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on Central and Western Asia |
| By: | Sudip Ranjan Basu (IUHEI, The Graduate Institute of International Studies, Geneva) |
| Abstract: | The paper develops a new measure of development, namely, development quality Index (DQI), to compare performance of China and India. The results show that national level development quality grew three times faster in China than in India. Conversely, the health quality grew three times as fast in India than China over the period 1980-2004. The overall regional development quality level improved in both countries, but polarization widened in China. The sign of inter-regional polarization in China indicates a rising concentration of development gains from economic reform policies, while in recent years there are trends of polarization in economic dimension of DQI in India. |
| Keywords: | Development, Inequality, Polarization, China, India |
| JEL: | C43 D63 O18 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:gii:giihei:heiwp01-2007&r=cwa |
| By: | Eric V. Edmonds; Nina Pavcnik; Petia Topalova |
| Abstract: | Do the short and medium term adjustment costs associated with trade liberalization influence schooling and child labor decisions? We examine this question in the context of India's 1991 tariff reforms. Overall, in the 1990s, rural India experienced a dramatic increase in schooling and decline in child labor. However, communities that relied heavily on employment in protected industries before liberalization do not experience as large an increase in schooling or decline in child labor. The data suggest that this failure to follow the national trend of increasing schooling and diminishing work is associated with a failure to follow the national trend in poverty reduction. Schooling costs appear to play a large role in this relationship between poverty, schooling, and child labor. Extrapolating from our results, our estimates imply that roughly half of India's rise in schooling and a third of the fall in child labor during the 1990s can be explained by falling poverty and therefore improved capacity to afford schooling. |
| JEL: | F14 F16 |
| Date: | 2007–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12884&r=cwa |
| By: | Lane, Philip R.; Schmukler, Sergio L. |
| Abstract: | Three main features characterize the international financial integration of China and India. First, while only having a small global share of privately-held external assets and liabilities (with the exception of China ' s foreign direct investment liabilities), these countries are large holders of official reserves. Second, their international balance sheets are highly asymmetric: both are " short equity, long debt. " Third, China and India have improved their net external positions over the past decade although, based on their income level, neoclassical models would predict them to be net borrowers. Domestic financial developments and policies seem essential in understanding these patterns of integration. These include financial liberalization and exchange rate policies, domestic financial sector policies, and the impact of financial reform on savings and investment rates. Changes in these factors will affect the international financial integration of China and India (through shifts in capital flows and asset and liability holdings) and, consequently, the international financial system. |
| Keywords: | Investment and Investment Climate,Economic Theory & Research,Banks & Banking Reform,Capital Flows,Financial Economics |
| Date: | 2007–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4132&r=cwa |
| By: | Saripalle, Madhuri |
| Abstract: | This paper compares the supplier relations of domestic and Multinational automobile manufacturers in India. The study finds a range of governance forms from market linkage to relational value chains present in the industry, a feature which can be explained in terms of the sourcing strategies of the auto manufacturers. The paper argues that the incentives for long-term supplier development depend on the trade-off faced by the assemblers in terms of costs of sourcing from the global “supplier capabilities-pool” versus dynamic transaction costs of developing local capabilities in the absence of high volumes.. The paper also analyzes the reasons behind the uneven diffusion of skills in the tier-II and tier-III suppliers. |
| Keywords: | Supplier relationship; Transaction costs; capabilities; automobile industry; Asia; India. |
| JEL: | L22 L62 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1699&r=cwa |
| By: | Subramanian Saravanan |
| Abstract: | This paper addresses the quantum jump in the number of two-year management programmes in India. It examines the quality adherence by taking institutions approved and affiliated by All India Council for Technical Education (AICTE), University Grants Commision (UGC), Central Government Autonomus Institue (NIT,Trichy) and Deemed universities, which offers two-year management programmes over the past fifteen years from Tamilnadu as a sample unit. The objective is to identify the key reasons for increase in numbers and initiative in quality implementations process. It enables us to understand the qualitative terms of inorganic growth and its impact on quality of management education. It provides experiential understanding of quality implementation process and suggestions to increase its effectiveness. |
| Keywords: | Two-year management programme, Quantum jump, Quality initiative, Management education and Quality control |
| Date: | 2007–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2007-02-01&r=cwa |
| By: | M N, Murty; Kumar, Surender; Dhavala, Kishore |
