nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2007‒06‒11
thirteen papers chosen by
Nurdilek Hacialioglu
Open University

  1. Is the elephant stepping on its trunk? The problem of India´s unbalanced growth By Douhan, Robin; Nordberg, Anders
  2. Globe: Asian Growth and Trade Poles: India, China, and East and Southeast Asia By Karen Thierfelder; Scott McDonald; Sherman Robinson
  3. Impact of Social Labeling on Child Labor in the Indian Carpet Industry By Chakrabarty, Sayan; Grote, Ulrike
  4. India rising - faster growth, lower indebtedness By Wes, Marina; Pinto, Brian; Pang, Gaobo
  5. Bringing about Changes at a Large Engineering College: Lessons for Designers and Implementers of Large Scale Change Efforts By Vohra Neharika; Nair Nisha
  6. Contested modernities in an indigenous domain: community self-management of forest in post-independence Meghalaya, a state of India. By Kumar, Sanjeeva
  7. The Case of OD in an NGO in India By Nair Nisha; Vohra Neharika
  8. Exchange Rate Pass-Through and Domestic Inflation: A Comparison between East Asia and Latin American Countries By ITO Takatoshi; SATO Kiyotaka
  9. Socio-economic Exclusion of Different Religious Communities in Meghalaya By Mishra, SK
  10. Impact of Export Subsidies on Pakistan’s Exports By Nadeem Ul Haque; M. Ali Kemal
  11. Effectiveness of Regulatory Structure in the Power Sector of Pakistan By Afia Malik
  12. Provision of Primary Healthcare Services in Urban areas of Bangladesh – the Case of Urban Primary Health Care Project By Ahmad, Alia
  13. Inside and Outside the Box: The Politics of Arab American Identity and Artistic Representations By Amaney Jamal

  1. By: Douhan, Robin (The Research Institute of Industrial Economics); Nordberg, Anders (Department of Economics)
    Abstract: It is often assumed that recent success in the high-technology software industry will lead India’s development. However, evidence suggests that basic manufacturing industry is stagnant. This paper proposes a mechanism that ties these two trends together. A big-push type of model, featuring linkages between firms, demand spill-over, and technology choice is elaborated. By imposing di¤erent cost structures on the manufacturing and high-technology industries the model describes outcome in terms of distribution between sectors. It is found that a policy promoting a high-technology sector can have negative effects on the manufacturing industry as well as aggregate income. A policy directing resources towards infrastructure benefits all sectors and increases aggregate income. The results from the model are found to correpond with the recent development pattern in India.
    Keywords: Industrialization; India; Industrial structure
    JEL: L16 O14 O25
    Date: 2007–06–01
    URL: http://d.repec.org/n?u=RePEc:hhs:uunewp:2007_016&r=cwa
  2. By: Karen Thierfelder (United States Naval Academy); Scott McDonald (The University of Sheffield); Sherman Robinson (University of Sussex)
    Abstract: Using a global general equilibrium trade model, this study analyzes the impact on developing countries, of (1) the dramatic expansion of trade by India, China, and an integrated East and Southeast (E&SE) Asia trade bloc and (2) productivity growth in the region. China is an integral member of the E&SE Asia bloc, with strong links through value chains and trade in intermediate inputs, while India is not part of any trade bloc. The analyses consider the importance of their different degrees of integration into regional and global economies, focusing on potential complementarities and competition with other developing countries.
