nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2009‒08‒30
seven papers chosen by
Nurdilek Hacialioglu
Open University

  1. Employment and Income in India: Case of a City Economy By Jeemol Unni
  2. An Analysis of Household's Tobacco Consumption Decisions: Evidence from India By Rijo M John
  3. Trade Impact Assessment of an EU-India Free Trade Agreement By Joseph Francois; Hanna Norberg; Miriam Manchin
  4. Analyzing Industrial Water Demand in India: An Input Distance Function Approach By Surender Kumar
  5. Economic reform and Productivity Growth in Indian Paper and Paper Products Industry: A Nonparametric Analysis By Chirayil, Anish
  6. "The Global Crisis and the Implications for Developing Countries and the BRICs: Is the B Really Justified?" By Jan Kregel
  7. Trade Impact Assessment (Trade SIA) of an EU-ASEAN Free Trade Agreement By Joseph Francois; Hanna Norberg; Miriam Manchin; Annette Pelkmans Balaoing

  1. By: Jeemol Unni
    Abstract: This paper analyses the pattern of growth observed in the city economy of Ahmedabad, a metropolitan city in the industrially developed state of Gujarat. The growth of this city is placed in the context of the overall performance of growth of output, employment and poverty in the Indian economy and that of Gujarat state. [GIDR WP No. 130].
    Keywords: informal, Gujarat, output, poverty, employment, City Economy; Ahmedabad; Urbanisation; Informal employment, employment, city, economy, Gujarat, Indian economy, Indian, metropolitan,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2185&r=cwa
  2. By: Rijo M John
    Abstract: The consumption patterns, socio-economic distribution and the household choice of a variety of tobacco products across rural and urban India are analyzed. Using a Multinomial Logit Model, the choice behavior of a household in deciding whether and which tobacco products to consume analyzed. Household level data from National Sample Survey in India for the year 1999-2000, which has information on 120,309 households, has been used for this purpose. [IGIDR WP-2004-002].
    Keywords: Tobacco, Bidi, Cigarette, Consumption, Multinomial Logit, India, national sample survey, multinominal logit model, household, socio-economic
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2188&r=cwa
  3. By: Joseph Francois (Johannes Kepler University Linz); Hanna Norberg (Lund (School of Economics and Business) and IIDE); Miriam Manchin (University College London)
    Abstract: We analyze the effects of potential measures to liberalize trade between the European Union and India using a computable general equilibrium (CGE) model of world trade. Overall, our analysis shows that there are potential gains to be reaped from signing a bilateral FTA between the EU and India. For all scenarios, the FTA is expected to yield positive real income effects for both economies, both in the short- and long-run. The effects are, however, quite small due to the low levels of bilateral trade. In the short run, the real income gains in the EU are expected to range between Û3 and Û4,4 billion (higher for more ambitious liberalization scenarios), which amount to less than 0.1 percent of GDP. In the long run, the effects of an FTA in the EU are much smaller. For the Indian economy, the short-term income effects in absolute measure are similar to those in the EU, but due to differences in the size of economies, the relative effect is bigger in India (ranging from 0.1 to 0.3 percent of GDP). In the long-run, the effects on the Indian economy are expected to be larger.
    Keywords: CGE, EU-India Free Trade Area, GTAP
    JEL: F13 F15
    Date: 2008–09
    URL: http://d.repec.org/n?u=RePEc:lnz:wpaper:20080601&r=cwa
  4. By: Surender Kumar
    Abstract: This study investigates the water demand of Indian manufacturing plants. It adopts an input distance function approach and approximates it by a translog form. Duality between cost function and input distance function is exploited to retrieve information concerning substitutability and the shadow price of water. The model is estimated, using linear programming approach, on a sample of 92 firms over the three years.
    Keywords: input distance function, industrial water demand, translog form, water, price elasticity, water, shadow price, shadow price of water, cost function, linear programming, firms, input distance approach, Indian, Indian manufacturing plants, elasticity, price, manufacturing plants
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2178&r=cwa
  5. By: Chirayil, Anish
