|
on Central and Western Asia |
| By: | Sonia Bhalotra; Christine Valente; Arthur van Soest |
| Abstract: | Muslim children in India face substantially lower mortality risks than Hindu children. This is surprising because one would have expected just the opposite: Muslims have, on average, lower socio-economic status, higher fertility, shorter birth-spacing, and are a minority group in India that may be expected to live in areas that have relatively poor public provision. Although higher fertility amongst Muslims as compared with Hindus has excited considerable political and academic attention in India, higher mortality amongst Hindus has gone largely unnoticed. This paper considers this seeming puzzle in depth. |
| Keywords: | religion, child mortality, Muslim, Hindu, India |
| JEL: | I12 O12 J13 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:08/185&r=cwa |
| By: | Lokshin , Michael (The World Bank); Radyakin, Sergiy (The World Bank) |
| Abstract: | The authors use data from three waves of the India National Family Health Survey to explore the relationship between the month of birth and the health outcomes of young children in India. They find that children born during the monsoon months have lower anthropometric scores compared with children born during the fall and winter months. The authors propose and test four hypotheses that could explain such a correlation. The results emphasize the importance of seasonal variations in affecting environmental conditions at the time of birth and determining the health outcomes of young children in India. Policy interventions that affect these conditions could effectively impact the health and achievement of these children, in a manner similar to nutrition and micronutrient supplementation programs. |
| Keywords: | Nutrition; anthropometry; child health; seasonality; poverty; India |
| JEL: | I32 J12 O12 |
| Date: | 2009–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4813&r=cwa |
| By: | Chetan Ghate (Indian Statistical Institute); Stephen Wright (University of London) |
| Abstract: | Following Bai (2004) and Bai and Ng (2004) we estimate a common factor representation of a panel of output series for India, disaggregated by 15 states and 14 broad industry groups. We find that a single common "V-Factor" accounts for a large part of the significant shift in the cross-sectional distribution of state-sectoral output growth rates since the mid -1980s. The time profile of the V-Factor appears to be closely related to trade liberalization. |
| Keywords: | Economic Growth, Factor Models, Principal Components, Convergence, Divergence, Indian States |
| JEL: | O10 O40 O53 O47 |
| Date: | 2009–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-010&r=cwa |
| By: | Azam, Mehtabul (Southern Methodist University) |
| Abstract: | This paper examines the differences in welfare, as measured by per capita expenditure (PCE), between social groups in rural India across the entire welfare distribution. The paper establishes that the disadvantage suffered by two historically disadvantaged groups – Scheduled Castes (SCs) and Scheduled Tribes (STs) – is underestimated when the comparison group is Non-SCs/STs rather than general category (mostly higher castes). The ST households are the most disadvantaged followed by the SC and the Other Backward Caste households with respect to general category households, and the disadvantage exists across the entire distribution. Better covariates and better returns to those covariates contribute to the advantage of the general category households. The findings suggest that the policies to raise the human capital and strengthening the other productive assets of the SC and the ST households must remain a focus of attention besides promoting a more active labor market in rural India. |
| Keywords: | India, social groups, inequality, quantile regression decomposition |
| JEL: | C15 D63 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3973&r=cwa |
| By: | Azam, Mehtabul (Southern Methodist University) |
| Abstract: | The tertiary-secondary (college-high school) wage premium has been increasing in India over the past decade, but the increase differs across age groups. The increase in wage premium has been driven mostly by younger age groups, while older age groups have not experienced any significant increase. This paper uses the demand and supply model with imperfect substitution across age groups developed in Card and Lemieux (2001) to explain the uneven increase in the wage premium across age groups in India. The findings of this paper are that the increase in the wage premium has come mostly from demand shifts in favor of workers with a tertiary education. More importantly, the demand shifts occurred in both the 1980s and 1990s. Relative supply has played an important role not only determining the extent of increase in wage premium, but also its timing. The increase in relative supply of tertiary workers during 1983-1993 offset the demand shift, limiting the wage premium increase. But during 1993-1999, the growth rate of the relative supply of tertiary workers decelerated, while relative supply was virtually stagnant during 1999-2004. Both of these periods saw an increase in the wage premium as the countervailing supply shift was weak. |
