nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2009‒09‒05
nine papers chosen by
Nurdilek Hacialioglu
Open University

  1. Human Development Reports on North-East India: A Bird’s Eye View By Nayak, Purusottam
  2. Misallocation and Manufacturing TFP in China and India By Chang-Tai Hsieh; Peter Klenow
  3. Impact of Institutional Credit on Aggregate Agricultural Production in India during Post Reform Period By Izhar , Ahmad; Tariq , Masood
  4. Local Government Taxation in Pakistan By Roy Bahl; Musharraf Cyan
  5. Pakistan Tax Policy Report: Tapping Tax Bases for Development By Jorge Martinez-Vazquez; Kaspar Richter
  6. Poverty Implications of Agricultural and Non-agricultural Price Distortions in Pakistan By Cororaton, Caesar B.; Orden, David
  7. Analysis of ESCO Activities Using Country Indicators By Okay, Nesrin; Akman, Ugur
  8. Firms' Exporting Behavior under Quality Constraints By Juan Carlos Hallak; Jagadeesh Sivadasan
  9. West Bengal: Fiscal Decentralization to Rural Governments: Analysis and Reform Options By Roy Bahl; Geeta Sethi; Sally Wallace

  1. By: Nayak, Purusottam
    Abstract: The paper is a brief account of findings of various human development reports published either by UNDP or Govt. of India or by individual state governments on the states of northeast India. The findings reveal that achievement of northeastern region is quite reasonable in comparison to all India average situations in respect of human development indicators for both the sexes but it has miserably failed in bringing commensurate economic growth. There exits wide spread disparity of socioeconomic achievements across different states and from urban to rural areas. In spite of being a tribal belt and in some cases having matrilineal society women are to be at par with that of men. If the problems of poor economic growth, overall development and gender disparities are not properly addressed the region may fall into the trap of vicious quadrant instead of moving to a virtuous one.
    Keywords: Human Development; Northeast India
    JEL: O2 O4
    Date: 2009–08–30
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:17015&r=cwa
  2. By: Chang-Tai Hsieh; Peter Klenow
    Abstract: Resource misallocation can lower aggregate total factor productivity (TFP). We use micro data on manufacturing establishments to quantify the potential extent of misallocation in China and India compared to the U.S. Compared to the U.S., we measure sizable gaps in marginal products of labor and capital across plants within narrowly-defined industries in China and India. When capital and labor are hypothetically reallocated to equalize marginal products to the extent observed in the U.S., we calculate manufacturing TFP gains of 30-50% in China and 40-60% in India.
    Date: 2009–02
    URL: http://d.repec.org/n?u=RePEc:cen:wpaper:09-04&r=cwa
  3. By: Izhar , Ahmad; Tariq , Masood
    Abstract: Abstract The study attempts to assess the impact of institutional credit on agriculture production by estimating Cobb Douglas agricultural production function for the pre reform (1972-91) and post reform (1992-2005) period in India using time series data. Study also analyses the trends and pattern of institutional credit during pre reform and post reform period. Annual average growth rate of institutional credit was lowest during the decade 1990-2000 and was highest during 1971-80. Institutional credit as percentage of agricultural gross domestic product increases more rapidly during the post reform period. Institutional credit per cultivated area also increases tremendously over the period since the total cultivated area remains more or less same over the period. Study also analyses sectoral share of total non food bank credit for the period 1980-2005. The share of agriculture sector in total non food bank credit deteriorated during the post reform period. In last cob Douglas production function has been estimated to assess the impact of institutional credit on aggregate agricultural production. Model estimated for the over all period 1972-2005 suggest that institutional credit has significant impact on aggregate agricultural production in India. Cob Douglas production function for the pre reform period (1971-91) gives coefficient which has significant impact on agricultural production. But the model estimated for the post reform period shows that institutional credit does not affect agricultural production. Study concludes that during post reform period the sectoral share agriculture sector declined and also the growth rate of agricultural credit deteriorated. During post reform period institutional credit is not a significant determinant of agricultural production in India.
    Keywords: Institutioan Credit; Agicultural Production Fuction; India
    JEL: Q14 C01
    Date: 2009–08–13
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:17075&r=cwa
  4. By: Roy Bahl (Andrew Young School of Policy Studies, Georgia State University); Musharraf Cyan (International Studies Program. Andrew Young School of Policy Studies, Georgia State University)
    Abstract: The purpose of this paper is to evaluate the current practice of local government taxation in Pakistan and to point the way toward structural reforms that are both more rational and more in step with Pakistan’s vision for its fiscal decentralization. The analysis here is restricted to sub provincial governments, i.e., districts, TMA’s and union councils but with a decided emphasis on the former two. We do this by examining the current practice, and by drawing on international comparisons and “best practices” as laid out in the theory of fiscal federalism.
