|
on Central and Western Asia |
|
Issue of 2010‒12‒04
fourteen papers chosen by Bibhu Prasad Nayak Institute for Social and Economic Change |
| By: | Ale Ebrahim, Nader; Ahmed, Shamsuddin; Taha, Zahari |
| Abstract: | This paper explores potential advantages of using virtual teams for small and medium-sized enterprises (SMEs) with a comprehensive review on various aspects of virtual teams. Based on the standing of the pertinent literature, attempt has been made to study the aspects by online survey method in Iran and Malaysia. In both countries, SMEs play an important role in their economies, employments, and capacity building. Virtual R&D team can be one of the means to increase SMEs efficiency and competitiveness in their local as well as global markets. In this context, surveys have been conducted to evaluate the effects of virtuality to the growth of SMEs. The study addresses some differences between two countries in engaging virtual research and development (R&D) teams in their SMEs. It is observed that there is a significant difference between the SMEs turnover that employed virtual team and that did not employ the virtual team. The way for further studies and recommend improvements are proposed. |
| Keywords: | Virtual R&D team, small and medium enterprises, survey, developing countries. |
| JEL: | O47 F23 O32 L2 M11 M1 O43 M54 R11 O3 |
| Date: | 2010–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26983&r=cwa |
| By: | Tigran Poghosyan |
| Abstract: | This paper analyzes macroeconomic determinants of the foreign exchange risk premium in two Gulf Cooperation Council (GCC) countries that peg their currencies to the U.S. dollar: Saudi Arabia and the United Arab Emirates. The analysis is based on the stochastic discount factor methodology, which imposes a no arbitrage condition on the relationship between the foreign exchange risk premium and its macroeconomic determinants. Estimation results suggest that U.S. inflation and consumption growth are important factors driving the risk premium, which is in line with the standard C-CAPM model. In addition, growth in international oil prices influences the risk premium, reflecting the important role played by the hydrocarbon sector in GCC economies. The methodology employed in this paper can be used for forecasting the risk premium on a monthly basis, which has important practical implications for policymakers interested in the timely monitoring of risks in the GCC. |
| Keywords: | Consumption , Cooperation Council for the Arab States of the Gulf , Currency pegs , Economic models , Foreign exchange , Inflation , Oil prices , Risk premium , Saudi Arabia , United Arab Emirates , United States , |
| Date: | 2010–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:10/255&r=cwa |
| By: | Mokhamad Anwar (Department of Management and Business, Faculty of Economy, Padjadjaran University) |
| Abstract: | This paper tries to observe the cost structure in two prominent Islamic banks in Indonesia. The Bank’s cost structures are viewed in many ways such as operational and non-operational costs, and fund costs and non-fund costs. The study employed descriptive analysis to explain the data characteristics from the banks and tried to make evaluation by comparing the data within the same time. The result of the study showed that there was a similarity about those Islamic bank’s cost structures behavior, but there were also some differences among those within the study period. By using inferential statistics method, especially with meandifferences test, the study demonstrated that the null-hypothesis was rejected which means that there were differences about the cost structures between both Islamic banks within the period. |
| Keywords: | operational cost, non-operational cost, islamic banks |
| JEL: | G0 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:unp:wpaman:201008&r=cwa |
| By: | Irawan Febianto (Laboratory Management Faculty of Economics (LMFE)) |
| Abstract: | The low level participation of the Islamic banks in mudharabah and musharakah financing models has become one of the problems in the development of the industry. This arrangements are unique to Islamic banking and account for its superiority over conventional banking on grounds of ethics and efficiency, but the majority of Islamic banks have limited themselves to less risky trade-financing assets, which tend to be a shorter maturity. This paper tries to analyzes why Islamic banks are reluctant to indulge in mudharabah and musharakah financing. It introduces the theoretical model of balance sheet to compare them to the practices of Islamic banking. Then this paper analyze the reasons why Islamic banks tend to avoid such financing models. In the end it explore the risk management concept that might solve the problem. |
| Keywords: | Islamic banks, profit and loss sharing arrangements, risk management |
| JEL: | G0 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:unp:wpaman:201013&r=cwa |
| By: | Tigran Poghosyan |
| Abstract: | This paper estimates a disequilibrium model of credit supply and demand to evaluate the relative role of these factors in the slowdown of credit flows in the Jordanian economy in the wake of the global financial crisis. The empirical analysis suggests that the credit stagnation is mainly driven by the restricted credit supply amid tighter monetary policy conditions in Jordan relative to the United States, as evidenced by the widened interest differential between the Central Bank of Jordan (CBJ) re-discount and the U.S. Federal Reserve funds rates. Although it appears that demand side factors related to the slowdown of economic activity have also had an impact, their role has been relatively modest. The estimation results imply that economic policies targeted towards stimulating supply of credit are likely to be a more effective tool for expanding credit flows relative to demand stimulating policies. |