| Keywords: | India, wage premium, tertiary (college), secondary (high school) |
| JEL: | J20 J23 J31 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3968&r=cwa |
| By: | Iarossi, Giuseppe (The World Bank) |
| Abstract: | In this paper, the author attempts to identify the characteristics of the business climate in India that can help explain the different performance of individual states in terms of investment and growth. The paper develops a new Investment Climate Index aimed at summarizing the aspects of the business environment that entrepreneurs consider when deciding whether to invest. Using this index, the author explores the investment climate in several typologies of Indian states and identify the key features of a poor business environment in India. The analysis shows that infrastructure and institutions remain the main bottlenecks in the country's private sector development. More specifically, power, transportation, corruption, tax regulations, and theft are major factors explaining the poor business environment in some Indian states. Infrastructure appears to be the single most important constraint, as it is particularly binding in states that show low levels of domestic investment and GDP growth. |
| Keywords: | affiliated organizations; bank financing; bottlenecks; business climate; business environment; business regulations; collateral; Cost of finance; data availability; domestic investment; |
| Date: | 2009–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4817&r=cwa |
| By: | Azam, Mehtabul (Southern Methodist University) |
| Abstract: | This paper examines changes in the wage structure in urban India during the past two decades (1983-2004) across the entire wage distribution using the Machado and Mata (2005) decomposition approach. Real wages increased throughout the wage distribution during 1983-1993; however, it increased only in the upper half of the wage distribution during 1993-2004. Quantile regression analysis reveals that the effects of many covariates are not constant across the wage distribution. Moreover, increases in returns to covariates across the entire distribution are the driving forces behind the wage changes in both decades. Change in composition of the work force contributed positively to wage growth during 1983-1993, but negatively during 1993-2004. Finally, while workers with all education levels experienced an increase in returns of roughly the same magnitude during 1983-1993, the increase in returns is much higher for workers with tertiary and secondary education during 1993-2004. The inequality increasing effects of tertiary education suggests that wage inequality in urban India may increase further in the near future as more workers get tertiary education. |
| Keywords: | earning functions, India, quantile regression decomposition, wage |
| JEL: | J30 J31 C15 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3963&r=cwa |
| By: | Ban, Radu (The World Bank); Das Gupta, Monica (The World Bank); Rao, Vijayendra (The World Bank) |
| Abstract: | Despite efforts to mandate and finance local governments' provision of environmental sanitation services, outcomes remain poor in the villages surveyed in the four South Indian states. The analysis indicates some key issues that appear to hinder improvements in sanitation. Local politicians tend to capture sanitary infrastructure and cleaning services for themselves, while also keeping major village roads reasonably well-served. Their decisions suggest, however, that they neither understand the health benefits of sanitation, nor the negative externalities to their own health if surrounding areas are poorly served. Our findings suggest that improving sanitary outcomes requires disseminating information on the public goods nature of their health benefits, as well as on the local government's responsibilities. It also requires putting public health regulations in place, along with measures to enable accountability in service provision. |
| Keywords: | access to services; accountability; Accounting; affiliates; agricultural output; agriculture; air; air freight; air transport; Backbone; bank loans; Bank of Tanzania; Banking sector |
| Date: | 2008–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4802&r=cwa |
| By: | Azam, Mehtabul Azam (Southern Methodist University); Blom, Andreas (The World Bank) |
