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on Central and Western Asia |
| By: | Nisha Taneja (Indian Council for Research on International Economic Relations) |
| Abstract: | This paper aims to identify the bilateral trade possibilities and non-tariff barriers between India and Pakistan. The study shows that there is a large untapped trade potential between the two countries. Using the potential trade approach, the study finds that the export potential from India to Pakistan is to the tune of US$ 9.5 billion while that from Pakistan to India is US$ 2.2 billion. Items having export potential from Pakistan are largely in the textile sector while items having export potential from India are predominantly in non-textile sectors. Very few items having export potential from India are on the positive list adopted by Pakistan. At the same time there are several items that India is importing from other countries but not from Pakistan. This indicates that there is a huge information gap on both sides on items that can be imported by India from Pakistan. A working definition of non-tariff barriers adopted in the study included six major categories, namely, quantitative restrictions, trade facilitation and customs procedures, technical barriers to trade and sanitary and phytosanitary measures, financial measures, para-tariff measures and visas. The study was based on an extensive survey conducted in several cities in India and Pakistan. Further, despite the two countries having liberalized their import regimes, Pakistan continues to follow a positive list approach towards Indian imports. The study identifies the ways in which this policy impedes India's exports and recommends the dismantling of the positive list. It also identifies problems related to transportation, custom procedures, rules of origin certification and valuation and suggests measures to address them. The imposition and application of standards in India was perceived as a major non-tariff barrier by Pakistani exporters. The study found that even though the TBT and SPS measures are not discriminatory across trading partners, Pakistani exports to India are surely affected by these. Pakistan has an export interest in textiles and agricultural products which also happen to be sectors where import restrictions/standards are most rigorously applied by India. It also found that due to a restrictive visa regime only selected traders have access to trade-related information. Thus lack of transparency, market imperfections and information asymmetries on both sides raise transaction costs and restrict market access for several other aspiring traders. |
| Keywords: | Trade, Trade policy, non-tariff barriers, South Asia, India Pakistan and International Relations |
| JEL: | F1 F13 F5 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:ind:icrier:200&r=cwa |
| By: | Prema-chandra Athukorala |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pas:asarcc:2008-03&r=cwa |
| By: | Mandira Sarma (Indian Council for Research on International Economic Relations); Yuko Nikaido (Indian Council for Research on International Economic Relations) |
| Abstract: | In this paper we present an analytical review of the capital adequacy regime and the present state of capital to risk-weighted asset ratio (CRAR) of the banking sector in India. In the current regime of Basel I, Indian banking system is performing reasonably well, with an average CRAR of about 12 per cent, which is higher than the internationally accepted level of 8 per cent as well as India's own minimum regulatory requirement of 9 per cent. As the revised capital adequacy norms, Basel II, are being implemented from March 2008, several issues emerge. We examine these issues from the Indian perspective. |
| Keywords: | Capital Adequacy Ratio, Basel I, Basel II, Reserve Bank of India, SMEs lending |
| JEL: | G20 G21 G28 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:ind:icrier:196&r=cwa |
| By: | Edmonds, Eric V; Pavcnik, Nina; Topalova, Petia |
| Abstract: | Does trade policy influence schooling and child labor decisions in low income countries? We examine this question in the context of India's 1991 tariff reforms. Overall, in the 1990s, rural India experienced a dramatic increase in schooling and decline in child labor. These trends were attenuated in communities where employment was concentrated in industries loosing tariff protection. The data suggest that this failure to follow the national trend of increasing schooling and diminishing work is associated with a failure to follow the national trend in poverty reduction. Schooling costs appear to play a large role in this relationship between poverty, schooling, and child labor. Extrapolating from our results, our estimates imply that roughly half of India's rise in schooling and a third of the fall in child labor during the 1990s can be explained by falling poverty and therefore improved capacity to afford schooling. |
| Keywords: | child labour; India; literacy; schooling; trade liberalization |
| JEL: | F13 F14 F16 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6772&r=cwa |
| By: | Badri Narayanan G (Indian Council for Research on International Economic Relations); Pankaj Vashisht (Indian Council for Research on International Economic Relations) |
| Abstract: | This paper analyses the determinants of competitiveness of auto industry in India, based on a field survey and a quantitative analysis of secondary data. It highlights that all segments of Indian auto sector are growing at a fairly high rates and their productivity as well as export intensity is on the rise. Domestic sales are rising, but they have declined in certain sub-segments of vehicles. However, the R&D expenditure has been scarce. Effective rate of protection of automobile assembly is far higher than that of auto-components manufacturing. Unorganised sector, which is quite significant in auto-component manufacturing, has grown more rapidly in the urban areas than in the rural areas. The econometric analysis suggests various measures that could be taken by the government, particularly, the credit facilitation for SMEs. A field survey comprising auto manufacturers in India underlines various constraints faced by the sector, such as the shortage of skilled manpower along with poor infrastructure, fluctuating steel prices and unavailability of land at reasonable price. This suggests that the government could facilitate the industry in becoming more competitive by taking steps such as structural fiscal reforms, cut in import duties of raw materials and capital goods, promotion of R&D and FDI, training facilities, research-backed negotiations of FTAs, roadmap for harmonising emission norms across the country and infrastructure improvement. Industry, on the other hand, should improve its R&D capabilities and market research. |
| Keywords: | Indian Auto Industry, Competitiveness, Efficiency and Indian Auto Policy |
| JEL: | L62 F14 O25 D24 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:ind:icrier:201&r=cwa |
| By: | Surabhi Mittal (Indian Council for Research on International Economic Relations) |
