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on Central and Western Asia |
| By: | Yanrui Wu (UWA Business School, The University of Western Australia) |
| Abstract: | China and India have recently achieved spectacular economic growth. However, services in these two Asian giants have played a very different role. In India, the service sector contributes to more than 54 per cent of GDP while its GDP share in China is much smaller (below 41 per cent in 2004). To provide an explanation for the contrasting trajectories, this paper examines and compares service sector developments in these two Asian giants. It investigates the determinants of demand for services and sheds light on the outlook for service sector growth in the two countries. |
| Keywords: | China and India, Asia, service sector, growth determinants and regression analysis |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:07-04&r=cwa |
| By: | Okada, Aya; Siddharthan, N.S. |
| Abstract: | This study analyzes the patterns of agglomeration of some modern manufacturing sectors in India, and in particular the Indian automobile sector. It also examines and contrasts the factors that have led to different patterns of cluster development in two leading auto clusters in India-Chennai and the National Capital Region (NCR). Moreover, the study analyzes whether firms in clusters perform better than those that are excluded and whether the relative importance of variables that determine the behavior of firms differs among clusters. Our analyses, which employ a combination of quantitative and qualitative methods, show that Indian industrial clusters are largely concentrated in the three clustered regions: NCR, Mumbai-Pune, and Chennai-Bangalore, across different manufacturing sectors. Our study of the auto clusters in Chennai and the NCR find considerable differences in the patterns of cluster formation, due partly to the historical and policy conditions under which firms, particularly, the lead firms must operate. Moreover, our econometric analyses confirmed that being part of a cluster positively influences the performance of the auto component firms and those belonging to a cluster perform better. |
| Keywords: | Industrial clusters, Automobile industry, Spatial distribution of industry, India, Industrial estates |
| JEL: | L62 O14 R12 |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper103&r=cwa |
| By: | Morris Sebastian; Pandey Ajay |
| Abstract: | We bring out the fundamental and more important problems with the current framework of land acquisition in India, regulations on land and the functioning of land markets. We argue that reform is overdue and the current framework would be unsustainable in a democracy that is India. Current land prices are highly distorted owing largely to regulatory constraints and the process of takings. Land acquisition more than any other factor is the most important constraint on development and especially in infrastructure development. We bring out the core elements of the reform – the need to define “public purpose” ex-ante for compulsory acquisition of land, the measures that would allow the market price of land to play its correct role, and the approach to valuation. We also argue for an independent valuer when compulsory taking is involved and methods of valuation to ensure that the land owner including the farmer gets the correct value for this land in both compulsory acquisition and in voluntary sale. We also argue the need for a parallel non-compulsory framework for acquisition and develop the key elements of the same. We also bring out alternatives to physical acquisition of land especially in the context of infrastructure development in central places. |
| Keywords: | Land-Acquisition, Eminent-Domain, Public Purpose, Takings, Rehabilitation, Law, Valuation, Central Places, Land-Use, Regulation, India |
| JEL: | K2 |
| Date: | 2007–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2007-05-04&r=cwa |
| By: | Sule Akkoyunlu; Boriss Siliverstovs |
| Abstract: | In this study we analyse the impact of workers' remittances on the decision to migrate by means of cointegration analysis. In traditional migration theories, especially in human capital models, the decision to migrate is based upon comparison of expected future incomes in the sending and the receiving countries adjusted for the cost of migration. By contrast, the new economics of labour migration suggests that the migration decision is made jointly by the migrant and his family. One important element of this theory is the role of remittances that is absent in traditional migration theories. In this paper we test traditional migration theories against the new economics of labour migration. The study covers the Turkish migration to Germany over the period 1964-2004. A single cointegrating relation between the migration inflows and the relative income ratio between Germany and Turkey, the unemployment rates in Germany and Turkey, the trade intensity variable, and workers' remittances (relative to Turkish GDP) is found. We find workers' remittances to be significant in explaining migration both in the short- as well as in the long-run. |
| Keywords: | Migration, trade, remittances, the new economic of migration, cointegration |
| JEL: | J61 F22 C32 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp691&r=cwa |
| By: | Alam, Tasneem; Waheed, Muhammad |
| Abstract: | The present paper takes a first step in investigating the monetary transmission mechanism in Pakistan at a sectoral level. Using quarterly data spanning from 1973:1 to 2003:4, we examine whether monetary policy shocks have different sectoral effects. Taking note of structural transformation of the economy and the monetary and financial reforms during 1990s, we also assess whether the reform process has notable impact on the monetary transmission mechanism. We find evidence supporting sector-specific variation in the real effects of monetary policy. Our results also suggest significant changes in the transmission of monetary shock to real sector of the economy during post-reform period. |