| Abstract: | Using nationally representative household surveys, this paper examines the trends in attainment, enrollment, and access to tertiary (higher) education in India from 1983 to 2005. The findings suggest that there has been considerable progress in attainment and participation; however, they remain low. Important gaps exist in enrollment between rich and poor, rural and urban areas, men and women, disadvantaged groups and the general population, and states. Analysis of transition rates from secondary education to tertiary education and regression analysis indicate that inequality in tertiary education between disadvantaged groups and the general population is explained by low completion rates of secondary education. Inequality in tertiary education related to income, gender, rural residence, and between states is explained by: (i) differences in completion rates of secondary education, and (ii) differences in the probability of transitioning from secondary education to tertiary education. In particular, the importance of household income has grown markedly. Equitable expansion of secondary education is therefore critical for improving the equity of tertiary education. There is also a need to help qualified youth from low-income families and rural backgrounds to attend tertiary education, in particular the technical and engineering streams, in which participation is lower. |
| Keywords: | access to higher education; access to tertiary education; age cohort; age group; age groups; colleges; competition for entry; completion rate; completion rates degree courses; degrees |
| Date: | 2008–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4793&r=cwa |
| By: | Sonia Bhalotra |
| Abstract: | This paper highlights an aspect of the enormous and little-exploited potential of the Demographic and Health Surveys, namely the use of data on siblings. Such data can be used to control for family-level unobserved heterogeneity that might confound the relationship of interest and to study correlations in sibling outcomes. These uses are illustrated with examples. The paper ends with a discussion of potential problems associated with the sibling data being derived from retrospective fertility histories of mothers. |
| Keywords: | siblings, unobserved heterogeneity, retrospective fertility histories, state dependence, DHS, India. |
| JEL: | I12 O12 J10 C23 H31 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:bri:cmpowp:08/203&r=cwa |
| By: | Çoban, Serap |
| Abstract: | This study focuses on the relationships among mortality rates, income and educational inequality in terms of economic growth to investigate similarities and differences between the Euro Area and Turkey. For this purpose, income gini as an indicator of income inequality and education gini as an indicator of education inequality are used in the analyses. The relations among the variables are examined with panel data analysis for the Euro Area and with time series analysis for Turkey by using these coefficients and mortality rates for the period of 1980 and 2006. The results show that access to education is more important than the others for Turkey and the Euro Area. There is also a considerable relation between education inequality and mortality rates of infant and adult. |
| Keywords: | Educational Gini; Income Gini; Mortality Rates; Economic Growth; Panel Data Analysis; Euro Area; Turkey |
| JEL: | I30 I20 I10 |
| Date: | 2008–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13296&r=cwa |
| By: | Cakmak, Erol H. (The World Bank); Dudu, Hasan (The World Bank); Saracoglu, Sirin (The World Bank); Diao, Xinshen (IFPRI); Roe, Terry (University of Minnesota); Tsur, Yacov (Hebrew University of Jerusalem) |
| Abstract: | Agricultural production is heavily dependent on water availability in Turkey, where half the crop production relies on irrigation. Irrigated agriculture consumes about 75 percent of total water used, which is about 30 percent of renewable water availability. This study analyzes the likely effects of increased competition for water resources and changes in the Turkish economy. The analysis uses an economy-wide Walrasian Computable General Equilibrium model with a detailed account of the agricultural sector. The study investigated the economy-wide effects of two external shocks, namely a permanent increase in the world prices of agricultural commodities and climate change, along with the impact of the domestic reallocation of water between agricultural and non-agricultural uses. It was also recognized that because of spatial heterogeneity of the climate, the simulated scenarios have differential impact on the agricultural production and hence on the allocation of factors of production including water. The greatest effects on major macroeconomic indicators occur in the climate change simulations. As a result of the transfer of water from rural to urban areas, overall production of all crops declines. Although production on rainfed land increases, production on irrigated land declines, most notably the production of maize and fruits. The decrease in agricultural production, coupled with the domestic price increase, is further reflected in net trade. Agricultural imports increase with a greater decline in agricultural exports. |
