIA By Prof. Purusottam Nayak
  10. Trends in Regional Disparity in Human and Social Development in India By Dholakia Ravindra H
  11. Understanding the Effects of Siblings on Child Mortality: Evidence from India By Gerald Makepeace; Sarmistha Pal
  12. On the non-random distribution of educational deprivation of children in India By Mothuri Venkatanarayana
  13. LONG-RUN MOVEMENT OF PRICES IN ASSAM By Prof. Purusottam Nayak
  14. Role of Financial Institutions in Promoting Entrepreneurship in Assam Small Scale Sector in Assam By Prof. Purusottam Nayak
  15. Taxing powers and developmental role of the Indian states: A study with reference to Kerala By R. Mohan; D. Shyjan
  16. Turkish Delight for Some, Cold Turkey for Others?: The Effects of the EU-Turkey Customs Union By Antonis Adam; Thomas Moutos
  17. Investigating the Early Signals of Banking Sector Vulnerabilities in Central and East European Emerging Markets By Kadri Männasoo; David G Mayes
  18. Trade and Business Cycle Synchronization in OECD Countries - a Re-examination By Robert Inklaar; Richard Jong-A-Pin; Jakob de Haan
  19. Uluslararasi Rekabet Gucu'ne Kavramsal Bir Yaklasim (= A Conceptual Approach to International Competitiveness) By Aykut Kibritcioglu

  1. By: Rohit Mutatkar (Indira Gandhi Institute of Development Research)
    Abstract: This paper seeks to provide a profile of social group disparities and poverty in India, where social groups are classified as scheduled caste, scheduled tribe and other social groups, and examine the factors underlying differences in levels of living between these groups and for each group separately. The paper argues that social group disparities in levels of living are the result of historically rooted `social disadvantages' for scheduled castes and scheduled tribes, by way of social exclusion and physical exclusion respectively, which continue to operate in contemporary Indian society.
    Keywords: Poverty, Scheduled Caste, Scheduled Tribe, Exclusion, India
    JEL: I3
    Date: 2005–09
    URL: http://d.repec.org/n?u=RePEc:ind:igiwpp:2005-004&r=cwa
  2. By: Sarmistha Pal (Department of Economics & Finance, Brunel University); Sugata Ghosh (Department of Economics & Finance, Brunel University)
    Abstract: Despite more than four decades of planning efforts with an emphasis on balanced regional development, inter- and intra-state disparities in key indicators of quality of life in India are striking. Using Indian state- level data for the period 1960-92, the present paper examines the nature of political economy of elite dominance and ethnic heterogeneity, both of which could in principle be responsibel for lower the provision of public services. Fixed–effects panel data estimates seem to confirm that (a) greater degree of elite dominance lowers the spending on education (but not that on health) while greater degree of ethnic heterogeneity lowers spending on both health and education. (b) Also, predominance of Indian National Congress regime has been higher in states with greater dominance of elite upper class and ethnic heterogeneity. Thus there is a close correspondence between political regimes and social development spending in the sample states though there is a clear lack of convergence in state spending on health and education suggesting the divergent agenda of the state governments in India.
    Keywords: Social development, Minority groups, Elite dominance, Ethnic heterogeneity.
    JEL: I18 I28
    Date: 2005–09–27
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwppe:0509010&r=cwa
  3. By: Beghin, John C.
    Abstract: This paper is an overview of important findings regarding the ongoing evolution of Asian dairy markets based on a series of new economic investigations. These investigations provide systematic empirical foundations for assessing Asian dairy markets with their new consumption patterns, changing industries, and trade prospects under different domestic and trade policy regimes. The findings are drawn from four case studies (China, India, Japan, and Korea), as well as a prospective analysis of future regional patterns of consumption and a policy analysis of trade liberalization of Asian dairy markets. The overview distills the findings of these new investigations and integrates them in the earlier economic literature; it draws policy implications and identifies lessons for countries outside of Asia, especially for emerging exporters in Latin America.
    Keywords: Asia, China, dairy, India, Japan, Korea, liberalization, trade integration.
