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on Central and Western Asia |
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Issue of 2010‒10‒30
seventeen papers chosen by Bibhu Prasad Nayak Institute for Social and Economic Change |
| By: | Caroline Van Rijckeghem |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:bou:wpaper:2010/04&r=cwa |
| By: | Deniz Cicek; Ceyhun Elgin |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:bou:wpaper:2010/07&r=cwa |
| By: | Sami Bibi (University of Laval); AbdelRahmen El-Lahga |
| Abstract: | The main objective of this paper is to perform a decomposition analysis of the level of inequality between socioeconomic groups and geopolitical regions of each country to better our understanding of the contribution of each socioeconomic group to overall inequality. This paper will fill in an important gap of knowledge of inequality patterns in the Arab region, by drawing a rough picture of monetary inequality. Our results show that differences in mean income across groups are much larger in Tunisia, Morocco and mainly Yemen and accounts for a much larger proportion of overall inequality. |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:557&r=cwa |
| By: | Beck, Thorsten; Demirguc-Kunt, Asli; Merrouche, Ouarda |
| Abstract: | This paper discusses Islamic banking products and interprets them in the context of financial intermediation theory. Anecdotal evidence shows that many of the conventional products can be redrafted as Sharia-compliant products, so that the differences are smaller than expected. Comparing conventional and Islamic banks and controlling for other bank and country characteristics, the authors find few significant differences in business orientation, efficiency, asset quality, or stability. While Islamic banks seem more cost-effective than conventional banks in a broad cross-country sample, this finding reverses in a sample of countries with both Islamic and conventional banks. However, conventional banks that operate in countries with a higher market share of Islamic banks are more cost-effective but less stable. There is also consistent evidence of higher capitalization of Islamic banks and this capital cushion plus higher liquidity reserves explains the relatively better performance of Islamic banks during the recent crisis. |
| Keywords: | Banks&Banking Reform,Debt Markets,Access to Finance,Financial Intermediation,Bankruptcy and Resolution of Financial Distress |
| Date: | 2010–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5446&r=cwa |
| By: | Bassim Shebeb (University of Bahrain); Nadhem Al-Saleh |
| Abstract: | With the process of expansion and the structural transformation taking place in Bahrain, it is crucial to measure and analyze the growth rates of gross domestic product (GDP), gross output and multifactor productivity (MFP) to develop proper policies that are in line with the new economic vision of Bahrain, known as Vision 2030. Thus, this paper comes with two main objectives: first, to provide explainable estimates for the growth rate of the gross output in the Bahraini economy and secondly to identify the main sources of the growth. The main findings of this study show that the annual growth rate of the gross output in Bahrain ranged from a maximum of about 11.7% in the year 2006 to a minimum of about 7.7% in the year 2002. The average annual growth rate of gross output over the time period 2002–2008 was 9.43%. The empirical findings also show that the MFP’s annual growth rate was relatively low over the study time period. Consequently, it could be concluded that the relatively high growth rate of gross output in the Bahraini economy was mainly due to the high growth rate of other inputs (M) over the last few years. The study concludes that there is an urgent need to improve MFP in Bahrain to contribute significantly to the output growth rates. Therefore, the study calls for further research to identify the main components that contribute to the growth of MFP in Bahrain and its decomposition. |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:558&r=cwa |
| By: | Hošek, Jan (Czech National Bank); Komárek, Luboš (Czech National Bank,); Motl, Martin (Czech National Bank,) |
| Abstract: | This article discusses the relationship between monetary policy and oil prices and, in a broader sense, commodity prices. Firstly, it focuses on describing the relationship between key macroeconomic variables, gas prices and other commodity prices relative to oil prices. Subsequently, it discusses the existence of “transmission channels” through which monetary policy can be propagated to oil prices (or prices of commodities). It then provides an insight into the CNB’s forecasting process, both by looking retrospectively at the oil price outlook in the past and by analysing a transitory and a permanent shock (a rise in the oil price of USD 30/b). The simulated oil price shock is calculated from the average level of Brent oil prices in the first quarter of 2010, i.e. USD 77.50/b. |
| Keywords: | oil price ; monetary policy ; real interest rate ; oil price shock JEL Classification: G12 ; G14 ; D53 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:947&r=cwa |
| By: | Ines Bouassida; AbdelRahmen El Lahga (University of Tunis) |
| Abstract: | This paper analyzes the trend and changes of household expenditure polarization in five Arab countries between 1975 and 2006. Applying a set of recent polarization measures developed by Duclos et al. (2004) and Wolfson (1994), we find that polarization remained stable in most countries except Yemen which witnessed a significant increase of polarization during the period 1998–2006. While bi-polarization evolves in the same direction as inequality, our empirical results show that polarization per se behaves differently from inequality. The decomposition of polarization by geographical region shows that in all five countries’ household expenditures are spatially polarized, where nearly 80% of overall polarization is explained by intra-regional polarization. |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:559&r=cwa |
