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on Central and Western Asia |
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Issue of 2010‒12‒23
thirteen papers chosen by Bibhu Prasad Nayak Institute for Social and Economic Change |
| By: | Sezgin Polat (Galatasaray University (GIAM)); Francesco Saraceno (Observatoire Français des Conjonctures Économiques) |
| Abstract: | We investigate the general equilibrium effects of minimum consumption constraints over labor supply decisions. Within a simple static model, a minimum consumption constraint modifies labor supply decisions of unskilled workers, generating the well-known added worker effect. The results of the model help to analyze the Turkish labor market where added worker effects were observed following the 2001 crisis. We investigate the asymmetric effects of the crisis, using the Household Budget Surveys that cover the period between 2002 and 2005. The substantial decrease in real wages has increased labor supply for unskilled labor, especially for women. |
| Keywords: | Added worker, Taxation, Bivariate Probit, Labor Supply, Turkish Labor Market |
| JEL: | H2 J21 J22 J31 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1036&r=cwa |
| By: | Erdogan Kumcu; James E. McClure (Department of Economics, Ball State University) |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:bsu:wpaper:201011&r=cwa |
| By: | Kinda, Romuald |
| Abstract: | This paper aims at analysing the effect of democratic institutions on environmental quality (carbon dioxide per capita, sulfure dioxide per capita) and at identifying potential channel transmissions. We use panel data from 1960 to 2008 in 122 developing and developed countries and modern econometric methods. The results are as follows: Firstly, we show that democratic institutions have opposite effects on environment quality: a positive direct effect on environment quality and a negative indirect effect through investments and income inequality. Indeed, democratic institutions attract investments that hurt environment quality. Moreover, as democratic institutions reduce income inequality, they also damage environment. Secondly, we find that the direct negative effect of democratic institutions is higher for local pollutant (SO2) than for global pollutant (CO2). Thirdly, the nature of democratic institutions (presidential, parliamentary) is not conducive to environmental quality. Fourtly, results suggest that the direct positive effect of democratic institutions on environment quality is higher in developed countries than in developing countries. Thus, the democratic process in the first group of countries has increased their awareness for the environment protection. |
| Keywords: | Democratic institutions (043); Air pollution (Q53); Panel data (C23); Income inequality (D31); Investments (E22) |
| JEL: | O43 C5 Q53 |
| Date: | 2010–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27455&r=cwa |
| By: | Mikic, Mia; Ramjoue, Melanie |
| Abstract: | This paper examines the progress made so far in achieving the trade targets of Millennium Development Goal 8 (“Building a Global Partnership for Development”) with respect to the Least Developed Countries (LDCs) of Asia and the Pacific. The paper uses data from the OECD, WTO and UNDP, among others, to measure the MDG indicators 8.6, 8.7 and 8.9 with respect to these countries, thereby quantifying some of the impacts in these countries of recent global and national policy changes in the areas of market access, tariff preferences for LDCs and Aid for Trade. This paper concludes that while the market access commitments of the Hong Kong WTO Ministerial Declaration of 2005 have largely been met and LDCs of the Asia-Pacific benefit disproportionately from Aid for Trade, the overall share of LDC exports as a part of total world exports has not increased over the past decade. In its conclusion, this paper suggests that other factors such as non-tariff barriers and product competitiveness play a significant role and should become policy priorities of better targeted Aid for Trade. |
| Keywords: | MDG 8; least developed countries (LDCs); Asia; Pacific; market access; tariff-free; quota-free; MDG indicators 8.6; 8.7 and 8.9; supply capacity; aid for trade |
| JEL: | F13 F19 |
| Date: | 2010–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27451&r=cwa |
| By: | Fallahi, Firouz; Sakineh, Sojoodi; Mehin Aslaninia, Nasim |
| Abstract: | In an era of globalized competition, productivity has become a crucial factor determining profitability, competitiveness and the growth of a firm. High productivity means lower per unit cost and, therefore, ability of the firm to match prices on the global markets. Because of that, there has been an increasing interest recently in the literature on factors affecting productivity. This paper investigates the determinants of labor productivity at the firm level in the Iran’s manufacturing sector. The analysis is based on descriptive statistics and cross sectional regression models on a sample of 12299 Industrial firms. The results show that labor productivity is positively related to wage, fixed capital per employee, export orientation, R&D activity and Education of labor force. |
