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on Central and Western Asia |
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Issue of 2010‒10‒09
seventeen papers chosen by Bibhu Prasad Nayak Institute for Social and Economic Change |
| By: | Cavatorta, Elisa; Pieroni, Luca |
| Abstract: | This paper explores the interactions between the risk of food insecurity and the decision to health insure in the Palestinian Territories. The risk of adverse health conditions is insurable; the risk of food insecurity is a background risk and no market insurance exists. The vulnerability to food insecurity influences the individual utility from health insuring. We present a competing risk model to reveal this interdependence. We specify the empirical model as a bivariate probit model and evaluate the impact of food insecurity on the household decision to health insure. We find evidence of significant complementarity between the risk of food insecurity and the propensity to health insure. The predicted conditional probabilities reveal that the propensity to health insure is higher in presence of food insecurity among Palestinian households. This study shows that, in presence of a background risk, there are complementarities among risks that policy should be mindful of. |
| Keywords: | Food insecurity; Health insurance; Competing risks; Bivariate Probit |
| JEL: | I11 O15 C35 |
| Date: | 2010–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:25555&r=cwa |
| By: | Abdelkader Boudriga (University of Tunis); Neila Boulila Taktak; Sana Jellouli |
| Abstract: | The paper empirically analyzes the determinants of nonperforming loans (NPL) and the potential impact of both business and institutional environment on credit risk exposure of banks in the MENA region. Looking at a sample of 46 banks in 12 countries over the period 2002–2006, we find that, among bank specific factors, foreign participation coming from developed countries, high credit growth and loan loss provisions reduce the NPL level. However, highly capitalized banks experience high level of credit exposure. Credit quality of banks is also positively affected by the relevance of the information published by public and private bureaus. Finally, our findings highlight the importance of institutional environment in enhancing banks credit quality. Specifically, a better control of corruption, a sound regulatory quality, a better enforcement of rule of law, and a free voice and accountability play an important role in reducing NPL in the MENA countries. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:547&r=cwa |
| By: | Laurent Weill (University of Strasbourg and EM Strasbourg Business School) |
| 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. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:548&r=cwa |
| By: | Michael Wyrwich |
| Abstract: | This paper sheds light on regional differences of self-employment in a socialist economy on the eve of its transition toward a market economy and differences with regard to start-up activities after transition. It shows that regions with a long entrepreneurial tradition have higher self-employment rates than regions where these traditions played only a minor role before the introduction of a socialist centrally planned economy. These regions have also higher start-up rates after transition. It seems entirely likely that some regions have a certain entrepreneurial heritage that is an important resource embedded in the region. Even the introduction of socialism did not eradicate or reverse the geography of private sector activity. It is recommended that policy should stimulate and activate region-specific entrepreneurial potentials to attain a sustainable regional development. |
| Keywords: | Entrepreneurial Culture; Transition |
| JEL: | L26 P25 R11 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:10-20&r=cwa |
| By: | Erik Gartzke; Dominic Rohner |
| Abstract: | Theories of economic development suggest variously that national income increases or decreases the propensity for states to fight, while systematic evidence of the impact of development on warfare is ambiguous or non-existent. The lack of empirical support for nominally opposing claims can be reconciled if elements of both perspectives are partially correct. We use a formal model to construct an explanation linking economic development with interstate conflict that resolves contradictory theories and a relative paucity of evidence. Development increases the ability of states to project power while decreasing the willingness of states to engage in conflict over certain issues. High income states fight less often to conquer tangible assets or territory, but fight more often to compel adherence to preferred policies and to police the global commons. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:zur:iewwpx:511&r=cwa |
| By: | Alexandra Niez |
| Abstract: | Brazil, China, India and South Africa have each worked to improve access to electricity services. While many of the challenges faced by these countries are similar, the means of addressing them varied in their application and effectiveness. This report analyses the four country profiles, determining the pre-requisites to successful rural electrification policies. |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ieaaaa:2010/3-en&r=cwa |
| By: | Jiandong Ju (Tsinghua University and Center for International Economic Research and University of Oklahoma); Shang-Jin Wei (Columbia University and Center for International Economic Research and National Bureau of Economic Research and Centre for Economic Policy Research and Hong Kong Institute for Monetary Research) |
| Abstract: | This paper proposes a simple model to study how domestic institutions affect patterns of international capital flows. Inefficient financial system and poor corporate governance may be bypassed by two-way capital flows in which domestic savings leave the country in the form of financial capital outflows but domestic investment takes place via inward FDI. While financial globalization always improves the welfare of a developed country with a good financial system, its effect is ambiguous for a developing country with an inefficient financial sector or poor corporate governance. Interestingly, financial and property rights institutions can have opposite effects on capital flows. |