| Abstract: | India is the second largest producer of the fruits and vegetables in the world after China. Since the 1980s the international trade in fruits and vegetables has expanded rapidly. The number of commodities as well as the number of varieties produced and traded have drastically increased during the past 25 years. There is an overall increase in the demand of fruits and vegetables for consumption both in fresh and the processed form. Also there is a wide diversification in production pattern globally. Income in this sector is increasing which is driving the supply. In spite of being one of the largest producers of fruits and vegetables in the world, the export competitiveness among the Indian producers remains low. But with new marketing initiatives, the post-harvest losses and wastage due to poor infrastructure facilities such as storage and transportation are reduced to a considerable extent, yet a lot needs to be done in this sector. In an effort to overcome some of the problems associated with this sector, the case study of the successful SAFAL Market is presented in the paper. The study has observed a shift in cropping pattern in favour of horticulture in India in the past one-and-a-half decades. Analysis of the economic feasibility of this shift away from cereals to fruits and vegetable shows that it's economically viable and beneficial to shift towards horticulture production, but this diversification needs to be planned in a systematic manner. Certain strategies and policies are also suggested in this regards. The study confirms the changing consumption patterns and diversification, along with the outlook for the next 15-20 years in the light of shortage of supply to increased domestic demand. The major exports from India are mango, grapes, orange, apple, banana, mosambi, onion, potato, tomato and pumpkins. The major share of India's exports of fresh fruits and vegetables go to Bangladesh, Nepal, UAE, UK and Malaysia. Supply constraints, yield gaps and huge logistic costs affect our competitive and comparative advantage in world trade market. In this study the nominal protection coefficient and revealed comparative advantage are computed to check on the existing status. Study also identifies the potential states for the fruits and vegetables, for which India is globally competitive and has comparative advantage in production. These states should be targeted for enhancing the export potential of the country. The potential competing countries are also identified. Lessons from other developing countries focus on the growth of the horticulture sector through increased participation of small and marginal farmers in an organized manner and farmers being trained with entrepreneurial skills. |
| Keywords: | Horticulture, Cost Benefit Ratio, Competitiveness, Comparative Advantage, SAFAL Market |
| JEL: | Q13 Q17 |
| Date: | 2007–08 |
| URL: | http://d.repec.org/n?u=RePEc:ind:icrier:197&r=cwa |
| By: | Gang, Ira N. (Rutgers University); Sen, Kunal (University of Manchester); Yun, Myeong-Su (Tulane University) |
| Abstract: | Affirmative action has been at the heart of public policies towards the socially disadvantaged in India. Compensatory discrimination policies which have been adopted for the Scheduled Castes (SC) and Scheduled Tribes (ST) since independence were recommended for Other Backward Classes (OBC) by the Mandal Commission established by the Indian government in 1979. We examine why OBC have lower living standards, as measured by per capita household consumption expenditures, relative to the mainstream population, and whether these reasons are similar to those observed for SC and ST. We find that while the causes of the living standard gap for the OBC are broadly similar to those for the SC and ST, the role of educational attainment in explaining the gap is higher in importance for the OBC. |
| Keywords: | living standards, caste, reservation policy, decomposition |
| JEL: | I32 O12 J15 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3453&r=cwa |
| By: | Aradhna Aggarwal (Indian Council for Research on International Economic Relations) |
| Abstract: | This study aims at examining the impact of Special Economic Zones (SEZs) on human development and poverty reduction in India. It identifies three channels through which SEZs address these issues: employment generation, skill formation (human capital development), and technology and knowledge upgradation. It examines how the impact of SEZs is passed through each of these channels. The study finds that the modality differs significantly according to the characteristics of the SEZs, in particular, the level of their development as reflected in the composition of economic activities. Within this framework, the study examines the sectoral and economic composition of SEZ activities in India. It finds that labour intensive, skill intensive and technology intensive firms co exist in India's zones and, therefore argues that all the three effects described above are likely to be important in the Indian context. Empirical findings reported in the study are based on the data collected from both secondary sources and primary surveys. The primary survey based data was generated through extensive interviews of entrepreneurs and workers across the three largest SEZs (in terms of their contribution to exports and employment) : SEEPZ, Madras and Noida. The analysis reveals that `employment generation' has been the most important channel through which SEZs lend themselves to human development concerns, in India. Employment generated by zones is remunerative. Wage rates are not lower than those prevailing outside the zones. Besides, working conditions, non monetary benefits (such as transport, health and food facilities), incentive packages and social security systems are better than those prevailing outside the zones, in particular, in the small/informal sector. The role of SEZs in human capital formation and technology upgradation is found to be rather limited. The study argues that the zones' potential could not be exploited fully in India. This could primarily be attributed to the limited success of SEZs in attracting investment and promoting exports. The new SEZ policy gives a major thrust to SEZs. However the creation of SEZs alone does not ensure the realization of their potential. The government will need to play a more proactive role for effective realization of the full range of benefits from SEZs. |
| Keywords: | Special Economic Zones, Human Development, Employment, Poverty, Skill Formation, Technology Transfers, Local R&D |
| JEL: | F16 J31 J32 O15 O32 |
| Date: | 2007–05 |
| URL: | http://d.repec.org/n?u=RePEc:ind:icrier:194&r=cwa |
| By: | Amitendu Palit (Indian Council for Research on International Economic Relations); Shounkie Nawani (Indian Council for Research on International Economic Relations) |
| Abstract: | This paper contributes to the empirical literature on determinants of FDI by addressing the question: Why do some developing countries from Asia continue to receive more FDI, while others from the region have fallen behind? It finds R&D-based innovative capacities, and the ability to apply such capacities through modern IT-based techniques, as the two key determinants explaining FDI inflows to developing Asian economies. These traits are found significant for inward FDI in India too with more technology intensive sectors receiving greater FDI. The findings of the paper suggest that in the absence of strong technological foundations and well-developed communications infrastructure, liberal policies alone are not enough for drawing FDI, once initial advantages, like cheap labour, fizzle out. For developing countries like India, strong thrust on R&D and innovative skills is needed for attracting FDI in technology-intensive exports. Therefore, policy actions would have to go further than a broad-based opening up of sectors to FDI, and increasing the limit of such investment in these sectors, for sustained inflows of FDI. |
