|
on Central and Western Asia |
| By: | Prema-chandra Athukorala |
| Abstract: | This paper examines emerging patterns and economic implications of Indian foreign direct investment from a historical perspective against the backdrop of the evolving role of developing-country firms (emerging multinational enterprises, EMES) as an important force of economic globalisation. The novelty of the analysis lies in its specific focus on the implications of changes in trade and investment policy regimes and the overall investment climate for internationalisation of domestic companies and the nature of their global operations. The findings cast doubts on the popular perception of the recent surge in outward FDI from India as an unmixed economic blessing, given the remaining distortion in the domestic investment climate |
| Keywords: | India, FDI, Emerging-Economy MNEs |
| JEL: | O53 F21 F23 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2009-14&r=cwa |
| By: | Sunil S. Amrith |
| Abstract: | This paper suggests that history is essential to an understanding of the challenges facing health policy in India today. Institutional trajectories matter, and the paper tries to show that a history of under-investment and poor health infrastructure in the colonial period continued to shape the conditions of possibility for health policy in India after independence. The focus of the paper is on the insights intellectual history may bring to our understanding of deeply rooted features of public health in India, which continue to characterise the situation confronting policymakers in the field of health today. The ethical and intellectual origins of the Indian state’s founding commitment to improve public health continue to shape a sense of the possible in public health to this day. The paper shows that a top-down, statist approach to public health was not the only option available to India in the 1940s, and that there was a powerful legacy of civic involvement and voluntary activity in the field of public health. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:7909&r=cwa |
| By: | Ravallion, Martin |
| Abstract: | Brazil, China and India have seen falling poverty in their reform periods, but to varying degrees and for different reasons. History left China with favorable initial conditions for rapid poverty reduction through market-led economic growth; at the outset of the reform process there were ample distortions to remove and relatively low inequality in access to the opportunities so created, though inequality has risen markedly since. By concentrating such opportunities in the hands of the better off, prior inequalities in various dimensions handicapped poverty reduction in both Brazil and India. Brazil’s recent success in complementing market-oriented reforms with progressive social policies has helped it achieve more rapid poverty reduction than India, although Brazil has been less successful in terms of economic growth. In the wake of its steep rise in inequality, China might learn from Brazil’s success with such policies. India needs to do more to assure that poor people are able to participate in both the country’s growth process and its social policies; here there are lessons from both China and Brazil. All three countries have learned how important macroeconomic stability is to poverty reduction. |
| Keywords: | Rural Poverty Reduction,Achieving Shared Growth,Regional Economic Development,Services&Transfers to Poor |
| Date: | 2009–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5080&r=cwa |
| By: | Daniel Neff |
| Abstract: | The paper explores the extent to which people adapt to their deprived living conditions and what kind of form adaptation processes take. The study combines quantitative and qualitative information drawing back on survey data and case studies from two villages in Andhra Pradesh, India. One of the contributions of the paper is that two distinct adaptation processes in the context of poverty are identified, namely resignation and optimism. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:7109&r=cwa |
| By: | Gregory James (Dept of Economics, Loughborough University); Simon Deakin (Centre for Business Research, University of Cambridge); Panicos Demetriades (Dept of Economics, University of Leicester) |
| Abstract: | We use a new legal dataset tracking changes in creditor protection law over several decades to study the impact of legal reforms on banking system development in India. Cointegration analysis is used to show that the strengthening of creditor rights in relation to the enforcement of security interests in the 1990s and 2000s led to an increase in bank credit. We show that the change in the law was not endogenous to trends in stock market development and GDP per capita, and that the direction of causation ran from legal reform to banking development, rather than the reverse. |
| Keywords: | creditor rights; legal origin; banking development; India. |
| JEL: | G21 G38 K22 O16 |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:lbo:lbowps:2009_12&r=cwa |
| By: | Ianchovichina, Elena; Ivanic, Maros; Martin, Will |