    Date: 2007–06
    URL: http://d.repec.org/n?u=RePEc:usn:usnawp:15&r=cwa
  3. By: Chakrabarty, Sayan; Grote, Ulrike
    Abstract: Does the labeling of tradable products like carpets which have been produced without child labor contribute to decreased vulnerability of poor households and their children? This paper analyzes which factors determine the probability of a child to work in the carpet industry, and examines the influence of non governmental organizations (NGOs) like Rugmark which are engaged in the social labeling process. Data was obtained from interviews with 417 households in North India. Based on their calorie intake, the households were dissected into two groups, one very poor group below and another one above the subsistence level. The econometric analysis shows that a child living in a very poor household is more likely to work when his/her calorie intake increases (nutritional efficiency wage argument), while the opposite is true for a child from the above-subsistence household group. In addition, it has been found that social labeling has no significant influence on the very poor households. In contrast, at the above-subsistence level, social labeling has a significant positive welfare influence on the households. Furthermore, the occurrence of child labor is more likely for NGOs without monitoring.
    Keywords: Social Labeling, Child Labor, Carpet Industry, India
    JEL: D13 C81 I20 J22 O12
    Date: 2007–05
    URL: http://d.repec.org/n?u=RePEc:han:dpaper:dp-366&r=cwa
  4. By: Wes, Marina; Pinto, Brian; Pang, Gaobo
    Abstract: Over the past 25 years, India ' s economy grew at an average real rate of close to 6 percent, with growth rates in recent years accelerating to 9 percent. Yet by 2005-06, the general government debt-to-GDP ratio was 34 percentage points higher than in the 1980s. The authors examine the links between public finances and growth in the post-1991 period. They argue that the main factor in the deterioration of government debt dynamics after the mid-1990s was a reform-induced loss in trade, customs, and financial repression taxes. Over time, these very factors plus lower entry barriers have contributed to stronger microfoundations for growth by increasing competition and hardening budget constraints for firms and financial sector institutions. The authors suggest that the impressive growth acceleration of the past few years, which is now lowering government indebtedness, can be attributed to the lagged effects of these factors, which have taken time to attain a critical mass in view of India ' s gradual reforms. Similarly, the worsening of public finances during the late 1990s can be attributed to the cumulative effects of tax losses, the negative growth effects of cuts in capital expenditure that were made to offset the tax losses, and a pullback in private investment (hence, growth and taxes), a situation which is now turning around. Insufficient capital expenditures have contributed to the infrastructure gap, which is seen as a constraint especially for rapid growth in manufacturing. The authors discuss ongoing reforms in revenue mobilization and fiscal adjustment at the state level, which if successfully implemented, will result in a better alignment of public finances with growth by generating further fiscal space for infrastructure and other development spending.
    Keywords: Economic Theory & Research,Banks & Banking Reform,Investment and Investment Climate,Public Sector Economics & Finance,External Debt
    Date: 2007–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:4241&r=cwa
  5. By: Vohra Neharika; Nair Nisha
    Abstract: This paper outlines a change management program undertaken at Maritime Engineering Institute in India. The intervention came in the form of a focused three month effort where the first author, a professor of OB at a leading management school in India was invited to stay on the campus of the institute to familiarize herself with the organization and the processes, and suggest necessary changes. The paper presents the change management process in detail. The events and happenings during this intervention are discussed in terms of the dilemmas it posed for the consultant and in retrospect for exploring why the change process could not be institutionalized. Lessons from the intervention are offered to help deal with the less obvious and critical issues that can emerge as stumbling blocks in the successful implementation of any change process.
    Date: 2007–05–28
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:2007-05-09&r=cwa
  6. By: Kumar, Sanjeeva
    Abstract: The study examines the fate of community forestry in the real-world context of pressures through the state and from the market, by using a combination of discourse analysis, actor analysis and net-work analysis.It deals with the views and interactions of a wide range of groups, including attention to important divisions of genders and class. It identifies and characterises eight relevant discourses, and examines, including from interviews, how these have been used by diverse users in diverse contexts; including how actors may manoeuvre within and between discourses. Overall the study shows the eight discourses at work, in alliance, in conflict and in evolution.
