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on Central and Western Asia |
| By: | Chairlone, Stefano; Ghosh, Saibal |
| Abstract: | The article provides a snapshot of Indian banking and explores certain contextual issues |
| Keywords: | banking; India |
| JEL: | G21 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17402&r=cwa |
| By: | Ankita Mishra; Vinod Mishra |
| Abstract: | This article looks at the preconditions that an emerging economy needs to fulfill, before it can adopt inflation targeting as a monetary policy regime. The study is conducted using the Indian economy as a case study. We conduct an in-depth sector-wise analysis of the Indian economy to evaluate the independence of India's monetary policy from fiscal, external, structural and financial perspectives. Dominance from any of these sectors may divert monetary policy from the objective of maintaining price stability in the economy. Our analysis suggests that among the four dominance issues, the issue of 'structural dominance??? is the most acute for India. Supply shocks, hitting the economy due to structural bottlenecks, pose a major threat to the independent conduct of monetary policy. This study concludes that inflation band targeting with a wide target range would be a feasible monetary policy option for India. |
| Keywords: | India, Inflation Targeting, Monetary policy, Fiscal Dominance, VAR, GFVD |
| JEL: | E52 E58 E47 |
| Date: | 2009–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:mos:druwps:2009-08&r=cwa |
| By: | Radhakrishna R |
| Abstract: | The paper reviews the trends over three decades in the consumption of cereals, calories and micronutrients and nutritional status based on anthropometric measures using the data sets of NSS, NNMB and NFHS. It provides an explanation for the slow growth of nutrient intake and slow reduction in malnutrition. |
| Keywords: | food consumption, malnutrition, micronutrients, anthropometric data, income, household, health, educational status, mothers, child, adutls, energy deficiency, cereal production, punjab, urban areas, nutritional status, child, water, health, India, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2210&r=cwa |
| By: | Atsushi Kato (School of Business, Aoyama Gakuin University); Takahiro Sato (Research Institute for Economics and Business Administration, Kobe University) |
| Abstract: | We examine the effect of threats to property rights on the economic performance of the manufacturing sector of Indian states. We construct indices of the threats from data on crime against property rights. Our estimation results show that not only threats to private property, but also threats to contracts adversely affect the performance of India's manufacturing sector. |
| Keywords: | Property right, Contract, Gross value added, Capital labor ratio, TFP |
| JEL: | K00 O43 P14 P17 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:244&r=cwa |
| By: | Kumar, Rajiv (Indian Council for Research on International Economics Relations); Singh, Manjeeta (Indian Council for Research on International Economics Relations) |
| Abstract: | Recent developments in South Asian countries, especially the re-emergence of democratic governments, new growth momentum despite the global economic downturn and greater openness, warrant a fresh look at the region’s prospects for economic integration. On the basis of a thorough review of the literature on potential and prospects of regional integration in South Asia and after examining the trends in intra-SAARC trade and investment flows, this paper finds that the progress in regional cooperation has been far short of potential. The paper, therefore, focuses on the ‘real impediments’ to regional integration and on that basis makes a set of policy oriented recommendations for furthering deeper regional integration in South Asia. It also emphasizes that given its dominant size, human resources, and aspirations for a global role, India will have to take on a disproportionately larger responsibility for promoting regional cooperation in South Asia. However, regional integration will not be achieved by India’s unilateral actions alone. Neighboring governments will have to respond positively to Indian initiatives for successful regional integration in South Asia. |
| Keywords: | South Asia; economic integration; regional trade; foreign direct investment |
| JEL: | F15 |
| Date: | 2009–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0032&r=cwa |
| By: | Rao, B. Bhaskara; Vadlamannati, Krishna Chaitanya |
| Abstract: | In the extended Solow growth model of Mankiw, Romer and Weil (1992) human capital has only permanent level and no growth effects. In the endogenous growth models human capital is a growth improving variable. Human capital may have both a permanent level and a permanent growth effect. We show, with data from India, that both the level and growth effects of human capital can be estimated with an extension to the Solow model. |
| Keywords: | Solow model; Level and growth effects of human capital and India |
| JEL: | O10 |
| Date: | 2009–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17480&r=cwa |
