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on Central and Western Asia |
| By: | Nil Demet Gungor (Economics Department, Atilim University); Aysit Tansel (Department of Economics, METU) |
| Abstract: | The emigration of skilled individuals from Turkey attracted greater media attention and the interest of policymakers in Turkey, particularly after the experience of recurrent economic crises that have led to an increase in unemployment among the highly educated young. This study estimates a model of return intentions using a dataset compiled from an Internet survey of Turkish students residing abroad. The findings of this study indicate that, as expected, higher salaries offered in the host country and lifestyle preferences, including a more organized environment in the host country, increase the probability of student non-return. However, the analysis also points to the importance of prior return intentions and the role of the family in the decision to return to Turkey or stay overseas. It is also found that the compulsory service requirement attached to government scholarships increases the probability of student return. Turkish Student Association membership also increases return intentions. Longer stay durations, on the other hand, decrease the probability of return. These findings have important policy implications. |
| Keywords: | Student non-return, brain drain, return intentions, Turkey |
| JEL: | F20 F22 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:met:wpaper:0701&r=cwa |
| By: | Giovanni Caggiano; Gregg Huff |
| Abstract: | Between 1880 and 1939, Burma, Malaya and Thailand received inflows of migrants from India and China comparable in size to European immigration in the New World. This article examines the forces that lay behind this migration to Southeast Asia and asks if experience there bears out Lewis' unlimited labor supply hypothesis. We find that it does and, furthermore, that immigration created a highly integrated labor market stretching from South India to Southeastern China. Emigration from India and China and elastic labor supply are identified as important components of Asian globalization before the Second World War. |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2007_06&r=cwa |
| By: | K., Jothi Sivagnanam |
| Abstract: | Achieving a high growth rate as well as a desirable level of income distribution is a goal that continues to be elusive in India. Thus, the maiden approach of the Tamil Nadu State Planning Commission to place importance on the `growth process', alongside the growth rate, is interesting and appropriate. |
| Keywords: | Planning - Social Sector - Growth Process - |
| JEL: | E62 O15 O21 |
| Date: | 2006–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3206&r=cwa |
| By: | Raghbendra Jha |
| Abstract: | One of the principal elements of the economic reforms program initiated in 1991 was to reduce the fiscal deficit of the central government which, at that time, faced a solvency crisis. This reduction was at least partially achieved by reducing transfers to state governments. As a result, state government budgets faced crises and agriculture, being largely a state subject, was denied adequate investment. This paper reviews the performance of Indian agriculture, particularly in the post-reform period. It attributes this lacklustre performance to the stagnation of agricultural investment whereas there has been a contemporaneous rise in agricultural subsidies. Thus while current operations are being subsidised to some extent resource for augmentation of productive capacity in agriculture are dwindling. |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pas:asarcc:2007-03&r=cwa |
| By: | Idrees Khawaja (Pakistan Institute of Development Economics, Islamabad.); Musleh-ud Din (Pakistan Institute of Development Economics, Islamabad.) |
| Abstract: | Interest spread of the Pakistan’s banking industry has been on the rise for the last two years. The increase in interest spread discourages savings and investments on the one hand, and raises concerns on the effectiveness of bank lending channel of monetary policy on the other. This study examines the determinants of interest spread in Pakistan using panel data of 29 banks. The results show that inelasticity of deposit supply is a major determinant of interest spread whereas industry concentration has no significant influence on interest spread. One reason for inelasticity of deposits supply to the banks is the absence of alternate options for the savers. The on-going merger wave in the banking industry will further limit the options for the savers. Given the adverse implications of banking mergers for a competitive environment, we argue that to maintain a reasonably competitive environment, merger proposals may be subjected to review by an antitrust authority with the central bank retaining the veto over merger approval. |
| Keywords: | Banks, Determination of Interest Rates, Mergers, Acquisitions |
| JEL: | G21 E43 G34 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2007:22&r=cwa |
| By: | Idrees Abdul Qayyum (Pakistan Institute of Development Economics, Islamabad.); Sajawal Khan (Pakistan Institute of Development Economics, Islamabad.) |
