nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2006‒03‒25
twelve papers chosen by
Nurdilek Hacialioglu
Open University

  1. Economic Reforms, Foreign Direct Investment and its Economic Effects in India By Chandana Chakraborty; Peter Nunnenkamp
  2. Rural non-farm development in China and India By Mukherjee, Anit; Zhang, Xiaobo
  3. Comparing farm and village-level determinants of millet diversity in marginal environments of India By Nagarajan, Latha; Smale, Melinda; Glewwe, Paul
  4. The dragon and the elephant By Gulati, Ashok; Fan, Shenggen; Dalafi, Sara
  5. Do Attitudes Towards Corruption Differ Across Cultures? Experimental Evidence from Australia, India, Indonesia andSingapore By L. Cameron; A. Chaudhuri; N. Erkal; L. Gangadharan
  6. Rural and urban dynamics and poverty: Evidence from China and India By Fan, Shenggen; Chan-Kang, Connie; Mukherjee, Anit
  7. Ethnic segregation and educational performance at secondary school in Bradford and Leicester By Ron Johnston; Deborah Wilson; Simon Burgess
  8. Local seed systems and village-level determinants of millet crop diversity in marginal environments of India By Nagarajan, Latha; Smale, Melinda
  9. Familiar Faces, Familiar Places: The role of family networks and previous experience for Albanian migrants By Gero Carletto; Benjamin Davis; Marco Stampini
  10. Moving Away from Poverty: A spatial analysis of poverty and migration in Albania By Alberto Zezza; Gero Carletto; Benjamin Davis
  11. Household Income Structure and Determinants in Rural Egypt By André Croppenstedt
  12. An Assessment of the Impact of Increasing Wheat Self-Sufficiency and Promoting Cash-Transfer Subsidies for Consumers in Egypt: A Multi-Market Model By Gamal M. Siam

  1. By: Chandana Chakraborty; Peter Nunnenkamp
    Abstract: Foreign direct investment (FDI) has boomed in post-reform India. Moreover, the composition and type of FDI has changed considerably since India has opened up to world markets. This has fuelled high expectations that FDI may serve as a catalyst to higher economic growth. We assess the growth implications of FDI in India by subjecting industry-specific FDI and output data to Granger causality tests within a panel cointegration framework. It turns out that the growth effects of FDI vary widely across sectors. FDI stocks and output are mutually reinforcing in the manufacturing sector. In sharp contrast, any causal relationship is absent in the primary sector. Most strikingly, we find only transitory effects of FDI on output in the services sector, which attracted the bulk of FDI in the post-reform era. These differences in the FDI-growth relationship suggest that FDI is unlikely to work wonders in India if only remaining regulations were relaxed and still more industries opened up to FDI.
    Keywords: foreign direct investment, economic reform, growth effects, India, cointegration, causality
    JEL: F21 F23 O53
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:kie:kieliw:1272&r=cwa
  2. By: Mukherjee, Anit; Zhang, Xiaobo
    Abstract: The dynamic rural nonfarm sector in China has been a major contributor to the country's remarkable growth, while in India the growth in output and employment in this sector has been rather stagnant. The paper argues that the observed patterns in the rural nonfarm development are the results of institutional differences between the two countries, especially in their political systems, ownership structure, and credit institutions. A review of the strengths and weaknesses of the rural nonfarm economy in China and India highlights the potentials and challenges of growth in the sector.
    Keywords: Industrial policy ,Policy research ,Non-farm development ,
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fpr:dsgddp:24&r=cwa
  3. By: Nagarajan, Latha; Smale, Melinda; Glewwe, Paul
    Abstract: "The purpose of the research paper is to characterize biological diversity related to millets in the semi-arid regions of India at various spatial scales of analysis (e.g., farm household versus community levels) and place that evidence in a broader seed systems (includes both formal and informal) context. An important finding of this research is that producer access to millet genetic resources is affected by the extent to which seed is traded via formal markets or through other social institutions, along with farm and household characteristics. Findings also underscore the need for an enhanced theoretical understanding of local seed markets in analyzing crop variety choices and the diversity of materials grown in less favored environments." Authors' Abstract
    Keywords: Crop diversity ,Seed systems ,Biological diversity ,
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fpr:eptddp:139&r=cwa
  4. By: Gulati, Ashok; Fan, Shenggen; Dalafi, Sara