| Keywords: | Bank credit , Capital markets , Credit demand , Credit restraint , Economic models , Financial crisis , Global Financial Crisis 2008-2009 , Jordan , Monetary policy , |
| Date: | 2010–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:10/256&r=cwa |
| By: | Ale Ebrahim, Nader; Ahmed, Shamsuddin; Taha, Zahari |
| Abstract: | Small and medium enterprises (SMEs) are considered as an engine for economic growth all over the world and especially for developing countries. During the past decade, new product development (NPD) has increasingly been recognized as a critical factor in ensuring the continued survival of SMEs. On the other hand, the rapid rate of market and technological changes has accelerated in the past decade, so this turbulent environment requires new methods and techniques to bring successful new products to the marketplace. Virtual team can be a solution to answer the requested demand. However, literature have shown no significant differences between traditional NPD and virtual NPD in general, whereas NPD in SME’s virtual team has not been systematically investigated in developing countries. This paper aims to bridge this gap by first reviewing the NPD and its relationship with virtuality and then identifies the critical factors of NPD in virtual teams. The statistical method was utilized to perform the required analysis of data from the survey. The results were achieved through factor analysis at the perspective of NPD in some Malaysian and Iranian manufacturing firms (N = 191). The 20 new product development factors were grouped into five higher level constructs. It gives valuable insight and guidelines, which hopefully will help managers of firms in developing countries to consider the main factors in NPD. |
| Keywords: | Survey findings; new product development; factor analysis; virtual team |
| JEL: | O1 M11 M1 O32 L17 P42 O3 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26936&r=cwa |
| By: | Yoed Halbersberg (Hebrew University of Jerusalem, Faculty of Law and Center for the Study of Rationality) |
| Abstract: | In CA 1093/07 Bachar v. Fokmann [2009] (request for additional hearing denied, 2010) , the Israeli Supreme Court has formed a formula for calculating the deduction of NII payments from a tort victim's claim, when only some of the victim's impairment is causally linked to the tortious act in question. Overall, six Supreme Court Justices have reviewed and affirmed this simple formula. However, this formula is incorrect, as it contradicts some of the most basic tort premises, ignores the way impairment is calculated, and necessarily leads to the under-compensation of the victim, and to an unjust enrichment of either the tortfeasor, the National Insurance Institute, or both. This Article, therefore, calls for the adoption of a different formula that is both legally and arithmetically correct. |
| Keywords: | Tort, Law, Insurance, Deduction, Accident, Formula, Israel, |
| JEL: | K13 |
| Date: | 2010–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:huj:dispap:dp564&r=cwa |
| By: | Patricia Justino; Olga Shemyakina |
| Abstract: | This paper analyzes the impact of remittances on the labor supply of men and women in post-conflict Tajikistan. We find that on average men and women from remittance-receiving households are less likely to participate in the labor market and supply fewer hours when they do. The negative effect of remittances on labor supply is smaller for women, which is an intriguing result as other studies on remittances and labor supply (primarily focused on Latin America) have shown that female labor supply is more responsive to remittances. The results are robust to using different measures of remittances and inclusion of variables measuring migration of household members. We estimate a joint effect of remittances and an individual’s residence in a conflict-affected area during the Tajik civil war. Remittances had a larger impact on the labor supply of men living in conflict-affected areas compared to men in less conflict-affected areas. The impact of remittances on the labor supply of women does not differ by their residence in both the more or less conflict affected area. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:mcn:rwpapr:35&r=cwa |
| By: | Amelia U. Santos-Paulino |
| Abstract: | The paper discusses views on China and India as country role models. In so doing the article recounts the economic and political reforms pursued by the two countries. The paper also outlines the outstanding reforms and the bottlenecks that could jeopardize economic performance and development going forward, drawing lessons for other developing countries. |
| Keywords: | China, India, reforms, growth, development |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-121&r=cwa |
| By: | Sampsa Kiiski; Matti Pohjola |
| Abstract: | This paper investigates the factors which determine the diffusion of the Internet across countries. The Gompertz model of technology diffusion is estimated using data on Internet hosts per capita for the year 1995-2000. [Discussion Paper No. 2001-11] |
| Keywords: | diffusion of technology, internet, internet access cost, Gompertz model, technology adoption, technology diffusion |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3204&r=cwa |
| By: | Mamoon, Dawood; Mukhtar, Zahid Junaid; Ayesha, Anam; Hanif, Noorulain; Aslam, Rizwan; Quddus, Maliha |
