nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2009‒02‒07
ten papers chosen by
Nurdilek Hacialioglu
Open University

  1. Trade, Institutions and Religious Tolerance: Evidence from India By Jha, Saumitra
  2. Consultation Paper on Licensing Issues Related to Next Generation Networks By Telecom Regulatory Authority of India TRAI
  3. The Efficacy of Parochial Politics: Caste, Commitment, and Competence in Indian Local Government By Munshi, Kaivan; Rosenzweig, Mark
  4. The Rise of China and India and the Commodity Boom: Economic and Environmental Implications for Low-Income Countries By Coxhead, Ian; Jayasuriya, Sisira
  5. Does Monetary Policy Play Effective Role in Controlling Inflation in Pakistan By Qayyum, Abdul
  6. Beyond Industrialization New Approaches to Development Strategy Based on the Service Sector By Peter Sheehan
  7. Prospects for Skills-Based Export Growth in a Labour-Abundant, Resource-Rich Economy: Indonesia in Comparative Perspective By Coxhead, Ian; Li, Muqun
  8. Impact of Hydropower Projects on Economic Growth of AJK. By Atiq-ur-Rehman, Atiq-ur-Rehman; Anis, Hafsa
  9. Defense, Education and Health Expenditures in Selected Asian Countries By Hirnissa, M.T; Habibullah, M.S.; Baharom, A.H.
  10. Partial Factor Productivity, Agronomic Efficiency, and Economic Analyses of Maize in Wheat-Maize Cropping System in Pakistan By Amanullah; Almas, Lal K.

  1. By: Jha, Saumitra (Stanford U)
    Abstract: This paper analyses the incentives that shaped Hindu and Muslim interaction in India's towns from the rise of Islam to the rise of European intervention in the 17th century; it argues that differences in the degree to which medieval Hindus and Muslims could provide complementary, non-replicable services and a mechanism to share the gains from exchange has resulted in a sustained legacy of religious tolerance. Due to Muslim-specific advantages in Indian Ocean shipping, incentives to trade across ethnic lines were strongest in medieval trading ports, leading to the development of institutional mechanisms that further supported inter-religious exchange. Using new town-level data spanning India's medieval and colonial history, this paper finds that medieval trading ports were 25 percent less likely to experience a religious riot between 1850-1950, two centuries after Europeans disrupted Muslim dominance in overseas shipping. Medieval trading ports continued to exhibit less widespread religious violence during the Gujarat riots in 2002. The paper shows that these differences are not the result of variation in geography, political histories, wealth, religious composition or of medieval port selection, and interprets these differences as being transmitted via the persistence of institutions that emerged to support inter-religious medieval trade. The paper further characterises these institutions and the lessons they yield for reducing contemporary ethnic conflict.
    JEL: F10 N25 O17 Z12
    Date: 2008–01
    URL: http://d.repec.org/n?u=RePEc:ecl:stabus:2004&r=cwa
  2. By: Telecom Regulatory Authority of India TRAI
    Abstract: Telecom operators in India have initiated their move towards Next Generation Networks (NGN) by implementing IP based core network. In order to identify & address various issues related to Next Generation Networks like relevance and timing for transition to NGN and Migration related issues, Telecom Regulatory Authority of India (TRAI) initiated consultation process in January, 2006. Based on the deliberation and views of Stakeholders, certain recommendations were given to Government in March, 2006. Consequent to the recommendations on NGN, a committee named NGN eCO (Next Generation Networks Expert Committee) was constituted having representatives from various sectors of the Stakeholders. This consultation paper focuses on the licensing issues for migration to NGN. The stakeholders are requested to send their comments on the various issues mentioned in the consultation paper by 27th February 2009 preferably using electronic communication. In case of any clarification/information, please contact Sh. S. K. Gupta, Advisor (CN), Tel.No.+91-11-23217914, Fax: +91-11- 23211998 or email at advcn@trai.gov.in or cn@trai.gov.in.
