nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2008‒11‒25
nineteen papers chosen by
Nurdilek Hacialioglu
Open University

  1. Network Economies in Indian Telecom By Chepuri Shri Krishna, Tikiya Vibhor
  2. International Technology Transfer to India an Impedimenta and Impetuous By Subbarao Srinivas P.
  3. Inter-Linkages Among Agricultural Research Investment, Agricultural Productivity and Rural Poverty in India By Kiresur, V.R.; Melinamani, V.P.
  4. Revisiting labour and gender issues in Export Processing Zones : the cases of South Korea, Bangladesh and India By Murayama, Mayumi; Nobuko, Yokota
  5. Issues and Constrains in Manpower Supply in Indian Hospitality Industry By Subbarao Srinivas P.
  6. The Nature of Poverty and Its Prospects: Pakistan Evidence By Herani, Gobind M; Rajar , Allah Wasayo; Wasim, Mohammad Pervez; Shaikh, Riaz Ahmed
  7. Effect of Government Spending and Macro-Economic Uncertainty on Private Investment in Services Sector: Evidence from Pakistan By Ahmed, Imtaiz; Qayyum, Abdul
  8. TURKEY€ٓ ACCESSION TO THE EUROPEAN UNION: IMPLICATIONS FOR AGRICULTURAL SECTORS By Karaca, Orhan; Philippidis, George
  9. EU Integration of Turkey: Implications for Turkish Agriculture By Eruygur, H.O.; Cakmak, E.H.
  10. Estimating the Option Value of Ashtamudi Estuary in South India: a contingent valuation approach By Anoop, P.; Suryaprakash, S.
  11. TURKEY BEYOND CAP: AGRO-FOOD COMMERCIAL RELATIONS WITH EMILIA-ROMAGNA By Samoggia, Antonella; Maccani, Paola; Michetti, Matteo; Can, Ergüder; Topcu, Ceren; Zeynep Solak Tansug
  12. Micro evidence on inter-party vote movements in turkey: Who voted for AKP in 2002? By Baslevent, Cem; Akarca, Ali T.
  13. Volatility Modeling, Seasonality and Risk-Return Relationship in GARCH-in-Mean Framework: The Case of Indian Stock and Commodity Markets By Brajesh Kumar, Singh Priyanka
  14. The Diffusion of Bt Cotton and the Economic Impact on Producers By Juarez, M.
  15. Understanding PPPs and PPP-based national accounts By Angus Deaton; Alan Heston
  16. Strategies for Improved Servicing of the Customers: Case of Ghaziabad Goods Shed of the Indian Railways By G. Raghuram, Samantha Bastian
  17. China and the Manufacturing Exports of Other Developing Countries By Gordon H. Hanson; Raymond Robertson
  18. Going micro: Analysing SAM multipliers for the dairy chain on Reunion Island By D'Haese, M; Lecomte, Ph; Alary, V; D'Haese, L; Schipper, R
  19. Agricultural and non-agricultural outputs and energy consumption in Tunisia: empirical evidences from cointegration and causality By Chebbi, H.E.; Boujelbene, Y.

  1. By: Chepuri Shri Krishna, Tikiya Vibhor
    Keywords: Network Economies, Telecom, India, Performance, Scale, Scope, Consumer Surplus, Utilities, Firm-Strategies
    Date: 2007–12–28
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:2007-12-04&r=cwa
  2. By: Subbarao Srinivas P.
    Abstract: Technology transfer is an important means by which developing countries gain access to technologies that are new to them. Most technology transfer has between developed and developing countries through commercial technology transfers by the private sector. These include transfers through foreign direct investment, foreign licensing, turnkey projects, technical consultancy, capital goods acquisition, international subcontracting and joint ventures. By opening of the Indian economy (LPG policies-1991), several Indian companies are poised for different types of financial, technical and other forms of collaborations. Though they enter with proper technology transfer agreements, some are not successful with different reasons. Government of India’s Ministry of Scientific and Industrial Research is playing a vital role through its technology transfer policy in both inward and outwards technology transfers to the Indian companies through automatic route and some are through project approval board (PAB). The ability of the country to use technology transfers to develop their domestic capabilities to reap the social and economic benefits have been very mixed. This paper explores the important issues involved in the technology transfer besides the scope of technology transfer disputes and the promotion and regulation of technology transfer in India.
