nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2006‒11‒18
fifteen papers chosen by
Nurdilek Hacialioglu
Open University

  1. Migration and Wellbeing at the Lower Echelons of the Economy: A Study of Delhi Slums By Mitra, Arup; Tsujita, Yuko
  2. A Structural VAR Analysis of the Determinants of Capital Flows Into Turkey By Ali Askin Culha
  3. Regional Specialization And Location Of Industrial Activity In Turkey By Ayten Aysen Kaya
  4. Imalat Sanayi Ihracatýnda Uzmanlasma: Türkiye - Avrupa Birligi Analizi By Ayten Aysen Kaya
  5. Heterogeneity and Common Pool Resources: Collective Management of Forests in Himachal Pradesh, India By Sirisha C. Naidu
  6. The Stability Of The Turkish Phillips Curve And Alternative Regime Shifting Models By Özlem Önder
  7. Learning levels and gaps in Pakistan By Das, Jishnu; Pandey, Priyanka; Zajonc, Tristan
  8. An Asian Triangle of Growth and Cluster-to-Cluster Linkages By Kuchiki, Akifumi
  9. MARKETS, INSTITUTIONS AND EFFICIENCY--GROUNDWATER IRRIGATION IN NORTH INDIA By A.Banerji; Gauri Khanna; J.V. Meenakshi
  10. The impact of policies to control motor vehicle emissions in Mumbai, India By Takeuchi, Akie; Cropper, Maureen; Bento, Antonio
  11. High Point Industries of Aegean Region of Turkey By Nese Kumral; Çagaçan Deger
  12. An Industrial Cluster Study: As A Basis For The Aegean Region's Development Policy By Nese Kumral; Çagaçan Deger
  13. Strategic Asset Allocation in Stochastic Environment And Incomplete Markets: Evidence on Horizon And Hedging Effects By Ahmad Telfah
  14. A dime a day : the possibilities and limits of private schooling in Pakistan By Andrabi, Tahir; Das, Jishnu; Khwaja, Asim Ijaz
  15. Izmir Küçük, Orta ve Büyük Ölçekli Imalat sanayinde Üretim Etkinligi ve Toplam Faktör Verimliligi Analizi By Ertugrul Deliktas

  1. By: Mitra, Arup; Tsujita, Yuko
    Keywords: Wellbeing, Migrant worker, Slums, Population movement, Quality of life, Household, Poverty, India
    JEL: I31 I32 J61 R23
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper51&r=cwa
  2. By: Ali Askin Culha
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:tcb:wpaper:0605&r=cwa
  3. By: Ayten Aysen Kaya (Department of Economics, Ege University)
    Abstract: The aim of this study is to determine where the Turkish manufacturing industry tend to concentrate and by finding out the direction of this tendency to provide a ground in order to contribute to the realizations of regional policies of Turkey. Turkey’s regions are examined within the context of regional specialization and concentration. Regional specialization and concentration are measured by the Location Quotient Index (LQ) that can be computed at the regional level (NUTS 2). There are 26 NUTS 2 level in Turkey. Using employment data at 4 Digit ISIC Rev.3 codes, regional high point industries is identified, where industries account for at least over 0.2 percent of the regional workforce and which are at least 25 % more concentrated than average (LQ> 1.25). Consequently, changes in LQ are measured for high point manufacturing industries. These high point industries are then grouped to form the basis of a cluster. Focusing on industry clusters that gives all regions of Turkey a comparative advantage will help to create sustainable regional development policies.
    Keywords: regional specialization, regional concentration, industrial cluster, Location Quotient Index,
    JEL: R11 R12
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:ege:wpaper:0606&r=cwa
  4. By: Ayten Aysen Kaya (Department of Economics, Ege University)
    Abstract: Purpose of this study is to identify the Turkish Industries that have comparative advantage in manufacturing export within EU-15 and EU-10 as well as candidate countries such as Bulgaria and Romania. First, export specialization value of Turkey has been calculated with respect to SITC Rev.3 3 digit product group manufacturing export data that were adapted to Balassa index for the period of 1991–2003. Then, technological structures of the Turkish industries that exhibit export specialization/comparative advantage, in accordance with SITC technology classification, have been defined.