| Abstract: | Technical and environmental efficiency of some coal-fired thermal power plants in India is estimated using a methodology that accounts for firm’s efforts to increase the production of good output and reduce pollution with the given resources and technology. The methodology used is directional output distance function. Estimates of firm-specific shadow prices of pollutants (bad outputs), and elasticity of substitution between good and bad outputs are also obtained. The technical and environmental inefficiency of a representative firm is estimated as 0.10 implying that the thermal power generating industry in Andhra Pradesh state of India could increase production of electricity by 10 per cent while decreasing generation of pollution by 10 percent. This result shows that there are incentives or win-win opportunities for the firms to voluntarily comply with the environmental regulation. It is found that there is a significant variation in marginal cost of pollution abatement or shadow prices of bad outputs across the firms and an increasing marginal cost of pollution abatement with respect to pollution reduction by the firms. The variation in marginal cost of pollution abatement and compliance to regulation across firms could be reduced by having economic instruments like emission tax. |
| Keywords: | environmental and technical efficiency; shadow prices of bad outputs; air pollution. |
| JEL: | Q52 Q51 Q53 |
| Date: | 2006–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1693&r=cwa |
| By: | Husain, Fazal; Qayyum, Abdul |
| Abstract: | This study attempts to conduct an investigation of the characteristics of the South Asian stock markets including the effects of the opening of these markets. These markets were liberalised in early 1990s as a part of the economic reforms started in the South Asian region about two decades ago. The analysis is conducted for four countries in the South Asia, Bangladesh, India, Pakistan, and Sri Lanka, covering the period from 1980 to 2003. The analysis is done with the help of tables, regression analysis, Event Window analysis, and Error Correction Functions. The analysis indicates significant development in stock markets indicators such as market capitalisation and trading value in the region following liberalisation measures. However, the development in stock markets in South Asia does not seem to influence the real sector and the stock markets are still playing a minor role in their respective economies. The integration analysis suggests that the markets in South Asia are integrated with major markets, that is, of USA, UK, and Japan. There is clear evidence that the markets in India and Pakistan are affected by the major as well as the regional markets in the long run. In the short run, however, the markets appear to be independent of one another |
| Keywords: | Stock Markets; South Asia; Liberalisation; Pakistan; India; Sri Lanka; Bangladesh; Market Integration |
| JEL: | G1 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1716&r=cwa |
| By: | Venu Menon, Sudha |
| Abstract: | The ideology of globalization and its practice based on neo-liberal paradigm has played a vital role in re-arranging the architecture of global economic and political order. Central to this new economic dispensation is a shift in the role of the state, particularly in its commitment towards the mass of the people from where it supposed to drives its strength according to democratic traditions. Supporters of Globalization often believes that inflow of foreign capital, advanced technology, market economy and the resultant economic growth will automatically take care of issues of social justice and equity. However these claims seem to be meaningless in the present global economic order based on wide disparities in power relations and resource distribution. There exists a dramatic paradox between the theoretical discourse on global economic growth and prosperity, and the naked reality of impoverishment, social exclusion and disempowerment affecting vast majority of marginalized groups in society. Against this background, the present paper seeks to explore the relationship among the three-core concept of Globalization, Nation state and Disempowerment in the context of neo liberal agenda and Indian states commitment to Structural Adjustment Programme. The paper doesn’t criticize Globalization perse, but try to project how global integration follows high social cost, especially in the absence of stable, effective and efficient economic base. |
| Keywords: | globalisation; disempowerment; farmers suicide; Andhra Pradesh; India. |
| JEL: | Q00 |
| Date: | 2006–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1633&r=cwa |
| By: | Saripalle, Madhuri |
| Abstract: | Learning has been recognized as an important factor in explaining the growth of firms in both industrial organization theory and literature. However, few models have attempted to relate the learning and growth literature with the industrial policy regime, especially in economies heavily regulated by government policies. The present study attempts to apply one such model of growth and learning of firms across three different industrial policy regimes in the Indian automotive industry. It tries to analyze whether learning is promoted by a competitive or a protective policy regime. It also tries to decompose learning into several types to understand the mechanism underlying the growth process. In doing so, it relies on the growth-size distribution literature. |
| Keywords: | Learning; growth; policy regime; automobile Industry; India; Asia. |
| JEL: | L5 C33 L62 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1701&r=cwa |
| By: | Markandya, Anil; Taylor, Tim; Longo, Alberto; M N, Murty; Murty, Sucheta; Dhavala, Kishore |
| Abstract: | The decline in vulture populations due to diclofenac poisoning has become an issue of some concern in India. This paper conducts a cost benefit analysis of policy options to mitigate these damages. Vultures compete for food with feral dogs, a major source of rabies and bites. These human health impacts are found to be significant and may outweigh costs of moving to alternative veterinary drugs. A preliminary survey of the Parsi community finds no spiritual values, though further work needs to be done on this issue. Even with a number of key benefits not valued – notably tourism and existence values - the net benefits of policies driven by vulture protection are found to be positive. |
