nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2006‒12‒04
eleven papers chosen by
Nurdilek Hacialioglu
Open University

  1. Implementing VAT in India :Implications for Federal Polity By Sharma, Chanchal Kumar
  2. Development of Industrial Cluster By Kumar, Sudesh
  3. THE EFFECTS OF EXCHANGE RATE VOLATILITY ON THE TURKISH EXPORT: AN EMPIRICAL INVESTIGATION By Ozturk, Ilhan; Acaravcı, Ali
  4. Mahatma Gandhi and the Prisoner’s Dilemma: Strategic Civil Disobedience and Great Britain’s Great Loss of Empire in India By Siddiky, Chowdhury Irad Ahmed
  5. The Political Economy of Global Outsourcing By Sharma, Chanchal Kumar
  6. Unorganised Manufacturing Industry in the Era of Globalization: A Study of Punjab By Singh, Lakhwinder; Jain, Varinder
  7. Cyprus-EU Relations: Possible Scenarios For The Future By Ozturk, Ilhan; Sertoglu, Kamil; Kaptan, Ebru
  8. Background, Assessment and Analysis of the Gender Issues in Pakistan By Moheyuddin, Ghulam
  9. Incorporating Gender into Poverty Reduction Strategies By Moheyuddin, Ghulam
  10. An industry in Jeopardy. The urban economics of the Jewelry industry in Khan al-Khalili cluster in Egypt By Abdel-Kader Mohamed; Giaccaria Paolo
  11. Farmers’ Suicides and Response of Public Policy: Evidence, Diagnosis and Alternatives from Punjab By Gill, Anita; Singh, Lakhwinder

  1. By: Sharma, Chanchal Kumar
    Abstract: Over the last few years, many attempts have been made to implement VAT in India. Initially, all states were to move to VAT system by 2000, but administrative problems and concern over the revenue implications of the change delayed the scheduled implementation. It has been postponed for five times in past five years. In fact, introduction of a full fledged VAT in India seem to present numerous administrative and constitutional difficulties, including the vexed question of union-state relations. In addition to this, implementing VAT in India in context of economic reforms has paradoxical dimensions. On one hand economic reforms have led to more decentralization of expenditure responsibilities which in turn demands more decentralization of revenue raising powers if fiscal accountability is to be maintained. But on the other hand the process of implementation of VAT can lead not only to revenue loss for the states but can also steal away the states’ autonomy indicating more centralization. Thus the need is to develop such a ‘federal friendly model’ of VAT (along with a suitable compensation package) that can be implemented in India without compromising federal principles.
    Keywords: VAT; India; Federal Polity; subnational vat; national vat; dual vat
    JEL: Z0 H29 H0
    Date: 2004–06–25
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:206&r=cwa
  2. By: Kumar, Sudesh
    Abstract: After the 18th century India has been creating a ground for the SSI industry and they started taking shape of clusters. Headings Introduction and Background provides a bird’s eye view on the background of SSI clusters in India. Chapter one sets forth the literature that is relevant to understand the concept behind successful industry clusters. An effort is made to take a look at factors embedded in regional economies of and concept behind the SSIs clusters. Chapter Two focuses on the peculiarity of sickness in Indian SSI clusters taking an example of UNIDO’s cluster reformation program. Next Chapter Three is based on research and findings on famous Textile cluster of India, Tirupur. Later, Chapter Four of this paper integrates discussions on various elements of the Tirupur industry cluster based on interviews findings with entrepreneurs, using one particular industry cluster in achieving development. It deals with the some elements of Tirupur Cluster that is not paid attention to under the common cluster development program. Chapter Five highlights the selected and major policy implications affecting the SSIs clusters and finally there is the conclusion.
    Keywords: Industry Cluster; Development; Economics; Small Scale Industry
    JEL: O10
    Date: 2005–09–28
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:171&r=cwa
  3. By: Ozturk, Ilhan; Acaravcı, Ali
    Abstract: This paper examines the effects of exchange rate volatility on the export of Turkey in the context of cointegration model over the monthly period of 1989:01-2002:08. The major results show that increases in the volatility of the real exchange rate, approximating exchange-rate uncertainty, exert a significant negative effect upon export demand.
