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on Central and Western Asia |
| By: | Sanghamitra Bandyopadhyay |
| Abstract: | The distribution dynamics of incomes across Indian states are examined using the entire income distribution rather than using standard regression approaches. The period 1965 to 1997 exhibits twin-peaked dynamics: there are two income convergence clubs at 50% and 125% of the national average income. Disparities across the states declined over the sixties and then increased. The observed polarisation is explained by the disparate distribution of infrastructure, in particular, that of education, irrigation and literacy in the formation of the lower convergence club. Parametric analysis establishes irrigation, education, roads, industrial power consumption and bank deposits as infrastructure components explaining cross-state variation in growth. |
| Keywords: | Convergence Clubs, Distribution Dynamics, Education, Infrastructure, Panel Data, India |
| JEL: | C23 E62 O23 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:266&r=cwa |
| By: | Nil Demet Güngör (Atilim University); Aysit Tansel (Middle East Technical University and IZA Bonn) |
| Abstract: | The emigration of skilled individuals from Turkey attracted greater media attention and the interest of policymakers in Turkey, particularly after the experience of recurrent economic crises that have led to an increase in unemployment among the highly educated young. This study estimates a model of return intentions using a dataset compiled from an Internet survey of Turkish students residing abroad. The findings of this study indicate that, as expected, higher salaries offered in the host country and lifestyle preferences, including a more organized environment in the host country, increase the probability of student non-return. However, the analysis also points to the importance of prior return intentions and the role of the family in the decision to return to Turkey or stay overseas. It is also found that the compulsory service requirement attached to government scholarships increases the probability of student return. Turkish Student Association membership also increases return intentions. Longer stay durations, on the other hand, decrease the probability of return. These findings have important policy implications. |
| Keywords: | student non-return, brain drain, return intentions, Turkey |
| JEL: | F20 F22 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2287&r=cwa |
| By: | Rakesh Basant (Indian Institute of Management Ahmedabad); Simon Commander (London Business School and IZA Bonn); Rupert Harrison (Institute for Fiscal Studies, London); Naercio Menezes-Filho (Universidade de São Paulo) |
| Abstract: | This paper uses a unique new data set on nearly a thousand manufacturing firms in Brazil and India to investigate the determinants of ICT adoption and its impact on performance in both countries. The descriptive evidence shows that Brazilian firms on average use ICT more intensively than their Indian counterparts but changes over time have been rather similar in both places. Within countries ICT intensity is strongly related to size, ownership structure, share of administrative workers and education. The econometric evidence documents a strong relationship between ICT capital and productivity in both countries, even after controlling for several other factors, including firm-specific fixed-effects. The rate of return of ICT investment seems to be much larger than usually found in more developed countries. Specific types of organisational changes matter for the return of ICT, but only for high adopters. Firms report several constraints to ICT investment in both countries and power disruption seems to significantly depress adoption and returns to ICT expenditures in India. This may be indicative of the impact of a cluster of poor institutions and/or infrastructure on performance. |
| Keywords: | ICT, productivity |
| JEL: | J2 E20 L20 L60 O33 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2294&r=cwa |
| By: | Albert Berry; John Serieux |
| Abstract: | This paper presents estimates of world economic growth for 1970-2000, and changes in the intercountry and interpersonal distribution of world income between 1980 and 2000. These estimates suggest that, while the rate of growth of the world economy slowed in the 1980-2000 period, and average within-country inequality worsened, the distribution of world income among individuals, nevertheless, improved a little. However, that result was wholly due to the exceptional economic performances of China and India. Outside these two countries, the slowdown in world growth was even more dramatic, the distribution of world income unequivocally worsened, and poverty rates remained largely unchanged. |
| Keywords: | world inequality trends; international income distribution, convergence, world poverty trends |
| JEL: | F0 I3 O4 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:une:wpaper:27&r=cwa |
| By: | Sami H. Miaari (World Bank West Bank and Gaza Office and Hebrew University of Jerusalem); Robert M. Sauer (University of Southampton and IZA Bonn) |
| Abstract: | In this paper, we measure the implications of the Israeli-Palestinian conflict for Palestinian employment and earnings. We quantify the conflict by the frequency of temporary closures of the West Bank and Gaza Strip and the number of overseas foreign workers in the Israeli labor market. Data on Palestinian employment and earnings are taken from the Palestinian Labor Force Survey (PLFS) of the Palestinian Central Bureau of Statistics. The PLFS micro level panel data are combined with quarterly time series data on the number of foreign workers in Israel, the number of foreign worker permits issued by the Israeli government, and the frequency of temporary closures of the West Bank and Gaza Strip, between the years 1999 and 2004. Fixed-effects estimates which exploit the number of foreign worker permits issued by the Israeli government as an instrument for the number of foreign workers, yield large and statistically significant negative effects of the Israeli-Palestinian conflict on Palestinian employment rates in Israel and mean monthly earnings, regardless of work location (Israel or West Bank and Gaza Strip). Closures also significantly reduce Palestinian employment rates in Israel and mean monthly earnings. The impact of foreign workers is relatively stronger than the impact of closures because foreign workers are long-run substitutes for Palestinians in the Israeli labor market while closures represent only a transitory, short-run restriction on Palestinian labor supply. However, the impact of foreign workers also reflects a permanent effect of closures. |
| Keywords: | conflict, immigration, Palestinians, Israelis, foreign workers, closures, employment, earnings, instrumental variables, panel data |
| JEL: | J21 J31 J40 J61 F22 C23 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2282&r=cwa |
| By: | Friedrich G. Schneider (Department of Economics, Johannes Kepler University Linz, Austria) |
| Abstract: | Estimations of the size and development of the shadow economy for 145 countries, including developing, transition and highly developed OECD economies over the period 1999 to 2003 are presented. The average size of the shadow economy (as a percent of "official" GDP) in 2002/03 in 96 developing countries is 38.7%, in 25 transition countries 40.1%, in 21 OECD countries 16.3% and in 3 Communist countries 22.3%. An increased burden of taxation and social security contributions, combined with a labor market regulation are the driving forces of the shadow economy. Furthermore, the results show that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. Finally, the various estimation methods are discussed and critically evaluated. |
| Keywords: | shadow economy of 145 countries; tax burden; tax moral; quality of state institutions; regulation; DYMIMIC and other estimation methods |
| JEL: | O17 O5 D78 H2 H11 H26 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2006_17&r=cwa |