| Abstract: | This study aims at empirical investigation of the x-efficiency, scale economies, and technological progress of commercial banks operating in Pakistan using balance panel data for 29 banks. As banking sector efficiency is considered as a precondition for macroeconomic stability, monetary policy execution, and economic growth. We also make efficiency comparisons between the domestic and foreign banks and big banks. Our results indicate that the domestic banks operating in Pakistan are relatively less efficient than their foreign counterparts for the period 2000-05. The scale economies for small banks, especially foreign banks are higher. Our results suggest the existence of technological progress for all groups of banks for the year 2000 and onward. It was lowest for big banks in 2000 and highest for foreign banks in 2005. Again, technological progress is lower for domestic banks relative to foreign banks. The results show also that the market share of big five banks are declining over the period but average interest spread shows fluctuations. The main conclusions that can be drawn from these results are that mergers are more likely to take place, especially in small banks. If the mergers do take place between small domestic banks and foreign banks, these will reduce cost due to scale economies as well as x-efficiency (because foreign banks are x-efficient relative to small domestic banks). Even if mergers do take place between small and big banks, cost will reduce without conferring any monopolistic power to these banks. This will also help in stability of the financial sector, which is an important concern of the State Bank of Pakistan (SBP). So the best policy option for SBP is to encourage mergers, while keeping a check on interest spread, so that the benefits from reduction in cost due to mergers are passed on to depositors and borrowers. |
| Keywords: | X-efficiency, Scale Economies, Technological Progress, Competition, Spread |
| JEL: | G14 G18 G21 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2007:23&r=cwa |
| By: | Akhtiar Ahmed Ghumro; Ahmed Nawaz Hakro |
| Abstract: | The objective of this study is to understand the determinants of Foreign Direct Investment (FDI) flows and to quantify relevant policy shocks in dynamic econometric model for Pakistan economy. The study has highlighted the degree of attraction of cost related factors, investment environment factors, development strategy factors with ownership and internalization factors and other risk factors of recent FDI flows to Pakistan economy. The results show the investment environment improving factors-openness is statistically significant in short-run. While long run dynamics between FDI, openness and macro economic factors show consistency with short run results. The stable macro economic indicators, country’s risk profile followed by cost related and investment environment improving factors are real determinants to attract FDI. |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2007_04&r=cwa |
| By: | Sule Ozler (Department of Economics, UCLA); Erol Taymaz (Department of Economics, METU); Kamil Yilmaz (Department of Economics, Koc University) |
| Abstract: | In a dynamic panel data framework, we investigate the factors influencing the export decision of the Turkish manufacturing plants over the 1990-2001 period. Our results support the presence of high sunk costs of entry to export markets, as well as the hypothesis that the full history of export participation matters for the current export decision. We further show that the effect of the past export experience on current export decision rapidly depreciates over time: Recent export market participation matters more than the participation further in the past. Finally, we show that while persistence in exporting helps lower the costs of re-entry today, there are diminishing returns to export experience. Our results are robust to plant characteristics (plant size, technology, composition of the employment), the spillovers from the presence of exporters in the same industry, as well as industry and year effects. |
| Keywords: | Export decision, productivity, sunk costs, plant characteristics |
| JEL: | F14 D21 |
| Date: | 2007–03 |
| URL: | http://d.repec.org/n?u=RePEc:met:wpaper:0704&r=cwa |
| By: | Ellen van de Poel (Erasmus Universiteit Rotterdam); Owen O'Donnell (University of Macedonia, Thessaloniki, Greece); Eddy van Doorslaer (Erasmus Universiteit Rotterdam) |
| Abstract: | On average, child health outcomes are better in urban than in rural areas of developing countries. Understanding the nature and the causes of this rural-urban disparity is essential in contemplating the health consequences of the rapid urbanization taking place throughout the developing world and in targeting resources appropriately to raise population health. We use micro data on child health taken from the most recent Demographic and Health Surveys for 47 developing countries. First, we document the magnitude of rural-urban disparities in child nutritional status and under-five mortality across all 47 developing countries. Second, we adjust these disparities for differences in population characteristics across urban and rural settings. Third, we examine rural-urban differences in the degree of socioeconomic inequality in these health outcomes. We find considerable rural-urban differences in mean child health outcomes. The rural-urban gap in stunting does not entirely mirror the gap in under-five mortality. The most striking difference between the two is in the Latin American and Caribbean region, where the gap in stunting is more than 1.5 times higher than that in mortality. On average, the rural-urban risk ratios of stunting and under-five mortality fall by respectively 53% and 59% after controlling for household wealth. Controlling thereafter for socio-demographic factors reduces the risk ratios by another 22% and 25%. In a considerable number of countries, the urban poor actually have higher rates of stunting and mortality than their rural counterparts. The findings imply that there is a need for programs that target the urban poor, and that this is becoming more necessary as the size of the urban population grows. |
| Keywords: | child health; urban-rural inequality; nutrition; child mortality |
| JEL: | I12 I31 O53 |
| Date: | 2007–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20070035&r=cwa |