| Keywords: | Labor productivity; Industrial firms; Education; Training; Export; R&D |
| JEL: | J24 J2 |
| Date: | 2010–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27447&r=cwa |
| By: | Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari |
| Abstract: | In this paper, we present our more than two years research experiences on virtual R&D teams in small and medium-sized enterprises (SMEs) and draws conclusions, giving special attention to the structure of virtual teams required to support education-industry collaboration. We report the relevant results of an online survey study. The online questionnaire was emailed by using a simple random sampling method to 947 manufacturing SMEs. The findings of this study show that SMEs in Malaysia and Iran are willing to use virtual teams for collaboration and the platform for industry-education collaboration is ready and distance between team members or differences in time zones, are not barriers to industry-education collaborations. |
| Keywords: | Collaboration; virtual teams; SMEs; Education |
| JEL: | M12 O32 A2 L17 L1 O1 M11 M1 L15 O3 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27414&r=cwa |
| By: | Rowthorn, Robert; Seabright, Paul |
| Abstract: | This paper explains the multiple adoption of agriculture around ten thousand years ago, in spite of the fact that the first farmers suffered worse health and nutrition than their hunter gatherer predecessors. If output is harder for farmers to defend, adoption may entail increased defense investments, and equilibrium consumption levels may decline as agricultural productivity increases over a signi ficant range, before eventually increasing thereafter. Agricultural adoption may have been a prisoners' dilemma in that adoption was individually attractive even though all groups would have been better off committing not to adopt while the initial productivity advantage of agriculture remained low. |
| Keywords: | agriculture, defense, property rights, contest functions, Neolithic transition |
| JEL: | D74 N30 N40 O12 O40 Q10 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:23850&r=cwa |
| By: | Koshy, Perumal |
| Abstract: | Present paper looks at how Rural Business Incubators (RBIs) & Enterprise Resource Centers (ERCs) together with Micro Finance Institutions (MFIs) can contribute to inclusive growth. India’s informal sector has a very powerful presence of brilliant entrepreneurs, who can potentially contribute to India’s fight against poverty and have the potential for much more employment & income generation, if appropriate institutional mechanisms are created to provide needed & timely assistance. Here comes the role of RBIs & ERCs and MFIs. Approximately 93 percent of the enterprises are in the informal sector in India. Together with Micro, Small & Medium Enterprises (MSMEs), informal sector contributes close to 60 percent to GDP and 40 percent or more to export trade. They create 95 percent of non-farm jobs. Informal enterprises are set-up by owners to alleviate their poverty condition. They could be termed as poverty alleviating enterprises (PAEs). Micro finance institutions need to reach out to such PAEs and empower them. Through the institutional mechanism called RBIs & ERCs, micro financiers can reach out to PAEs. Empowering PAEs and enabling their growth is indeed a challenging task. An institutional mechanism like RBI & ERC is a probable solution to poverty and unemployment. If an incubator & ERC can come up in each of the 6000 block panchayats, that would enable the creation of new enterprises in the formal sector as well as can contribute to empower PAEs in their growth & expansion. This would help create new jobs and alleviate poverty and generate employment. The paper ends with a model RBI & ERC. with a detailed description of service mix that can be delivered through this institutional mechanism. |
| Keywords: | Micro; Small and Medium Enterprises(MSMEs); Rural Business Incubutors; Poverty Alleviation; Employment Generation; Rural Transformation; Information Needs of MSMEs |
| JEL: | R58 N25 E26 |
| Date: | 2010–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27381&r=cwa |
| By: | Wang, Yong (Center for International Political Economy) |