| Keywords: | Computable General Equilibrium; Feedback links; Irrigation Water; Turkey |
| JEL: | C68 O13 Q15 Q18 |
| Date: | 2008–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4781&r=cwa |
| By: | Alessandrini , Michele; Enowbi Batuo , Michael |
| Abstract: | This paper studies the evolution of the foreign trade specialization in manufacturing sectors of South Africa, Algeria, Nigeria and Egypt. These four countries, the so-called SANE, are recently viewed as Africa’s best chance of producing an economic bloc comparable to the BRIC economies of Brazil, Russia, India and China. Using data on trade flows since mid-1970s, the results show that the SANE group has experienced few changes in its trade structure, which is still based on low-technology and slow-growth world demand sectors. The degree of persistence in the specialization model is higher in the case of Algeria and Nigeria, where the dependence on products based on natural resources is stronger. |
| Keywords: | SANE; Trade specialization; Manufacturing; Lafay index |
| JEL: | N67 O55 O24 F14 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13216&r=cwa |
| By: | Christopher F. Baum (Boston College; DIW Berlin); Mustafa Caglayan (University of Sheffield); Oleksandr Talavera (Aberdeen Business School, Robert Gordon University) |
| Abstract: | This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963-2005, we find that there are meaningful differences in the structure of assets, liabilities and financial performance across different stages of the parliamentary election cycle. However, we find that government-owned banks operate similarly to both domestic and foreign-owned private sector banks before, during and after elections. Our estimates also show that government-owned banks underperform their domestic and foreign-owned private sector counterparts. |
| Keywords: | elections, state banks, domestic banks, foreign-owned banks, loans, interest rate margin |
| JEL: | G21 G28 |
| Date: | 2009–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:705&r=cwa |
| By: | Ahmed, Ali M. (Centre for Labour Market Policy Research (CAFO)); Salas, Osvaldo (Centre for Labour Market Policy Research (CAFO)) |
| Abstract: | This paper examines the supernatural punishment theory. The theory postulates that religion increases cooperation because religious people fear the retributions that may follow if they do not follow the rules and norms provided by the religion. We report results for a public goods experiment conducted in India, Mexico, and Sweden. By asking participants whether they are religious or not, we study whether religiosity has an effect on voluntary cooperation in the public goods game. We found no significant behavioral differences between religious and nonreligious participants in the experiment. |
| Keywords: | Games; punishment theory; experiments; behavioral economics; religion |
| JEL: | C71 C90 D01 |
| Date: | 2008–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vxcafo:2008_001&r=cwa |
| By: | Pandey, Priyanka (The World Bank); Goya, Sangeeta (The World Bank); Sundararaman, Venkatesh (The World Bank) |
| Abstract: | This paper presents findings from baseline surveys on student learning achievement, teacher effort and community participation in three Indian states, Karnataka, Madhya Pradesh and Uttar Pradesh. Results indicate low teacher attendance and poor student learning. Parents and school committees are neither aware of their oversight roles nor participating in school management. However, there is substantial heterogeneity in outcomes across states. Karnataka has better student and teacher outcomes as well as higher levels of community awareness and participation than the other two states. We find substantial variation in teacher effort within schools, but most observable teacher characteristics are not associated with teacher effort. One reason for low teacher effort may be lack of accountability. Regression analysis suggests low rates of teacher attendance are only part of the problem of low student achievement. The gains in test scores associated with higher rates of attendance and engagement in teaching are small in the states of Madhya Pradesh and Uttar Pradesh, suggesting teachers themselves may not be effective. Ineffective teaching may result from lack of accountability as well as poor professional development of teachers. Further research is needed to examine not only issues of accountability but also professional development of teachers. |
| Keywords: | Academic Achievement; annual grants; average class size; basic competencies; basic education; basic services; blackboards; call; civil service; civil service teachers; class size; class sizes |
| Date: | 2008–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4777&r=cwa |
| By: | Pandey, Priyanka (The World Bank); Goya, Sangeeta (The World Bank); Sundararaman, Venkatesh (The World Bank) |