| Keywords: | FDI inflows, technology and technological capabilities, locational advantages, IT-based communication facilities |
| JEL: | F21 L86 O3 |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:ind:icrier:193&r=cwa |
| By: | Savaþ Bilal (Aksaray University) |
| Abstract: | The money demand process in Turkey during the period 1987:1-2002:3 can be explained better in the sense of Cagan (1956) rather than in the sense of Sargent et al.(1973).Cagan assumes the exogeneity of money. Sargent et al. suggest the endogeneity of money. Implicitly, the money supply process with regard to Turkish inflation is unpredictable with respect to the past history of prices, i.e. either inflation or currency depreciation. Therefore, the Turkish monetary regime may be described as a random walk monetary standard with short-term (myopic) discretionary policies used by the authorities. Moreover, the unpredictable money growth implies that the Central Bank’s passive monetary policy implementations help maintain the persistently high inflationary process in Turkey. |
| Keywords: | Demand for Money, High Inflation, Granger Causality, Exogeneity of Money, Endogeneity of Money, Exchange Rate-Based Pricing |
| JEL: | E31 E41 E65 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2008/2&r=cwa |
| By: | Ensar Yesilyurt (Department of Economics, Pamukkale University); Filiz Yesilyurt (Department of Economics, Ege University) |
| Abstract: | Purpose: The present study is intended to analyze the ignored parts of data envelopment analysis, such as congestion and slacks, which are used mostly in efficiency analyses. Methodology/approach: The method used in this study is the data envelopment analysis (variable returns to scale-DEA). With this method, the efficiency levels of the active training hospitals in Turkey have been determined. Findings: The order of many effective training hospitals in Turkey is as follows: Social security institute hospitals, private university hospitals, public hospitals and state university hospitals. The total welfare loss which stems from this inefficient structure in these hospitals is calculated as $76.379.920. Research limitation: The difficulty of attaining the data has limited the researh to the year 2003. Originality/value: In this study, slacks and congestion have been used as the complementaries of the efficiency analyses. Therefore, the results obtained from DEA have been used in order to attain political implications and thus political propositions |
| Keywords: | DEA, efficiency, Hospital, congestion, slack |
| JEL: | D2 D6 I0 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:ege:wpaper:0711&r=cwa |
| By: | Herani, Gobind M.; Lodhi, Saeed A.K. |
| Abstract: | This paper assesses the development, perspectives and prospects of innovative technology which would be supporting social and economic sustainability in Pakistan. The study specially examines following points: (i) The trend in growth rate of IT industry. (ii) Comparison of growth at the time of beginning and now. It also draws attention on four factors: introduction of IT, its development, policy issues and innovative methods to implement. Study reveals that Pakistan entered into information age in early eighties. Telecommunication and IT in the country is now growing rapidly. Ministry of telecommunication has recently formulated a strategy for promoting IT industry in Pakistan. The real IT industry requires a world class-enabling infrastructure. In spite of so many prevailing confusions the people of Pakistan have vision and good amount of knowledge. Our education system must create an environment that encourages critical debate with positive dissonance. Information economy in the country needs expansion and improvement that lasts us lifetime. The country is still in the realm of conceptual controversies and is not based on our own experiences to support people’s expectations and relevant to realities of our times. The over all conclusion is that Pakistan has made a moderate growth in social and economic sustainability during the last 59 years. The trend of IT is going up steadily, but the time wise transformation of knowledge from the beginning till today is sluggish. It is less than 1.0% of our GDP. |
| Keywords: | Innovative Technology; Social and Economic Sustainability; Developing countries; |
| JEL: | I21 O32 D83 J24 O33 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8317&r=cwa |
| By: | Surabhi Mittal (Indian Council for Research on International Economic Relations) |
| Abstract: | Rich countries use a combination of domestic market interventions and border protection or export subsidies as a part of their domestic policies. Developed countries such as the United States and the European Union (EU) resort to trade distorting policies to make their crop more competitive - both groups maintain high domestic prices for producers, stimulate production, and thus distort prices in the world market. The distorting effects of international trade can be distinguished between consumer surplus, producer surplus and tariff revenue approaches. The present paper emphasizes on the welfare of the producers with the main focus on small farmers. The analysis presented in the paper is an approximation of the general general equilibrium analysis. The four parts of this approximation are: first, the estimation of the world price effect of removal of OECD (Organisation for Economic Co-operation and Development) distortions; second, estimation of the effects of changes in world prices on domestic prices through a price transmission model; third, estimation of the impact on domestic production through a supply response model; and, four, the estimation of changes in supply and welfare on the poor small farmers. The simulation exercise shows that due to elimination of subsidies in OECD countries the world crop prices are expected to rise. The results confirm that the depressed world prices can be corrected by removal of OECD subsidies, but the challenge for India remains: How much can these price corrections benefit the farmers? India's domestic price response to this world price change is very small for rice and wheat and slightly better for cotton and sugar. On the production front, with reduction in subsidies and rising of the world price, the production in OECD countries would decline, but it is not very clear if this would have a discernable effect on India's production. In response to the rise in world price, this paper concludes that this change would have almost negligible impact on India's production for rice and wheat and a marginal increase in the production of cotton and sugar. The welfare impact on small farmers based on these changes is also estimated. The important fact to be observed in this study is that the developed countries' policies protecting their farming sector critically affect the lives of billions of people who depend on agriculture in developing countries. |
| Keywords: | OECD Agriculture, Trade Policy, Subsidy Elimination, Producer Welfare |
| JEL: | F13 F17 Q17 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:ind:icrier:195&r=cwa |
| By: | Alka Chadha (Indian Council for Research on International Economic Relations); Ali Mehdi (Indian Council for Research on International Economic Relations); Garima Malik (Indian Council for Research on International Economic Relations) |