    Keywords: social forestry, forest management, discourse analysis, India
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:iss:wpaper:440&r=cwa
  7. By: Nair Nisha; Vohra Neharika
    Abstract: This organizational development exercise was carried out in a prominent NGO that works in the area of rights and advocacy in the state of Jharkand in India. The OD exercise was part of the Applied Behavioral Science course of the first author’s graduate program which required the application of behavioral science theory to a live organization under the supervision of her guide, the second author. The intervention proved to be quite an educative one, both because it was in the developmental sector posing a different set of challenges than conventional organizations and also because the organization itself was in a state of flux at the time of the intervention. The entire exercise was spread over a period of four months. This paper discusses some of the issues and improvement areas that emerged through interviews with senior management and also reflections on some of the key lessons learnt during the process of intervention, with implications for OD in developmental organizations.
    Date: 2007–05–28
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:2007-05-08&r=cwa
  8. By: ITO Takatoshi; SATO Kiyotaka
    Abstract: Currency crises, accompanied by large devaluation, tend to have significant impacts on the domestic economy. If the exchange rate also depreciates in real terms, the economy can take advantage of the export price competitiveness to promote its exports. In contrast, if the currency devaluation induces an increase in domestic inflation, the currency value in real terms will return toward the pre-crisis level, which results in a loss of the export price competitiveness and, hence, a slow recovery from the severe economic downturn. This paper analyzes the degree of domestic price responses to the exchange rate changes in crisis-hit countries in East Asian and Latina American countries and Turkey in order to reveal why the post-crisis inflation performance was very different across countries. The structural vector autoregression (VAR) technique is applied to examining exchange rate pass-through. The degree of exchange rate pass-through is found to be higher in Latin American countries and Turkey than in East Asian countries with a notable exception of Indonesia. In particular, Indonesia, Mexico, Turkey and, to a lesser extent, Argentina show a strong response of CPI to the exchange rate shock. More noteworthy is that excessive supply of base money played an important role in increasing the domestic inflation rate in Indonesia, while such effect is not observed in other countries, which indicates the importance of credible monetary policy committed to price stability in order to prevent the post-crisis inflation. Shock transmission from import prices or PPI to CPI is quite large in Indonesia, Mexico and Turkey. This finding implies that the channel of shocks at different stage of pricing chain may be an additional factor in high domestic inflation.
    Date: 2007–06
    URL: http://d.repec.org/n?u=RePEc:eti:dpaper:07040&r=cwa
  9. By: Mishra, SK
    Abstract: Meghalaya, a state in the North Eastern India, is inhabited by over 2.3 million of population of which 70 percent are Christian, 13 percent are Hindus and a little over 4 percent are Muslims as obtained in the Census 2001. In this study we investigate if numerical dominance of a community leads to socio-economic dominance. We have constructed two composite indices of exclusion by weighted aggregation of 13 socio-economic indicators. The first composite index (I1) is obtained by maximization of the sum of absolute coefficients of correlation of the index with the indicator variables, while the second index (I2) is constructed by the principal components analysis that maximizes the sum of squared coefficients of correlation of the index with the indicator variables. In our judgment, the first index presents the reality more correctly, as a number of indicators undermined by I2 are given their due representation in I1. A perusal of the index (I1) reveals that while the Christian segment of population in the rural areas of Meghalaya is certainly better off than their Hindu or Muslim counterparts, they score comparatively poorly in the urban areas of Meghalaya. In the urban areas, the Muslim segment of the population is in the most advantageous position, followed by the Hindus. The Christians segment of population is more intensively excluded from the benefits of development. Thus, numerical dominance of a particular religious community does not entail socio-economic advantages. The advantages of numerical dominance may well be absorbed by the intra-community inequalities in the command over resources and opportunities.
    Keywords: Religious communities; Hindu; Muslim; Christian; Meghalaya; exclusion; inequality; composite index; principal components; maximization; absolute; coefficient; correlation; North East; India
    JEL: C61 C43 R11
    Date: 2007–06–08
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:3441&r=cwa
  10. By: Nadeem Ul Haque (Pakistan Institute of Development Economics, Islamabad.); M. Ali Kemal (Pakistan Institute of Development Economics, Islamabad.)