| Abstract: | Continuing rapid growth of China and India can be expected to raise incomes in Russia, but also to put adjustment pressure on Russian firms. The impacts of the rapid growth of China and India on the Russian economy are explored by examining a baseline projection using a global general equilibrium model, and then assessing the implications of higher-than-expected growth in China and India. The authors find that a major source of benefits to Russia is likely to be terms-of-trade improvements associated with higher energy prices - a quite different channel of effect from that for many developing countries that benefit primarily through expanded opportunities to trade directly with these emerging giants. Taking into account the likely improvements in the quality and variety of exports from China and India, the gains to Russia increase substantially. The expansion of the energy sector and the contraction of manufacturing and services are a sign of a Dutch disease effect that will increase the importance of policies to encourage adaptation to the changing world environment. |
| Keywords: | Economic Theory&Research,Emerging Markets,Markets and Market Access,Trade Policy,Free Trade |
| Date: | 2009–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5075&r=cwa |
| By: | Pinelopi Goldberg (Princeton University); Amit Khandelwal (Columbia GSB); Nina Pavcnik (Dartmouth College); Petia Topalova (IMF) |
| Abstract: | New goods play a central role in many trade and growth models. We use detailed trade and firm-level data from a large developing economy—India—to investigate the relationship between declines in trade costs, the imports of intermediate inputs and domestic firm product scope. We estimate substantial static gains from trade through access to new imported inputs. Accounting for new imported varieties lowers the import price index for intermediate goods on average by an additional 4.7 percent per year relative to conventional gains through lower prices of existing imports. Moreover, we find that lower input tariffs account on average for 31 percent of the new products introduced by domestic firms, which implies potentially large dynamic gains from trade. This expansion in firms' product scope is driven to a large extent by international trade increasing access of firms to new input varieties rather than by simply making existing imported inputs cheaper. Hence, our findings suggest that an important consequence of the input tariff liberalization was to relax technological constraints through firms’ access to new imported inputs that were unavailable prior to the liberalization. |
| Keywords: | Intermediate Inputs, Firm Scope, Multi-product Firms, Product Growth, Gains from Variety, Endogenous Growth, Trade Liberalization, India |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:pri:cepsud:1179&r=cwa |
| By: | Geraint Johnes |
| Abstract: | A theory is developed in which the extent to which growth in advanced industrial sectors trickles down to other sectors is dependent upon, capital market frictions, migration, and the strength of interindustry linkages. It is shown that perverse results can arise, and that the efficacy of any policies that rely on tricke down is therefore an empirical issue. Using data from India, we investigate whether growth in the advanced sectors generates growth elsewhere in the economy, and find that it does not. |
| Keywords: | growth, development |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:006104&r=cwa |
| By: | Das Gupta, Monica; Desikachari, B.R.; Somanathan, T.V.; Padmanaban, P. |
| Abstract: | Public health systems in India have weakened since the 1950s, after central decisions to amalgamate the medical and public health services, and to focus public health work largely on single-issue programs - instead of on strengthening public health systems’ broad capacity to reduce exposure to disease. Over time, most state health departments de-prioritized their public health systems. This paper describes how the public health system works in Tamil Nadu, a rare example of a state that chose not to amalgamate its medical and public health services. It describes the key ingredients of the system, which are a separate Directorate of Public Health - staffed by a cadre of professional public health managers with deep firsthand experience of working in both rural and urban areas, and complemented with non-medical specialists—with its own budget, and with legislative underpinning. The authors illustrate how this helps Tamil Nadu to conduct long-term planning to avert outbreaks, manage endemic diseases, prevent disease resurgence, manage disasters and emergencies, and support local bodies to protect public health in rural and urban areas. They also discuss the system’s shortfalls. Tamil Nadu’s public health system is replicable, offering lessons on better management of existing resources. It is also affordable: compared with the national averages, Tamil Nadu spends less per capita on health while achieving far better health outcomes. There is much that other states in India, and other developing countries, can learn from this to revitalize their public health systems and better protect their people’s health.<BR> |
| Keywords: | Health Monitoring&Evaluation,Disease Control&Prevention,Health Systems Development&Reform,Population Policies,Health Economics&Finance |
| Date: | 2009–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5073&r=cwa |
| By: | Aurelio Volpe (CSIL Centre for Industrial Studies) |