    JEL: F3
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:332&r=cwa
  4. By: Siddiky, Chowdhury Irad Ahmed
    Abstract: This paper examines the relationship between statutory monopoly and collective action as a multi-person assurance game culminating in an end to British Empire in India. In a simple theoretical model, it is demonstrated whether or not a collective good enjoys (or is perceived to enjoy) pure jointness of production and why the evolutionary stable strategy of non-violence was supposed to work on the principle that the coordinated reaction of a ethnically differentiated religious crowd to a conflict between two parties (of colonizer and colonized) over confiscatory salt taxation would significantly affect its course. Following Mancur Olson (1965) and Dennis Chong (1991), a model of strategic civil disobedience is created which is used to demonstrate how collective action can be used to produce an all-or-nothing public good to achieve economic and political independence.
    Keywords: confiscatory taxation; multi-person assurance game; strategic civil disobedience
    JEL: N45
    Date: 2005–05–02
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:147&r=cwa
  5. By: Sharma, Chanchal Kumar
    Abstract: What is outsourcing and why India is being considered as BPO destination of the world? Why jobs are coming to India and why there is a downturn in the US economy and loss of jobs in that country. Even though these are two different things that happened simultaneously, they sadly managed to be mixed up. Academicians are groping to understand the phenomenon and are still in the process of disentangling themselves from the wave of confusion that exists. Politicization of the issue has made the concept of outsourcing a highly debatable, perplexing and controversial. The debate has conceptual, moral, economic, political and policy dimensions. The debate centers on the theoretical issue of globalization verses protectionism. In addition, it has a moral and human dimension that compels one to ponder over the hopeless uncertainty and misery that has dawned upon of those displaced due to outsourcing in the developed countries. Apart from these, there are certain practical policy issues that have become part of the debate such as theft of crucial information by the offshore workers, threat to the safety of Intellectual Property and the concern over the quality of services being delivered by the BPO companies in India and other developing countries. Finally the political dimension of this contentious issue that has forced the federal government of USA to make a law against outsourcing of the government contracts cannot be ignored. A fall out of Globalization, outsourcing is being discussed around the world from a renewed perspective, sometimes with delight and at other times with fury, depending upon which side of outsourcing the person is supporting. Taking exception from the subjective and partial treatment as the supporters and opponents of the phenomenon around the globe are offering, like six blind men trying to expound the outlines of an elephant the paper deals with the theme in its totality, while avoiding the prejudiced approach of a religious enthusiast. To the supporters the problem of job loss is not very serious thus they oppose protectionist attitude of the U.S government. But the fact is that the problem of job loss is quite critical yet pursuing protectionism as stipulated by the opponents is not a solution. Supporters have relied upon the traditional ‘job replacement argument’ to dissipate the fears regarding job loss. But it has been argued that the problem of job loss is serious and no replacements are going to take place in near future to substitute the quantum of jobs being lost. Thus unemployment, intended or unintended, will be the consequence. But protectionism, far from solving the problem, will create the new ones. Paper suggests certain alternatives on the basis of the model of job-protection exemplified by the British government.
    Keywords: Outsoursing; Bpo; USA; India; Political Economy
    JEL: G0 Z0
    Date: 2004–11
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:542&r=cwa
  6. By: Singh, Lakhwinder; Jain, Varinder
    Abstract: The recent developments in the theory of industrial organisation have underlined the importance of small scale industry. Small industry can be equally competitive in the fast changing global economy provided it exploits economies of scale and scope while locating itself in clusters along with making technological progress endogenous. This study situates Punjab’s small scale industry in the context of recent developments both in theory and practice This study by utilising the NSSO data for the period 1994-95 to 2000-01 points out that Punjab’s unorganised industry has emerged distinctly among its counterparts in other major Indian states by recording sufficiently high growth in employment, relatively high usage of capital and labour productivity etc. It along with exploring the structure of Punjab’s unorganised industry has also identified major problems faced by it. Policy issues have been raised to draw the attention of the policy makers towards small industry so that it can become competitive in the fast globalising industrial economy.
