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on Central and Western Asia |
| By: | Takahiro Ito |
| Abstract: | This paper is an empirical attempt to quantify caste-based discrimination in the labor market using household data taken from rural North India. In the regression analysis, transaction costs associated with entry into the labor market and reservation wages are estimated along with market wages. The estimation results provide evidence of the existence of transaction costs in the labor market and discrimination against backward classes with regard to access to regular employment. In line with previous studies, the results suggest that the achievements of India's reservation policy so far have at best been limited. In addition, a comparison between the estimates from the model employed in this paper and conventional (reduced-form) approaches shows that discrimination in labor market entry is likely to be underestimated in the conventional reduced-form approaches. |
| Keywords: | regular employment, casual employment, labor market, India |
| JEL: | D23 J22 J24 J71 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:hst:hstdps:d06-200&r=cwa |
| By: | Pekka Sulamaa; Mika Widgrén |
| Abstract: | This paper evaluates the economic effects of Turkish EU membership. The evaluation is based on the widely utilized computable general equilibrium called model GTAP (Global Trade Analysis Project). Imperfect competition is modelled by existence of scale economies on non agricultural sectors. The latest GTAP database version (base year 2001) is aggregated into seven regions: Turkey, Germany-Austria, North EU, South EU, Balkan countries, NAFTA, ASIA and Rest of World. We analyse economic effects of abolishing trade barriers between the EU25 and Turkey and applying common external tax on Turkey. Turkish EU membership is clearly beneficial for Turkey and it does not seem to have significant negative impact for the rest of the world. If we take scale economies into account the aggregate effects are larger than in perfect competition case. |
| Keywords: | Turkey, EU, CGE, international trade |
| Date: | 2007–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:fer:dpaper:410&r=cwa |
| By: | Manish Gupta (National Institute of Public Finance and Policy) |
| Abstract: | If India were to participate in any international effort towards mitigating CO2 emissions, the power sector which is one of the largest emitters of CO2 in the country would be required to play a major role. In this context the study estimates the marginal abatement costs, which correspond to the costs incurred by the power plants to reduce one unit of CO2 from the current level. The study uses an output distance function approach and its duality with the revenue function to derive these costs for a sample of thermal plants in India. Two sets of exercises have been undertaken. The average shadow prices of CO2 for the sample of thermal plants for the period 1991-92 to 1999-2000 was estimated to be respectively Rs.3380.59 and Rs.2401.99 per ton for the two models. These shadow prices can be used for designing environmental policies and market-based instruments for controlling pollution in the power sector in India. |
| Keywords: | Marginal Abatement Costs, Distance Function, CO2 Emissions, Shadow Prices, Power Generation Sector |
| JEL: | Q40 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2006.147&r=cwa |
| By: | Goel Abhishek; Vohra Neharika; Zhang Liyan; Arora Bhupinder |
| Abstract: | This study argues that social support is an important enabler in entrepreneurial activity in a country or a region. One untested assumption in policy making on entrepreneurship development has been that all regions are equally desirous of entrepreneurial activity and one policy could address issues in all regions. It was argued that societal attitudes towards entrepreneurs and entrepreneurship are important determinants for future entrepreneurial activity. These attitudes would be impacted by the family background of an individual and entrepreneurial development in the region an individual comes from. It was hypothesized that more positive attitude would be seen in (i) people form entrepreneurial backgrounds, and (ii) entrepreneurially more developed regions. These hypotheses were tested on more than 5,000 respondents in India and China. The results for family background’s influence on attitudes found strong support in both India and China. Regional development showed stronger influence on attitude in India than in China. The findings and implications for studying attitudes and policy making are discussed. |
| Keywords: | Attitudes, Entrepreneurs, Entrepreneurship, Cross-cultural, India, China |
| Date: | 2007–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2007-01-06&r=cwa |
| By: | Mete Feridun (Department of Economics, Loughborough University) |