    Date: 2005–09–28
    URL: http://d.repec.org/n?u=RePEc:isu:genres:12424&r=cwa
  4. By: Pushkar Maitra (Monash University); Sarmistha Pal (Brunel University)
    Abstract: In view of higher fertility and mortality rates in Pakistan compared to India, this paper examines the two-way relationship between birth interval and child mortality and compares the behaviour of households in the Indian and Pakistani provinces of Punjab. Birth interval and child survival are modelled here as correlated hazard processes to address the bias generated by the simultaneity between spacing and survival. We find evidence of significant mutual dependence between birth interval and child survival in both samples. We also identify a close correspondence between birth interval and duration of breastfeeding and argue that the duration of breastfeeding is a good instrument of birth spacing in our samples. There are also interesting differences between Indian and Pakistani households with respect to effects of son preference and female literacy. We argue that part of these differences could be explained by differences in religion and state policies in these two neighbouring states.
    Keywords: Birth spacing, Child survival, Sibling competition and child replacement effects, Religion and state policy, Correlated hazards models, Simultaneity bias.
    JEL: C41 C24 J13 O10
    Date: 2005–09–27
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpla:0509010&r=cwa
  5. By: Dibyendu S. Maiti (Centre for Development Studies)
    Abstract: Recent interest on rural industries derives from recognition of thelimits of agriculture and organised manufacturing sector in employment generation especially during the post-liberalisation period in India. Historically, industrial development of the West and the East presentcontrasting pictures of rural industries. One, the linearity model foundedon the historical experience of the West, holds that development impliesa movement away from traditional subsistence production in rural areas to modern industrial production in urban centres. The other, the EastAsian Experience has shown that the growth potential of rural industriesis considerable given the under-utilisation of the physical labour and the entrepreneurial ability of rural people. A combination of putting out system and subcontracting system - along with modern factory and industrial cooperatives - has persisted in the rural manufacturing sector even in the era of economic liberalisation. We find differential capital endowments and socio-economic constraints of rural artisans reflecting extensive division of labour, specialisation and fragmentation of the labour process. These do not satisfy the requirements of the linearity model founded in advanced capitalist countries.
    Keywords: Rural industry, production organisation, linearity model, transaction cost
    JEL: O18 R12
    Date: 2005–06
    URL: http://d.repec.org/n?u=RePEc:ind:cdswpp:371&r=cwa
  6. By: Prof. Purusottam Nayak (North-Eastern Hill University)
    Abstract: Inspired by the worldwide debate on the issue, the present paper is a humble attempt to test the nexus between poverty and environmental degradation in rural India based on secondary sources of data. Though the study does not reveal any definite pattern of linkage in the context of rural India it examines the probable causes of failure in the link, highlights the status of poverty and environmental degradation across States and over time and concludes by highlighting the urgent need for undertaking micro level studies in the North Eastern States based on primary survey for policy intervention.
    Keywords: Poverty and Environmental Degradation
    JEL: A
    Date: 2005–09–26
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0509017&r=cwa
  7. By: Sunil Mani (Centre for Development Studies)
    Abstract: China and India have one of the largest telecommunications equipment markets in the world. The paper employs a sectoral system of innovation framework towards understanding the differential outcomes in innovation capability building in the industry achieved by China and India. The countries have pursued widely diverging strategies for developing their domestic innovation capability. India followed a very rigid policy of indigenous development of domestic technologies by establishing a stand-alone public laboratory that developed state-of-the art switching technologies. These were then transferred to manufacturing enterprises in both public and private sectors. The enterprises themselves did not have any in-house R&D capability. The public laboratory was also not given any strategic direction, even though it was technologically speaking, very competent. Consequently the country, despite possessing good quality human resource was unable to keep pace with changes in the technology frontier and the equipment industry has now become essentially dominated by affiliates of MNCs. China, on the contrary, first depended on MNCs for her technology needs in this area. But subsequently encouraged the emergence of three national champions, two of which are erstwhile public laboratories. The country has built up considerable hardware capability in both fixed line and mobile communications technology and has also emerged as a major player in world markets. Although the sectoral system of innovation in both the countries were promoted and nurtured by the state through a variety of instruments, the quality of such interventionist strategy is found to be better in China. The final outcome proves this line of argument.
