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on Central and Western Asia |
| By: | Jindal, Kunal |
| Abstract: | India presently is one of the fastest growing economies. India has tried a unique path of liberalization. Since 1990’s, while it has gradually unilaterally opened various sectors to foreign players, at the same time, it has realized the importance of Free trade areas (FTA) and preferential trade areas (PTA). It has been proactive in concluding FTA’s with developing countries. However, at the WTO, it has emerged as a strong voice of developing countries. Such an approach has given it flexibility in its approach. The talks of a promising India-EU FTA make India critically analyze the way to liberalization in the future. With increasing presence on the world economic scenario, it faces a critical question of it’s approach in the future? Without taking a stand, this paper tries to analyze its present approach and explore options for India. Then, in the second part, this paper attempts to delve into some of the problems facing India-EU FTA and the benefits of the same. |
| Keywords: | Unilateral; Bilateral; Multilateral; Liberalization; FDI |
| JEL: | F59 |
| Date: | 2008–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6602&r=cwa |
| By: | Sumon Kumar Bhaumik (Brunel University, WDI and IZA); Manisha Chakrabarty (Indian Institute of Management and Keele University) |
| Abstract: | Few researchers have examined the nature and determinants of earnings differentials among religious groups, and none has been undertaken in the context of conflict-prone multireligious societies like the one in India. We address this lacuna in the literature by examining the differences in the average (log) earnings of Hindu and Muslim wage earners in India, during the 1987-2005 period. Our results indicate that education differences between Hindu and Muslim wage earners, especially differences in the proportion of wage earners with tertiary education, are largely responsible for the differences in the average (log) earnings of the two religious groups across the years. By contrast, differences in the returns to education do not explain the aforementioned difference in average (log) earnings. In conclusion, we discuss some policy implications. |
| Keywords: | earnings gap, education, decomposition, religion |
| JEL: | J31 J15 I28 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3232&r=cwa |
| By: | Mark J. Holmes (Department of Economics, Waikato University Management School); Theodore Panagiotidis (Department of Economics, University of Macedonia); Abhijit Sharma (School of Management , University of Bradford) |
| Abstract: | This study conducts an investigation into the sustainability of the Indian current account over the study period 1950-2003. A necessary condition for current account sustainability is that exports and imports are cointegrated. After testing for unit roots that allow for a structural break, we employ parametric tests for cointegration: based on Johansen (1995) and Saikonnen and Lutkepohl (2000) as well as the nonparametric procedure proposed by Breitung (2002) and Breitung and Taylor (2003) that does not assume linearity. By employing these procedures recursively, two distinct regimes are identified characterised by whether or not imports and exports are cointegrated. The regime of non-cointegration runs until the late 1990s and the second regime of cointegration is present after that. This latter regime coincides with the liberalisation of the Indian economy. |
| Keywords: | India, current account, cointegration |
| JEL: | C5 F1 F4 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2007_05&r=cwa |
| By: | Henrietta Lake (IZA (Research Affiliate)) |
| Abstract: | What are the performance benefits of investing in human resources in a low-cost labor environment where returns to such investment are widely perceived as negligible? This paper presents a matched pair case study on the performance effect of human resource management systems at two garment factories manufacturing for export in India. They make the same product for the same buyer with the same local pool of labor. One factory views its workforce as a variable cost to be minimized, limits training, prefers strict hierarchy and job definitions. It relies on a range of factors including the offer of overtime and a lack of available alternatives to workers for retention. The other factory, which is located almost next door and pays the same basic wage, focuses on skills development, opportunities for promotion and encouraging employee participation. Employee turnover at the first factory is almost three times greater than that of the second, its absenteeism one third higher, while its product quality is 2.6 times lower and its production efficiency over 28 percent lower. This study demonstrates that even in a low-wage environment, HRM and work organization have a tangible and independent impact on performance. |
| Keywords: | human resource management, labor productivity, labor standards, India, garments |
| JEL: | J24 J8 O15 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3227&r=cwa |
| By: | Uri Gneezy; Kenneth L. Leonard; John A. List |