    Keywords: telecom, stakeholders, licensing, electronic, communication, India, IP, network, government, generation,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:1851&r=cwa
  3. By: Munshi, Kaivan (Brown U); Rosenzweig, Mark (Yale U)
    Abstract: Parochial politics is typically associated with poor leadership and low levels of public good provision. This paper explores the possibility that community involvement in politics need not necessarily worsen governance and, indeed, can be efficiency-enhancing when the context is appropriate. Complementing the new literature on the role of community networks in solving market problems, we test the hypothesis that strong traditional social institutions can discipline the leaders they put forward, successfully substituting for secular political institutions when they are ineffective. Using new data on Indian local governments at the ward level over multiple terms, and exploiting the randomized election reservation system, we find that the presence of a numerically dominant sub-caste (caste equilibrium) is associated with the selection of leaders with superior observed characteristics and with greater public good provision. This improvement in leadership competence occurs without apparently diminishing leaders' responsiveness to their constituency.
    JEL: H11 H44 O12
    Date: 2008–09
    URL: http://d.repec.org/n?u=RePEc:ecl:yaleco:53&r=cwa
  4. By: Coxhead, Ian (U of Wisconsin and Norwegian University of Life Sciences); Jayasuriya, Sisira (La Trobe U)
    Abstract: The rapid growth of China and, more recently, of India, is having major effects on every facet of the global economy. The supply of labor-intensive manufactured exports (from China in particular) has been accompanied by a huge expansion in their imports both of raw materials and of skill-intensive manufactured parts and components. This ‘offshoring’ of intermediates production by large, labor-abundant economies has economic and environmental implications for other developing economies drawn into their trade networks. We sketch a trade-theoretic model showing how the growth of the ‘giants’ generates adjustment pressures on their trading partners and competitors among developing economies. We discuss in particular how differences in relative factor endowments of resource-rich economies can produce quite different outcomes in the context of product fragmentation and expanding commodity trade. We also explore the effects on production, trade, environment and prospects for future growth, recognizing that commodity extraction and production can have strong environmental impacts, particularly in the context of weak institutions and other market failures. We illustrate these different impacts by considering the cases of Indonesia, Malaysia and Thailand and highlight implications for growth, development and policy.
    JEL: F14
    Date: 2008–07
    URL: http://d.repec.org/n?u=RePEc:ecl:wisagr:528&r=cwa
  5. By: Qayyum, Abdul
    Abstract: This paper presented the salient features of current Monetary Policy and its effectiveness to control inflation in Pakistan. The monetary authority was successful in controlling inflation when it successfully controlled the money supply target. The calculation of money supply target needs to be improved to get appropriate target level of M2. It is also concluded that in the recent years SBP failed to control money supply and hence rate of inflation within the set target level. There seems to be a lack of coordination between Fiscal and Monetary Authorities. The understanding of issues regarding monetary policy transmission mechanism, effectiveness of different channels, lag structure of monetary policy changes, magnitude of pass-through of policy changes to inflation and output and nature of relationship amongst, instruments and goals of monetary policy (inflation and output) seems to be lacking and need fresh investigation.
    Keywords: Monetary Policy; Pakistan; Money Supply; Inflation
    JEL: E31 E58 E52
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:13080&r=cwa
  6. By: Peter Sheehan
    Abstract: This paper argues that it is becoming increasingly difficult for most developing countries to achieve rapid growth through industrialization, and especially through export oriented activities. But the key mechanisms seen as driving the industrial take-off in much of the literature (internal increasing returns, transfer of labour into higher value activities and pecuniary externalities) are alive and well, and are evident in services as well as in industry.
    Keywords: industrialization, services, development strategy, rapid growth, China, India, human welfare, poor countries, rural areas, industry, agricultural, output,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:1849&r=cwa
  7. By: Coxhead, Ian (U of Wisconsin and Norwegian University of Life Sciences); Li, Muqun (U of Wisconsin)
    Abstract: In an integrated global economy, specialisation in trade is an increasingly prominent strategy. A labour-abundant, resource-rich economy like Indonesia faces stiff competition for labourintensive manufactures; meanwhile, rapid growth in demand for resources from China and India exposes it to the ‘curse’ of resource wealth. This diminishes prospects for more diversified growth based on renewable resources like human capital. Using an international panel data set we explore the influence of resource wealth, foreign direct investment, and human capital on the share of skill-intensive products in total exports. FDI and human capital increase this share; resource wealth diminishes it. We use the results to compare Indonesia with Thailand and Malaysia. Indonesia’s reliance on skill-intensive exports would have been higher had it achieved higher levels of FDI and skills. Indonesia’s performance in accumulating these endowments, and its relative resource abundance, impede diversification in production and trade. Finally, we discuss policy lessons and options.