    Keywords: Small Scale industry; Economies of Scale and scope; Industrial Clusters; Labour Productivity; Employment Growth; Public Policy; Indian Punjab
    JEL: L6 O4 O40
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:197&r=cwa
  7. By: Ozturk, Ilhan; Sertoglu, Kamil; Kaptan, Ebru
    Abstract: Cyprus Problem is being discussed from a different perspective since the application of South Cyprus for full membership to the European Union. Today the problem came to a turning point where the efforts for solving the problem would end up at a point where the division of the island becomes permanent. The study first evaluates the relations between Cyprus and the Union. Then it examines the application of GCA to the EU, the reasons for application, Turkish Cypriot’s response to the application and possible future scenarios that are likely to take place. It is concluded that the acceptance of Cyprus to the Union in its current state is a highly possible scenario and this would lead to the permanent division of the island.
    Keywords: Cyprus problem; EU; Turkish Cyprus; GCA
    JEL: Z10
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:257&r=cwa
  8. By: Moheyuddin, Ghulam
    Abstract: This paper describes the assessment of the gender issue in Pakistan, review and analysis of the major sector depicting gender inequalities. Before continuing to the detailed analysis of the gender issues in Pakistan, it gives a bird’s eye-view of the socio-economic, political and cultural background of Pakistan. The paper explains the areas of critical gender inequalities in Pakistan and reviews the various gender indicators in Pakistan. It also discusses the current policies and the programs addressing the gender issues in Pakistan and the suggests some policy recommendations to improve the women’s status in Pakistan.
    Keywords: Pakistan and Gender Issues; Assessment of gender issues in Pakistan; Gender Indicators
    JEL: R58 J16
    Date: 2005–11
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:683&r=cwa
  9. By: Moheyuddin, Ghulam
    Abstract: This paper Explain the rationale for incorporating gender in PRS and describing the three-step process to incorporating gender into poverty reduction strategies. It also analyzes the different tools and methods available to identify gender issues in poverty analysis? And discuss the differences between the poverty constraints faced by the women and by men. The paper suggests methods that can be used to analyze gender differences? Finally the paper explains the Pakistan’s country-specific experiences regarding incorporating gender into PRS and discusses the differences between the theoretical aspects of the PRSP process versus the field experiences of the PRSP.
    Keywords: PRSP; Gender and Poverty Reduction; Poverty Reduction Strategy Papers; incorporating gender into PRSP
    JEL: J16
    Date: 2005–11
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:684&r=cwa
  10. By: Abdel-Kader Mohamed; Giaccaria Paolo
    Date: 2005–04
    URL: http://d.repec.org/n?u=RePEc:uto:eblawp:200504&r=cwa
  11. By: Gill, Anita; Singh, Lakhwinder
    Abstract: Slow transformation of a developing economy gradually shifts surpluses and substantially reduces the importance of the agricultural sector of the economy. This has been recognized as a healthy characteristic of the capitalist economic development. Crisis of this transformation emerges when the surpluses are rapidly extracted but dependence of workforce remains on agriculture sector. Organization of farm production on the lines of capitalist farming reduces farmers to managers of production and increases continuously unemployment of labour. The state led green revolution in Punjab based on assured market and remunerative prices of agricultural production in the early green revolution period has considerably increased the income of the farmers irrespective of farm size. Stagnation of the green revolution technology, rise in the cost of living, lack of alternative employment opportunities and near freeze in the minimum support prices has generated a crisis of unprecedented scale. Diversification attempts of the farmers for alternative remunerative outcomes have further pushed them in deep crisis because of market failure to provide right kind of prices both of the produce and finance. Increased unemployment, mounting debt burden and lack of success in diversification attempts led the farmers to commit suicides in Punjab. Farmers’ organizations, political movements and state led resistance to the agrarian crisis have not yet met with success. This paper makes an attempt to examine the agrarian crisis of Punjab with fresh perspective to search for an alternative strategy for resolving the crisis.
    Keywords: Farmers’ Suicides; Indebtedness; Public Policy; Agrarian Crisis; Agriculture sector; Structural Transformation; Indian Punjab.
    JEL: O1 Q14 Q1
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:146&r=cwa

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