| Abstract: | In this study, the authors have tried to examine the empirical evidence on the relationship between preventive health care and labour productivity and corporate profitability. While doing so, they try to generate awareness on the positive role of preventive health care in boosting the corporate sector's performance and improving the country's economy. Toward the end, based on their findings, they offer recommendations for policymakers and corporate management to promote preventive healthcare practice among employees. The primary research undertaken for this study included an electronic survey of some of the most well-established companies in the country, as well as a field-cum-electronic survey with a sample of employees in Delhi and the National Capital Region. Preventive health care holds enormous promise for the competitiveness of Indian companies, and for the country's economy in the global arena. In an era when the service sector is gaining pre-eminence, the value of the individual employee has increased more than ever before. Employees with specialized skills are the focal point on whose well-being and performance the productivity of a company rests. In a highly competitive corporate environment, companies cannot afford the absence of their employees due to sickness, caused by a sedentary lifestyle, etc., or a poor performance at the workplace due to poor health. Both as part of their corporate social responsibility and to boost their profits, a number of firms are offering preventive health care facilities to their employees. And it is on their performance, productivity and profitability that India's growth potential and global competitiveness depends substantially. Unfortunately, while the corporate sector has been quick to realize the benefits of preventive health care, policy has lagged behind and we do not yet have fiscal or other incentives that encourage prevention. While public spending on health has stagnated at 0.9 per cent of the GDP since the mid-1980s, and the government per capita health expenditure is one of the lowest in the world (US$7, as against US$2,548 in the United States), the government should focus its limited resources towards the health of the poor, and provide tax exemptions to sections which can take care of their own health needs. |
| Keywords: | preventive, executive, corporate health care, check-ups; employee wellness; lifestyle changes; health policy; fiscal incentives |
| JEL: | I11 I18 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:ind:icrier:198&r=cwa |
| By: | Banerjee, Abhijit; Banerji, Rukmini; Duflo, Esther; Glennerster, Rachel; Khemani, Stuti |
| Abstract: | Participation of beneficiaries in the monitoring of public services is increasingly seen as a key to improving their efficiency. In India, the current government flagship program on universal primary education organizes both locally elected leaders and parents of children enrolled in public schools into committees and gives these groups powers over resource allocation, and monitoring and management of school performance. However, in a baseline survey we found that people were not aware of the existence of these committees and their potential for improving education. This paper evaluates three different interventions to encourage beneficiaries’ participation through these committees: providing information, training community members in a new testing tool, and training and organizing volunteers to hold remedial reading camps for illiterate children. We find that these interventions had no impact on community involvement in public schools, and no impact on teacher effort or learning outcomes in those schools. However, we do find that the intervention that trained volunteers to teach children to read had a large impact on activity outside public schools—local youths volunteered to be trained to teach, and children who attended these camps substantially improved their reading skills. These results suggest that citizens face substantial constraints in participating to improve the public education system, even when they care about education and are willing to do something to improve it. |
| Keywords: | community participation; development economics; educational economics |
| JEL: | I21 O12 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6781&r=cwa |
| By: | Herani, Gobind M.; Wasim, Pervez; Rajar, Allah Wasayo; Shaikh, Riaz Ahmed |
| Abstract: | This paper analysis the reasons of poverty, and identifies reduction strategies developed in Pakistan and its consequences. This exploratory study uses the secondary data for the analysis. Much has been written on poverty reduction in Pakistan. So many strategies are prepared and implemented in Pakistan; we have identified and analyzed these and found that no one is successful, and in the light of these results, it needs further contribution for the reduction of poverty. Trends have remained uneven during the study period. It is found that in 1970s, poverty decreased due to increase in prices of farm output and increase in remittance. In 1980s poverty decreased due to zakat distribution, increase in remittance growth in construction and services sector. Again after 2000 it reduced and much change is seen due to introduction of Microcredit, Khushhali bank and massive spending on poverty related and social sector. In the end implication are made for the better results of strategies and planning. |
| Keywords: | Poverty Alleviation Strategies; Zakat Distribution ; Microcredit ; Remittance |
| JEL: | J31 J32 I38 G21 D14 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8318&r=cwa |
| By: | Herani, Gobind; Wasim, Mohhammad Pervez; Rajar, Allah Wasayo; Shaikh, Riaz Ahmed |
| Abstract: | Abstract: In this paper an attempt has been made to identify types of farming in deserted district Tharparkar, Pakistan and suggest the techniques for improvement. Study reveals that in Tharparkar farming is of three types: rain-fed agriculture (crops), livestock and use of rangeland (no-crops). Situation of rain-fed agriculture is very bad because of fluctuation in amount of rainfall year to year. Livestock is sustainable source of income generation and use of rangeland is also beneficial. Following techniques needs for its improvement: forecast of rain, quality of seed, methods of cultivation, financial support, market, electricity, export program, storage facilities, NGOs support, water facilities, awareness of education, roads, gas, cultivation of Kandi plant, and other indigenous and exotic plants, village organization, time to time research, reform of a farmland, rearing of livestock of better quality, and conservation of rangeland. The study concludes that livestock will be first level sustainable source of income; rangeland second and farmland third if suggested techniques are applied. |
| Keywords: | Farming; Rain-Fed; Livestock; Rangeland; Vegetation and Sustainable |
| JEL: | Q16 J43 Q15 O13 J24 Q12 |
| Date: | 2008–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8321&r=cwa |
| By: | Nazif Catik (Department of Economics, Ege University); Mehmet Guclu (Department of Economics, Ege University) |
| Abstract: | In this study we analyze the regional development process in Turkey by using the two traditional regional empirical growth models, Neoclassical convergence equations and Post-Keynesian Verdoorn’s Law, for the period from 1990 to 2000 at the NUTS 3 level under the spatial effects. Evidence obtained from the convergence equations with non-spatial effects rejects the validity of both absolute and conditional convergence hypotheses, while spatial econometric models taking into account the interaction between the regions in the growth process reveal existence of a weak convergence between the regions of Turkey. The results indicate that regional development disparities and location significantly affect the growth process of the regions in Turkey. Verdoorn’s Law indicates that there is a strong positive relation between manufacturing productivity growth and output growth and hence, manufacturing industries are also subject to increasing returns to scale. However, spatial econometric models of Verdoorn equations show that there is no significant spillover effect to accelerate productivity growth in the regions. According to the results obtained from both specifications, interaction between the regions is so weak and limited. Therefore, we argue that it is inevitable to review regional policies in Turkey to reduce regional development disparities. |