| Keywords: | Two-Way Capital Flows, Property Rights Protection, Financial Development, Corporate Governance |
| JEL: | F21 F33 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:222010&r=cwa |
| By: | Arusha Cooray (School of Economics, University of Wollongong); Niklas Potrafke (Department of Economics, University of Konstanz, Germany) |
| Abstract: | We investigate empirically whether political institutions or culture and religion underlie gender inequality in education. The dataset contains up to 157 countries over the 1991-2006 period. The results indicate that political institutions do not significantly influence education of girls: autocratic regimes do not discriminate against girls in denying educational opportunities and democracies do not discriminate by gender when providing educational opportunities. The primary influences on gender inequality in education are culture and religion. Discrimination against girls is especially pronounced in Muslim dominated countries. |
| Keywords: | Gender discrimination, education, democracy, religion |
| JEL: | O11 O15 O43 O57 P26 P36 Z12 |
| Date: | 2010–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:knz:dpteco:1001&r=cwa |
| By: | Vaujany, François-Xavier de |
| Abstract: | This article puts forwards a “reorientationist” perspective about the genealogy of collective action and artefacts deployed for its orientation. It draws on the history of religion and religious organizations as elaborated by several promoters of the so-called “new history” in France. These historians (mainly medievalist) can be helpful in writing a different genealogy of contemporary models of collective action (i.e. ways of reaching a goal together) and their institutional context in western countries. They can also facilitate a critical understanding of long-range organizational dynamics. |
| Keywords: | Genealogy of collective action; history of religious organizations; history of managerial practices; new history; Catholic Church; |
| JEL: | M1 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/4821&r=cwa |
| By: | van Leeuwen, Nico; Robert McDougall |
| Abstract: | In recent GTAP data releases, in transforming energy volumes data from the IEA extended energy balances to an input-output format, we record inflows into the energy balances flow "international marine bunkers" as exports, but record no corresponding imports. Here, we revise the energy module to balance the trade flows by recording international marine bunker usage as imports into the country of residence of the ship operator, and as usage by that country’s transport industry. We allocate usage across countries in proportion to the money value of their water transport services exports. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:gta:resmem:3445&r=cwa |
| By: | Hasan, Lubna |
| Abstract: | Rule of Law and strong legal systems are considered a pre-condition for sustained development. Their relative weakness in the under-developed world is considered as the main obstacle to growth. Strengthening Rule of Law and legal systems has, therefore, become a standard advice from the developing community. Pakistan, too, has witnessed a surge in demand for Rule of Law in recent years. Capitalizing on this domestically garnered mandate, this paper reviews the legal obstacles to economic growth in Pakistan. It finds significant impediments for growth and market development due to legal shortcomings in the case of Pakistan. |
| Keywords: | Rule of Law; Legal Development; Economic Growth; Pakistan |
| JEL: | O43 K10 |
| Date: | 2010–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:25565&r=cwa |
| By: | Abhijeet, Chandra |
| Abstract: | Education being an important component of human capital has always attracted the interests of economists, researchers and policy makers. Governments across the globe in general and in India in particular are trying to improve the human capital by pumping more investments in education. But the issue that whether improved level of education resulting from more education spending can promote economic growth is still controversial. Some economists and researchers have supported the bi-directional relation between these two variables, while it has also been suggested that it is the economic growth that stimulates governments spend more on education, not the other way. Considering this research issue, the present paper uses linear and non-linear Granger Causality methods to determine the causal relationship between education spending and economic growth in India for the period 1951-2009. The findings of this paper indicate that economic growth affects the level of government spending on education irrespective of any lag effects, but investments in education also tend to influence economic growth after some time-lag. The results are particularly useful in theoretical and empirical research by economists, regulators and policy makers. |
| Keywords: | Education expenditure; Economic growth; Indian economy; Granger Causality; Non-linearity. |
| JEL: | E62 I21 C22 H52 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:25480&r=cwa |
| By: | Arner, Douglas W. (University of Hong Kong); Park, Cyn-Young (Asian Development Bank) |
| Abstract: | The objective of global regulatory reform is to build a resilient global financial system that can withstand shocks and dampen, rather than amplify, their effects on the real economy. Lessons drawn from the recent crisis have led to specific reform proposals with concrete implementation plans at the international level. Yet, these proposals have raised concerns of relevance to Asia’s developing economies and hence require further attention at the regional level. We argue that global financial reform should allow for the enormous development challenges faced by developing countries—while ensuring that domestic financial regulatory systems keep abreast of global standards. This implies global reforms should be complemented and augmented by national and regional reforms, taking into account the very different characteristics of emerging economies’ financial systems from advanced economies. Key areas of development focus should be (i) balancing regulation and innovation, (ii) establishing national and cross-border crisis management and resolution mechanisms, (iii) preparing a comprehensive framework and contingency plan for financial institution failure, including consumer protection measures such as deposit insurance, (iv) supporting growth and development with particular attention to the region’s financial needs for infrastructure and for SMEs, and (v) reforming the international and regional financial architecture. |