| By: | Pritchett, Lant (Harvard University) |
| Abstract: | India is an emerging global superpower as its rapid growth has transformed its economy and has maintained itself as the world's largest democracy. But at the same time India lags in many dimensions--its malnutrition rate is one of the highest in the world, its immunization rates are lower than most African countries, and Bangladesh has a better infant mortality rate. I argue that this is in part because the India state is "flailing"--its very capable head is not longer reliably connected to the arms and legs of implementation. In the four-fold transition of economy, polity, administration, and society the administrative capability of the state is lagging. I use examples from services like health, education, and routine transactions like issuing driver's licenses to show that the agents of the state routinely do not implement the tasks they are assigned--causing a massive divergence between de jure and de facto reality. The paper concludes with speculations about the causes of flailing and possible future trajectories. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp09-013&r=cwa |
| By: | Arora, Saurabh (School of Innovation Sciences, Eindhoven University of Technology); Sanditov, Bulat (UNU-MERIT, Maastricht University) |
| Abstract: | We examine three theories of caste and community using new data on social networks among residents of a south Indian village. The first theory treats individual caste groups as separated communities driven by the Brahmanical ideology of hierarchy based on purity and pollution. The second theory departs from the first by placing kings and landlords at the centre of rural (primeval) social structure. Here ritual giving by kings provides the glue that holds a community together by transferring inauspiciousness to gift-recipients and ensuring community welfare. The third theory, that may be treated as a corollary of the second, argues that powerful leaders in the religious and political domains act as patrons of people in their constituencies and forge a sense of community. The resulting community may be single or multi-caste. Using a community structure algorithm from social network analysis, we divide the network of the village into thirteen tight-knit clusters. We find that no cluster or community in the social network has exactly the same boundaries as a caste group in the village. Barring three exceptions, all clusters are multi-caste. Our results are most consistent with the third theory: each cluster has a patron/leader who represents the interests of his constituency at village-level fora and bridges caste and community divides. |
| Keywords: | Social networks, culture, caste, social change, community development, rural India |
| JEL: | Z13 O10 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2009037&r=cwa |
| By: | James B. Ang |
| Abstract: | This paper examines the impact of foreign aid on the process of economic development in India by controlling for the degree of financial liberalization. A composite index is constructed using the method of principal component analysis to capture the joint influence of various financial sector policies. The results show that while foreign aid exerts a direct negative influence on output expansion, its indirect effect via financial liberalization is positive. Therefore, an important implication of the findings in this paper is that adequate liberalization in the financial system of the host country is a crucial requirement for effective foreign aid. Our results are robust to a number of control variables and estimation techniques. |
| Keywords: | aid; financial liberalization; India. |
| JEL: | E44 O16 O53 |
| Date: | 2009–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:mos:druwps:2009-10&r=cwa |
| By: | Pranab Bardhan |
| Abstract: | This paper estimates respective roles of private investments in irrigation and local government programs (land reforms, extension services, and infrastructure investments) in the growth of farm productivity in West Bengal, India between 1981-95. A farm panel from a stratified random sample of farms from major agricultural districts of West Bengal is used. |
| Keywords: | productivity, west bengal, land reforms, tenancy, irrigation, agricultural development, public-private linkages, infrastructure investment, farm |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2209&r=cwa |
| By: | Government of India Ministry of Women and Child Development |
| Abstract: | This handbook on child protection will help Panchayat Raj members to understand the actions they can take to protect children resulting in better convergence of programmes and increased allocation of resources to address child protection issues. It also spells out practical ways in which the local elected members, can endeavour to alleviate the suffering of millions of children in our country who are subjected to violence and exploitation. |
| Keywords: | boys, girls, health, childhood, prostitutes, HIV/AIDS, labour, sexual abuse, Panchayat, society, development, participation, environment, child protection, exploitation, women, Non-discrimination, political, social, cultural, economic rights, Panchayat Raj, children, elected members, violence, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2211&r=cwa |