| Keywords: | Spatial Econometrics, Regional Growth, Convergence, Verdoorn’s Law, Spillover Effects |
| JEL: | C51 R11 R15 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:ege:wpaper:0710&r=cwa |
| By: | Akarca, Ali T. (University of Illinois at Chicago); Tansel, Aysit (Middle East Technical University) |
| Abstract: | The two major earthquakes which struck northwestern Turkey in 1999, not only caused enormous amounts of death, destruction and suffering, but also exposed rampant government corruption involving construction and zoning code violations. The incompetence shown by the government in providing relief, the corruption allegations in regards to those efforts, and government’s failure to prosecute corrupt officials and businessmen, further angered the public. How voters responded to these in the 2002 parliamentary election is investigated, using cross-provincial data, and controlling for other social, political and economic factors. Our results show that voters held accountable all of the political parties which participated in governments during the last decade or so, and not just the incumbents in 2002. The party in charge of the ministry responsible for earthquake relief, and parties that served longest and controlled more of the city administrations in the quake zone were blamed more. The newly formed Justice and Development Party (AKP) was the beneficiary of the votes lost by these parties. The sensitivity shown by the electorate to real and perceived corruption implies that corruption problem will be tractable in Turkey, and can be reduced through increased transparency and democratization. |
| Keywords: | Turkey, earthquake, corruption, election, party preference |
| JEL: | D72 D73 Q54 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3466&r=cwa |
| By: | Saygin Sahinoz (Central Bank of Turkey); Bedriye Saracoglu (Gazi University) |
| Abstract: | This study investigates the price setting behavior of Turkish industries based on the results of a survey that was conducted by the Central Bank of the Republic of Turkey. The results show that under normal conditions, the majority of the firms follow time-dependent pricing rule but when significant events occur substantial fraction of them alter their behavior to state dependent reviewing. The median Turkish firm reviews its prices every month, but changes its prices four times a year. Price reviews and changes are affected by: the market share, price discrimination, customer type, firm size and the existence of regulated prices. |
| Keywords: | price-setting, price-rigidity, survey |
| JEL: | E30 D40 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2008/3&r=cwa |
| By: | Berument, Hakan (Bilkent University); Dogan, Nukhet (Gazi University); Tansel, Aysit (Middle East Technical University) |
| Abstract: | This paper investigates how macroeconomic policy shocks in Turkey affect the total unemployment and provides evidence on the differential responses of the unemployment by sectors of economic activity. Our paper extends the previous work in two respects. First, we consider not only the response of total unemployment but also the response of unemployment by sectors of economic activity. Second, we consider not only the effect of monetary policy shocks, but also the effects of several other macroeconomic shocks. The quarterly data used which covers the period 1988:01 to 2004:04 from Turkey. A VAR model with a recursive order is employed to estimate the effects of shocks in real GDP, price, exchange rate, interbank interest rate, money supply and own sectoral unemployment on unemployment by sectors of economic activity. The results indicate that the positive income shock is followed by a decrease in unemployment in all economic activity groups during the initial periods except the unemployment in the Electricity sector and the Community Services sector. A positive money shock decreases unemployment in sectors of Mining, Manufacturing, Construction, Wholesale-Retail Trade, Transportation and, Finance-Insurance. Opposite results are obtained with the interbank interest rate shocks. Even if, they are not statistically significant, a positive interbank interest rate shock increases the unemployment in all economic activities at the initial levels but derives down the unemployment in the Agriculture and the Community Services sectors at the initial level. Moreover, a positive price shock increases unemployment in all economic sectors in the long run except the Mining and the Community Services. Thus, unemployment in different sectors of economic activity responds differently to various macroeconomic policy shocks. |
| Keywords: | macroeconomic policy shocks, unemployment by economic activity |
| JEL: | E60 E24 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3461&r=cwa |
| By: | Julia Kubny; Florian Mölders; Peter Nunnenkamp |
| Abstract: | Regional integration is often considered a means to improve member countries’ attractiveness to foreign direct investment (FDI). But regional integration agreements (RIAs) as well as FDI are too diverse to allow for generalized verdicts. Our case studies on Mercosur in Latin America, ASEAN and SAARC in Asia, and SADC in sub-Saharan Africa caution against high expectations in several respects. First, country-specific factors were often more important as a stimulus to FDI than regional integration per se. Second, member countries are unlikely to equally share RIA-induced FDI inflows, even though the larger and richer members are not necessarily the winners taking all. Third, the regional heavyweights Brazil, China, India, and the Rep. of South Africa have played a minor role so far in fostering effective regional integration through outward FDI |
| Keywords: | foreign direct investment, regional integration, Mercosur, ASEAN, SAARC, SADC |
| JEL: | F15 F23 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1418&r=cwa |
| By: | Elmas Yaldiz (Department of Economics, Izmir University of Economics); Ertugrul Deliktas (Department of Economics, Ege University) |
| Abstract: | The main goal of this paper is to estimate the most appropriate production function for Turkish banking industry over the 1980–2006 period. The empirical analysis shows that Cobb-Douglas type production function and with credit dependent variable is the most appropriate model of the banking sector. This function indicates that constant return to scale is valid for Turkish banking sector. Accepting personnel and fixed assets as inputs, it is found that as personnel use increases in the production process, the output level increases more than the increase in personnel. Thus If the main purpose is to increase the credit amount, banks should employ much more personnel rather than fixed assets considering the substitution relationship between labor and capital and the parameters of the production function is found to be changed with restructuring program. |