| Abstract: | This study evaluates the impact of a community-based information campaign on school performance from a cluster randomized control trial. The campaign consisted of eight to nine public meetings in each of 340 treatment villages across three Indian states to disseminate information to the community about its state mandated roles and responsibilities in school management. The findings from the first follow-up 2-4 months after the campaign show that providing information through a structured campaign to communities had a positive impact in all three states. In two states there was a significant and positive impact on reading (14-27 percent) in one of the three grades tested; in the third state there was a significant impact on writing in one grade (15 percent) and on mathematics in the other grade tested (27 percent). The intervention is associated with improvement in teacher effort in two states. Some improvements occurred in the delivery of certain benefits entitled to students (stipend, uniform, and mid day meal) and in process variables such as community participation in each of the three states. Follow-up research needs to examine whether there is a systematic increase in learning when the impact is measured over a longer time period and whether a campaign sustained over a longer time is able to generate greater impact on school outcomes. |
| Keywords: | annual grants; attendance requirements; average treatment effect; basic education; blackboards; call; civil service; civil service teachers; classroom; Community Participation; competencies |
| Date: | 2008–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4776&r=cwa |
| By: | Hou, Xiaohui (The World Bank) |
| Abstract: | The relationship between wealth and child labor has been widely examined. This paper uses three rounds of time-series, cross-sectional data to examine the relationship between wealth and child labor and schooling. The paper finds that wealth is crucial in determining a child's activities, but that this factor is far from being a sufficient condition to enroll a child in school. This is particularly the case for rural girls. Nonparametric analysis shows a universal increase in school enrollment for rural girls from 1998 to 2006. This increase is independent of wealth (measured by per capita expenditure). Multinomial logit regression further shows that wealth is insignificant in determining rural girls' activity decisions. Thus, interventions to increase school enrollment should incorporate broad-targeted, demand-side interventions as well as supply-side interventions. |
| Keywords: | Child labor; Education; Poverty |
| JEL: | D01 J13 O12 |
| Date: | 2009–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4831&r=cwa |
| By: | Naghshineh-Pour, Amir |
| Abstract: | Mahmoud Ahmadinejad became Iran’s sixth president after winning the 2005 presidential election by popular vote. He placed second after Ali Akbar Hashemi-Rafsanjani in the first round amid rumors surfaced that the Revolutionary Guard and the Basiij Militia had engineered his election. However, in the second round he handily defeated Rafsanjani to become president. Throughout his presidential campaign and after, he resorted to populist slogans such as equal distribution of wealth, economic justice, thoughtfulness and compassion (mehrvarzi), etc., to timely take advantage of people’s emotions during a period of rapidly rising oil revenues and the potential threat of a U.S. invasion was becoming serious after Bush’s notorious State of the Union speech that put Iran a part of an axis of evil. |
| Keywords: | Iran; Economy; Inflation; Dutch Disease; Exchange Rate |
| JEL: | O5 |
| Date: | 2008–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13313&r=cwa |
| By: | Jain, Varinder |
| Abstract: | This small piece provides a few insights into the quest for sons among Punjabis. It reveals the underlying reasons from a sociological perspective and in its endeavour, it tries to provide a striking contrast among various layers of the society regarding the son preference in Punjab. |
| Keywords: | female feticide; gender discrimination; son preference |
| JEL: | J16 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13231&r=cwa |
| By: | Mansur, Kasim; Abd. Rahim, Dayangku Aslinah; Lim, Beatrice; Mahmud, Roslinah |