    Date: 2008–01–31
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:2008-01-07&r=cwa
  3. By: Kiresur, V.R.; Melinamani, V.P.
    Abstract: Nearly 72 per cent of India€ٳ population and 75 per cent of the country€ٳ poor are in rural areas. A large chunk of the Indian population still depends on agriculture for its livelihood. The level of agricultural research investment has serious implications on agricultural productivity in India which, in turn, has a bearing on rural poverty. The present study attempts to analyse the inter-linkages amongst agricultural research investment, agricultural productivity and poverty at the national level. The results revealed that rural poverty was significantly and negatively influenced by the agricultural productivity at macro level. Agricultural research investment per ha and gross cropped area influenced the productivity of agricultural sector in the country positively and significantly. Therefore, the agricultural research investment in India, which accounts for less than one per cent of the GDP in agriculture, should be increased at least to one per cent if not to two per cent, as demanded by the R&D organisations in the country from time to time. Owing to positive relationship between gross cropped area and GDP in agriculture per ha, efforts should be directed towards increasing the cropping intensity mainly through crop diversification and creating irrigation infrastructure. Low agricultural productivity is the root cause of rural poverty. Hence, an effective poverty alleviation programme should aim at increasing agricultural productivity in the long run through transfer of productive assets instead of consumer goods to the farmers.
    Keywords: research investment, productivity, poverty, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:ags:eaae08:44389&r=cwa
  4. By: Murayama, Mayumi; Nobuko, Yokota
    Abstract: The establishment of Export Processing Zones (EPZs) is a strategy for economic development that was introduced almost fifty years ago and is nowadays employed in a large number of countries. While the number of EPZs including several variants such as Special Economic Zone (SEZs) has increased continuously, general interest in EPZs has declined over the years in contrast to earlier heated debates regarding the efficacy of the strategy and its welfare effects especially on women workers. This article re-evaluates the historical trajectories and outstanding labour and gender issues of EPZs on the basis of the experiences of South Korea, Bangladesh and India. The findings suggest the necessity of enlarging our analytical scope with regard to EPZs, which are inextricably connected with external employment structures, whether outside the EPZ but within the same country, or outside the EPZ and its host country altogether.
    Keywords: South Korea, Bangladesh, India, Female labor, Labor problems, Export Processing Zone (EPZ), Special Economic Zone (SEZ), Gender
    JEL: F02 F16 J53
    Date: 2008–10
    URL: http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper174&r=cwa
  5. By: Subbarao Srinivas P.
    Abstract: By the very nature of tourism as a service industry, its efficient management and successful operation depend largely on the quality of manpower. In India, the shortage of skilled manpower poses a major threat to the overall development of tourism. In particular, the rapid expansion of hotels of an international standard in India is creating a high level of demand for skilled and experienced staff. The nature of the decisions facing hotel management is continually expanding. For their business to remain competitive, managers must be skilful in many diverse areas. Tourism statistics reveal that both domestic and foreign tourism are on a robust growth path. This growth will need to be serviced by a substantial increase in infrastructure, including air-road, rail connectivity as well as hotels and restaurants The availability of skilled and trained manpower is a crucial element in the successful long-term development and sustainability of a tourist destination. Skilled and trained human resources will ensure the delivery of efficient, high-quality service to visitors, which is a direct and visible element of a successful tourism product. High standards of service are particularly important in sustaining long-term growth, since success as a tourist destination is determined not only by price competitiveness or the range of attractions available, but also by the quality of the services provided, there by the qualified human capital. This paper elaborates the issues and constrains relating to demand and supply of manpower in hospitality industry and also suggested the recommendations to fill the gap.
    Date: 2008–02–12
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:2008-02-03&r=cwa
  6. By: Herani, Gobind M; Rajar , Allah Wasayo; Wasim, Mohammad Pervez; 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: I31 I28 D14 G21 I32
    Date: 2008–09
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:11654&r=cwa
  7. By: Ahmed, Imtaiz; Qayyum, Abdul
    Abstract: This study examines the effect of government spending and macroeconomic uncertainty on private fixed investment in services sector of the Pakistan for the period from 1972 to 2005. We first investigated time series properties of data then estimated long run model using cointegration technique. The results show that government spending and interest rate affect private investment in services sector in Pakistan. The preferred short-run dynamic investment function indicates that increase in government current spending and interest rate discourages private investment and similarly macroeconomic instability and uncertainty affect the private investment negatively.