| Abstract: | This report offers an overview of the kitchen furniture sector in Turkey, providing recent trends, mid term perspectives and forecasts in kitchen furniture production and consumption, imports and exports, prices, marketing policies and distribution. Short profiles of major players are given as well their market shares. The report covers both kitchen furniture and built-in appliances sold through this channel. The analysis of the Turkish kitchen furniture imports and exports is provided by country and by geographical area for the period 2003-2008. The kitchen furniture production in Turkey is broken down by cabinet door material, style and colour, worktop material for a sample of companies. A chapter is dedicated to built-in appliances with data on production, consumption and international trade by category (hobs and ovens, hoods, microwave ovens, dishwashers, refrigerators and freezers, washing machines). Short profiles of the leading appliances manufacturers in Turkey are given as well as strengths and weaknesses of the brands. The distribution of kitchen furniture in the Turkish market is described, highlighting the two main distribution channels in Turkey: the contract/construction sector which accounts for 80% of total kitchens in volume and the retail channel which claims 20% and can be broken into kitchen specialists (5% share), furniture retailers (10%), DIY (2%) and direct sales (3%). Reference prices of kitchens sold through these channels are also mentioned. The chapter on the competitive system analyses the main players present in the Turkish kitchen furniture market, providing short company profiles, their kitchen furniture sales and market shares. A breakdown of domestic kitchen sales by Turkish region (Aegean, Istanbul & Marmara, Mediterranean, Central Anatolia, Eastern Anatolia, South-East Anatolia and Black Sea region) for a sample of companies is also offered. Demand determinants examined are population (by town), employment (by economic activity and occupational group), household income distribution (urban and rural), GDP. |
| JEL: | L11 L22 L68 L81 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:mst:csilre:s49&r=cwa |
| By: | Alexander M. Danzer; Hulya Ulku |
| Abstract: | Using new data on 590 Turkish households in Berlin, we investigate the determinants and impact of integration on economic performance. We find that the usual suspects, such as time spent in Germany and education, have positive impact, while networks have no impact on integration. There is strong evidence that political integration and the degree of full integration promote income. Using endogenous switching regression models, we show that local familial networks increase the income of unintegrated migrant groups only, while transnational networks decrease it. We also find that education is more welfare-improving for integrated than non-integrated immigrants. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:7009&r=cwa |
| By: | Nagarajan, Thirukumaran; Malipeddi, Koteswararao |
| Abstract: | This paper provides evidence of the role of sentiments in pricing Indian CNX Nifty index call Option during the period from April 2002 to December 2008. It also shows that Black-Scholes option pricing model using the implied volatility of previous day is pricing the Index options much closer to the actual price compared to Modified Black-Scholes pricing model incorporating non-normal skewness and kurtosis suggested by Corrado & Sue [1996]. The market is pricing the call option higher than Black-Scholes price during bullish period compared to that of bearish period even though sentiments are incorporated in the underlying asset which in this case is the Nifty Index. The index call options are priced about 1.5 percent more than Black-Scholes price during Bullish period compared to that of Bearish period during the period of observation. |
| Keywords: | Option Pricing; Black-Scholes option pricing model; Modified Black- Scholes by Corrado & Sue; Put call ratio; Sentiment indicators; |
| JEL: | G13 |
| Date: | 2009–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17943&r=cwa |
| By: | Catherine Bros (Centre d'Economie de la Sorbonne and CSH - Delhi) |
| Abstract: | A vast recent literature has stressed social fragmentation's negative impact on the provision of public goods. This is a key issue, given that public goods availability has been reckoned as crucial to economic development, while developing countries' societies often exhibit high degrees of fragmentation. Although it has been well established both empirically and theoretically that fragmentation is detrimental to collective action, two caveats ought to be considered. First, a high level of social fragmentation is often associated with greater inequality, which, as Olson pointed out, may be beneficial to collective action. In Olson's argument, should most of the public goods benefits accrue to a small number of group members, they are encouraged to invest in group activities, given that their stakes in the collective action are quite high. Second, should access to publicly provided goods be restricted to the elite, a positive relationship may be found between fragmentation and ethnically based patronage. Given that both patronage and inequality are common in developing countries, it is surprising that fragmentation has never been found to have a positive effect on the provision of public goods. This article aims at showing that not only does this positive relationship exist, but it is linked to the presence of wealthy individuals who are in a position to deny access to public goods to other groups members. |