| Abstract: | Malaysian women have continued to play an increasingly important role in the national development of the country including greater participation in the economy and labor market. These improvements were made possible by the increasing numbers of females having access to education. Education provides better work opportunities and thus increases the level of income of an individual. Therefore education is perceived to be an important factor in human capital formation. In Islam, every Muslim is required to acquire knowledge as much as possible. Knowledge generates wealth. Thus, Islam condemns idleness, inactivity and poverty are condemned. A Muslim should be actively involved in the pursuit of increasing their knowledge and skill to ensure that their life is not of mere subsistence. This paper will look at the perception towards the importance of education among Muslim women. A total of 189 respondents were interviewed from selected kampongs in the district of Papar, Sabah. The data collected was analyzed and reported using descriptive statistics. About 42.4 percent respondents have obtained a diploma and degree level education. From the study, it is found that 78 percent of the total respondents perceived that education is very important. A total of 47.1 percent strongly agreed that education can influence future income. Essentially, a total of 78.8 per cent agreed that higher level of education leads to a higher level of income. |
| Keywords: | Education; Women; Sabah |
| JEL: | O18 I20 |
| Date: | 2009–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13274&r=cwa |
| By: | Mansur, Kasim; Tola, Mansur; Ationg, Romzi |
| Abstract: | Recent decades have seen major change in agricultural technologies as a consequence to various programs for an agricultural development in rural areas of Sabah. Villagers in Sabah have always been receptive to new agricultural technologies that promises to improve their standard of living and as a reflection from the promotion of new agricultural technologies, many peoples in rural areas in Sabah now working with a mix of traditional and modern technologies. Along with the adoption of modern technologies, there has been a rapid transformation to cash economy among rural areas in Sabah (Marten, 1990). However, most villagers in Sabah are still produce almost entirely for home consumption, although the other economic activity of rural peoples in Sabah is small-enterprises as well as “kedai kampung” or rural shop that is registered under the local registration authority. This means, meeting basic household food needs is still the priority of most farmers in Sabah. Most also produced as much as surplus as possible to meet cash needs generated by expanding public education, rural electrification, modern communication (e.g. Radio and Television), and modern transport. It confirmed that most rural societies in Sabah still run their subsistence agricultural economy as compared to cash economy, which generally in farm activities, men do the major task and the women do the very minor task. Alongside with the fact that in this post-modern world most rural society in Sabah involved in agricultural economy, rural population especially among youth has declined. This means that human force for agricultural sector is declined as well. Rural population in Sabah was declining due to migration of younger-age groups. Outward migration among them was caused by the economic purposes such as to find non-agricultural financial resources (work in government sector either in the white or blue collar works). As according to Bryden (2000) villagers often migrated because the trend in agricultural income that is reported as lower than income from other economic activities. Some of them were migrated to the urban areas when they employed as the non-government professional executive level and further their education. Some other (female) moved to follow husband. In short, they were migrated because of work-related reason and to get social fulfillment in the form of further education, social amenities and the family reason. This phenomenon in the future, out migration of youth will leave the youngsters and old folks to maintain the village and at the end, population of rural areas in Sabah will be increasingly independent. Village-base economy especially agricultural production will suffer when the active youth have left for the town. In the other hand, rural poverty profile that is currently high will be increased. Hence, commercialization of agricultural sectors in rural areas assumed as the best resolution to improve villager’s standard of living that is bring about transformation of rural agrarian society from the traditional society to modern agrarian society through contract farming system. |
| Keywords: | Contract Farming System; Rural Society |
| JEL: | Q10 |
| Date: | 2009–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13271&r=cwa |
| By: | Naghshineh-Pour, Amir |