| Abstract: | This study uses a controlled experiment to explore whether there are gender differences in selecting into competitive environments across two distinct societies: the Maasai in Tanzania and the Khasi in India. One unique aspect of these societies is that the Maasai represent a textbook example of a patriarchal society whereas the Khasi are matrilineal. Similar to the extant evidence drawn from experiments executed in Western cultures, Maasai men opt to compete at roughly twice the rate as Maasai women. Interestingly, this result is reversed amongst the Khasi, where women choose the competitive environment more often than Khasi men, and even choose to compete weakly more often than Maasai men. We view these results as potentially providing insights into the underpinnings of the factors hypothesized to be determinants of the observed gender differences in selecting into competitive environments. |
| JEL: | C9 C91 C93 J15 J16 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:13727&r=cwa |
| By: | Salahuddin Ahmad; Dilli Raj Khanal (Uttara University) |
| Abstract: | This study assesses the strengths and weaknesses of reforms in the banking and insurance industries. Banking sector performance is analysed using various indicators as well as Principle Component Analysis techniques. A comparative case study of three banks with different ownership structures is presented. The study concludes with important conclusions and policy implications for future reforms based on the findings. |
| Keywords: | Service Trade, Bangladesh |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:3807&r=cwa |
| By: | saleem, shahid |
| Abstract: | The purpose of this exploratory and to some extent descriptive analysis is to highlight the Islamic banking & finance theory, and to explain the practical disparity all over the Muslim Umma along with commonalities of Islamic banking in them. Islamic banking has been now become a value proposition which transcends cultures and will do speedily in next decades despite of cutting throat competition expected in global banking scenario. The size of Islamic Financial Industry has now reached size of US$ 250 Billion and its growing annually @ 15% per annum. Institutions like Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Finance Services Board (IFSB) have been formed. Due to these collective efforts, Islamic banking is now recognized by IMF,World Bank and Basel Committee. While, 27 Muslim countries including Bahrain, UAE, Saudi Arabia, Malaysia, Brunei and Pakistan 15 non-Muslim countries including USA, UK, Canada, Switzerland, South Africa and Australia has already adopted it, but in all these countries a lot of diversities lie over theory “ Shariah Principles” and their implementation as bank products/services. In such context our effort is expected to be fruitful for not only local but international policymakers and scholars to overcome these disparities and to really make it a value proposition which transcends cultures………. |
| Keywords: | Islamic; Banking; Shahid; Finance; shariah; trade; international |
| JEL: | G2 P4 |
| Date: | 2007–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6635&r=cwa |
| By: | Hoque, Serajul |
| Abstract: | It is often argued that micro-credit program intervention at the grassroots level increases the ability of the poor to deal with crises. This paper examines the relationship between households’ involvement in micro-credit programs and their capacities to deal with economic hardships by focussing on BRAC, one of the largest micro-credit providers in Bangladesh. Using RAND data collected in one region of rural Bangladesh, the paper addresses a key question: Do micro-credit programs increase the ability of the poor to deal with crises? The findings in this paper indicate that BRAC’s micro-credit program in Bangladesh may increase participating households’ abilities to cope with economic hardships but further research to much more systematic information needs to be conducted about micro-credit program before conclusive results can be reached. |
| Keywords: | Micro-credit; Economic Hardships; Rural Bangladesh. |
| JEL: | I31 I38 |
| Date: | 2008–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6678&r=cwa |
| By: | Serajul Hoque |
| Abstract: | This paper examines the economic effects of removing tariffs in Bangladesh using a computable general equilibrium (CGE) modelling approach. The results of the simulations indicate that in the short-run a funded tariff cut with fixed real national savings would increase employment slightly and hence would expand GDP. There would be a small economy-wide welfare gain as measured by real consumption. The sectoral results showed that export-oriented industries would experience an expansion in output and employment. There also would be positive effects on the suppliers to these industries. Lightly-protected industries, which rely heavily on imported intermediate inputs, are projected to show robust expansion as they would benefit from a cost reduction. However, highly-protected, import-competing industries would suffer a contraction in output and employment as they would face increased competition from imports due to the removal of tariffs. The simulation results also indicate that there would have some noticeable effects on the distribution of real consumption between different household groups. Overall, urban households would experience an expansion in real consumption and rural households would suffer a contraction as a consequence of the funded tariff cut with fixed real national savings. |
