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on Central and Western Asia |
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Issue of 2011‒01‒03
nineteen papers chosen by Bibhu Prasad Nayak Institute for Social and Economic Change |
| By: | Benjamin Beranek (Department of Economics, Izmir University of Economics); Alper Duman (Department of Economics, Izmir University of Economics) |
| Abstract: | While the public good experiment has been used to analyze cooperation among various groups in Western Europe and North America, it has not been extensively used in other contexts such as Turkey. This project seeks to rectify that and explore how Turkish university students informally self govern. By employing the public good experiment among a cohort of students attending universities in Ýzmir, Turkey and Adýyaman, Turkey, we hope to quantitatively analyze the factors which lead to altruistic punishment, to antisocial punishment, and ultimately to enhanced cooperation in Turkish society. |
| Keywords: | Cooperation, Free Riding, Altruism, Punishment, Trust, Experimental Economics, Public Good Experiments |
| JEL: | C72 C91 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:izm:wpaper:1004&r=cwa |
| By: | dumludag, devrim |
| Abstract: | This paper compares the political economy of foreign direct investment (FDI) in relation to economic development strategies and legal framework for foreign firms in Egypt and Turkey. The paper briefly examines the FDI performances of these countries starting from the end of the nineteenth century to the first decades of the twenty first century. In addition, in this paper, the legal framework for FDI is analyzed. Finally the paper put emphasis on the similarities between the FDI performances and the obstacles that foreign investors face in these countries. |
| Keywords: | Egypt, Turkey, Economic Conditions, Foreign Direct Investment, Legal Framework |
| JEL: | F23 F21 |
| Date: | 2010–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27520&r=cwa |
| By: | Polat, Sezgin (Galatasaray University Economic Research Center); Saraceno, Francesco (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; Turkey |
| JEL: | H23 J21 J22 J31 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:giamwp:2010_003&r=cwa |
| By: | Serdar Çelik (Department of Mechanical Engineering, Southern Illinois University Edwardsville); William Retzlaff (Department of Biological Sciences, Southern Illinois University Edwardsville); Susan Morgan (Department of Civil Engineering, Southern Illinois University Edwardsville); Ayla Ogus Binatli (Department of Economics, Izmir University of Economics); Cemil Ceylan (Department of Industrial Engineering, Istanbul Technical University) |
| Abstract: | This paper examines the energy savings, environmental benefits, and economic impact of green roof systems applied to a “micro” region in Western Turkey. This subdivision (Artur) in Karaaðaç, Izmir, consists of 1729 residential units, mostly used as summer homes. The units are in 45m2, 60m2, 90m2, and 105m2 sizes. Five different plant types were considered to be blended and planted in two different choices of growth media. Thermal benefits of the vegetated roofs to the pilot site were evaluated using appropriate heat transfer equations. For analyzing the impact of use of such systems on the local economy, monetary injection into the local economy was calculated and a multiplier effect of 2.66 was assumed. Net present value (NPV) of the generated income for the first 10 years was calculated to be approximately $14.5 million. In addition, approximately 300 new local jobs over a period of 10 years were estimated to be created. |
| Keywords: | Green roofs, Economic impact, Energy conservation, Turkey |
| JEL: | Q2 Q4 Q5 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:izm:wpaper:1001&r=cwa |
| By: | Nour, Samia Satti Osman Mohamed (Faculty of Economic and Social Studies, Khartoum University, and UNU-MERIT) |
| Abstract: | In this paper we use the systematic, descriptive and statistical approaches, fill the gap in the Arab literature and present a more comprehensive analysis of the important ways of enhancing the incidence and transfer of knowledge in the Arab countries. Different from the conventional view in the literature that use the conventional classification of countries according to income level, an interesting element in our analysis is that we use a more comprehensive classification not only by income level but also by geographic location and the structure of the economy to examine the important ways of enhancing the incidence and transfer of knowledge in the Arab countries. We find that somewhat surprising the classification of Arab countries by income level provides inconclusive evidences in terms of capacity to create knowledge. Our findings support the first hypothesis that the components of knowledge show positive correlation with economic growth and hence can be used to enhance economic growth and promote human capital in the Arab countries. Our results corroborate the second and third hypotheses that the