    Keywords: Innovation capability, China, India, Telecommunications industry, Digital switching systems, Mobile telephony
    JEL: L63 O31 O32 O38
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:ind:cdswpp:373&r=cwa
  8. By: Prof. Purusottam Nayak (North-Eastern Hill University); Prof. S.K. Mishra (North-Eastern Hill University)
    Abstract: The present paper is an attempt to investigate gender issues in the mining sector in India with a view to understand how these issues impact on Sustainable Development imperatives in the mining industry as part of a broader study of the Mining and Minerals for Sustainable Development initiative. Because of the male-dominated nature of the industry, in trying to better understand the gender issues at play, the study focuses not only on women’s experiences but also analyses how they are utterly neglected within the industry. It considers how mining industry contributes to sustainable development by promoting women’s economic advancement and reducing women’s poverty, by ensuring greater involvement of women in the mining sector.
    Keywords: Gender and Suistainable Development in Mining
    JEL: A
    Date: 2005–09–23
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0509014&r=cwa
  9. By: Prof. Purusottam Nayak (North-Eastern Hill University)
    Abstract: Water is one of the most vital natural resources used not only for direct consumption purposes but also as an input in the process of production in different sectors of the economy of which agriculture is the most important. One of the salient characteristics of water is that in addition to the fact of its being an indispensable input it works as an augmenting input in agriculture when it is combined with other inputs of production such as improved seeds (HYV) and fertilizer. Thus it has a tremendous role to play in agriculture in increasing both production and productivity. It helps in bringing wasteland under crops, in adopting multiple cropping practices and in raising greater quantities of the same crop on the same plot. Most importantly, irrigation generates an element of stability in agriculture by partly freeing it from the vagaries of monsoon. The present work in this regard is an attempt to study the role and use of water in the agricultural sector in the North Eastern States.
    Keywords: Water Resource and Agricultural Production
    JEL: A
    Date: 2005–09–26
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0509020&r=cwa
  10. By: Dholakia Ravindra H
    Abstract: In the present paper, we have examined trends in regional disparity in human and social development by considering numerous indicators other than State Income. We found no support to the general impression prevailing in the recent literature that disparity is increasing over the last two decades when we subjected the trend to statistical significance test. We considered numerous output as well as the input indicators for the purpose. In very few indicators, the disparity showed an increase, whereas in a large number of indicators it either remained the same or actually declined over the last two decades. The state governments’ efforts in the social sectors were perhaps a major reason for the outcome. Except education, in all other social sub-sectors, the interstate disparity in the government effort markedly declined during the 1990s compared to the 1980s. In education, it remained the same. Our findings in this paper point to a very clear policy prescription. The social and human development is considered by all the state governments as very important and a priority sector in their development strategy. The way they are making efforts in these directions is reducing disparity across states although each state has been acting on its own. This is perhaps because of the felt need of people and the polity in states. Explicit objective of reducing regional disparity in social and human development in the central planning may not, therefore, be specially required. Augmenting the revenue resources of states allowing the states to access public borrowings directly would enable most of them to concentrate on their priority areas – based on the local felt need. It is likely to address the issue of regional imbalance and disparity in a much better and efficient way without imposing excess burden since it would allow exploiting complementarities in growth and equity.