| Keywords: | CGE model, trade liberalisation, income distribution, Bangladesh |
| JEL: | C68 F13 O15 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-170&r=cwa |
| By: | Dilli Raj Khanal (Institute for Policy Research and Development) |
| Abstract: | This paper draws from three country case studies of the liberalization and development of the banking and insurance service sectors in Bangladesh, Nepal and Malaysia undertaken as part of an ARTNeT regional study on trade in services led by the author. |
| Keywords: | Service Trade, Bangladesh,Nepal, Malaysia |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4107&r=cwa |
| By: | Arthur Cockfield |
| Abstract: | There are two broad approaches to the study of international tax law. Purists adopt a traditional approach, emphasizing conceptually pure tax solutions based on efficiency interests. Contextualists combine economic analysis with political, historical, social, institutional and other perspectives. It is argued that the Purist approach is overly-reliant on international tax economics which, in turn, is challenged by significant theoretical, empirical, and behavioral uncertainty. The Purist analysis nevertheless can be effective in respect of situations in which there are relatively balanced capital flows between countries with developed economies. Developing countries, however, are generally capital importing nations and their interests tend to be downplayed under the Purist approach. In an increasingly integrated global economy, the Contextualist perspective is more effective at taking account of the interests and needs of developing countries and, in so doing, promotes the long-term economic and security interests of developed countries. |
| Keywords: | international tax law, purism, contextualism, developing countries |
| Date: | 2008–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:nsw:discus:522&r=cwa |
| By: | Aksoy, M. Ataman; Ng, Francis |
| Abstract: | The purpose of this paper is to update the information on net food importing countries, using different definitions of food, separating countries by their level of income, whether they are in conflict and whether they are significant oil exporters. The study also estimates the changes in net food importing status of these countries over the last two and a half decades, and, most important, the study measures the relative importance of these net food imports in the import basket of the countries. Our results show that while many low-income countries are net food importers, the importance and potential impact of the net food importing status has been highly exaggerated. Many low-income countries that have larger food deficits are either oil exporters or countries in conflict. Food deficits of most low-income countries are not that significant as a percentage of their imports. Our results also show that only 6 low-income countries have food deficits that are more than 10 percent of their imports. Last two decades have seen a significant improvement in the food trade balances of low-income developing countries. SSA low-income countries are an exception to this trend. On the other hand, there are a g roup of countries which are experiencing civil conflicts which are large importers of food, and these countries can not meet their basic needs. They also need special assistance in the distribution of food within their boundaries. Therefore, one should modify the WTO Ministerial Declaration, and focus on these conflict countries rather than the broad net food importers. |
| Keywords: | Food & Beverage Industry,Emerging Markets,Currencies and Exchange Rates,Economic Theory & Research, |
| Date: | 2008–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4457&r=cwa |
| By: | Hasko, Harri (Bank of Finland Research) |
| Abstract: | Shocks to monetary and fiscal policy have played a major role in public debt developments in the OECD countries since the mid-1970s. According to the applied VAR approach, these shocks, taken together, explained, on average, about half of the forecast error variation in the debt to GDP ratio, while the share of shocks to GDP growth was close to 30 percent. In contrast, shocks to inflation and the debt ratio itself played in most cases only a minor role. However, the inflation shocks were vital in initiating the public debt problems, as the increase in actual inflation, and particularly the persistence of high inflation expectations in the 1980s, led to a prolonged period of high real interest rates. Learning the implications of greater monetary discipline therefore gave rise to ‘some unpleasant fiscal arithmetic’ which aggravated debt problems. In most countries fiscal policy aimed at correcting the deterioration in fiscal balances, but the progress was in most cases slow and delayed. It is noticeable that public debt developments have been quite similar in both the United States and the euro area despite differences in fiscal policy and the role of the public sector. Shocks to GDP growth, inflation and monetary policy, which have been more similar in both continents, explain about two thirds of the forecast error variation of the debt to GDP ratio, while shocks to fiscal policy explain about 20 percent. |
| Keywords: | public debt dynamics; fiscal policy; monetary policy; VAR models |
| JEL: | C22 E62 H62 |
| Date: | 2008–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2007_028&r=cwa |