| By: | James L. Smith |
| Abstract: | Although economists have studied various indicators of resource scarcity (e.g., unit cost, resource rent, and market price), the phenomenon of “peaking” has largely been ignored due to its connection to non-economic theories of resource exhaustion (the Hubbert Curve). I take a somewhat different view, one that interprets peaking as a reflection of fundamental economic determinants of an intertemporal equilibrium. From that perspective, it is reasonable to ask whether the occurrence and timing of the peak reveals anything useful regarding the state of resource exhaustion. Accordingly, I examine peaking as an indicator of resource scarcity and compare its performance to the traditional economic indicators. I find the phenomenon of peaking to be an ambiguous indicator, at best. If someone announced that the peak would arrive earlier than expected, and you believed them, you would not know whether the news was good or bad. Unfortunately, the traditional economic indicators fare no better. Their movements are driven partially by long-term trends unrelated to changes in scarcity, and partially but inconsistently driven by actual changes in scarcity. Thus, the traditional indicators provide a signal that is garbled and unreliable. |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:1010&r=cwa |
| By: | Rania Antonopoulos; Emel Memis |
| Abstract: | This study is concerned with the measurement of poverty in the context of developing countries. We argue that poverty rankings must take into account time use dimensions of paid and unpaid work jointly. Reviewing the current state of the literature on this topic, our methodology introduces a critical but missing analytical distinction between time poverty and time deprivation. On this basis, we proceed to provide empirical evidence by using South African time use survey data compiled in 2000. Our findings show that existing methods that work well for advanced countries require modification when adopted in the case of a developing country. The results identify a group of adults who previously were inadvertently missing, as they were considered "time wealthy." |
| Keywords: | Time Poverty Measurement; Time Use; Poverty; Policy |
| JEL: | J22 J16 I32 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_600&r=cwa |
| By: | Doranova, Asel (Maastricht University) |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:maastr:urn:nbn:nl:ui:27-24249&r=cwa |
| By: | Ukoha, O.O; Okoye, B.C; Emetu, J |
| Abstract: | The study analysed the determinants of total factor productivity by the use of OLS regression technique among small-holder cassava farmers in Ohafia Local Government Area of Abia State. The study data was collected through a multi-stage random sampling technique from 90 farmers in 2009. The coefficients for education and extension were negative and significantly related to total factor productivity (TFP) at 10%level of probability. The coefficients for age, fertilizer and access to credit were positive and significant at 1% level of probability. The coefficients for gender and household size were negative and significant at 1% level of probability. The results calls for policies aimed at provision of inputs especially fertilizer and credit targeted mostly on women farmers. Policies on increased education and extension contacts and birth control should be advocated for |
| Keywords: | Total Factor Productivity and Cassava |
| JEL: | D2 D29 D24 |
| Date: | 2010–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26125&r=cwa |
| By: | De Hoop, Thomas; Van Kempen, Luuk; Linssen, Rik; Van Eerdewijk, Anouka |
| Abstract: | This paper presents quasi-experimental impact estimates of women self-help groups on subjective well-being in Orissa, India. We find that, on average, self-help group membership does not affect subjective well-being. However, our results at the same time reveal that subjective well-being sharply declines for those members whose newly gained autonomy meets with relatively conservative social gender norms among non-members. We interpret this finding as evidence for heterogeneous losses of feelings of identity for self-help group members. Identity losses loom larger when women’s enhanced autonomy implies a stronger violation of social gender norms at the community level. Social sanctioning mechanisms play an important role in the heterogeneous negative impact on subjective well-being, as evidenced by qualitative accounts of women’s empowerment trajectories in the research area. |
| Keywords: | Autonomy; Subjective Well-Being; Impact Evaluation; Identity; Sanctioning; India |
| JEL: | I31 I38 Z13 O12 |
| Date: | 2010–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:25921&r=cwa |
| By: | Barbone, Luca; Islam, Roumeen; Sanchez, Luis Alvaro |
| Abstract: | This paper examines fiscal outcomes in Eastern and Central European countries before and during the global crisis of 2008-2010. These outcomes are evaluated in the context of overall changes in fiscal institutions and global market conditions. Eastern and Central European countries’ situations improved dramatically in the pre-crisis period as tax revenues boomed, and fiscal institutions were reformed. Expenditures increased quite significantly in real terms for some of the countries in the pre-crisis era so that when tax revenues collapsed in the wake of the crisis, the countries were left with large deficits. Institutional reform helped countries manage their fiscal situations better, but the crisis also exposed shortcomings of the status quo. In the post-crisis period, fiscal institutions aimed at promoting fiscal discipline are being strengthened. Governments will also need to take a closer look at the sustainability of current expenditure patterns, particularly the strong emphasis on social expenditures. |