| Abstract: | This article aims at identifying the leading indicators of currency crises in Turkey in its post-liberalization history through the signals approach introduced by Kaminsky et al (1998). Based on a broad set of potential indicators, a number of variables are found to be persistently signaling the currency crises during the period 1980:01-2006:06. Particularly, variables such as short-term debt/international reserves, imports, exports, M2/international reserves, and current account balance/GDP are consistent with the results of previous work in the literature. Analysis of the average lead time of the indicators reveals that the first signal is issued 4.4 months before a crisis erupts with public debt/GDP offering the longest lead time with 10.2 months, and government consumption/GDP offering the shortest with 2.2 months. Analysis of the persistence of the indicators reveals that the indicator issuing the most persistent signals is the government consumption/GDP and the one issuing the least persistent signals is FDI/GDP. Results are encouraging from the vantage point of an early warning system since signaling, on average, occurs sufficiently early to allow preemptive policy actions. |
| Keywords: | Speculative attacks; currency crises; signals approach, Turkey. |
| JEL: | F30 E44 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:lbo:lbowps:2006_25&r=cwa |
| By: | Bhat Ramesh; Maheshwari Sunil Kumar; Saha Somen |
| Abstract: | Partnership with NGOs in delivering and provision of Reproductive and Child Health (RCH) services through mother NGO (MNGO) in the un-served and under-served regions is one of the important initiatives in India. The scheme involves large number of contracts between government and the NGOs. As of April 2006, 215 MNGOs were working in 324 districts of the country. In addition to this there are about 3 to 4 Field NGOs attached with each MNGO in a district. This paper discusses this scheme with an objective to understand the make up of the partnership and the development of management capacity in the system. MNGO scheme is a central sponsored scheme. This scheme faces management challenge to implement it in all states in India. Further, the case study of three states presented in this paper suggests that this challenge emanates several factors. Inter alia, these include delay and uncertainty of funding and contract renewal, lack of partnership orientation in the scheme, lack of trust among the key stakeholders, capacity constrain in the district and state health system, weak monitoring system, procedural delays and multiple points of authority and reporting relationships. It is also observed that the capacity of field NGOs to deliver in the programme is constrained due to non-availability of financial and human resources. The scheme demands a strong leadership at local levels and ownership from the state health system. This can be achieved through effective decentralisation, flexibility in decision-making and creating adequate accountability systems. Regional Resource Centres has to play an important role in coordination between state/district RCH society and the NGOs and strengthening their capacities. The central government instead of focusing on micro-management of the scheme at state level should focus on developing and strengthening the enabling environment and capacity of various stakeholders to implement the scheme. Also, they need to address various systemic issues including development of accountable and performance oriented system, ensuring financial autonomy and decentralisation, delegation of authority, building trust and accountability in the system, effective integration, continuity of the scheme and fostering true sense of partnership between the state and non-state sector. |
| Date: | 2007–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2007-01-05&r=cwa |
| By: | Singh, Nirvikar |
| Abstract: | This paper surveys the state of fiscal federalism in India, in the broader context of decentralization. We begin with an overview of the basic features and recent developments in intergovernmental fiscal relations, including the role of political institutions, the specifics of legislative and budgetary autonomy, assignments of expenditure responsibility and revenue authority, revenue collection mechanisms, the system of intergovernmental transfers, and institutions and mechanisms for borrowing by subnational units. We then provide a diagnosis of accountability mechanisms, examining their quality of functioning and distortions and constraints. In particular, we analyze to what extent, and through what mechanisms, lower-level governments are held accountable to higher-level governments, the extent to which policies of subnational governments are affected by the competition for mobile firms, taxpayers, and investment capital, the functioning of credit markets, including the responsiveness of subnational governments to credit ratings and bond yields, and the role of democratic electoral channels at national and subnational levels in providing accountability in the provision of subnational public goods. Next, we review the implications of the intergovernmental system and accountability mechanisms on the cooperation of subnational governments and the quality of service delivery. We examine the resources and capacity of the subnational entities that are responsible for key services such as water, sanitation, education and health care, and the impacts of decentralization on service quality and the distribution of benefits among elected officials, citizens and interest groups. Finally, we offer a concluding assessment with suggestions for reform priorities. |