    JEL: F14
    Date: 2008–04
    URL: http://d.repec.org/n?u=RePEc:ecl:wisagr:524&r=cwa
  8. By: Atiq-ur-Rehman, Atiq-ur-Rehman; Anis, Hafsa
    Abstract: According to official estimates, territory of Azad Jammu & Kashmir has a potential to generate about 4600 MW of hydroelectricity, the cheapest source of energy. Total deficit in energy Pakistan is facing these days is about 5000 MW. So, only AJK can fulfill more than 90% of deficit of now demanded energy for entire country. Beside this direct and explicit advantage of hydropower projects to power sector, these projects may be extremely useful in improving many economic and social indicators at local and national level. Many socioeconomic indicators reveal that Azad Kashmir is there is huge gap in development level of AJK and National level. Development of power sector is extremely important to fill this gap. In this paper, we analyze effect of possible implementation of these projects on various economic and social sectors at local and national level. We discuss the obstacles in implementation of projects and recommendations are given at the end.
    Keywords: Economic Growth; Hydropower Project
    JEL: D20 D00
    Date: 2008–12–15
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:13070&r=cwa
  9. By: Hirnissa, M.T; Habibullah, M.S.; Baharom, A.H.
    Abstract: This study explores the inter-relationship between military expenditure, education expenditure and health expenditure in eight selected Asian countries namely Malaysia, Indonesia, Singapore, Philippines, Bangladesh, Nepal, Sri Lanka and South Korea. Autoregressive Distributed Lag-Restricted Error Correction Model (ARDL-RECM) procedure was utilized in the analysis. The empirical results suggest that, except for the case of Malaysia and Sri Lanka, whereby no meaningful interrelationship was detected between these three variables, the results for the rest of the countries are mixed, with differing granger causality being detected among these variables. The mixed results obtained in this study is an indicator of differing policy being implemented and will result in varying implication. Generally the error correction term is significant. Implying there is long-run relationship between defense spending, education and health expenditure.
    Keywords: defense spending; health expenditure; education
    JEL: E62 H51 H56 H52
    Date: 2008–07–11
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:13107&r=cwa
  10. By: Amanullah; Almas, Lal K.
    Abstract: Getting maximum benefits from cereals do not lie in reducing N-rate and its number of splits but lowering cost per unit cereal production through higher yields. Field experiments were conducted on maize (Zea mays L.) at the New Developmental research Farm of NWFP (Northwest Frontier Province) Agricultural University Peshawar-Pakistan during 2002-03 and 2003-04 in order to investigate effects of variable rates of N and its time of application on the partial factor productivity (PFPN), agronomic efficiency (AEN), net returns (NR), value-cost ratio (VCR) and marginal returns (MR). The 2 x 3 x 6 factorial experiment was designed having two plant densities (D1 = 60,000 and D2 = 100,000 plants ha-1) and three N levels (N1 = 60, N2 = 120 and N3 = 180 kg N ha-1) applied to main plots, while six split application of N in different proportions were applied to subplots in two equal (T1), three equal (T2), three unequal (T3), four equal (T4), five equal (T5) and five unequal splits (T6) at sowing and with 1st, 2nd, 3rd and 4th irrigation at two wk intervals. Maize ranked first with maximum PFPN, AEN, NR, VCR and MR at higher than at lower plant density, and the increase in all these parameters studied in the experiments was more in 2003-04 as compared to 2002-03. Both PFPN and AEN showed negative relationship with increase in N rates and the cast that vary, but NR, VCR and MR showed positive relationship with increase in N rates and the cost that vary. Among time of N application, maximum PFPN, AEN, NR, VCR and MR were calculated when N was applied in five equal splits (T5) almost comparable with T4 and T6 but was more economical when compared with T1, T2, and T3. In conclusion, the findings suggest that growing maize at D2 applied with N3 in four to five splits is more economical in the wheat-maize cropping system of NWFP.
    Keywords: maize, Zea mays L., planting density, nitrogen, agronomic efficiency, economics, Crop Production/Industries, Farm Management, International Development, Production Economics, Productivity Analysis,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ags:saeana:46747&r=cwa

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