| Keywords: | Public Sector Expenditure Policy,Debt Markets,Fiscal Adjustment,Subnational Economic Development,Public Sector Economics |
| Date: | 2010–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5453&r=cwa |
| By: | Jesus Felipe; Utsav Kumar |
| Abstract: | With a decrease in formal trade barriers, trade facilitation has come into prominence as a policy tool for promoting trade. In this paper, we use a gravity model to examine the relationship between bilateral trade flows and trade facilitation. We also estimate the gains in trade derived from improvements in trade facilitation for the Central Asian countries. Trade facilitation is measured through the World Bank’s Logistic Performance Index (LPI). Our results show that there are significant gains in trade as a result of improving trade facilitation in these countries. These gains in trade vary from 28 percent in the case of Azerbaijan to as much as 63 percent in the case of Tajikistan. Furthermore, intraregional trade increases by 100 percent. Among the different components of LPI, we find that the greatest increase in total trade comes from improvement in infrastructure, followed by logistics and efficiency of customs and other border agencies. Also, our results show that the increase in bilateral trade, due to an improvement in the exporting country’s LPI, in highly sophisticated, more differentiated, and high-technology products is greater than the increase in trade in less sophisticated, less differentiated, and low-technology products. This is particularly important for the Central Asian countries as they try to reduce their dependence on exports of natural resources and diversify their manufacturing base by shifting to more sophisticated goods. As they look for markets beyond their borders, trade facilitation will have an important role to play. |
| Keywords: | Central Asia; Gravity Model; Trade Facilitation |
| JEL: | F10 F15 F17 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_628&r=cwa |
| By: | Anna Grochowska (Faculty of Economic Sciences, University of Warsaw); Paweł Strawiński (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | In this paper we attempt to quantify the impact of social capital on individual well-being. We follow the Putnam (1995) approach and select five key social capital components to construct a synthetic index for social capital using a multivariate probit model. Social capital is considered as one of the three crucial individual endowments: physical capital, human capital and social capital. The impact of the synthetically constructed social capital index on individual’s well-being is estimated using a Mincer type earning equation. The results show that social capital explains up to 20% of income variation both at individual and household level. However, human capital and physical capital remain the critical determinants of individual income. |
| Keywords: | social capital, income, well-being, local community, household |
| JEL: | A14 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2010-13&r=cwa |
| By: | von der Ruhr, Marc (St. Norbert College); Daniels, Joseph P. (Department of Economics Marquette University) |
| Abstract: | Either despite or because of their non-traditional approach, megachurches have grown significantly in the United States since 1980. This paper models religious participation as an imperfect public good which, absent intervention, yields suboptimal participation by members from the church’s perspective. Megachurches address this problem by employing secular based group activities to subsidize religious participation in an effort to increase attendees’ religious investment. This strategy not only allows megachurches to attract and retain new members when many traditional churches are losing members, but also results in higher levels of individual satisfaction thereby allowing the megachurch to raise levels of commitment and faith practices. Data from the FACT2000 survey provide evidence that megachurches employ groups more extensively than other churches and this approach is consistent with a strategy to use the provision of groups to help subsidize individuals’ religious investment. Religious capital rises among members of megachurches relative to members of non-megachurches as a result of this strategy. |
| Keywords: | megachurches, religious investment, subsidy, Economics |
| JEL: | Z12 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:mrq:wpaper:2010-03&r=cwa |
| By: | Saibal Ghosh |
| Abstract: | Using data on 2-digit industry for 1981-2004, the study examines the association between growth in total factor productivity and economic reforms. Accordingly, we first compute industry-level productivity growth using advanced econometric techniques and thereafter ascertain the time frame over which economic reforms impact productivity. The evidence suggests that productivity growth is not reliably higher after reforms than prior to reforms. In addition, the findings indicate that it is primarily the interest rate channel that is important in explaining changes in productivity. Among macroeconomic policies, trade reforms and industrial delicensing appear to be instrumental in explaining productivity changes. |
| Keywords: | Economic reforms; total factor productivity; Levinsohn Petrin; Indian manufacturing. |
| JEL: | D24 L60 O47 |
| Date: | 2010–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2010_32&r=cwa |