| By: | David Stern (ANU Climate Change Institute, the Australian National University, Australia) |
| Abstract: | The aim of this study is to measure and understand the long-term factors behind trends in energy and carbon intensity in different economies. It also looks at how improvements in energy efficiency are spread to countries around the world. Of particular interest is the rate at which efficiency improvements spread from developed to developing countries and what affects this diffusion. Countries that are considered are Australia, major European economies, USA, Canada, Mexico, Japan, China, and India. Key Words: Energy efficiency, carbon emissions, environmental Kuznets curve, economic growth |
| JEL: | Q43 Q55 Q56 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:0920&r=cwa |
| By: | Sato, Hajime |
| Abstract: | The paper examines the development and restructuring of the iron and steel industry in Asian countries. Studying countries that have integrated steelworks with large blast furnaces (South Korea, Taiwan, China and India) and countries without (Thailand, Indonesia and Malaysia), the paper shows the difference in the development processes across the countries and across time, and points to the diversity of the development experience of these countries. The paper argues that significant differences in steel production technologies in terms of initial investment and minimum-efficient scale, the changing role of the state, and shifting demand structures in the domestic steel markets of each country have been the important factors that led to the differences in the development path of the steel industry in each country. |
| Keywords: | Steel, Industrial Development, Asia, Iron |
| JEL: | L52 L61 N65 O14 |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper210&r=cwa |
| By: | Frank Jotzo (Research School of Pacific and Asian Studies, the Australian National University, Australia) |
| Abstract: | The Asia-Pacific region is the major source of global growth in greenhouse gas emissions. Strong action is needed in Asian countries, particularly China and India, to reduce these global emissions. Driven by the desire to limit energy consumption, some Asian countries already have domestic policies to limit greenhouse gas emission. But much more ambitious policies are needed to turn emission trends around. This research report examines the implications of international efforts to mitigate the impacts of human activity on climate in the Asia-Pacific region. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:0911&r=cwa |
| By: | Mita Bhattacharya; Paresh K. Narayan; Stephen Popp; Badri N. Rath |
| Abstract: | This paper investigates the long-run relationship between labour productivity and employment, and between labour productivity and real wages in the case of the Indian manufacturing sector. The panel data set consists of 17 two-digit manufacturing industries for the period 1973-74 to 1999-2001. We find that productivity-wages and productivity-employment are panel cointegrated for all industries. We find that both employment and real wages exert a positive effect on labour productivity. We argue that flexible labor market has a significant influence on manufacturing productivity, employment and real wages in case of Indian manufacturing. |
| Keywords: | Labour Productivity; Real Wages; Panel Unit Root Tests; Panel Cointegartion Tests; Manufacturing. |
| JEL: | O47 O30 O53 |
| Date: | 2009–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:mos:druwps:2009-07&r=cwa |
| By: | Ashima Goyal |
| Abstract: | Options for monetary policy arising from interactions between it and Indian foreign exchange (FX) markets. A brief survey covers recent rapid changes providing a snapshot of current microstructure, and of monetary policy institutions. The survey brings out the growing links between money and FX markets, the sophistication and variety of participants and institutions in markets that are now deep and liquid, and policy trilemmas in dealing with large cross border flows in a rapidly growing emerging market, where fundamentals are uncertain. [DRG Study Series No. 32]. |
| Keywords: | Indian, foreign exchange, markets, microstructure, FX markets, money, monetary policy, emerging market, economy, volatility, balance sheet, RBI, data sets, exchange rates, Macroeconomic, export, uncertainity, real sector |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2208&r=cwa |
| By: | Manabu Fujimura |
| Abstract: | There were many challenges involved in the conduct of the elections. For example, the people had to cast votes among 16 presidential candidates (2 candidates withdrew two days before the elections) in some 25,000 polling stations across a country with geographical difficulty, uncertain security and inexperience with voting. In addition to about 10 million voters that are reportedly subject to multiple registering in some regions and under-registration in others, some 1.5 million refugees in Pakistan and 800,000 in Iran were expected to vote. Many concerns in the economy like re-exports, cultivation of poppy are discussed. |