| Keywords: | financial regulatory reform; global financial architecture; G-20; Asia; national and regional reform |
| JEL: | E61 G28 |
| Date: | 2010–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0057&r=cwa |
| By: | T.M. Thomas Issac |
| Abstract: | Kerela is a region that is deeply integrated with the Indian and the world economy through various ways such as commodity flows, financial movements, labour migration and operations of national and international companies. The commodity flows to and from the state, on the other hand, have so far received no systematic consideration. [Working Paper No. 246] |
| Keywords: | Kerela, Indian, world economy, commodity flows, financial movements, labour migration |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2937&r=cwa |
| By: | Dronkers, Jaap |
| Abstract: | In this inaugural lecture, I will estimate the effects on language skills of two characteristics of school populations: average/share and diversity, both on the ethnic and the sociocultural dimension. I will use the cross-national PISA 206 data, for both 15-year-old native pupils and pupils with an immigrant background. A larger ethnic diversity of schools in secondary education hampers the educational performance of both pupils with an immigrant background and native pupils, but the negative effects are smaller in education systems with little stratification and strongest in highly stratified education systems. The sociocultural diversity of schools does not have an effect on educational performance, but these effects are positive in highly stratified educational systems and negative in hardly stratified systems. However, the average parental educational level of schools is very important for the educational performance of children, and this hardly differs between education systems. A higher share of pupils with an immigrant background in a school hampers educational performance, but if these pupils have the same regional origin (Islamic countries; non-Islamic Asian countries), a higher share of pupils with an immigrant background at that school promotes educational performance. Pupils originating from Islamic countries have substantially lower language scores than equivalent pupils with an immigrant background from other regions. This cannot be explained by the individual socioeconomic backgrounds, school characteristics, or education systems. |
| Keywords: | immigration; educational performance; country of origin; ethnic school diversity; social-economic school diversity; ethnic and social-economic share/average of schools; educational systems |
| JEL: | I21 J61 J24 |
| Date: | 2010–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:25598&r=cwa |
| By: | Peter Nunnenkamp; Hannes Öhler |
| Abstract: | We assess empirically whether foreign official development assistance (ODA) has been effective in alleviating HIV/AIDS epidemics, which figures prominently among the Millennium Development Goals. We employ a difference-in-difference-in-differences approach to identify the treatment effect of ODA specifically meant to fight sexually transmitted diseases on HIV/AIDS-related outcome variables. We do not find that ODA has prevented new infections to an extent that would have reduced the number of people living with HIV. By contrast, ODA has contributed effectively to the medical care of infected people. However, conclusive evidence on significant treatment effects on AIDS-related deaths only exists for the major bilateral source of ODA, the United States. In particular, targeted US assistance programs appear to be more effective than the activities of multilateral organizations. |
| Keywords: | HIV prevalence, AIDS-related deaths, official development assistance, aid effectiveness, major donors, difference-in-difference-in-differences |
| JEL: | F35 I19 |
| Date: | 2010–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:got:cegedp:111&r=cwa |
| By: | Joseph Henrich; Steve J. Heine; Ara Norenzayan |
| Abstract: | Behavioral scientists routinely publish broad claims about human psychology and behavior in the world’s top journals based on samples drawn entirely from Western, Educated, Industrialized, Rich and Democratic (WEIRD) societies. Researchers—often implicitly—assume that either there is little variation across human populations, or that these “standard subjects” are as representative of the species as any other population. Are these assumptions justified? Here, our review of the comparative database from across the behavioral sciences suggests both that there is substantial variability in experimental results across populations and that WEIRD subjects are particularly unusual compared with the rest of the species—frequent outliers. The domains reviewed include visual perception, fairness, cooperation, spatial reasoning, categorization and inferential induction, moral reasoning, reasoning styles, selfconcepts and related motivations, and the heritability of IQ. The findings suggest that members of WEIRD societies, including young children, are among the least representative populations one could find for generalizing about humans. Many of these findings involve domains that are associated with fundamental aspects of psychology, motivation, and behavior—hence, there are no obvious a priori grounds for claiming that a particular behavioral phenomenon is universal based on sampling from a single subpopulation. Overall, these empirical patterns suggests that we need to be less cavalier in addressing questions of human nature on the basis of data drawn from this particularly thin, and rather unusual, slice of humanity. We close by proposing ways to structurally re-organize the behavioral sciences to best tackle these challenges. |
| Keywords: | external validity, population variability, experiments, cross-cultural research, culture, human universals, generalizability, evolutionary psychology, cultural psychology, behavioral economics |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:rsw:rswwps:rswwps139&r=cwa |