| Keywords: | federalism; decentralization; intergovernmental relations; economic reform; accountability; service delivery |
| JEL: | P35 H2 P26 H7 H4 H1 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1447&r=cwa |
| By: | Bart Taub; Rui Zhao (University of Illinois Urbana-Champaign) |
| Abstract: | We explore the relationship between capital accumulation, trade, and the development of property rights. In our analysis, the development of property rights is an endogenous process, driven by capital accumulation. Property rights are defined as institutions that internalize the portion of the return to capital that is otherwise treated as common property. Instituting property rights requires a multilateral agreement among agents to carry out this internalization. It can only be sustained when agents are sufficiently patient, so that the long-run benefits of sustaining agreements outweigh the short-run incentive to defect. In this model, the agents that enters the multilateral agreement are firms, whose patience is determined by the marginal product of capital. As capital grows, the marginal product of capital shrinks, and consequently patience increases. Hence property rights can be established only when capital is sufficiently abundant. Suppose there is a capital poor country, which we will label the domestic ($D$) economy, and a capital rich economy, which we label the foreign ($F$) economy. Each country has a property rights regime in place. Our focus will be on the situation in which the capital rich country has grown sufficiently so that there is enough patience to support strong property rights. At the same time, the poor country has not attained strong property rights. Our central question is the following: would the two countries consider opening to trade? If so, how would trade affect the property rights and growth in both countries? |
| Keywords: | Property rights, Capital accumulation, International trade |
| JEL: | P14 O11 C73 |
| Date: | 2006–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed006:843&r=cwa |
| By: | Al-Samarrai, Samer |
| Abstract: | This paper presents education finance trends for Bangladesh since 2000. It shows that while government spending on education as a proportion of national income has stagnated, it has increased in real terms. Real increases in education spending have resulted in substantial increases in per student spending in basic education. At primary, enrolment declines have reinforced these trends and in 2005 per student spending in government primary schools was 30% higher, in real terms than in 2001. Despite these increases, per student spending on education in Bangladesh remains low compared to other countries in the region and countries at similar levels of development. Levels of government funding also vary enormously across different providers of basic education although these differences do not appear to have a significant impact on education outcomes at the primary level. At secondary, there appears to be a closer correlation between levels of public funding and outcomes although the socio-economic status of student intakes also appears to play an important role. To achieve equitable access to basic education, it is important to narrow these public funding differences. However, given the comparatively low levels of funding across the basic education system it is perhaps more important to increase overall levels of funding if the quality and overall efficiency of the system is to be improved. |
| Keywords: | Education; education finance; Bangladesh; basic education |
| JEL: | I28 I22 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1505&r=cwa |
| By: | Mohammad Niaz Asadullah (Reading University), Nazmul Chaudhury (World Bank) and Amit Dar (World Bank) |
| Abstract: | n this paper we present new evidence on the impact of school characteristics on secondary student achievement using a rich data set from rural Bangladesh. We deal with a potentially important selectivity issue in the South Asian context: the non-random sorting of children into madrasas (Islamic faith schools). We do so by employing a combination of fixed effects and instrumental variable estimation techniques. Our empirical results do not reveal any difference in test scores between religious and secular schools when selection into secondary school is taken into account. However, we document significant learning deficit by gender and primary school type: girls and graduates of primary madrasas have significantly lower test scores even after controlling for school and classroom-specific unobservable correlates of learning. |
| URL: | http://d.repec.org/n?u=RePEc:qeh:qehwps:qehwps140&r=cwa |