    Keywords: Private Investment; Government Expenditure; Macroeconomic uncertainty; Services Sector; Co-integration; Pakistan
    JEL: E2 E22
    Date: 2008–08
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:11673&r=cwa
  8. By: Karaca, Orhan; Philippidis, George
    Abstract: n October 2005, the European Council, having determined that Turkey fulfilled the Copenhagen political criteria, opened accession negotiations with Turkey. Following this decision, the arguments on Turkish membership has become a priority for Turkey since Turkey€ٳ accession to the EU would have considerable impacts on Turkey and the EU. Therefore, the aim of this study is to investigate the potential economic impacts of Turkish membership to the European Union. Since much of the support and tariff protection in EU markets is associated with agriculture and food production, the study focuses principally on these sectors. In this context, to derive estimates of Turkey€ٳ accession a multiregional computable general equilibrium (CGE) model framework is employed. Using the standard Global Trade Analysis Project (GTAP) model and version 6 database, the paper looks into the impacts of the accession, sectoral reallocations and the welfare effects.
    Keywords: Turkey, European Union, Economic Integration, Agriculture and Food, Computable General Equilibrium Models, GTAP, Agricultural and Food Policy, International Relations/Trade, Political Economy,
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:ags:eaa107:6398&r=cwa
  9. By: Eruygur, H.O.; Cakmak, E.H.
    Abstract: Turkey€ٳ membership to the EU will involve full liberalization of agricultural trade with the EU. The effects of liberalization are bound to depend on the path of agricultural policies in Turkey and in the EU during the accession negotiations. In order to evaluate the possible impacts of a variety of policy alternatives and scenarios, an economic modelling approach based on non-linear mathematical programming is appropriate. In this framework, the major purpose of this paper is to evaluate the impact of Turkish integration to the EU on agriculture using an agricultural sector model for Turkey. The basic approach undertaken supplements the past efforts by incorporating Maximum Entropy to the positive mathematical programming, together with updated base period and including recent policy changes. Following the integration with EU, the net exports in agro-food products decline mainly due to the expansion of trade in livestock products. Overall welfare effects of including agrofood products in the customs union and membership are small. Consumers benefit from declining prices. CAP supports are determinative for producers€٠welfare. The results of the simulations provide also updated estimates about the possible size of CAP expenditures for Turkish agriculture.
    Keywords: Turkish Agricultural Sector Model (TAGRIS), Maximum Entropy Based Positive Mathematical Programming, Turkey€ٳ Membership of EU, International Relations/Trade,
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:ags:eaae08:44213&r=cwa
  10. By: Anoop, P.; Suryaprakash, S.
    Abstract: Ashtamudi estuary of south India provides many direct and indirect use values to the local community in terms of fishing, coconut husk retting, recreation and inland navigation. Nowadays the estuary is facing many threats like pollution, reclamation, injudicious fishing practices etc. At the same time it is having many potential future uses also. So it is imperative to assess the option value of the estuary to appraise the importance to conserve it. Here a contingent valuation method is applied for the assessment. The high option value of the estuary indicates the urgent need of conserving it for the potential future uses.
    Keywords: Ashtamudi, Option Value, CVM, Resource /Energy Economics and Policy,
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:ags:eaae08:43607&r=cwa
  11. By: Samoggia, Antonella; Maccani, Paola; Michetti, Matteo; Can, Ergüder; Topcu, Ceren; Zeynep Solak Tansug
    Abstract: The objective of this paper is to analyse the role that European countries€٠institutional relations and economic policies have in improving the competitiveness, sustainable development and structural adjustments of farms and agro-food economy in Turkey by supporting sustainable and long-lasting foreign agricultural commercial relations. In particular, the paper analyses the case study of Turkey and Emilia-Romagna region agro-food economic trade and the institutional relations developed within a political and institutional framework of actions over the last decade showing how these initiatives have contributed to enhance the role of Turkey as an increasingly important trade partner country. The paper concludes that future CAP budget constraints should lead to a forward looking European enlargement policy towards candidate countries with agriculture oriented economies aiming at supporting agro-food economic relations and eventually a diminishing role of direct CAP support.