| Keywords: | Monetary transmission mechanism; VAR; Pakistan; Sectoral analysis |
| JEL: | C22 E52 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2719&r=cwa |
| By: | Mark Lorenzen; Florian Arun Taeube |
| Abstract: | In the context of an emerging economy, the paper analyzes indigenous growth and internationalization. Using novel and original data, the paper studies the Indian film cluster in Mumbai, Bollywood. It argues that as the world’s biggest commercial film cluster and a conspicuous growth phenomenon in an emerging economy context, Bollywood can be seen as a paradigmatic case for adding to our understanding of the development of film clusters outside the USA, as well as suggesting more general insights into the growth and internationalization of industries in emerging economies. The empirical analysis of the paper points to the importance of home market, government regulation, and industry structure for Bollywood’s recent export growth. The paper discusses how the existence of a well-defined and geographically centered social network among producers, directors and other key roles in filmmaking in Mumbai supports the development of a ‘Bollywood model’ of filmmaking with a industry structure remarkably different from Hollywood’s. |
| Keywords: | Film industry; India; Bollywood; networks; home market; industry structure; exports; institutional change; emerging economies |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:07-06&r=cwa |
| By: | Mishra, SK |
| Abstract: | The issue of inequality or imbalance in sectional, sectoral or regional distribution of economic and social variables is connected to welfare implications of the functioning of an economy responsible for allocation of resources, and production, distribution and consumption of the material requisites of well-being. Economic development and technological progress may or may not deliver justice in the Rawls’ sense although such development and progress might be perfectly just in Mill’s or Nietzsche’s sense. Inequalities and their dynamics are often studied in terms of collectives of gross variables – income, amenities and facilities, infrastructure, etc. – that directly impinge on the welfare of the people. However, deeper parameters are seldom studied in this regard. Nevertheless, these parameters - such as propensities to consume and save, rate and direction of substitution of factors of production, returns to scale, bias of technical progress, concentration of monopoly power, etc are altered in the process of development and determine the gross economic variables for a fairly long period. In this study we make an attempt to look into the spatial/regional distribution of a few structural parameters in the factory sector of India and purport to examine if, in the wake of globalization, there have been substantial changes in their distribution. Our main apparatus of analysis is ‘production functions’ that permit variable elasticities of factor substitution and returns to scale. We use data at the state level for 1990-91 and 2003-04 for our analysis. |
| Keywords: | Globalization; liberalization; industrialization; manufacturing sector; regional distribution; inequality; production function; variable returns to scale; substitution; factors of productions; India; state-level data. |
| JEL: | O53 L60 O5 L00 |
| Date: | 2007–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3265&r=cwa |
| By: | Husain, Fazal; Rashid, Abdul |
| Abstract: | This study re-examines the causal relations between money and the two variables, i.e., income and prices. Using annual data from 1959/60 to 2003/04, examining the stochastic properties of the variables used in the analysis, and taking care of the shifts in the series due to the start of the economic liberalization program in the early 1990s, we investigate the causal relations between real money and real income, between nominal money and nominal income, and between nominal money and prices. The analysis indicates, in general, the long run relationship among money, income, and prices. The analysis further suggests a one way causation from income to money in the long run implying that probably real factors rather than money supply has played a major role in increasing Pakistan’s national income. The study fails to find the active role of money in changing income even after taking care of possible shifts in these variables due to the economic reforms. As Regards the causal relationship between money and prices, the analysis suggests a unidirectional causality from money to prices implying monetary expansion increases inflation in Pakistan. |
| Keywords: | Money; Income; Prices; Economic Liberalization; Causal Relations; Pakistan |
| JEL: | E31 E3 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3195&r=cwa |
| By: | Ural, Beyza P.; Mitra, Devashish |
| Abstract: | This paper investigates the determinants of productivity in Indian manufacturing industries during the period 1988-2000. Using two-digit industry level data for the Indian states, we find evidence of imperfect interindustry and interstate labor mobility as well as misallocation of resources across industries and states. Trade liberalization increases productivity in all industries across all states, and productivity is higher in the less protected industries. These effects of protection and trade liberalizat ion are more pronounced in states that have relatively more flexible labor markets. Similar effects are also found in the case of employment, capital stock and investment. Furthermore, labor market flexibility, independent of other policies, has a positive effect on productivity. Importantly, per capita state development expenditure seems to be the strongest and the most robust predictor of productivity, employment, capital stock and investment. Industrial delicensing increases both labor productivity and employment but only in the states with flexible labor market institutions. Even after controlling for delicensing, the analysis shows that trade liberalization has a productivity-enhancing effect. Finally, trade liberalization benefits most the export-oriented industries located in states with flexible labor-market institutions. |