| Keywords: | voters, candidates, vote, elections, farmers, production, refugess, pakistan, economy, exports, geographical, afghan economy, afghanistan |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2212&r=cwa |
| By: | Chiara Franco; Subash Sasidharan |
| Abstract: | The role of Foreign Direct Investments (FDI) in the process of economic development is of particular relevance since they bring in some specific technological assets that are not immediately available in the host country. The literature related to the microeconomic impact of FDI has been mainly concentrated in explaining the final effect on productivity, caused by the fact that Multinational Enterprises (MNEs) are not completely able to protect their superior assets from spilling over. However, there is a relatively unexplored effect that has recently been at the center of some studies that is the export spillover effect. Up to now, the literature has found out only mixed results with regard to the possibility that MNEs influence both export decision and export intensity of local firms. In the present paper, we provide some empirical evidence for that specific effect examining a case of an emerging economy, namely India for the period 1994-2006 by using a firm level dataset of more than 3000 firms belonging to manufacturing industries. In particular, we introduce the theoretical argument related to the MNEs heterogeneity which has not been properly investigated especially in empirical studies trying to understand whether, by using different measures characterizing MNEs behaviour, it is possible to distinguish between different impacts that MNEs have on export performance of local firms. We estimate the model through the Heckman selection technique after having built spillover variables that take into account five types of heterogeneity: the degree of involvement in trade networks, the level of embeddedness inside the innovation system of the host country, the asset seeking vs asset exploiting motivations(technological intensity), the type and amount of inputs sourced from abroad rather than from the host country and the percentage of the foreign equity stake. The second step of the analysis we perform is that of testing the relationship between the heterogeneity of MNEs with the heterogeneity of local firms splitting the sample according to the level of R&D intensity, the level of embeddness into the innovation system and the involvement in trade activities. Results confirm the hypothesis of different impacts caused by different MNEs behaviour especially with regard to the export intensity, while a greater impact on export decision is found when heterogeneity of local firms is accounted for. |
| Keywords: | Exports, spillover, MNCs |
| JEL: | F23 O14 O53 |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:mos:druwps:2009-06&r=cwa |
| By: | Andrabi, Tahir (Pomona College); Das, Jishnu (World Bank and Center for Policy Research, New Delhi); Khwaja, Asim Ijaz (Harvard University and BREAD); Zajonc, Tristan (Harvard University) |
| Abstract: | Learning persistence plays a central role in models of skill formation, estimates of education production functions, and evaluations of educational programs. In non-experimental settings, estimated impacts of educational inputs can be highly sensitive to correctly specifying persistence when inputs are correlated with baseline achievement. While less of a concern in experimental settings, persistence still links short-run treatment effects to long-run impacts. We study learning persistence using dynamic panel methods that account for two key empirical challenges: unobserved student-level heterogeneity in learning and measurement error in test scores. Our estimates, based on detailed primary panel data from Pakistan, suggest that only a fifth to a half of achievement persists between grades. Using private schools as an example, we show that incorrectly assuming high persistence significantly understates and occasionally yields the wrong sign for private schools' impact on achievement. Towards an economic interpretation of low persistence, we use question-level exam responses as well as household expenditure and time-use data to explore whether psychometric testing issues, behavioral responses, or forgetting contribute to low persistence--causes that have different welfare implications. |
| JEL: | C23 H40 I21 J24 O12 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp09-001&r=cwa |
| By: | Gundogan, Naci |
| Abstract: | Finding a new balance between flexibility and security is a big challenge for all. According to the European Council “Providing the right balance between flexibility and security will support the competitiveness of firms, increase quality and productivity at work and help firms and workers to adapt to economic change”. Denmark provides an interesting combination of high labor market dynamism and relatively high social protection –the so-called flexicurity approach. The Danish model of flexicurity points to a third way between the flexibility often attributed to deregulated Anglo-Saxon countries and strict job protection characterising Southern European countries. In this paper, the Danish case of flexicurity will be analyzed and the answers of these questions will be searched: Can a new balance between flexibility and security solve labor market problems of developing world? Can Denmark’s flexicurity system be replicated in developing countries? Can a new flexicurity system be improved for developing countries? |