| Keywords: | Turkish banking sector, production function, marginal and average productivity |
| JEL: | G21 D24 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:ege:wpaper:0801&r=cwa |
| By: | Ibrahim Arisoy (Cukurova University) |
| Abstract: | This study first provides an outline of Kaldor's growth model and then tests its relevance to the economic experience of Turkey during the period 1963-2005 by using cointegration and causality tests. Kaldor's first law states that manufacturing is the engine of economic growth, whereas the second proposition, also known as Verdoorn's law, asserts that there is a strong positive casual relationship between manufacturing productivity growth and output growth, due to static and dynamic increasing returns to scale. Kaldor's third law purports that overall growth is positively correlated to employment growth in manufacturing output, and negatively correlated to employment in non-manufacturing sectors. The empirical results, regardless of the specification and estimation techniques employed, suggest that the models can partly explain the developments in the economy to a certain degree. |
| Keywords: | Kaldor‘s Law, Industrial Output, Employment, Productivity, Growth, |
| JEL: | O41 O11 R11 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2008/1&r=cwa |
| By: | Mamata Parhi |
| Abstract: | The inherent complexity of the innovation process puts interaction among firms and their specificities concerning the patterns of interaction at the center-stage. Hence, an uncovering of the interactive pattern among firms in the industry may reveal many hidden patterns, viz., the existing dependence and dominance structure of firms and the evolving dynamical changes based their on. Guided by these, this paper studies the vertical relational structure of automotive and auto component firms in Indian automotive supply chain where a clear ‘unequal balance of power’ is observed. We find that the industry network shows some prominent scale-free structural properties and complex dynamical behaviour. While analyzing further the Indian automotive industry’s possible evolutionary features we draw innovation and sustainability characteristics of this network, its inclination towards vulnerability and other policy implications. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2008-08&r=cwa |
| By: | Herani, Gobind M. |
| Abstract: | In this paper attempt has been made: (i) to analyse the opinion poll of Thareies about livilihood and its diversifaction, (ii) to identify the livlihood available resources and attitute of Thareis to these resoures. Answers of the poll questions are analysed accordingly and coclusions are drawn from this analysis. Study reveals that Tharis like agriclture and main source of it is the livestock. It is the sustanable source of income. Agriculture is fail due to shortage of rain fall. Goats and sheep are the main much growing vareites of livestock. Every body want to rear it with intrest because, it is easily saleable and cashable. Attitude of Tharis shows that some people are ready to divert from conventional agriculture and adopt the other opportunity. Therefore awareness of new opportunity is needed . |
| Keywords: | Livlihood Diversification; Tharparkar; Agriculture; Livstock; Sustainable Source |
| JEL: | D13 D31 I31 D33 J24 |
| Date: | 2008–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8050&r=cwa |
| By: | Alrubaie, falah.K.Ali |
| Abstract: | " Manufacturing Sector and the process of Structural transformation in Libyan Economy" Dr.falah.K.Ali Alrubaie Economics-faculty of Economics –derna -Omar Almukhtar university Abstract This study aims to diagnosis the role of Manufacturing sector in the process of structural transformation in Libyan Economy and determination the nature of transformation during 1970-2000 by following:- 1-Diagnosis the main structural relationship among the Economical activities and determination the nature of transformation which has take part during the study period, in order to determine whether this transformation causes a state of structural imbalance or it harmonizes with the aim of structural balance which declaration in economic plans 2- Diagnosis the structural transformation in manufacturing sector by study the relations between branches, activities and patterns, small and large scale, import substitution and encourage exports activities. 3:- study the reflection of structural transformation in manufacturing sector on the directions of the main structural relationship among economical activities of Libyan Economy |
| Keywords: | arabic |
| JEL: | L60 |
| Date: | 2004 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8312&r=cwa |
| By: | Alrubaie, Falah |
| Abstract: | An Evaluation to Industrial Development in Iraq "During The industrial development in Iraq ,causes mutual effect on both manufacturing sector indicators and Economical structural. The suitable conditions should be prepared ,which enables Manufacturing sector to come up to industrial and structural integration, In order to corrects the structural imbalances . This study aims to determination the nature of transformation in Iraq Economy during 1975-1990 by the following:- 1- Diagnosis The Role of Manufacturing Sector in Process of Structural Transformation in Iraq Economy by study the relations between manufacturing sector and national Economy . 2-Diagnosis the main structural relationship among the branches and patterns of Manufacturing sector ,containing regional relations and nature of transformation which has take part during the study period ,in order to determine whether this transformation causes a state of structural imbalance or it harmonizes with the aim of structural balance. 3- discussed the structural transformation in manufacturing sector by study the relations between branches and activities ,Light and Heavy industry, small and large Scale, Capital and labour intensities ,import substitution and encourage exports and the regional relation between industries |
| Keywords: | An Evaluation to Industrial Development in Iraq "During 1975-1990" |
| JEL: | L80 |
| Date: | 2004–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8331&r=cwa |
| By: | Alrubaie, falah.K.Ali |
| Abstract: | the three dimensions of value-added, employment, labour productivity, Represent the most important vector defining the nature of sectoral development in terms of the rate and content and mode, in this scope the industrial manufacturing sector progression to other productive activities for a sector of higher productivity, investment in this sector ensuring a structural shift and create many job opportunities that absorb surplus agricultural labour along with the natural increase in the labour force, to increase the flexibility of the sector about the changes in each of the relative contributions of labour and capital; productivity, which increases the rate of overlap between changes taking place in three dimensions mentioned whenever the growing role This sector in the national economy, and can be seen when comparing the prevailing event in both developed and developing economies. Based on these facts, this study has demonstrated that the industrial manufacturing sector in Iraq have failed at the level of branches and patterns and productive scales , in the provision of adequate opportunities for productive employment increases achieved in the labour force (natural and derived from the agricultural sector) and this was due to the relative inflexible Manufacturing activities are productive and technological content in high absorb workers, particularly chemical and oil