    Keywords: Local Government Taxation, Pakistan, Fiscal Decentralization
    Date: 2009–08–01
    URL: http://d.repec.org/n?u=RePEc:ays:ispwps:paper0909&r=cwa
  5. By: Jorge Martinez-Vazquez (International Studies Program. Andrew Young School of Policy Studies, Georgia State University); Kaspar Richter
    Abstract: Pakistan’s economic development is once again threatened by macroeconomic imbalances. Broadly speaking, high growth in the 1960s was followed by low growth in the 1970s, and high growth in the 1980s by low growth in the 1990s, as macroeconomic vulnerabilities derailed development. Supported by a favorable global environment, Pakistan returned to a strong development record for much of this decade. Growth accelerated and fiscal and social indicators improved. But as in the past, the gains proved unsustainable, as economic policies adjusted too little and too late to a deterioration in the external environment. The looming crisis is threatening to undo much of the recent development progress.
    Keywords: Pakistan, Tax policy, Tax Bases
    Date: 2009–08–01
    URL: http://d.repec.org/n?u=RePEc:ays:ispwps:paper0908&r=cwa
  6. By: Cororaton, Caesar B.; Orden, David
    Keywords: Distorted incentives, agricultural and trade policy reforms, national agricultural development, Agricultural and Food Policy, International Relations/Trade, F13, F14, Q17, Q18,
    Date: 2009–06
    URL: http://d.repec.org/n?u=RePEc:ags:wbadwp:52789&r=cwa
  7. By: Okay, Nesrin; Akman, Ugur
    Abstract: Energy Service Companies (ESCOs) are private sector instruments that offer energy-/emission-improvement (energy saving, energy efficiency, energy conservation, emission reduction) projects in the developed and in some developing countries. Literature reveals that energy-/emission-improvements of countries may be related to their innovation- and R&D-activity levels. In this work, we use a literature data on the activities and the sectors targeted by ESCOs in 38 countries, summarized in terms of the age of ESCO market (AEM), number of ESCO companies (NE), and total value of ESCO projects (VE). Along with the Global Innovation Index (GII) data of the countries, we investigate the relationships among the ESCO Indicators (EIs: AEM, NE, VE, sectors targeted by ESCOs), and the Country Indicators (CIs: GII and per-capita GDP, energy consumption, CO2 emission). We observe noteworthy dependencies between the EIs and CIs. Using the simple trend equations we estimate the missing VEs in the original data. We also project, as a hint for the size and orientation of the upcoming Turkish ESCO market, the set of EIs and the distribution of the sectors that are likely to be targeted by ESCOs in Turkey.
    Keywords: Energy service companies; ESCO; Global Innovation Index; GDP; Energy consumption; Greenhouse-gas (CO2) emission; R&D
    JEL: O1 Q55 L52 O3 Q43 Q4 Q58
    Date: 2009–08–29
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:17012&r=cwa
  8. By: Juan Carlos Hallak; Jagadeesh Sivadasan
    Abstract: We develop a model of international trade with export quality requirements and two dimensions of firm heterogeneity. In addition to "productivity", firms are also heterogeneous in their "caliber" {the ability to produce quality using fewer fixed inputs. Compared to singleattribute models of firm heterogeneity emphasizing either productivity or the ability to produce quality, our model provides a more nuanced characterization of firms' exporting behavior. In particular, it explains the empirical fact that firm size is not monotonically related with export status: there are small firms that export and large firms that only operate in the domestic market. The model also delivers novel testable predictions. Conditional on size, exporters are predicted to sell products of higher quality and at higher prices, pay higher wages and use capital more intensively. These predictions, although apparently intuitive, cannot be derived from singleattribute models of firm heterogeneity as they imply no variation in export status after size is controlled for. We find strong support for the predictions of our model in manufacturing establishment datasets for India, the U.S., Chile, and Colombia.
    Keywords: Productivity, quality, exports, firm heterogeneity
    JEL: F10 F12 F14
    Date: 2009–05
    URL: http://d.repec.org/n?u=RePEc:cen:wpaper:09-13&r=cwa
  9. By: Roy Bahl (Andrew Young School of Policy Studies, Georgia State University); Geeta Sethi (The World Bank); Sally Wallace (Andrew Young School of Policy Studies, Georgia State University)
    Abstract: This report is about the fiscal performance of rural local governments in the state of West Bengal. Specifically, our goal is to develop a comprehensive fiscal information system for all rural local governments, and to use these data to valuate the intergovernmental finance structure in the state. The work is of significant policy importance, given the need to implement programs to respond to the constitutional amendments mandating fiscal decentralization, and to support central and state government initiatives to use the Panchayat Raj Institutions (PRIs) as an important part of its poverty alleviation strategy. A more immediate need in West Bengal (and other states as well) is to support the work of the State Finance Commissions to better integrate rural local governments into the intergovernmental fiscal framework. To date, there has not been a comprehensive review of rural local government finance in West Bengal.
    Keywords: West Bengal, Fiscal Decentralization, Decentralization
    Date: 2009–07–01
    URL: http://d.repec.org/n?u=RePEc:ays:ispwps:paper0907&r=cwa

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