    Keywords: ihracatta uzmanlasma, imalat sanayi, Balassa endeksi, Avrupa Birligi 15/10, export specialization, manufacturing industries, Balassa index, European Union 15/10
    JEL: F14
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:ege:wpaper:0605&r=cwa
  5. By: Sirisha C. Naidu (Wright State University)
    Abstract: In the past two decades, theoretical and empirical evidence suggests that communities of resource users are capable of overcoming social dilemmas, and are capable of creating and sustaining institutions designed to prevent degradation of common pool natural resources. However, there is incomplete understanding of what motivates this group-level behavior and why some communities are better adept at solving collective action problems than others. This paper specifically explores the role of group heterogeneity in collective action among forest communities in the northwestern Himalayas. Heterogeneity can have important social and ecological consequences and understanding both its nature and effects can help in neutralizing the negative and enhancing the positive. Based on data from 54 forest communities in Himachal Pradesh, India, this paper finds that heterogeneity has at least three dimensions: wealth, identity and interest, and each may significantly affect collective actions related to natural resource management. However, their effects are far from simple and linear.
    Keywords: common pool resources, group outcomes, heterogeneity, forests
    JEL: D63 D71 H41 Q23 Q57
    Date: 2005–11
    URL: http://d.repec.org/n?u=RePEc:dre:wpaper:2005-8&r=cwa
  6. By: Özlem Önder (Department of Economics, Ege University)
    Abstract: This paper presents empirical evidence supporting instability of the Phillips curve in Turkey. We employ the multiple structural break models and the Markov switching models and then evaluate the performance of the two models. The data pertains to the monthly inflation rate in Turkey for the period of 1987-2004. The results show that the Turkish Phillips curve is not linear. There exists no evidence on the asymmetry in the inflation response to output gap. The persistence of inflation is found to be much lower than in linear models. After 2001 slight decline in persistence of inflation is observed.
    Keywords: Phillips curve, multiple structural change models, Markov switching models
    JEL: C52 E31
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:ege:wpaper:0602&r=cwa
  7. By: Das, Jishnu; Pandey, Priyanka; Zajonc, Tristan
    Abstract: The authors report on a survey of primary public and private schools in rural Pakistan with a focus on student achievement as measured through test scores. Absolute learning is low compared with curricular standards and international norms. Tested at the end of the third grade, a bare majority had mastered the K-I mathematics curriculum and 31 percent could correctly form a sentence with the word " school " in the vernacular (Urdu). As in high-income countries, bivariate comparisons show that higher learning is associated with household wealth and parental literacy. In sharp contrast to high-income countries, these gaps decrease dramatically in a multivariate regression once differences between children in the same school are looked at. Consequently, the largest gaps are between schools. The gap in English test scores between government and private schools, for instance, is 12 times the gap between children from rich and poor families. To contextualize these results within a broader South Asian context, the authors use data from public schools in the state of Uttar Pradesh in India. Levels of learning and the structure of the educational gaps are similar in the two samples. As in Pakistan, absolute learning is low and the largest gaps are between schools: the gap between good and bad government schools, for instance, is 5 times the gap between children with literate and illiterate mothers.
    Keywords: Primary Education,Education For All,Tertiary Education,Secondary Education,Teaching and Learning
    Date: 2006–11–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:4067&r=cwa
  8. By: Kuchiki, Akifumi
    Abstract: It is expected that an Asian triangle of growth will be formed in the coming few decades. China, India and ASEAN surround the Asian triangle, which is home to many industrial clusters. Multinational corporations will link these clusters together. Regional integration will help them in this task by lowering the barriers of national borders. This paper explains the necessity of regional integration for cluster-to-cluster linkages in the Asian triangle of growth.
    Keywords: Asian Triangle of growth, Regional integration, Cluster-to-cluster linkages, Economic growth, International economic integration, Industrial policy, ASEAN, Asia, China, India, Southeast Asia
    JEL: F23 F59 R12 R58
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper71&r=cwa
  9. By: A.Banerji (Delhi School of Economics); Gauri Khanna (Graduate Institute of International Studies, Geneva); J.V. Meenakshi (Delhi School of Economics, and International Food Policy Research Institute, Washington, D.C.)