    Abstract: This paper applied the Malmquist Productivity Index in order to estimate total factor productivity growth and its components (efficiency change and technological progress) in Indian paper and paper products industry during pre and post-reform period. The obtained estimates of TFP change at the aggregate and sectoral level, indicates that the net impact of economic reforms on the productivity growth of paper and paper products industry was negative. It was evident in the study that the negative TFP change was decreased (from -8.6% to -5.2%) in the post-reform period in paper and paper products industry at the aggregate level. It was found in this study that the technical efficiency change and the technical change was the deteriorating factor for productivity change in Indian paper and paper products industry. Among similar trends were observed at the sub-sectoral level also. Further, the results of this study suggest that specific policies should be implemented in order to improve efficiency as well as technical progress, thus ultimately facilitating long-run productivity growth.
    Keywords: Indian Paper Industry; Economic Reforms; Productivity; Malmquist Index
    JEL: O25 D24 L60
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:16919&r=cwa
  6. By: Jan Kregel
    Abstract: The term BRIC was first coined by Goldman Sachs and refers to the fast-growing developing economies of Brazil, Russia, India, and China--a class of middle-income emerging market economies of relatively large size that are capable of self-sustained expansion. Their combined economies could exceed the combined economies of today's richest countries by 2050. However, there are concerns about how the current financial crisis will affect the BRICs, and Goldman has questioned whether Brazil should remain within this group. Senior Scholar Jan Kregel reviews the implications of the global crisis for developing countries, based on the factors driving global trade. He concludes that there is unlikely to be a return to the extremely positive conditions underlying the recent sharp increase in growth and external accounts. The key for developing countries is to transform from export-led to domestic demand-led growth, says Kregel. From this viewpoint, Brazil seems much better placed than the other BRIC countries.
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:lev:levppb:ppb_102&r=cwa
  7. By: Joseph Francois (Johannes Kepler University Linz); Hanna Norberg (Lund (School of Economics and Business) and IIDE); Miriam Manchin (University College London); Annette Pelkmans Balaoing (Erasmus University Rotterdam)
    Abstract: We analyze the effects of potential measures to liberalize trade between the European Union and ASEAN using a computable general equilibrium (CGE) model of world trade. The results on the whole point to positive effects for most of ASEAN under all scenarios, and small but positive effects over the long-run for the European Union. Throughout the study, some negative results are observed for other ASEAN countries (Brunei, Cambodia, Laos, and Myanmar). As expected, income and trade gains increase as liberalization deepens and as more dynamic effects are taken into account. The latter is particularly important for ASEAN, whose growth is often constrained by insufficient capital resources. In terms of income effects, the EU and Singapore gain the most, 51 and 78 percent of these gains, respectively, are due to the removal of the barriers to Services trade. It is Vietnam, however, that reaps the largest rise in GDP growth, while the EU, followed by Thailand, gains the most from the removal of non-tariff barriers. For the EU, about 87 percent of the income rise between these two scenarios is due to direct and indirect effects of trade facilitation alone. The productivity effects of an EU-ASEAN FTA are also visible in the form of higher wages both for skilled and unskilled workers. This is particularly important for ASEAN as this would mean that the employment increase in key growth sectors will outstrip the reduction of employment in contracting sectors. In terms of exports, the strong export performance of ASEAN projected here is largely driven by the export growth of ASEANÕs new members, i.e., Vietnam (35%), Cambodia, Laos & Myanmar (13%). There are negative effects for third countries, however. Indeed the net gains for most of ASEAN in the long-run are mirrored by comparable losses in third countries, much of which is carried by India and Pakistan. However, one must note that even in the scenario where the potential of trade diversion is the greatest, the effects are negative but rather trivial. Under the most ambitious trade liberalization scenario between the EU and ASEAN, it is PakistanÕs exports that are largely affected, with its exports falling by 2.4 percent. For the rest of the world, exports fall by just 0.05 percent, so that trade diversion effects can indeed be considered minimal.
    Keywords: CGE, EU-ASEAN Free Trade Area, GTAP
    JEL: F13 F15
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:lnz:wpaper:20090801&r=cwa

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