| Keywords: | Economic Theory & Research,Labor Markets,Markets and Market Access,Free Trade,Economic Growth |
| Date: | 2007–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4233&r=cwa |
| By: | Iqbal, Javed; Nadeem, Khurram |
| Abstract: | This paper examines the causal relationship among composite indicators for real, monetary/financial, social and infrastructure development in Pakistan. This is an effort to provide evidence on the two highly debatable issues, i.e. money-real causality and social-economic causality in a single multivariate framework. We use a large number of variables to construct the composite indicators of development in four major sectors of the economy: social development, real economic development, monetary and financial growth and infrastructure development. The data are collected from 1971-72 to 2003-04 on annual basis. The technique of factor analysis using principal component is employed to construct these indicators. The computed values of these indicators over the aforementioned time span constitute time series data. Using these time series data the paper assesses that a long-run relationship exists among social, real, monetary and infrastructure activities. The paper has applied Granger Causality test in a Vector Error Correction model and concludes that social development is caused by real economic development but not vice versa, which is indicative of ‘trickle-down’ development policies. It also concludes that in the context of Pakistan, no causal relationship exists between real economic development and monetary growth; meaning that monetary development has no impact on the economic growth of the country. However, both real development and monetary indicators appear to be exogenous in the system which implies that these can be used as instrument in developing social and physical infrastructure to boost investment and improving the quality of life of the people. |
| Keywords: | Causality; Multivariate; Principal Component; Composite Indicators; Social; Real; Monetary; Infrastructure |
| JEL: | C32 O15 O16 |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3267&r=cwa |
| By: | Agarwal Anurag K. |
| Abstract: | As global business expands, the number of business disputes is also on the rise. It is extremely difficult or rather impossible to get all these disputes resolved through the conventional method of courts. Moreover, for international business disputes issues of jurisdiction, law, language, culture, etc. pose additional problems. As the courts all over the world are loaded with unresolved cases, delay in getting justice is inevitable. In such a scenario, businesses have to search new methods of resolution of business disputes and arbitration is one of them. Arbitration is a private court by a private judge. The decision of the arbitrator is called an award, which is binding on the parties. When the business dispute is international in character and is to be resolved with the help of arbitration, it is known as ‘international commercial arbitration.’ The arbitration is a creation of contract between the parties. Hence, party autonomy is the heart and soul of each and every arbitration contract. However, this autonomy is not unbridled. The applicable law and public policy provide the boundaries to this autonomy. Rules of arbitral institutions also curtail the autonomy of parties. This research focuses on a catena of judgments of various courts, primarily the U.S. Supreme Court, the House of Lords and the Supreme Court of India in determining the trend towards acknowledging party autonomy as one of the most important aspects of international commercial arbitration. It shall also look into related issues dealt by the New York Convention and the UNCITRAL (United Nations Commission on International Trade Law) Model Law. |
| Keywords: | International commercial arbitration, Party Autonomy, UNCITRAL Model Law |
| Date: | 2007–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2007-05-06&r=cwa |
| By: | Bukhari, Syed Adnan Haider Ali Shah; Ali, Liaquat |
| Abstract: | In present study complete decomposition model employed to decompose the changes in energy consumption and energy strength in Pakistan during 1960 to 1998. A general decomposition model raises a problem due to residual term. In some models the residual term is omitted that cause a large estimation error, while in some models the residual term is regarded as an interaction that might create a puzzle for the analysis. A complete decomposition model used here to solve this problem. |
| Keywords: | complete decomposition model; energy consumption; energy strength and residual term |
| JEL: | L60 O21 |
| Date: | 2007–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3204&r=cwa |
| By: | Simon J. Evenett |
| Abstract: | In recent years the bipolar multilateral trading system of the post-war years has given way to a multipolar alternative. Although many specifics have yet to be determined, some contours of this new trade policy landscape are coming into focus and in this short essay I examine their implications for the European Union's external commercial policy. Particular attention is given to both the state of business-government relations and the propensity to liberalise under the auspices of reciprocal trade agreements by Brazil, India, and China; the potential new poles of the world trading system. I consider the likely consequences of these developments, plus factors internal to both the European Union and the United States, for the possible content of future multilateral trade initiatives. |
| Keywords: | WTO, European Union, regional trade agreements, BRICs |
| JEL: | F13 F15 |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:usg:dp2007:2007-15&r=cwa |