| Keywords: | Political economy, public goods, collective action, inequality, Olson, Caste, India. |
| JEL: | H4 O1 O2 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:09058&r=cwa |
| By: | Ghani, Ejaz; Anand, Rahul |
| Abstract: | The current global crisis may change globalization itself, as both developed and developing countries adjust to global imbalances that contributed to the crisis. Will these changes help or hinder economic recovery and growth in South Asia? This is the focus of this paper. The three models of globalization--trade, capital, and economic management--may not be the same in the future. Changes in globalization could change the composition of trade flows, capital flows, and economic management, which in turn, could accelerate or restrain growth. South Asia is somewhat peculiar and different from other regions in how it has globalized, although there is a lot of diversity within the region. Its trade characteristics are different. India's growth has been spearheaded by exports of modern services and less by goods exports. Modern service trade tends to be more resilient compared with goods trade. Globalization of services is still at an early stage. So, as consumers pull back in the United States, service trade is likely to be less impacted compared to goods trade. Trade also contributes to growth through knowledge spillovers, externalities, and learning. The global crisis has not reduced the stock of global knowledge. Changes in capital flows are also not likely to have a big impact on growth in South Asia, as South Asia's investments are largely driven by domestic savings. Its dependence on foreign capital is low. South Asia has attracted capital flows that are less volatile. Remittances, which are more resilient, have been the dominant form of capital inflows, exceeding foreign direct investment and other inflows.This global downturn calls for counter-cyclical economic management. But South Asia has limited room for fiscal stimulus, given high debt-to-gross domestic product ratios. Nevertheless, reduced commodity prices have created some fiscal space that can be used for growth enabling infrastructure and safety nets. As South Asia undergoes structural transformation, the region is well positioned to bounce back with global economic recovery. |
| Keywords: | Macroeconomic Management,Capital Flows,Globalization and Financial Integration,Economic Growth,Trade and Services |
| Date: | 2009–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5079&r=cwa |
| By: | Berna Beyhan (TEKPOL-STPS, Science and Technology Policy Studies, Middle East Technical University); Elif Dayar (TEKPOL-STPS, Science and Technology Policy Studies, Middle East Technical University); Derya Findik (TEKPOL-STPS, Science and Technology Policy Studies, Middle East Technical University); Sinan Tandogan (Scientific and Technological Research Council of Turkey (TUBITAK)) |
| Abstract: | This study aims to investigate how successful Community Innovation Survey (CIS) is in reflecting main concerns of measuring innovation stated in the Oslo Manual. Although this survey has been widely applied throughout the European countries since 1992, the discussions over its suitability as a reliable tool to measure innovation along different cultures of innovativeness still remain. Motivated by the arguments on the reliability of CIS as a tool to measure innovation and its conformity to the guidelines of the Oslo Manual, this paper reviews and discusses these arguments in a broader context and presents the implications of possible problems that arise due to these discrepancies in the case of a developing country, namely, Turkey. |
| Keywords: | Innovation measurement, Oslo Manual, Community Innovation Survey |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:0902&r=cwa |
| By: | Orso, Cristina Elisa |
| Abstract: | This paper describes, through a theoretical approach, the interactions between institutional lenders and local moneylenders, and how these affect the rural credit market. It evaluates the effects produced by the introduction of "spillovers" in a rural credit market with rationing in which banks and moneylenders interact simultaneously while working in distinct segments. Due to the strong and consolidated social ties, it is probable that the spread of knowledge concerning potential debtors comes about in targeted and rapid way with reduced costs for the lenders as well. |
| JEL: | G21 O17 O19 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:uca:ucapdv:135&r=cwa |
| By: | Jahan-Parvar, Mohammad; Waters, George |
| Abstract: | We empirically investigate the existence of periodically collapsing bubbles in seven Middle East and North African (MENA) financial markets for the period ending in May 2009. We use the Taylor and Peel (1998) residual augmented least square Dickey and Fuller test (RALS DF) to detect the bubbles. We find that the hypothesis of a bubble formation cannot be rejected for all seven markets investigated in our study, leading us to believe that in fact there has been a break down in the cointegration relationship between real equity prices and real dividends and also between real market capitalizations and real dividends. |
| Keywords: | Cointegration; Equity prices; Explosive unit root processes; MENA; Periodically collapsing bubbles. |
| JEL: | G12 G15 C22 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17859&r=cwa |