industries, which dominate the major contributing added value achieved in this sector, as well as the relative decline in the rates of absorption of the activities with high employment flexibility (light manufacturing activities) in connection with the growing trend patterns towards intensive capital, enhance the imbalance in the labour market between the qualifications and conditions required before the one hand, and a non- proportionality structure professional work and got between the high productivity and low productivity activities on the other, non-interaction of the branches the patterns of industrial manufacturing sector and torn between two separated limb , first petroleum industry intensive capital and enhanced export, which is linked to international market conditions, and secondly, include assembly Industries and other consumer industries and import substitutes, which linkages with foreign inputs sources ,and the almost total absence of the active role of intermediate and capital industries, especially in industries and means of production, has weakened the ability of the manufacturing activities based on the creation of productive linkages or deepened within the productive potential of local, and that any positive change can happen in employment drop rapidly due to the loss or weakness of the existing workshops, and the surpluses generated by increased productivity, not supplying local production capacities Capacity better, but working to support consumer demand and speculation unproductive. Thus, the imbalance structural conditions in the industrial sector at the level of branches and patterns in this sector ,We Calls for non continuation in industrial expansion based on repetition and duplication, and attention instead to develop designs to distribution industries, according to activities and spot and regulations, and patterns, provided that this is a disclosure of the potential abilities to deepen the linkages for productivity and spots., in this regard, we suggest that industrial base is being built around a number of key core seen industrial compounds, based on Integrated technological links horizontally and vertically. |
| Keywords: | أثر التغيرات الهيكلية في قطاع الصناعة التحويلية على اتجاهات الإنتاجية والتشغيل في الاقتصاد العراقي |
| JEL: | L60 |
| Date: | 2000–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8392&r=cwa |
| By: | Alrubaie, falah.K.Ali |
| Abstract: | FDI now plays a complementary and dynamic role to local investments in Developing Countries . besides the financial capital it brings , more importantly it introduces technology, that sets off a diffusion effect with far more impact. Its entry enhances productivity and , by setting new standards , catalysis increased competitiveness in the domestic economy .Linkages trough relationship of suppliers and distributors generate a multiplier effect . The impact is greater when the domestic economy itself is developing . Therefore along with policies for attracting FDI there must be an equally supportive environment for development of the domestic private sector .This paper look on the right approaches to attract FDI to Arab Countries trough analysis the Economic factors that affect on the investment climate , specially, financial , monetary and external balance policies adopted by Arab Countries in order to using these factors in account the Composite investment climate Index of economic policies and to built statistics model to study the relation ship between FDI AND Economic policies . finally presented some suggestions in order to improving the investment climate in Arab Countries |
| Keywords: | The impact of Economic policies On the investment climate in Arab Countries |
| JEL: | E61 |
| Date: | 2004–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8369&r=cwa |
| By: | Alrubaie, Falah |
| Abstract: | Analysis of Human Development Indicators In Libya Alrubaie.Falah.K.Ali - Economics-faculty of Economics–derna-Omar Almukhtar university- Libya Summary This study aimed to diagnose the nature of the challenges facing human development in Libya in the future, in light of the trend towards privatization and economic reform and retreat of the role of the state and public sector, and the economic recession that dominated the Libyan economy since the mid-nineties yet, and how to maintain the gains made by, and address the shortage of quality aspects of the recipe given sustainability, after it became successful achievements in the areas of health and education are threatened with exposure to significant setback.The only way to meet those challenges is to intensify efforts to raise the level of the three dimensions of human development: the formation of human capacities, human use of this capacity, raising the level of human well-being and the granting of these indicators priority in the allocations of investment, and to keep raising the living standard of citizens while working to develop and improve constantly, and keenness to achieve justice in the distribution of incomes, and an evaluation and follow-up continuing to achieve human development consistent with the rates of international and national particularities and the advancement of the education sector in the context of economic restructuring to give priority to the aspects of quality and focus on the quality of education its various dimensions, and keep up with economic and social developments and changes and build modern health policy with the task of accurate diagnosis of the problems of the health sector, and the diagnosis of pros and cons current horizontal expansion in health services, policy and the reality of the pharmaceutical and medical supply and the proposed alternatives, and the reality of policy alternatives and spending in the health sector, and interest in the maintenance of the gains distributive and social justice in the provision of housing for all social groups, particularly those on low income, together with adherence to appropriate staffing resources, the need to develop a national strategy for the advancement of the status of women Jamahiriya, containing among other proposals, foremost of the establishment of social programmes to reduce the negative effects of economic restructuring programmes on the status of women, creation of a national fund for the advancement of women in order to improve their quality of life and ensure that aspects of the economic and social security through expansion of programmes investment loans and loan subsidies and housing programs marriage and custody and training programmes and rehabilitation |
| Keywords: | Analysis of Human Development Indicators In Libya |
| JEL: | O15 |
| Date: | 2005–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8344&r=cwa |
| By: | Alrubaie, falah.K.Ali |