    Abstract: "China's and India's rapid rise in the global arena has not only captured the attention of the world but has also set into motion a rethinking of the very paradigm of economic development....Today, China and India together account for 40 percent of the world's population. Both have implemented a series of economic reforms in the past two and half decades: China initiated this process at the end of the 1970s, while India began in the early 1990s. These reforms have led to rapid economic growth, with a growth rate of 8–9 percent per annum in China and 6–7 percent per annum in India. Despite similar trends in the reforms, the two countries have taken different reform paths; China started off with reforms in the agriculture sector and in rural areas, while India started by liberalizing and reforming the manufacturing sector. These differences have led to different growth rates and, more importantly, different rates of poverty reduction. They also have fundamentally different implications for growth and poverty reduction in the future. What can we learn from the process of economic reform in these two countries?... A number of studies looking into key aspects of reform and their relationship to outcomes, presented at two international workshops held in New Delhi and Beijing, try to offer some answers to these questions. These papers are currently being prepared by IFPRI for publication, and this discussion paper is a synopsis presented as a forerunner to the book. " from Authors' Abstract
    Keywords: Poverty alleviation China ,Poverty alleviation Egypt ,Economic reform ,
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fpr:mtiddp:87&r=cwa
  5. By: L. Cameron; A. Chaudhuri; N. Erkal; L. Gangadharan
    Abstract: This paper examines cultural differences in attitudes towards corruption by analysing individual-decision making in a corrupt experimental environment. Attitudes towards corruption play a critical role in the persistence of corruption. Our experiments differentiate between the incentives to engage in corrupt behaviour and the incentives to punish corrupt behaviour and allow us to explore whether, in environments characterized by lower levels of corruption, there is both a lower propensity to engage in corrupt behaviour and a higher propensity to punish corrupt behaviour. Based on experiments run in Australia (Melbourne), India (Delhi), Indonesia (Jakarta) and Singapore, we find that there is more variation in the propensities to punish corrupt behaviour than in the propensities to engage in corrupt behaviour across cultures. The results reveal that the subjects in India exhibit a higher tolerance towards corruption than the subjects in Australia while the subjects in Indonesia behave similarly to those in Australia. The subjects in Singapore have a higher propensity to engage in corruption than the subjects in Australia. We also vary our experimental design to examine the impact of a more effective punishment system and the effect of the perceived cost of bribery.
    Keywords: Corruption, Experiments, Punishment, Cultural Analysis
    JEL: C91 D73 O17 K42
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:mlb:wpaper:943&r=cwa
  6. By: Fan, Shenggen; Chan-Kang, Connie; Mukherjee, Anit
    Abstract: "Like many developing countries, China and India followed development strategies biased in favor of the urban sector over the last several decades. These development schemes have led to overall efficiency losses due to misallocation of resources among rural and urban sectors. It also led to large income gaps between rural and urban areas. The urban bias was greater in China than in India. Indeed, official data show that both the income gap and the difference in poverty rates between rural and urban areas are much larger in China than in India. Both countries have corrected the rural-urban divide to some extent as part of reform processes. But the bias still exists. Other studies also support the idea presented here that correcting this imbalance will not only contribute to higher rural growth, but also secure future urban growth (Fan and Chan-Kang 2005). More important, correcting the urban bias will lead to larger reductions in poverty as well as more balanced growth across sectors and regions. Correcting a government's bias towards investment in urban areas is one of the most important policies to pursue." from Authors' Abstract
    Keywords: Rural-urban linkages ,Poverty ,
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fpr:fcnddp:196&r=cwa
  7. By: Ron Johnston; Deborah Wilson; Simon Burgess
    Abstract: Evidence suggests considerable variation among British ethnic groups in their performance at different stages of their educational careers. Many members of those groups are concentrated in particular parts of certain cities, and as a consequence many attend ethnically-segregated schools. Using pupil- and school-level data from the Pupil Level Annual School Census (PLASC) in England, this paper explores the relationship between performance and various student and school characteristics in Bradford (which has a large Pakistani population) and Leicester (with a large Indian population). It finds evidence of a correlation between school ethnic composition and performance in Bradford but not Leicester.