    Keywords: Agro-Food Policy, Turkey, International Trade, Cap, Enlargement, Agricultural and Food Policy, Political Economy, Q10, Q18,
    Date: 2008–11–14
    URL: http://d.repec.org/n?u=RePEc:ags:eaa109:44851&r=cwa
  12. By: Baslevent, Cem; Akarca, Ali T.
    Abstract: Using data drawn from a survey conducted shortly after the 2002 elections, we investigate the Justice and Development Party’s (AKP) election victory from the perspective of inter-party vote movements. Our aim is not only to identify the parties from which the AKP votes originated, but also the segments of these parties' voter bases the party appealed to in particular. Descriptive statistics suggest that almost all of the voters who had voted for the pro-Islamist party in 1999, about half of those who supported the center-right and the ultra-nationalist parties, and one-fifth to two fifth of the supporters of the center-left parties were captured by the AKP. Given that the actual vote share of the party was 34.3 percent, we interpret these figures as evidence of further voter realignment after the election. Our econometric work reveals that confidence in the economic performance of the party was a leading factor in the election outcome. For the voters attracted from the left-of-center parties, ideological factors also played an important role, whereas in the case of voters transferred from the far-right pro-Islamist and ultra-nationalist parties, it was the demographic factors. For the voters coming from the center-right, both sets of variables were important.
    Keywords: Turkey; elections; party choice; voter behavior; logit estimation
    JEL: D7 D72
    Date: 2008–11–20
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:11683&r=cwa
  13. By: Brajesh Kumar, Singh Priyanka
    Abstract: This paper is based on an empirical study of volatility, risk premium and seasonality in risk-return relation of the Indian stock and commodity markets. This investigation is conducted by means of the General Autoregressive Conditional Heteroscedasticity in the mean model (GARCH-in-Mean) introduced by Engle et al. (1987). A systematic approach to model volatility in returns is presented. Volatility clustering and asymmetric nature is examined for Indian stock and commodity markets. The risk-return relationship and seasonality in risk-return are also investigated through GARCH-in-Mean modeling in which seasonal dummies are used for return as well as volatility equation. The empirical work has been carried out on market index S&P CNX Nifty for a period of 18 years from January 1990 to December 2007. Gold prices from 22nd July 2005 to 20th February 2008 and Soybean from October 2004 – December 2007 are also considered. The stock and commodity markets returns show persistence as well as clustering and asymmetric properties. Risk-return relationship is positive though insignificant for Nifty and Soybean where as significant positive relationship is found in the case of Gold. Seasonality in risk and return is also found which suggests the asymmetric nature of return, i.e. negative correlation between return and its volatility.
    Date: 2008–04–29
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:2008-04-04&r=cwa
  14. By: Juarez, M.
    Abstract: The objective is to present the economic impact of producers adopting Bt cotton and the rapid diffusion on the main producing countries: USA, China and India. The existing literature about this type of transgenic crop has been revised and the results of different research are presented. Bt cotton varieties have been quickly adopted by the countries in this study. Data show that this technology helps reduce production losses and significantly decrease the use of pesticides, thus saving their cost and the associated labour cost. But the total cost reduction is weak due to the high prices of the seeds incorporating this technology.
    Keywords: Innovation diffusion, Bt cotton, Crop Production/Industries,
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:ags:eaae08:43975&r=cwa
  15. By: Angus Deaton; Alan Heston
    Abstract: PPP-based national accounts have become an important part of the database for macroeconomists, development economists, and economic historians. Frequently used global data come from the Penn World Table (PWT) and the World Bank's World Development Indicators; a substantial fraction of the world is also covered in the PPP accounts produced by the OECD and the European Union. This paper provides an overview of how these data are constructed, and discusses both the theory and the practical problems of implementing it. All of these data are underpinned by the International Comparison Program (ICP), which collects data on prices worldwide. The most recent round of the ICP was for 2005 with final results published in early 2008; version 7.0 of the Penn World Table will soon incorporate these results. The 2005 ICP, like earlier rounds, involved substantial revisions to previous data, most notably revising downwards the size of the Chinese (40 percent smaller) and Indian (36 percent) economies. We discuss the reasons for the revisions, and assess their plausibility. We focus on four important areas: how to handle international differences in quality, the treatment of urban and rural areas of large countries such as China, India, and Brazil, how to estimate prices for government services, health, and education, and the effects of the regional structure of the ICP. All of these affect the interpretation of previous data, as well as the current revisions. We discuss previous revisions of the PWT, and their effects on various kinds of econometric analysis. The paper concludes with health warnings that should be kept in mind when using these data, which are not always suitable for the purposes to which they are put. Some international comparisons are close to impossible, even in theory, and in others, the practical difficulties make comparison exceedingly hazardous.