    Date: 2005–09–23
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:2005-09-07&r=cwa
  11. By: Gerald Makepeace (Cardiff Business School); Sarmistha Pal (Department of Economics & Finance, Brunel University)
    Abstract: This paper examines the efffect of siblings on child mortality in the Indian state of West Bengal arguing that prior and posterior spacing between consecutive siblings are important measures of the intensity of competition among siblings for limited resources. Parental decisions regarding spacing is endogenous to allocation of resources though available estimates of child mortality largely ignore it. To correct for this possible endogeneity bias, we allow for family specific unobserved heterogeneity and model birth spacing and child mortality as correlated processes within a sequential framework. These corrected estimates suggest: (a) the hazard of prior spacing may increase while that of posterior spacing decrease with mother’s literacy and household assets. (b) the chances of child survival increase with an increase in both prior and posterior birth interval but decrease with the birth of a twin. (c) prior and posterior birth intervals have different effects on young boys and girls, which, in turn, reflect the nature of decisions made by resource constrained parents characterised by pro-male bias.
    Keywords: Sibling competition, Age and gender composition, Birth spacing, Child mortality, Pro-male bias, Unobserved heterogeneity.
    JEL: D13 I12 O15
    Date: 2005–09–27
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwphe:0509010&r=cwa
  12. By: Mothuri Venkatanarayana (Centre for Development Studies)
    Abstract: The emphasis on education assumes importance given the recent recognition of human capital, human rights and human development perspectives of development. Hence educational deprivation is recognised as the primary agent of human deprivation and all necessary measuresare required to ensure minimum education for every child. Such auniversal recognition emanates from the given magnitude of educationally deprived children all around the world. On this premise,this is an attempt at examining the levels and inequities associated withthe phenomenon of educational deprivation of children during 1990's in India. This exercise provides a detailed exposition of the household characteristics of the deprived children based on information obtained in National Sample Survey Organisation (NSSO). The persistence of educational deprivation among children in India is due to socio-economic deprivation in general; however, it remains debatable but whether the remedy lies in making the schooling provision universal. This paper argues that the provision may be necessary but not a sufficient condition to accomplish the dream goal of universal elementary education. Alternatively it argues for a greater role of the state to ensure the enabling conditions in the household domain; in otherwords, the state has the responsibility of ensuring the well-being of all children on an equal footing. The state's responsibility is of equal importance of that of the parents.
    Keywords: India, Deprivation, Educationally Deprived Children, Child Labour, Educational Inequalities, Group Inequalities
    JEL: I2 I20 I28 R12 J21 J23
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:ind:cdswpp:372&r=cwa
  13. By: Prof. Purusottam Nayak (North-Eastern Hill University)
    Abstract: In a dynamic economy everything is subject to change. Change of prices along with other economic variables is a common feature of all the growing economies including Indian economy. The economy of the State of Assam being a part of the Indian economy is no exception to this. The present paper is an attempt to study the movement of both wholesale and retail prices and for different sections of the society over time and space in Assam. The study is based on the information of price indexes from secondary sources for a period of 20 years from 1974 to 1993 (both years included).
    Keywords: Long-Run Price Movement in Assam
    JEL: A
    Date: 2005–09–26
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0509016&r=cwa
  14. By: Prof. Purusottam Nayak (North-Eastern Hill University)
    Abstract: The movement of entrepreneurship promotion and development in the past few decades has gone a long way in North East India, particularly in the state of Assam. Both governments and various industrial promotion and support institutions are making considerable efforts to facilitate the process of emergence of new entrepreneurs for setting up enterprises in small scale sector. These efforts involved making attractive schemes for availability of finance and various other assistances including technical know how, training, sales, purchases, etc. It is believed that these efforts have made a favorable impact on the growth of these enterprises in the State as well as in the region. There are today a large number of organizations like North Eastern Industrial and Technical Consultancy Organization (NEITCO), National Institute of Small Industry Extension Training (NISIET) [till it was merged with the Indian Institute of Entrepreneurship (IIE)] and the North Eastern Industrial Consultants Ltd (NECON) who has been actively involved in entrepreneurship development activities in the region. Their efforts have been supported by the North Eastern Council (NEC) in general and financial institutions like Industrial Development Bank of India (IDBI), Small Industries Development Bank of India (SIDBI), North Eastern Development Finance Corporation Limited (NEDFi) and various commercial banks in particular. The present paper in this regard is an attempt to examine the role of financial institutions in promoting small scale and tiny industries in terms of growth of entrepreneurs, enterprises and its contribution to State Domestic Products.