    Abstract: Throughout Pakistan’s history, policy has sought to promote exports through government support and incentives. The government machinery is geared to export promotion especially through direct and indirect subsidies. Surprisingly, these policies have been continued without serious examination. This paper makes a first attempt to evaluate these policies by estimating the impact of two such schemes—export financing and rebate/refund schemes—on export performance. Our analysis shows that, over the long run, the export financing scheme had a negative effect on exports while the rebate/refund scheme affected exports insignificantly. Subsidy schemes clearly do not seem to work, yet they have been retained for many years.
    Keywords: Rebate, Duty Drawback, Export Financing, Exports, Trade, Exchange Rate, Co-integration, Vector Error Correction, Pakistan
    JEL: C32 F13 F14 F31
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:pid:wpaper:2007:26&r=cwa
  11. By: Afia Malik (Pakistan Institute of Development Economics, Islamabad.)
    Abstract: This paper is an attempt to study the regulatory environment in the electricity sector of Pakistan. NEPRA, a regulatory authority was formed in 1997 to protect consumer interests in the area of electricity provision, and to ensure an efficient and competitive environment for the electricity generators and distributors, but it has so far not been able to achieve anything. The power sector (dominated by WAPDA and KESC) is still affected by institutional and organisational weaknesses, with inefficient and non-optimal tariffs, high line losses, and high level of corruption. It has been found weak administrative governance in NEPRA in the form of lack of autonomy, resulting in the overall institutional inability to carry out the desired functions effectively. In addition, NEPRA is lacked in professional expertise to supervise and control the power sector and establish a rational and equitable pricing regime.
    Keywords: Electricity, NEPRA, Pakistan, Reforms, Regulation
    JEL: G38 L33 L43 L51 Q48
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:pid:wpaper:2007:25&r=cwa
  12. By: Ahmad, Alia (Department of Economics, Lund University)
    Abstract: Primary healthcare in Bangladesh is supposed to be a public responsibility, and until recently the government has tried to provide basic services directly through its own bureaucracy. However, the public sector faces acute problems in meeting the growing needs of urban population, especially the poor. In recent years, new institutions such as partnerships with not-for-profit private organizations are sought to improve the access and quality of primary care. This paper focuses on one urban partnership project, UPHCP in Bangladesh. It analyzes the accountability relationships among different stakeholders involved in the project and cost effectiveness of contracting out. The paper finds that the accountability relationships in UPHCP are not transparent, and the programme is costly in terms of human resources because of multiple principals and agents involved compared to direct government provision. The beneficial impact of UPHCP on urban primary care is well-documented, but such institutional arrangement will have difficulties in expansion on a large scale without external assistance. Another weakness of the programme is the lack of a sense of ownership and trust in its continuity among the population that works against social accountability and client power.
    Keywords: Contracting out; NGO's; Primary healthcare
    JEL: I12 I18
    Date: 2007–05–29
    URL: http://d.repec.org/n?u=RePEc:hhs:lunewp:2007_009&r=cwa
  13. By: Amaney Jamal (Princeton University)
    Abstract: Arab American identity is strongly rooted in the political realities and social identity constructions of the homeland. For decades, homeland attachments have shaped Arab American identity; thus, it is not surprising that Arab American arts have traditionally relied on the cultural and folkloric elements of social ties and other relationships to the homeland. As with other ethnic groups, however, an additional dimension also shapes Arab—and Arab American—identity. The long history of political conflicts in the Arab world has played an equally significant role in structuring Arab American identity. The politically contentious realities of the Middle East from multiple US involvements in the region, the Arab-Israeli conflict, to the newly constructed War on Terror are all at the heart of Arab and Arab American identity.
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:pri:cmgdev:wp0604a&r=cwa

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