    Keywords: ethnic segregation, schools, attainment levels, Bradford, Leicester
    JEL: I20
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:bri:cmpowp:06/142&r=cwa
  8. By: Nagarajan, Latha; Smale, Melinda
    Abstract: "In the subsistence-oriented, semi-arid production systems of Andhra Pradesh and Karnataka, India, the environment is marginal for crop growth and often there is no substitute for millet crops. Across communities, farmers grow thirteen different combinations of pearl millet, sorghum, finger millet, little millet, and foxtail millet varieties, but individual farmers grow an average of only two to three millet varieties per season. The notion of the seed system includes all channels through which farmers acquire genetic materials, outside or in interaction with the commercial seed industry. Data are compiled through household surveys and interviews with traders and dealers in village and district markets. Based on the concept of the seed lot, several characteristics of local seed markets are defined and measured by millet crop, including seed transfer rates for farmer-to-farmer transactions and seed replacement ratios. Most seed transactions appear to be based on money. Seed supply channels differ by improvement status of the genetic material. Econometric results indicate the significance of the seed replacement ratios and seed volumes traded in determining the levels of crop biodiversity managed by communities, in addition to the household, farm and other market-related factors identified by previous studies. These are interpreted as indicators of market strength." Authors' Abstract
    Keywords: Seed systems ,Crop diversity ,Seed industry and trade ,genetic variation ,
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fpr:eptddp:135&r=cwa
  9. By: Gero Carletto (Agricultural and Development Economics Division, Food and Agriculture Organization); Benjamin Davis (Agricultural and Development Economics Division, Food and Agriculture Organization); Marco Stampini
    Abstract: Using data from the 2003 Albania Panel Survey, the paper sets out to achieve two main objectives. First, we fully characterize the evolution of Albanian international migration since the fall of Communism in 1990. We distinguish between permanent and temporary migration, and between the two principal destinations, Greece and Italy. Second, we explore, using multivariate analysis, what individual, household and community level factors influence the current decision to migrate internationally, focusing on the role of previous personal experience and family networks. We find evidence of important changes over time in the pull and push factors that drive migration flows. While early on in the transition political and economic factors were predominant, over time personal experience and household migration networks assumed a fundamental role, facilitating growth in migration even in times of the relatively stable economic conditions. Other individual, household, and community factors have an important role in the decision to migrate, and these factors vary by type of migration and destination. Furthermore, the spatial configuration of migration is also changing: both temporary and permanent migration are expanding into new parts of the country. The results have important policy implications. First, policies aimed at controlling migration are likely to be less effective where networks have already developed or where engrained patterns of repeat migration are established. Second, despite increasing legality, migration, particularly for newcomers, is still difficult, risky and often illegal, which fosters a climate of exploitation and abuse. Third, we find that highly educated individuals have a higher propensity to migrate permanently, which constitutes a serious potential risk in terms of brain drain.
    Keywords: Albania, Families, Migration, Population dynamics, Rural urban migration, Social groups, Sociology, Urban rural migration
    JEL: F22 P2
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fao:wpaper:0503&r=cwa
  10. By: Alberto Zezza (Agricultural and Development Economics Division, Food and Agriculture Organization); Gero Carletto (Agricultural and Development Economics Division, Food and Agriculture Organization); Benjamin Davis (Agricultural and Development Economics Division, Food and Agriculture Organization)
    Abstract: This paper analyses recent patterns of migration and poverty in Albania, a country that - following the collapse of the communist regime in 1990 – has been experiencing high migration rates. Using a combination of survey and census data, the paper characterises spatial patterns in the distribution of poverty and migration at a high level of geographic disaggregation. The results emphasise the importance of analysing internal and international migration as different phenomena, as the two appear to be associated in opposite ways to observed poverty and welfare levels. While poverty acts as a push factor for internal migration, it seems to be a constraining factor for the more costly international migration. The results also suggest that rural migration to urban areas contributes to the relocation of poverty in urban areas.
    Keywords: Poverty, Migration, Albania.
    JEL: J1 J61 I32
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fao:wpaper:0502&r=cwa
  11. By: André Croppenstedt (Agricultural and Development Economics Division, Food and Agriculture Organization)
    Abstract: Egypt is on track to achieve its long-term goal of reducing the poverty rate to 6 percent by 2022. Continued progress towards this goal will require rapid employment growth for which agriculture growth, through its impact on demand for goods and services in the rural non-tradable sector will be of fundamental importance. This paper considers which agricultural policies will be most effective at reducing rural poverty in Egypt . Using household survey data from 1997 the study analyzes household income structure and determinants. Results indicate that agricultural policies that help to raise unskilled labor wages and/or increase demand for unskilled labor as well as those that support small animal/bird raising, in particular poultry, are best suited to help the poor. A longer-term strategy must also focus on enhancing formal sector employment through increased access to education for men and in particular women.
    Keywords: Egypt, household income structure, household income determinants, income distribution, rural sector.
    JEL: D30 O12
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:fao:wpaper:0602&r=cwa
  12. By: Gamal M. Siam (Department of Agricultural Economics, Faculty of Agriculture, Cairo University)
    Abstract: Wheat is central to the government of Egypt's food security policy which is based on increasing self-sufficiency in wheat on the one hand and subsidizing bread for consumers on the other hand. This paper uses a multi-market approach to assess the impact of increased self-sufficiency in wheat and a switch to a cash-transfer subsidy on cropping patterns, food consumption, production, input use, and income. The findings show that raising self-sufficiency in wheat would reduce reliance on imports but would also adversely affect other sectors, in particular livestock. At full self-sufficiency in wheat, berseem the main animal feed would nearly vanish, with negative repercussions for livestock production. The simulations also show that a move to a cash transfer subsidy system would improve targeting of the poor and eliminate distortions on the consumption side. Finally, under the current wheat policy an increase in the world price of wheat would intensify the adverse consequences of both self-sufficiency and consumer subsidies at the agricultural sector level and economy wide.
    Keywords: Egypt, agriculture sector, wheat, multi-market model, wheat self-sufficiency, bread subsidy, policy scenario impact analysis.
    JEL: Q11 Q18
    Date: 2006–02
    URL: http://d.repec.org/n?u=RePEc:fao:wpaper:0603&r=cwa

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