| Abstract: | The paper aims to examine economic interdependence and balancing power politics, and their mixed implications for regional institution building in East Asia based on the concept of common security. By pointing out the gap between the violent conflict prediction and the stability and prosperity reality following the end of the Cold War, the paper gives analysis to the factors affecting the security relations in the region, including (i) the role of the US, (ii) the rise of the PRC, (iii) ASEAN's efforts at regional cooperation, the (iv) the PRC–Japan rivalry. The author concludes that economic interdependence and regional cooperation in Asia have constrained a power struggle from spiraling out of control, while open regionalism has become a reasonable approach to regional institution building. Finally, the paper makes policy recommendations with respect to principles and steps in moving to a new regional security order. |
| Keywords: | East Asia; Regional Cooperation; Power Politics; Balance of Power; Regional Institutions; Common Security |
| JEL: | F53 |
| Date: | 2010–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0068&r=cwa |
| By: | David J. Ramberg; John E. Parsons |
| Abstract: | Several recent studies establish that crude oil and natural gas prices are cointegrated, so that changes in the price of oil appear to translate into changes in the price of natural gas. Yet at times in the past, and very powerfully in the last two years, many voices have noted that the two prices series appear to have “decoupled”. We explore the apparent contradiction between these two views. Although we also find that the two series are cointegrated, recognition of the statistical fact of cointegration needs to be tempered with two additional points that we think have been insufficiently emphasized in the past literature. First, there is an enormous amount of unexplained volatility in natural gas prices at short horizons. Hence, any simple formulaic relationship between the price of oil and the price of natural gas will leave a large portion of the price of natural gas unexplained. Second, the cointegrating relationship does not appear to be stable through time. Natural gas prices may be tied to oil prices, but the relationship can shift dramatically over time. Therefore, although the two price series are cointegrated, the confidence intervals for both short and long time horizons are large. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:mee:wpaper:1017&r=cwa |
| By: | DELPIERRE Matthieu; VERHEYDEN Bertrand |
| Abstract: | This paper provides a theory of migrants’ decisions to remit and save under uncertainty in connection with future location decisions. We show that the impact of remittances on the risk faced by the migrant is more complex than usually acknowledged. On the one hand, their effect on aggregate risk is non-monotonic. On the other hand, their impact on the geographical location of risk might be counter-intuitive, as remittances increase the migrant’s exposure to risk in the origin country. Also, marginal returns to remittances may be increasing, at least locally, due to the endogeneity of the future location. Interior solutions are therefore not guaranteed, and liquidity constraints faced by migrants may be binding. Finally, undocumented migrants are shown to be more likely to remit than legal migrants. |
| Keywords: | return migration; remittances; risk; investment |
| JEL: | D13 D80 O12 O15 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2010-39&r=cwa |
| By: | Niklas Potrafke (Department of Economics, University of Konstanz, Germany) |
| Abstract: | This paper examines whether government ideology has influenced the allocation of public expenditures in OECD countries. I analyze two datasets that report different expenditure categories and cover the time periods 1970-1997 and 1990-2006, respectively. The results suggest that government ideology has had a rather weak influence on the composition of governments’ budgets. Leftist governments, however, increased spending on “Public Services” in the period 1970-1997 and on “Education” in the period 1990-2006. These findings imply, first, that government ideology hardly influenced budgetary affairs in the last decades, and thus, if ideology plays a role at all, it influences non-budgetary affairs. Second, education has become an important expenditure category for leftist parties to signal their political visions to voters belonging to all societal groups. |
| Keywords: | budget composition, public expenditures, government ideology, partisan politics, education policy, panel data |
| JEL: | D72 H50 H61 I28 C23 |
| Date: | 2010–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:knz:dpteco:1016&r=cwa |
| By: | Abdur R. Chowdhury |
| Abstract: | This paper has three objectives. First, to explain what led to the crisis in the East and the South East Asia in the 1990s and how did this spread throughout the region; second, to analyse the lessons that can be learned from this crisis to prevent it from reoccurring in the future, and third, to evaluate the future outlook of the countries in this region. [Research for Action 47] |
| Keywords: | East, South East Asis, lessons, countries, future |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:3306&r=cwa |