| Abstract: | The paper examines patterns of bilateral trade between Pakistan, India, Afghanistan and CARs. It also investigates whether providing India transit route to Afghanistan has opportunity costs for Pakistan’s trade potential with Afghanistan and CARs. In 2009, Pakistan’s exports to Afghanistan amount to US$ 1.3 billion which make up for 7.8 % of Pakistan’s total exports. For the same year, India’s exports to Afghanistan stand at 471 million dollars which make 0.3 % of India’s total exports. Looking at the product wise composition of Pakistan’s exports to Afghanistan, mineral fuels, oils, distillation products are on the top with share of around 29%. Salt, sulpher, earth, plaster, lime and cement and cereals have a share of around 11 %. While animal, vegetable fats and oils, cleavage products and articles of iron and steel have the share of around 7%. On the other hand, the top five exports of India to Afghanistan are man-made filaments with 42 % share, pharmaceutical products with 11 % share, electric and electronic equipment with 7% share and rubber and articles with 6% share. Clearly there is no overlap between exports of Pakistan and India to Afghanistan. Nonetheless Pakistan has already lost its market share to India in pharmaceuticals. The tariff applied to Pakistan by Afghanistan on pharmaceuticals is 2.50 % while India which enjoys Preferential Trade Agreement with Afghanistan only faces an average tariff of 0.60% on pharmaceuticals. Pharmaceuticals are Pakistan’s top performing exports to CARs with 42.5 % share of total exports to CARs. India also exports pharmaceuticals to CARs but its share in total exports to CARs is only 25.5 %. In Afghanistan, Pakistan has clearly lost its market share to India due to presence of preferential tariffs for India in Afghanistan. If Pakistan provides transit route to India for its exports to Afghanistan, cheaper pharmaceuticals of Indian origin can then be re-exported to CARs capturing Pakistan’s market share in CARs. Much like pharmaceuticals there are other Pakistani products which are likely to lose out to India in Afghanistan and CARs if India is provided transit route to Afghanistan. The Wagah-Peshawar-Torkham route which roughly extends up to 800 km is probably the shortest possible one between India and Afghanistan; which would greatly reduce the logistics cost of shipping goods from India to Afghanistan and beyond. In addition to that, the preferential treatment currently enjoyed by Indian products in Afghanistan under the PTA would further cost Pakistani goods by eroding their competitiveness in the Afghan market. In the absence of a robust mechanism to contain the informal trade, allowing Indian goods a passage through Pakistan’s territory would, in all likelihood, worsen the smuggling situation, something Pakistan can ill afford to accept. Therefore, under the circumstances, there are clear economic disadvantages to Pakistan in extending the transit facility to India without adequate safeguards and preferably a quid pro quo, be it political or economic. |
| Keywords: | International Trade; Transit Trade Agreements; Pakistan; India; Afghanistan; Sectoral Analysis |
| JEL: | F4 |
| Date: | 2010–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26696&r=cwa |
| By: | Tony Addison; S Mansoob Murshed |
| Abstract: | Contemporary civil wars are rooted in a partial or complete breakdown of the social contract, often involving disputes over public spending, resource revenues, and taxation. A feasible social contract gives potential rebels something akin to a transfer. When this is improbable, and the potential spoils are rich then warfare is more likely. Grievances, not just pure greed, motivate war. But peace deals can also break down when commitments are not credible. Successful reconstruction after war must rebuild the social contract. The chances of success increase if the economy can achieve broad- based growth. If grievances can be satisfied by absolute improvements in living standards the present donor focus on absolute poverty reduction will be conducive to reviving the social contract. But if grievances are expressed in relative terms, governments and donors must also address inequality and regional gaps. [Discussion Paper No.2001/48] |
| Keywords: | conflict, contract, civilwar, reconstruction |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3206&r=cwa |
| By: | Peter N. Ireland (Boston College) |
| Abstract: | Although theologians and economists communicate their ideas to different professional audiences in different ways, we agree on many basic points. We agree, for instance, that all too often, a large gap appears between "what is" and "what should be." We agree, more specifically, that unregulated markets lead to undesirable and perhaps even disastrous environmental degradation. And we view with great suspicion government policies that redistribute wealth perversely, away from the needy and towards the affluent. But while economists share theologians' concerns about the problems that economic development brings, we can also point to benefits that come with rising income levels. |
| Keywords: | theology, economics, economic development |
| JEL: | A12 A13 O10 Q56 |
| Date: | 2010–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:763&r=cwa |
| By: | Ravi Subramanian; Charu Sachdeva; Sebastian Morris |
| Abstract: | This paper discusses the trends in India's outward FDI over the last decade and then attempts to identify the driving factors for the same. The aim is to provide policy makers with insights regarding levers which would help in encouraging FDI outflows and to stimulate further research in foreign investment from emerging economies. The analysis is based on 287 instances of foreign investment from India by top Indian companies across 17 sectors. The paper draws on the "eclectic" paradigm to study the impact of ownership, location and internalization variables on India's foreign investment. A sector wise analysis of mode of entry, intent of entry and geographic concentration has been performed. At an aggregate level, it has been found that acquisitions have been the predominant mode of entry for Indian firms investing abroad and seeking new markets the primary intent of investment. [W.P. No. 2010-03-01] |
| Keywords: | FDI, driving factors, policy, investment, Indian |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3214&r=cwa |