| Keywords: | vultures cost benefit analysis |
| JEL: | Q57 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1692&r=cwa |
| By: | M N, Murty; Dhavala, Kishore Kumar; Ghosh, Meenakshi; Singh, Rashmi |
| Abstract: | The growing demand for public transport in mega cities has serious effects on urban ecosystems, especially due to the increased atmospheric pollution and changes in land use patterns. An ecologically sustainable urban transport system could be obtained by an appropriate mix of alternative modes of transport resulting in the use of environmentally friendly fuels and land use patterns. The introduction of CNG in certain vehicles and switching of some portion of the transport demand to the metro rail have resulted in a significant reduction of atmospheric pollution in Delhi. The Delhi Metro provides multiple benefits: reduction in air pollution, time saving to passengers, reduction in accidents, reduction in traffic congestion and fuel savings. There are incremental benefits and costs to a number of economic agents: government, private transporters, passengers, general public and unskilled labour. The social cost-benefit analysis of Delhi Metro done in this paper tries to measure all these benefits and costs from Phase I and Phase II projects covering a total distance of 108 kms in Delhi. Estimates of the social benefits and costs of the project are obtained using the recently estimated shadow prices of investment, foreign exchange and unskilled labour as well as the social time preference rate for the Indian economy for a study commissioned by the Planning Commission, Government of India and done at the Institute of Economic Growth. The financial internal rate of return on investments in the Metro is estimated as 17 percent while the economic rate of return is 24 percent. Accounting for benefits from the reduction of urban air pollution due to the Metro has increased the economic rate of return by 1.4 percent. |
| Keywords: | Transport; Air Pollution; Cost- benefit analysis and Shadow prices. |
| JEL: | Q51 Q58 Q53 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1658&r=cwa |
| By: | Rauf Gönenç; Willi Leibfritz; Gökhan Yilmaz |
| Abstract: | Turkey's business sector has achieved high growth over the past few years and - on average - has coped well with increased competition. However, some labour-intensive sectors lost competitiveness prior to the currency depreciation in mid-2006 and faced employment losses, raising political pressure for interventionist policies. This paper argues that the government should resist such pressure and instead follow a broad-based strategy to improve framework conditions for firms, irrespective of their size, sector and legal status. Overcoming the duality between the formal and informal sectors should be the central point of this strategy. In particular, the cost of labour should be reduced and regulatory hurdles in labour and product markets should be minimised, to help formal firms to remain competitive and increase employment. This would also make it easier for the many small and medium-sized firms to move into the formal sector, thereby raising productivity through economies of scale. This would increase the growth potential of the whole economy, broaden the tax base and level the playing field for doing business in Turkey, not only for the wide variety of domestic firms but also for foreign investors. <P>Accélérer la croissance en Turquie en améliorant les conditions d'activité dans le secteur formel <BR>Ces dernières années, le secteur des entreprises de la Turquie a affiché une croissance élevée et, en moyenne, s'est bien comporté face à une concurrence plus vive. Mais la compétitivité de certains secteurs à forte intensité de main-d'oeuvre a baissé avant la dépréciation de la monnaie intervenue au milieu de l'année 2006, et l'emploi du secteur formel a reculé, augmentant les pressions politiques favorables à des mesures interventionnistes. Nous soutenons dans ce document que les autorités devraient résister à ces pressions et opter pour une stratégie globale d'amélioration des conditions-cadres offertes à toutes les entreprises, indépendamment de la taille, du secteur d'activité et du statut juridique de ces dernières. Cette stratégie devrait d'abord et avant tout viser à estomper la dichotomie entre secteur formel et secteur informel. Il faudrait en particulier réduire le coût du travail et atténuer le plus possible les obstacles présents sur le marché du travail et les marchés de produits, afin d'aider les entreprises du secteur formel à rester concurrentielles et embaucher davantage. Grâce à une telle politique, les nombreuses petites et moyennes entreprises pourraient aussi plus facilement rejoindre le secteur formel, ce qui augmenterait la productivité par le jeu des économies d'échelle. Toute l'économie verrait son potentiel de croissance augmenter, l'assiette fiscale s'élargirait et les entreprises - des firmes nationales les plus diverses aux investisseurs étrangers - pourraient opérer à conditions égales en Turquie. |
| Keywords: | regulatory reforms, réforme réglementaire, Turkey, Turquie, informal economy, industrial competitiveness, compétitivité industrielle, économie informelle |
| JEL: | K20 L11 L16 L60 |
| Date: | 2007–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:542-en&r=cwa |
| By: | Erdogdu, Oya Safinaz |
| Abstract: | This paper is another attempt to be a link between studies on political stability and growth and studies on military expenditures and growth. However, despite the other two studies in that concept, this paper takes military expenditures as a tool of a democratic government to achieve economic stability and growth. For that purpose, the paper takes political economics and defense literature arguments together and provides and empirical analyzes of the relations between political stability, economic growth and military expenditures. Based on the theoretical model developed by Blomberg (1996), the vector autoregression analyzes for Turkey, a democratic country open to all kinds of terrorism, indicates the positive impact of military expenditures on private sector investment decisions and so on economic growth. |