| Abstract: | A steep fall in crude prices allied with lower output will decrease the Iranian government’s foreign revenues significantly. The Tehran Stock Exchange (TSE) has lost 30% of its value in the last four months, which points to a sizable economic slowdown in the near future. Perhaps Iran is among a handful of countries that has not properly planned to combat any potential economic crisis in the face of lower oil prices and the global financial meltdown that began to show its visage in the middle of 2007. The substantial inflow of petrodollars to the government’s account coupled with the faulty assumption that the oil prices will continue to rise triggered the government to infuse billions of dollars into the economic and banking system. Iranian officials have just begun to accept the new global circumstances and are after drafting a budget for the next Iranian year to ride out the financial turmoil. The administration is planning to eliminate energy subsidies and reduce its price controls in the new fiscal budget planning in order to reduce the massive deficit. It is indeed ironic from a government that has no belief in principles of a free market economy and denied it in the past to draw such a plan, many economists have stated. Whether the government has realized its past mistakes, is unknown and whether the new budget and policy will ease the current economic problems, remains to be seen! A more important question is whether the central bank and the administration will be able to employ the available monetary and fiscal tools to tackle the profound upcoming economic challenges, since they already tied their hands by their past mistakes and beliefs. Overall, the next few months or perhaps years will undoubtedly be very challenging times for the system. |
| Keywords: | Iran; Budget Deficit; Economic Policy; Credit Crisis |
| JEL: | F14 |
| Date: | 2009–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13282&r=cwa |
| By: | Laurent Weill (Laboratoire de Recherche en Gestion et Economie, Université de Strasbourg) |
| Abstract: | The aim of this paper is to investigate whether Islamic banks have greater market power than conventional banks. Indeed Islamic banks may benefit from a captive clientele, owing to religious principles, which would be charged greater prices. To measure market power, we compute Lerner indices on a sample of banks from 17 countries in which Islamic and conventional banks coexist over the period 2000-2007. Comparison of Lerner indices shows no significant difference between Islamic banks and conventional banks. When including control variables, regression of Lerner indices even suggests that Islamic banks have a lower market power than conventional banks. A robustness check with the Rosse-Panzar model confirms that Islamic banks are not less competitive than conventional banks. The lower market power of Islamic banks can be explained by their different norms and their different incentives. |
| Keywords: | Islamic banks, Lerner index, Bank Competition. |
| JEL: | G21 D43 D82 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2009-02&r=cwa |
| By: | Naghshineh-Pour, Amir |
| Abstract: | The global financial crisis is set to depress oil producing economies. As the crisis is already pushing down oil prices, a firm response to the fallout of the crisis from governments and central banks is expected. Oil prices have tumbled more than 70% since their July peak and there are fears they could continue their plunge because of diminishing demand caused by the current financial meltdown. Though, the Iranian government does not seem to be greatly concerned about the ongoing global situation, although many Iranian economists believe that sanctions and the international financial crisis will soon be taking their toll on Iran’s economy by unfavorably affecting oil, trade, and trade financing. Even if the relative isolation from the world’s economy may seem to protect Iran from the negative impact of the global financial crisis to a certain extend at least for now, plunging oil prices and a massive credit deterioration suggest otherwise. |
| Keywords: | Iran; Financial Crisis; Oil Revenue; Currency Exchange; Currency Crash |
| JEL: | O5 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13314&r=cwa |
| By: | Ali Abdel Gadir Ali |
| URL: | http://d.repec.org/n?u=RePEc:api:apiwps:0902&r=cwa |
| By: | Tosun, Mehmet Serkan (University of Nevada-Reno); Yilmaz, Serdar (The World Bank) |
| Abstract: | This paper examines broadly the intergovernmental structure in the Middle East and North Africa region, which has one of the most centralized government structures in the world. The authors address the reasons behind this centralized structure by looking first at the history behind the tax systems of the region. They review the Ottoman taxation system, which has been predominantly influential as a model, and discuss its impact on current government structure. They also discuss the current intergovernmental structure by examining the type and degree of decentralization in five countries representative of the region: Egypt, Iran, West Bank/Gaza, Tunisia, and Yemen. Cross-country regression analysis using panel data for a broader set of countries leads to better understanding of the factors behind heavy centralization in the region. The findings show that external conflicts constitute a major roadblock to decentralization in the region. |
| Keywords: | Fiscal decentralization; intergovernmental relations; Middle East and North Africa |
| JEL: | H77 H87 N45 O53 |
| Date: | 2008–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4774&r=cwa |