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on Central and Western Asia |
| By: | Broadberry, Stephen (Department of Economics, University of Warwick); Gupta, Bishnupriya (Department of Economics, University of Warwick) |
| Abstract: | Overall labour productivity in India was already only around 15 per cent of the UK level between the early 1870s and the late 1920s. Between 1929 and 1950 India fell further behind and remained at around 10 per cent of the UK level until the 1970s. India has been catching-up since the 1970s, but by the end of the twentieth century was still further behind than in the late nineteenth century. Agriculture has played an important role in India’s relative decline to 1950 and subsequent delay in catching up, since comparative India/UK labour productivity in this sector has declined continuously and agriculture still accounts for around two-thirds of employment in India. Comparative India/UK labour productivity in industry has fluctuated around a level of around 15 per cent. The only sector to exhibit trend improvement in comparative India/UK labour productivity over the long run is services, rising from around 15 per cent to around 30%. India’s recent emergence as a dynamic service-led economy appears to have long historical roots. |
| Keywords: | Labour productivity ; sectoral disaggregation ; international comparison |
| JEL: | N10 N30 O47 O57 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:817&r=cwa |
| By: | Das Gupta, Monica; Chung, Woojin |
| Abstract: | For years, South Korea presented the puzzling phenomenon of steeply rising sex ratios at birth despite rapid development, including in women ' s education and formal employment. This paper shows that son preference decreased in response to development, but its manifestation continued until the mid-1990s due to improved sex-selection technology. The paper analyzes unusually rich survey data, and finds that the impact of development worked largely through triggering normative changes across the whole society - rather than just through changes in individuals as their socio-economic circumstances changed. The findings show that nearly three-quarters of the decline in son preference between 1991 and 2003 is attributable to normative change, and the rest to increases in the p roportions of urban and educated people. South Korea is now the first Asian country to reverse the trend in rising sex ratios at birth. The paper discusses the cultural underpinnings of son preference in pre-industrial Korea, and how these were unraveled by industrialization and urbanization, while being buttressed by public policies upholding the patriarchal family system. Finally, the authors hypothesize that child sex ratios in China and India will decline well before they reach South Korean levels of development, since they have vigorous programs to accelerate normative change to reduce son preference. |
| Keywords: | Population Policies,Gender and Law,Gender and Development,Access to Finance,Gender and Health |
| Date: | 2007–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4373&r=cwa |
| By: | Kamat, Manoj; Kamat, Manasvi |
| Abstract: | The New Information Age & the Stock Market Growth Puzzle Mr. Manoj Subhash Kamat* Mrs. Manasvi Manoj Kamat** Abstract We investigate the nexus between developments in financial intermediation with the growth in capital market activity and implications for the retail investors in India, over the post-liberalization period ranging 1993-2004. The estimations using unrestricted VAR based on error correction models, both in the short term and the long term models illustrate the short run relationship the time-series properties of stock market development and the new information age nexus. The coherent picture which emerges from Granger-causality test based on vector error correction model (VECM) further reveals that in the long run, stock market development Granger-causes financial infrastructural growth. Our findings suggest that the evolution of financial sector and in particular the stock market tends to, or is more likely to stimulate and promote economic growth when monetary authorities adopt liberalized investment and openness policies, improve the size of the market and the de-regulate the stock market intone with the objectives of macroeconomic stability. This study provides robust empirical evidence in favor of finance-led growth hypothesis for the Indian economy. |
| Keywords: | Stock Market; Growth; Investor; Infrastructure Development; Causality; Cointegration; VAR; VECM; India |
| JEL: | G20 |
| Date: | 2007–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5158&r=cwa |
| By: | Iftikhar Ahmed (Pakistan Institute of Development Economics, Islamabad.); Usman Mustafa (Pakistan Institute of Development Economics, Islamabad.); Mahmood Khalid (Pakistan Institute of Development Economics, Islamabad.) |