| Keywords: | Defense; Political Stability; Growth; VAR |
| JEL: | C32 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1661&r=cwa |
| By: | Balázs Égert (Oesterreichische Nationalbank; MODEM, University of Paris X-Nanterre and William Davidson Institute) |
| Abstract: | This paper analyses the effectiveness of foreign exchange interventions in Croatia, the Czech Republic, Hungary, Romania, Slovakia and Turkey using the event study approach. Interventions are found to be effective only in the short run when they ease appreciation pressures. Central bank communication and interest rate steps considerably enhance their effectiveness. The observed effect of interventions on the exchange rate corresponds to the declared objectives of the central banks of Croatia, the Czech Republic, Hungary and perhaps also Romania, whereas this is only partially true for Slovakia and Turkey. Finally, interventions are mostly sterilized in all countries except Croatia. Interventions are not much more effective in Croatia than in the other countries studied. This suggests that unsterilized interventions do not automatically inuence the exchange rate. |
| Keywords: | central bank intervention, communication, foreign exchange intervention, verbal intervention |
| JEL: | F31 |
| Date: | 2006–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:onb:oenbwp:134&r=cwa |
| By: | Erdogdu, Oya |
| Abstract: | Consumption expenditures is one significant component of aggregate demand. As opposed to lifetime income and permanent income hypothesises based on Ricardian policies, recent theoretical and empirical studies indicate possible fiscal impacts on household consumption decisions. Besides providing insights to determinants of consumption decisions, these studies also guide to policy solutions to high and risky current account deficits and high and persisting inflation rate problems. This empirical study for Turkey is another attempt to distinguish any non Ricardian policy and search for possible fiscal policy effects on household consumption decisions. Allowing for long run and short run effects indicates that the expentionary Keynesian impact of fiscal policy on household consumption is significant only if fiscal policy is sustainable. |
| Keywords: | Consumption; Fiscal Policy; Vector Error Correction Models |
| JEL: | E21 C32 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1662&r=cwa |
| By: | Jacoby, Hanan G.; Mansuri, Ghazala |
| Abstract: | In a setting where husbands wield considerable coercive power, forms of marriage should adapt to protect the interests of women and their families. The authors study the pervasive marriage custom of watta satta in rural Pakistan, a bride exchange between families coupled with a mutual threat of retaliation. They show that watta satta may be a mechanism to coordinate the actions of two sets of in-laws, each of whom wish to restrain their sons-in-law but who only have the ability to restrain their sons. The authors ' empirical results support this view. The likelihood of marital inefficiency, as measured by estrangement, domestic abuse, and wife ' s mental health, is significantly lower in watta satta arrangements as compared with conventional marriages, but only after properly accounting for selection. |
| Keywords: | Population & Development,Anthropology,Education and Society,Gender and Law,Gender and Law |
| Date: | 2007–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4126&r=cwa |
| By: | Qayyum, Abdul; Kemal, A. R. |
| Abstract: | Our paper examines the volatility spillover between the stock market and the foreign exchange market in Pakistan. For long run relationship we use Engle Granger two step procedure and the volatility spillover is modelled through bivariate EGARCH method. The estimated results from cointegration analysis show that there is no long run relationship between the two markets. The results from the volatility modelling show that the behaviour of both the stock exchange and the foreign exchange markets are interlinked. The returns of one market are affected by the volatility of other market. Particularly the returns of the stock market are sensitive to the returns as well as the volatility of foreign exchange market. On the other hand returns in the foreign exchange market are mean reverting and they are affected by the volatility of stock market returns. There is strong relationship between the volatility of foreign exchange market and the volatility of returns in stock market. |
| Keywords: | Stock Market; Forex Market; EGARCH; Volatility Spillover; Stock market return; Foreign Exchange return; Pakistan |
| JEL: | G1 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1715&r=cwa |
| By: | Cull, Robert; Martinez Peria, Maria Soledad |
| Abstract: | This paper describes the recent trends in foreign bank ownership in developing countries, summarizes the existing evidence on the causes and implications of foreign bank presence, and reexamines the link between banking crises and foreign bank participation. Using data on the share of banking sector assets held by foreign banks in over 100 developing countries during 1995-2002, the results show that countries that experienced a banking crisis tended to have higher levels of foreign bank participation than those that did not. Furthermore, panel regressions indicate that foreign participation increased as a result of crises rather than prior to them. However, post-crisis increases in foreign participation did not coincide with increased credit to the private sector, perhaps because in many cases foreign banks acquired distressed banks. |
| Keywords: | Banks & Banking Reform,Foreign Direct Investment,Corporate Law,Privatization,Financial Crisis Management & Restructuring |
| Date: | 2007–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4128&r=cwa |