|
on Central and Western Asia |
| By: | Goldberg, Pinelopi Koujianou; Khandelwal, Amit; Pavcnik, Nina; Topalova, Petia |
| Abstract: | Recent theoretical work predicts that an important margin of adjustment to deregulation or trade reforms is the reallocation of output within firms through changes in their product mix. Empirical work has accordingly shifted its focus towards multi-product firms and their product mix decisions. Existing studies have however focused exclusively on the U.S. Using detailed firm-level data from India, we provide the first evidence on the patterns of multi-product firm production in a large developing country during a period (1989-2003) that spans large-scale trade and other market reforms. We find that in the cross-section, multi-product firms in India look remarkably similar to their U.S. counterparts, confirming the predictions of recent theoretical models. The time-series patterns however exhibit important differences. In contrast to evidence from the U.S., product churning - particularly product rationalization - is far less common in India. We thus find little evidence of "creative destruction". We also find no link between declines in tariffs on final goods induced by Indian's 1991 trade reform and product dropping. The lack of product dropping is consistent with the role of industrial regulation in India, which, like in many other developing countries, may prevent an efficient allocation of resources. |
| Keywords: | creative destruction; developing countries; India; multiproduct firms; product churning; trade liberalization |
| JEL: | F12 F13 L11 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6881&r=cwa |
| By: | Menon, Sudha Venu |
| Abstract: | The article examines growth experience in various sectors of the state and analyzes the medium and long term growth potential of the economy. Sector-wise performance of Gujarat economy is analyzed with a focus on key engines of growth and the effective role of these growth engines in macro economic acceleration of Gujarat Economy. During the nineties, Gujarat improved its economic performance remarkably in almost all secondary and tertiary sectors. While Gujarat has very strong performance in the manufacturing, electricity, construction, transport & communication, and services sector, its major weaknesses is in the primary sector. The article attempts to identify principal drivers of the economy in the state and their contribution to economic growth. The sectors are- Energy, Oil & Gas, Agro &food processing, Textiles, Diamonds, Petrochemicals, SEZ etc. Concluding section highlights policy recommendations for sustained economic growth including land reform, investment in education and infrastructure, ports, more FDI, transparency and efficiency in administration, attaining social cohesion, macro economic management etc |
| Keywords: | Gujarat;economy; growth;India |
| JEL: | A10 |
| Date: | 2008–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:9233&r=cwa |
| By: | Shahbaz, Muhammad; Nasir, Najeeb |
| Abstract: | The present endeavor explores relationship between producer and consumer price indices by employing new techniques. We have utilized the time series monthly (1992M1-2007M6) data while ARDL Bounds Testing and Johanson Cointegration Approach is used to determine the long run association and robustness of long run results. Toda & Yamamato (1995) and Variance Decomposition for causal rapport between producer and consumer prices are applied. DF-GLS & Ng-Perron Tests are also applied to inquire the order of integration for running variables. Results have verified the existence of long run relationship between producer and consumer prices, and their association is robust in long span of time in the case of small developing economy like Pakistan. Causal results through Toda and Yamamato’s (1995) technique asserts that there is two-way causality but it is stronger from producer to consumer prices and same with Variance Decomposition Method. Finally Feed back impacts show that feedback influence from PPI to CPI is stronger or dominating as compared to feedback from CPI to PPI, which support “Cushing and McGarvey (1990) hypothesis”. |
| Keywords: | D24; D12; C20 |
| JEL: | B22 |
| Date: | 2008–05–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:9285&r=cwa |
| By: | Ahmed, Vaqar; O' Donoghue, Cathal |
| Abstract: | This paper studies the welfare impact of changes in the external balance of a developing economy (Pakistan). We explain that the economic growth achieved during the past decade is highly dependent on the improvements in external balance. After 2001, Pakistan has benefited from, an increase in the inflow of remittances, foreign assistance from bilateral and multilateral sources, and a relatively stable exchange rate. This was complimented by growth in the real sector. The GDP grew at an average of 7 percent from 2002 to 2007. During the same time period the growth in per-capita income was around 13 percent in dollar terms. This performance however has come under pressure due to the rising inflation, slowing down of global economy and external price shocks. The increase in import price of petroleum, raw materials and other manufactured goods has the potential of reducing the growth performance, impacting the competitiveness of the economy and thereby threatening the gains achieved during the past seven years in reducing the poverty levels. We study using a CGE-microsimulation model the effects of changes in import prices faced by Pakistan. Also provided in the simulation exercise is an analysis of increase in foreign savings that are usually prescribed for developing economies in order to augment the domestic savings and channelling investment towards developments in infrastructure and social sectors. |
| Keywords: | Computable General Equilibrium Model; Microsimulation; Balance of Payments; Economic Growth; Poverty; Inequality; Pakistan |
| JEL: | D58 C01 |
| Date: | 2008–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:9267&r=cwa |
| By: | Audretsch, David B; Tamvada, Jagannadha Pawan |
| Abstract: | A growing body of literature shows that geographic location plays an important role in influencing economic phenomena. Despite the renewed interest in economic geography, the existing literature on the firm size distribution (FSD) has ignored the impact of geographic location. A wave of recent studies has examined the determinants and evolution of FSD (Cabral and Mata, 2003; Angelini and Generale 2008, AER) and a component of this literature has focused on the size of the new firm start-ups. However, while the impact of firm-specific and industry-specific characteristics on size of new firms has been analyzed, the role of geographic location has been largely neglected. Using Bayesian semi-parametric geoadditive models, we estimate geographic location as a micro-determinant of firm start-up size. The estimations based on a comprehensive database of firm start-ups in India suggest that the size distribution of new firms exhibits distinct regional patterns, even after controlling for firm and industry characteristics. These residual spatial patterns are found to be attributable, to some extent, to the level of economic and financial development in the regions. |
| Keywords: | Bayesian Methods; Developing Countries; Firm Size Distribution; Geoadditive Models; Geography; Start-Up Size |
| JEL: | L11 L60 R12 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6846&r=cwa |
| By: | Mark Pauly; Fredric E. Blavin; Sudha Meghan |
| Abstract: | In many developing countries the proportion of health care spending paid out of pocket is about half of all spending or more. This study examines the distribution of such spending by income and care type, and the variation in spending about its expected value, in order to see whether voluntary private health insurance that reduces variation in spending might be able to be supplied. Using data from the World Health Survey for 14 developing countries, we find that out of pocket spending varies by income but that most spending usually occurs in income quintiles below the topmost quintile. We use estimates of the variance of total spending, hospital spending, physician spending, and outpatient drug spending about their means to generate estimates of the risk premia risk averse consumers might pay for insurance coverage. For hospital spending and total spending, these risk premia as a percent of expenses are generally larger than reasonable estimates of private health insurer loading as a percent of expenses, suggesting that voluntary insurance might be feasible. However, the strong relationship between spending and income suggests that insurance markets may need to be segmented by income. |
| JEL: | I11 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14095&r=cwa |