| Keywords: | Flexicurity; Labor Market; Developing Countries; Danish Model |
| JEL: | J08 J01 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17470&r=cwa |
| By: | Kang Kook Lee; Md. Rabiul Islam |
| Abstract: | This paper examines the sensitivity of investment to available cash-stock, a measure for internal funds, for 192 listed non-financial firms of Bangladesh from 1992 to 2002. The empirical results show that smaller firms have greater financing constraints to investment than larger firms due to financial market imperfection and unequal access to external finance. We also find that financing constraints of investment by small firms are eased along with financial development. It is likely that financial development encourages efficiency of the financial market in Bangladesh, and hence decreases cash stock sensitivity of investment of small firms. Our finding demonstrates the importance of financial development for economic growth even in a developing country like Bangladesh. |
| Keywords: | financing constraints, financial development, investment, Bangladesh |
| JEL: | G31 G32 D92 |
| Date: | 2009–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:mos:druwps:2009-09&r=cwa |
| By: | Norris, Pippa (Harvard University) |
| Abstract: | Why do Arab states lag behind the rest of the world in gender equality? Social structural, cultural, and institutional accounts offer alternative perspectives. This study critiques the 'petroleum patriarchy' thesis, presented in Michael Ross's "Oil, Islam and Women" (2008), which claims that the structure of oil-rich economies directly limit the role of women in the paid workforce and thus also (indirectly) restrict women's representation in parliament. In particular, Part I raises questions about the empirical evidence used by Ross, especially the selection of case-studies, the specification of the econometric models, and the lack of direct evidence for cultural values. Part II develops multilevel models demonstrating that religious traditions have a greater influence on attitudes towards gender equality and sexual liberalization than either labor force participation or oil rents. Part III then shows the impact of these cultural attitudes on the proportion of women in legislative and ministerial office. The conclusion summarizes the main findings and considers their implications. |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp09-020&r=cwa |
| By: | Amit K Chattopadhyay; Graeme J Ackland; Sushanta K Mallick |
| Abstract: | We present a stochastic agent-based model for the distribution of personal incomes in a developing economy. We start with the assumption that incomes are determined both by individual labour and by stochastic effects of trading and investment. The income from personal effort alone is distributed about a mean, while the income from trade, which may be positive or negative, is proportional to the trader's income. These assumptions lead to a Langevin model with multiplicative noise, from which we derive a Fokker-Planck (FP) equation for the income probability density function (IPDF) and its variation in time. We find that high earners have a power-law income distribution while the low income groups have a Levy IPDF. Comparing our analysis with the Indian survey data (obtained from the world bank website) taken over many years we obtain a near-perfect data collapse onto our model's equilibrium IPDF. The theory quantifies the economic notion of ``given other things''. Using survey data to relate the IPDF to actual food consumption we define a poverty index, which is consistent with traditional indices, but independent of an arbitrarily chosen ``poverty line'' and therefore less susceptible to manipulation. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:0905.3803&r=cwa |
| By: | Bohnet, Iris (Harvard University); Hermann, Benedikt (European Commission); Zeckhauser, Richard (Harvard University) |
| Abstract: | Why is private investment so low in Gulf compared to Western countries? We investigate cross-regional differences in trust and reference points for trustworthiness as possible factors. Experiments controlling for cross-regional differences in institutions and beliefs about trustworthiness reveal that Gulf citizens pay much more than Westerners to avoid trusting, and hardly respond when returns to trusting change. These differences can be explained by subjects' gain/loss utility relative to their region's reference point for trustworthiness. The relation-based production of trust in the Gulf induces higher levels of trustworthiness, albeit within groups, than the rule-based interactions prevalent in the West. |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp09-015&r=cwa |