    Abstract: This paper analyzes the institutions and markets that govern groundwater allocation in the sugarcane belt of Uttar Pradesh, India, using primary, plot-level data from a village which shares the typical features of this region. Electricity powers tubewell pumps, and its erratic supply translates into randomness in irrigation volumes. The paper finds that plots are water-rationed, owing to inadequate supply of power. A simple model shows that a combination of such rationing and the village-level mechanism of water sales can lead to great misallocation of water across plots, and result in large crop losses for plots that irrigate using purchased water. We infer the existence of a social contract that mitigates these potential losses in the study area to a remarkable extent; in its absence, average yields are estimated to be 18% lower. The finding that the water allocation is close to efficient (given the power supply) marks a sharp contrast with much of the existing literature. Notwithstanding the social contract, the random and inadequate supply of power, and therefore water, is inefficient. The dysfunctional power supply is part of a larger system of poor incentives to produce reliable and adequate power. In simulations we find that such reliability can improve yields by up to 10 %, and pay for a system of electricity pricing that gives incentives to the power supplier to actually provide adequate power. However, even at reasonably high power prices, irrigation volumes are large enough to continue to seriously deplete the water table. The problem is that traditional rights of water use do not take into account the shadow price of the groundwater. We provide a rough first analysis to suggest that a 15% markup on the economic unit cost of providing electricity would make for intertemporally efficient water use.
    Keywords: Water markets, water tables, water production function, water pricing.
    JEL: L1 Q1 Q2
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:cde:cdewps:152&r=cwa
  10. By: Takeuchi, Akie; Cropper, Maureen; Bento, Antonio
    Abstract: This paper examines the impact of measures to reduce emissions from passenger transport, specifically buses, cars, and two-wheelers in Mumbai. These include converting diesel buses to compressed natural gas (CNG), as the Indian Supreme Court required in Delhi, which would necessitate an increase in bus fares to cover the cost of pollution controls. The authors model an increase in the price of gasoline, which should affect the ownership and use of cars and two-wheelers, as well as imposing a license fee on cars to retard growth in car ownership. The impact of each policy on emissions depends not only on how the policy affects the mode that is regulated, but on shifts to other modes. The results suggest that the most effective policy to reduce emissions from passenger vehicles-in terms of the total number of tons of PM10 (particulate matter that measure less than or equal to 10 micrometers in aerodynamic diameter) reduced-is to convert diesel buses to CNG. The conversion of 3,391 diesel buses to CNG would result in an emissions reduction of 663 tons of PM10 a year, 14 percent of total emissions from transport. The bus conversion program passes the cost-benefit test. In contrast, the results suggest the elasticities of emissions from transport with respect to a gasoline tax and a tax on vehicle ownership are -0.04 and -0.10 respectively. As a consequence, it would take substantial increases in the gasoline tax or vehicle ownership tax to produce reductions in emissions similar to the bus conversion program. These results, however, reflect the low shares of cars and two-wheelers in the Mumbai emissions inventory and need not apply to cities, such as Delhi, where these shares are higher.
    Keywords: Transport Economics Policy & Planning,Transport in Urban Areas,Transport and Environment,Roads & Highways,Urban Transport
    Date: 2006–11–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:4059&r=cwa
  11. By: Nese Kumral; Çagaçan Deger (Department of Economics, Ege University)
    Abstract: As theoretical studies on industrial clusters have progressed, many researchers have focused on identifying clusters in various regions in different national economies. The emphasis has generally been to identify potential clusters, upon which a policy of sustainable development can be formulated. This paper aims to provide a basis to enable the identification of the regional clusters in Turkey. Using manufacturing industry data for years 1995 and 2000, regional high points of the Aegean Region have been identified by calculating shares of regional employment and concentration ratio. Then the identified industries have been focused upon to provide an initial framework to identify Aegean Region’s clusters.