    Keywords: Financial Institutions and Entrepreneurship Development
    JEL: A
    Date: 2005–09–26
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0509018&r=cwa
  15. By: R. Mohan (Centre for Development Studies); D. Shyjan (Centre for Development Studies)
    Abstract: The study analyses whether the growing State Domestic Product (SDP) of Kerala since the latter half of the 1980s, has acted as a larger resource base for the State and finds that it has not. While the inability to fully tap the existing resource potential could be cited as a reason, the paper argues that the main constraint is the limited taxing powers of the States. The Study concludes that the power to tax the services should be devolved from the Centre to the States, lest the fiscal dispossession should affect the sustainability of achievements, which made the development experience of Kerala unique.
    Keywords: Revenue Receipts, Tax Effort, SDP
    JEL: E62 E69
    Date: 2005–08
    URL: http://d.repec.org/n?u=RePEc:ind:cdswpp:375&r=cwa
  16. By: Antonis Adam; Thomas Moutos
    Abstract: Following Turkey’s application for EU membership in 1987, a Customs Union (CU) between Turkey and the EU, mainly covering trade in manufacturing goods and processed agricultural products, came into effect in 1995. In addition to a large agricultural sector, Turkey also specializes in the production and exportation of relatively low-price, low-quality varieties of manufactured products. We use a theoretical framework in order to demonstrate that these features of the Turkish economy imply asymmetric changes in the trade volumes of the incumbent countries of the EU as a result of the EU-Turkey CU. By examining disaggregated trade data we find that the technologically sophisticated EU countries (e.g., mainly the Northern European countries) are also least similar to Turkey in terms of their export structure, whereas the degree of export similarity between the less technologically sophisticated EU members and Turkey is high. Our econometric results indicate that, in contrast to the “Northern” group’s exports to other EU15 countries (which have remained intact), the Southern countries’s exports to the other EU15 countries have declined as a result of the EU-Turkey CU. Moreover, the extra penetration of the Turkish market by EU countries has not been more favourable to the Southern group. These findings also imply that technologically sophisticated countries may see no significant further benefits from Turkey’s full accession to the EU (whereas the migration and political influence related costs for these countries may be large).
    Keywords: European Union, Turkey, customs union, exports, gravity, differentiated products
    JEL: F13 F15
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_1550&r=cwa
  17. By: Kadri Männasoo; David G Mayes
    Abstract: This paper considers the joint role of macro-economic and bankspecific factors in explaining the occurrence of banking problems in the twenty-one Central and East European emerging markets over the recent decade. Using data at the individual bank level we show, using a logit model, that the macroeconomic factors play a central role in determining banking sector instability in the early stages of difficulty, while the bankspecific factors are more important in the later stages and gain more weight as the banking sector develops and the institutional framework becomes mature.
    Keywords: banking sector vulnerability, banking crises, early warning indicators, Central and Eastern Europe
    JEL: E44 G21
    URL: http://d.repec.org/n?u=RePEc:eea:boewps:wp2005-08&r=cwa
  18. By: Robert Inklaar; Richard Jong-A-Pin; Jakob de Haan
    Abstract: This paper re-examines the relationship between trade intensity and business cycle synchronization for 21 OECD countries during 1970-2003. Instead of using instrumental variables, we estimate a multivariate model including variables capturing specialisation, financial integration, and similarity of economic policies. We confirm that trade intensity affects business cycle synchronization, but the effect is much smaller than previously reported. Other factors in our model have a similar impact on business cycle synchronization as trade intensity. Finally, we find that the effect of trade on business cycle synchronisation is not driven by outliers and does not suffer from parameter heterogeneity.
    Keywords: business cycles, trade, synchronization of business cycles
    JEL: E32 F42
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_1546&r=cwa
  19. By: Aykut Kibritcioglu (Ankara University)
    Keywords: international competitiveness
    JEL: F10
    Date: 2005–09–25
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpit:0509008&r=cwa

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