| Abstract: | The challenge facing the Arab states at the present time, is how to preserve the gains they achieved in the sphere of human development and giving it a sustainable, by addressing the deficiencies and problems experienced by many of those indicators, and the future development will depend in the Arab world on how to tackle the obstacles that face human development in each country individually, and therefore the Arab states to exert more effort to achieve reforms in the economic sphere through diversification of the structure of the national economy to ensure sustainability in the development process and social importance of controlling the phenomenon of the rise in the rates of population growth and reform imbalance in the situation of women and paying attention to health and the eradication of communicable diseases and in the cultural field need to work on building a modern Arab culture and subjective, can be a centre of the development process, that occupies the site of this new culture heart engine that revolve around economic development processes and human, cultural, scientific, technological and creative, through raising the level of investment in human capital, building the knowledge and skill estimated and intensify education programmes and training and qualification of the workforce, and encourage spending on research and development and interest in the culture of individuals and encourage them to use advanced technical knowledge in the sector and ensure the right to education for all and promote freedom in the cultural and educational institutions and consolidate the foundations of democratic dialogue, in order to raise the efficiency of work and renovation, development and the eradication of illiteracy, because of illiteracy is deterrent to development and social progress and stress-year basic education for all, expansion and diversity in educational institutions, secondary and tertiary and higher education to meet the demands of the labour market and focus on the principle of lifelong education and the preparation of the self-learning which helps rights to adapt to the reality where the player not only continued, or future, only entrench equality and appreciation to all branches of human knowledge and experience, whether pursuant mentally, in practice, organizational, technical, productive, educational or aesthetic |
| Keywords: | An Analysis to human development indicators in the Arab States |
| JEL: | J24 |
| Date: | 2006–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8362&r=cwa |
| By: | Yilmaz Akyuz (UNCTAD) |
| Abstract: | The Keynesian analysis of financial stability as developed by Hyman Minsky, provides considerable insights into understanding the nature and dynamics of boom-bust cycles driven by international capital flows in emerging markets. Its main policy conclusion that financial control rather than macroeconomic policy holds the key to financial stability is equally valid. There is however, need to develop a new approach to financial control and place greater emphasis on managing capital inflows than has hitherto been the case |
| Keywords: | Financial instability, countercyclical policy, financial regulation |
| JEL: | E32 F32 G18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2008/4&r=cwa |
| By: | Alrubaie, falah.K.Ali |
| Abstract: | Iraq today is a group of oil states funny and melodramatic paradox at the same time, despite what this country owned by huge oil reserves, has failed so far, the administration of the Gaza crude oil production to reach operational productivity to a level equivalent to the possibility of reserves. Also a petroleum industry is not less tragic, do believe that the country was one of the first oil-producing countries in the world and its national experience high over the rest of the region in the oil industry, we see today importer of petroleum products and has a disastrous deficit in those derivatives. Result of the terrorist operations and security turmoil that occurred after the American occupation in April 2003, oil refineries stopped working at full capacity, or half of their capacities sometimes, and led to a situation of almost total deficit of supplies of oil derivatives, forcing the government to rely on the import of those products of the neighboring countries. that those conditions can be met only by the presence of a strong government has a clear economic vision for the future of the oil industry in Iraq, and the results of the study showed that the future developments in the oil sector will remain linked to the fate of the development process and the reconstruction of the Iraqi economy, which in turn linked, the extent of success in the national reconciliation and the formulation of the national Iraqi political project based on democracy, development and national interest of common interests and away from the narrow ethnic and sectarian Without achieving those goals, it will be difficult to get the petroleum industry and the Iraqi economy of this long dark tunnel. After solving this problem will be easy to start in the implementation of actions required to complete the process of reconstruction which includes the reconstruction and rehabilitation of the oil fields and installations and re-establish the infrastructure destroyed in Iraq, an end to corruption and smuggling common in several regions, the dimensions of the petroleum industry on the impacts and political pressures, the founding National Oil Company as an interference in a federal Conventions regarding the operations of oil sector development and use of natural gas on a large scale in the broader economic sectors, as well as new refining capacities to meet the needs of domestic consumption and for export , Encourage Iraqi private sector and expanding its role in the petroleum industry, accelerating the issuance of oil and gas law , Act as legislation gives federal oil trust in the possibility of foreign investment in the oil and gas sector a necessity that should be met for the advancement of the oil sector suffering. |
| Keywords: | Oil sector and the petroleum industry in Iraq Oil sector and the petroleum industry in Iraq |
| JEL: | Q43 |
| Date: | 2005–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8350&r=cwa |
| By: | Yamada, Toshikazu |
| Abstract: | This paper describes and analyzes the major features of economic development and poverty reduction in Egypt during its transition to a market Economy. It focuses on the changes in the situation of poverty and economic policies pursued as remedies by the government of Egypt and the ruling NDP. Sustainable development and poverty reduction is the core of the President Mubarak’s election campaign for his fifth term for the presidency. We attempt to explain the obstacles encountered by the Egyptian economy in terms of adjustments and general economic arguments on poverty. Finally, we refer to the necessity for enhanced accountability in the society to accomplish the goal. |
| Keywords: | Egypt, Transition, Poverty Reduction, Mubarak's Program, EHDR, Sustainable development |
| JEL: | I32 O11 P26 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper145&r=cwa |
| By: | Arai, Mahmood (Stockholm University); Bursell, Moa (Stockholm University); Nekby, Lena (Stockholm University) |
| Abstract: | Using a two stage correspondence test methodology, this study tests employer priors against job-applicants with Arabic names compared to job-applicants with Swedish names. In the first stage, employers are sent CVs of equal observable quality. Thereafter, in the second stage, the CVs with Arabic names are given an advantage of, on average, two more years of relevant work experience. This setup allows us to test the strength of unfavorable priors against job-applicants with Arabic names and to what degree these priors are revised, on average, when resumes are enhanced. Results indicate no significant differences in call-backs for female applicants when CVs with Arabic names are enhanced. The call-back gap for men however remains large and significant despite a positive adjustment of CVs with Arabic names. This implies that negative priors against male job applicants with Arabic names are not revised by an increase in observable merits. |
| Keywords: | correspondence testing, ethnic discrimination, biased testing, gender |
| JEL: | J15 J16 J71 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3467&r=cwa |