    JEL: O18 L60 R12
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:ege:wpaper:0604&r=cwa
  12. By: Nese Kumral; Çagaçan Deger (Department of Economics, Ege University)
    Abstract: The Aegean Region, which is the focus of this study, is the second most developed region of Turkey. Its share in the GDP has remained relatively stable around 17 percent during 1990-2000 periods according to data provided by State Planning Organization of Turkey. The region enjoys a number of advantages like; high quality human resources, rich experience in manufacturing industry going back to the 19th century, small and medium sized industries comprising the majority of enterprises, a promising potential for inter-firm network development particularly in industries like food, wearing apparels, leather, metal wares and automotive,relatively more foreign direct investment in various branches, an international port, universities,geographic location. However, despite these advantages, the region also has some disadvantages which can be summarized as follows: the lack of implementation of an effective regional development policy,limited number of regional institutions, inadequate institutional coordination between these institutions,poor vocational training, high level of brain drain, foreign trade of the traditional commodities of the region,inefficient R&D, low technology level, etc. In order to overcome these disadvantages, regional resources need to be reallocated according to the requirements of a global competitive environment in the framework of new regional policy. The study aims to identify manufacturing-based clusters across the Aegean Region and these clusters’ provincial locations, so that a base can be formed for potential regional policies. Department of Trade and Industry’s analysis of UK clusters is taken as the basis of methodology to be applied in this paper.
    JEL: O18 L60 R12
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:ege:wpaper:0601&r=cwa
  13. By: Ahmad Telfah
    URL: http://d.repec.org/n?u=RePEc:api:apiwps:0603&r=cwa
  14. By: Andrabi, Tahir; Das, Jishnu; Khwaja, Asim Ijaz
    Abstract: This paper looks at the private schooling sector in Pakistan, a country that is seriously behind schedule in achieving the Millennium Development Goals. Using new data, the authors document the phenomenal rise of the private sector in Pakistan and show that an increasing segment of children enrolled in private schools are from rural areas and from middle-class and poorer families. The key element in their rise is their low fees-the average fee of a rural private school in Pakistan is less than a dime a day (Rs.6). They hire predominantly local, female, and moderately educated teachers who have limited alternative opportunities outside the village. Hiring these teachers at low cost allows the savings to be passed on to parents through low fees. This mechanism-the need to hire teachers with a certain demographic profile so that salary costs are minimized-defines the possibility of private schools: where they arise, fees are low. It also defines their limits. Private schools are horizontally constrained in that they arise in villages where there is a pool of secondary educated women. They are also vertically constrained in that they are unlikely to cater to the secondary levels in rural areas, at least until there is an increase in the supply of potential teachers with the required skills and educational levels.
    Keywords: Primary Education,Education For All,Tertiary Education,Secondary Education,Teaching and Learning
    Date: 2006–11–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:4066&r=cwa
  15. By: Ertugrul Deliktas (Department of Economics, Ege University)
    Abstract: (This paper is in Turkish) This paper based on three-digit (international standard industrial classification, ISIC-Rev.3) panel data over the 1991-2000 period measures technical efficiency and total factor productivity growth in the public and privately owned manufacturing sub-sectors in Ýzmir by using Data Envelopment Analysis and Malmquist productivity index. DEA. The empirical findings show that large-scale manufacturing industries are generally more efficient than the medium and small-scale industries in Ýzmir manufacturing industry. Also, privately-owned manaufacturing industries are more efficient than publicly- owned manufacturing industries, except for petroleum refineries, operating at the same scale. The most efficient manufacturing industries during the study period are petroleum refineries, tobacco manufactures, manufacture of pottery, china and earthenware, and beverage industries, respectively. On the other hand, the least efficient industries are manufacture of wood and wood cork products, except furniture; manufacture of leather and product of leather, leather substitutes and fur; and manufacture of textiles, respectively. Ýzmir manufacturing industry experienced annual average technical efficiency decline, technical progress and total factor productivity growth over the 1991-2000 period.
    Keywords: izmir manufacturing industry, technical efficiency, data envelopment analysis.
    JEL: C6 C14 L6
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:ege:wpaper:0603&r=cwa

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