    JEL: E01 N1 O47
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:14499&r=cwa
  16. By: G. Raghuram, Samantha Bastian
    Abstract: The Ghaziabad (GZB) goods shed was one of the top rail goods handling points in the National Capital Region (NCR). The growth was expected to be robust in the forthcoming years, since GZB and Noida were high growth districts in the Uttar Pradesh part of the NCR. GZB goods shed was one of the fifty high traffic sheds identified for improvement, as part of the Indian Railways (IR's) Mission 900 mt loading. The paper provides a comprehensive description of GZB goods shed, including facilities, traffic flow, customer interface, processes, etc. In this context, the paper raises questions regarding (i) main concerns in GZB goods shed as viewed (a) by customers and (b) from IR's perspective, (ii) analytical support for customer service improvement provided by demurrage (wharfage) data, (iii) operational, process and infrastructure improvements at GZB, (iv) long term improvements, and (v) need for perspective changes.
    Date: 2008–11–01
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:2008-11-01&r=cwa
  17. By: Gordon H. Hanson; Raymond Robertson
    Abstract: In this paper, we examine the impact of China's growth on developing countries that specialize in manufacturing. Over 2000-2005, manufacturing accounted for 32% of China's GDP and 89% of its merchandise exports, making it more specialized in the sector than any other large developing economy. Using the gravity model of trade, we decompose bilateral trade into components associated with demand conditions in importing countries, supply conditions in exporting countries, and bilateral trade costs. We identify 10 developing economies for which manufacturing represents more than 75% of merchandise exports (Hungary, Malaysia, Mexico, Pakistan, the Philippines, Poland, Romania, Sri Lanka, Thailand, and Turkey), which are in theory the countries most exposed to the adverse consequences of China's export growth. Our results suggest that had China's export supply capacity been constant over the 1995-2005 period, demand for exports would have been 0.8% to 1.6% higher in the 10 countries studied. Thus, even for the developing countries most specialized in export manufacturing, China's expansion has represented only a modest negative shock.
    JEL: F15
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:14497&r=cwa
  18. By: D'Haese, M; Lecomte, Ph; Alary, V; D'Haese, L; Schipper, R
    Abstract: This poster presents a study on the multiplier effects in the dairy chain on Reunion Island. This Indian Ocean island is one of the French overseas departments. However, it struggles with similar problems as the developing areas in its neighbourhood, high levels of unemployment especially being a major concern. The agricultural sector justifies the state support it receives by stressing its role in the creation of employment and economic activity. Our focus is on the dairy sector of the Island, which is relatively recent and highly organized. Local milk production has increased over the years and our aim is to calculate the economywide impact of this trend. We use a social accounting matrix with disaggregated accounts for the dairy sector to calculate the impact of changes in this sector.
    Keywords: Dairy, SAM, La Réunion, Livestock Production/Industries,
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:ags:eaae08:43934&r=cwa
  19. By: Chebbi, H.E.; Boujelbene, Y.
    Abstract: This short paper investigates the cointegration and causality link between energy consumption and agricultural, non-agricultural outputs (manufacturing sector and services sector) and overall gross domestic product in Tunisia for 1971-2003 period. Empirical results suggest that there is only unidirectional causality running from agricultural and non-agricultural sectors to energy consumption as well as from overall GDP growth to energy consumption. This unidirectional causality signifies a less energy dependent economy and suggests that it is sectoral growth that drives the energy consumption in Tunisia and not vice versa. Empirical results suggest also that Tunisian agricultural sector growth does not depend on energy, and high consumption of energy do not implies more productivity in the short run for this sector.
    Keywords: energy consumption, output growth, causality, cointegration, Tunisia, Resource /Energy Economics and Policy,
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:ags:eaae08:44055&r=cwa

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