| Abstract: | This study explores the evolution of fiscal resource distribution in Pakistan. Pakistan is a federation comprising four provinces, federally-administered areas, and the Islamabad Capital Territory. Being a central type of government, most of the revenues are collected by the centre and then redistributed vertically between the federal and the provincial governments, and horizontally among the provinces. Provinces then also redistribute revenues among lower tiers of the government, through a revenue-sharing formula. A thorough look at the history indicates that this process has been complex and has a far-reaching impact. A less systematic approach has been adopted to decentralise the financial matters. Over time, the divisible pool has expanded due to heavy reliance on indirect taxes as well as improvement in the collection. Population is the sole distribution criteria, adopted in all NFC awards from the divisible pool. This has raised friction among the provinces, necessitating inclusion of other potential variables evolved from international best practices. In addition to that, absence of technical experts and permanency of the NFC is another impediment. The NFC is supposed to provide the framework for amicable distribution of resources between the federal and the provincial governments for the joint goal of development and prosperity. |
| Keywords: | NFC, Pakistan, Fiscal Federalism, Rule and Discretion, Political Economy, Population, Subventions, Doing the Business of Government |
| JEL: | H71 H72 H73 H77 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2007:33&r=cwa |
| By: | Bansal, Sangeeta; Ramaswami, Bharat |
| Abstract: | "Labeling of genetically modified (GM) foods is a contentious issue and internationally, there is sharp division whether such labeling ought to be mandatory. This debate has reached India where the government has proposed mandatory labeling. In this context, this paper evaluates the optimal regulatory approach to GM food labels. Mandatory labeling aims to provide greater information and correspondingly more informed consumer choice. However, even without such laws, markets have incentives to supply labeling. So can mandatory labeling achieve outcomes different from voluntary labeling? The paper shows that this is not the case in most situations. The paper goes on to explore the special set of circumstances, where mandatory labeling makes a difference to outcomes. If these outcomes are intended, mandatory labeling is justified; otherwise not." from Authors' Abstract |
| Keywords: | Biotechnology Economic aspects, Genetically modified food Developing countries, Biosafety, Food labelling, |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:00704&r=cwa |
| By: | Wasim Shahid Malik (Pakistan Institute of Development Economics, Islamabad.); Ather Maqsood Ahmed (Central Board of Revenue, Islamabad.) |
| Abstract: | A widely agreed proposition in modern economics is that policy rules have greater advantage over discretion in improving economic performance. Simple monetary policy instrument rules are feasible options for developing countries lacking the pre-requisites for more sophisticated targeting rules. Notwithstanding the focus of modern literature on the issue, the State Bank of Pakistan (SBP) has never declared itself to be following any type of rule. Surprisingly, this topic has remained out of research focus (among the academia and the practitioners) in Pakistan. This is the first attempt to deal with a rule-based monetary policy strategy in the case of the SBP. We have estimated the Taylor rule and simulated the economy using this rule as a monetary policy strategy. Our results indicate that the SBP has not been following the Taylor rule. In fact, the actual policy can be taken as an extreme deviation from it. On the other hand, counterfactual simulation confirms that macroeconomic performance can be improved, in terms of stability in inflation and output, when a simple Taylor rule is adopted. In this regard the parameter values (especially the inflation target) in the rule must be set according to the conditions of the economy under consideration rather than by relying on the ones suggested by the Taylor rule. |
| Keywords: | Taylor Rule, Macroeconomic Performance, Counterfactual Simulation |
| JEL: | E47 E31 E52 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2007:34&r=cwa |
| By: | Sarkar, Prabirjit |
| Abstract: | The present study casts some doubt on the growth-promoting effect of foreign direct investment (FDI), which is widely supported by the proponents of financial globalization. The panel data analysis of 51 less developed countries shows a rising relationship between growth and FDI (relative to gross capital formation) only for the group of 11 relatively rich and open-economy countries. The time-series analysis observes meaningful positive relationships between FDI and growth only for 3 countries belonging to this group and some other countries. But by and large no long-term positive relationship exists between the two irrespective of income levels, openness and FDI-dependence. |
| Keywords: | Foreign Direct Investment; Financial Globalization; Liberalization. |
| JEL: | F40 F50 F02 O10 O50 O16 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5176&r=cwa |