incidence and transfer of knowledge can be enhanced by institutional support in the form of subsidies and incentives to knowledge components (education, R&D and ICT). The major policy implication from our findings is that in order to benefit from integration in global knowledge economy the Arab countries should create the most appropriate political, economic, educational, technological and scientific institutions. The Arab countries should stimulate local efforts and incentives for building and transferring knowledge and should pay more attention to enhance institutions setting, especially, effective system of intellectual property rights protection to motivate the creation and transfer of knowledge. Apart from the role of Arab governments, it is essential for Arab societies to support the culture aimed at fostering and enhancing the incidence and transfer of knowledge. |
| Keywords: | : Tacit Knowledge, Codified Knowledge, Transfer of Knowledge, Arab countries |
| JEL: | O10 O11 O30 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2010064&r=cwa |
| By: | Tansel, Aysit (Middle East Technical University); Yaşar, Pınar (State Planning Organization) |
| Abstract: | This study estimates a Keynesian simultaneous, dynamic macroeconometric model to investigate the impact of remittances on key macro variables such as consumption, investment, imports and income in Turkey. The estimated impact and dynamic multipliers indicate that impact of remittances on consumption, imports and income are all positive and reduce gradually while that on investment wears out in the second year. The impact multiplier for income implies a substantial increase in income due to remittances through the multiplier process. The remittances-induced output growth rate is highest during the early 1970s and the early 1980s, but negligible during the other years. |
| Keywords: | dynamic model, remittances-induced output growth, remittances |
| JEL: | F22 F21 C52 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5376&r=cwa |
| By: | Tadashi Maekawa; Michitoshi Kawamura (The Institute of Energy Economics, Japan) |
| Abstract: | The demand for oil products in Asia, particularly in China and India, is now growing strongly. The demand is estimated to rise to 29.9 million b/d by 2015, demonstrating growth of 15% (approximately 3.9 million b/d) compared to 26 million b/d in 2009. As for supply, until 2008, Asian countries had strived to upgrade their refining capacities only proportionate to demand. Contrary to this, large-scale projects to upgrade facilities undertaken by China and India in 2009 pushed up the refining capacity to 28 million b/d, outpacing demand by 2 million b/d. China and India have plans to upgrade their refining capacities by 3.3 million b/d and 1.2 million b/d by 2015, respectively, which means that supply will surpass demand (29.9 million b/d) by 3 million b/d by 2015. These facts reveal the issue of overcapacity of refining facilities. It is important for the Japanese oil refining sector to curtail such overcapacity so as to achieve an optimal supply-demand balance, to promote trading of products with an emphasis on Japan's advantages, and thereby to reinforce its international competitiveness. Major Asian countries can be divided into two categories in accordance with their oil pricing mechanisms: i.e. countries where oil price is determined based on the free market mechanism, such as Japan, South Korea, etc; and countries where the oil pricing mechanism is regulated by the government, such as China, Taiwan, India, etc. It is important to keep a close watch on the countries with a regulated pricing mechanism, as the recent trend shows that these countries will take steps for deregulation in the future. Oil pricing is closely connected to demand. The climate of demand is the key factor for determining a profitable price. The Japanese oil sectors will need to strive to eliminate the factors which would be obstacles to fair pricing, by means of addressing the overcapacity so as to achieve an optimal supply-demand balance and coming up with effective frameworks to ensure a sound market. In addition, in order for the Japanese oil sectors to sustain their supply chains while maintaining an optimal supply-demand balance, they would need to move ahead to take restructuring steps including a new pricing mechanism so as to attain both "adequate refining margin" and "shortening time lags." |
| Keywords: | oil demand, Asia, oil refining sector |
| JEL: | O13 Q41 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:energy:2463&r=cwa |
| By: | Hiroyuki Taguchi; Geethanjali Nataraj; Pravakar Sahoo (Policy Research Institute) |
| Abstract: | This paper examines the trends in monetary autonomy and its interaction with financial integration, currency regime and foreign reserves for the past two decades in select Asian countries viz., Thailand, Korea, Indonesia, Philippines, and India. Our main findings are as follows: First, Thailand, Korea and Indonesia, who experienced the change in currency regime towards a floating regime, have lowered the sensitivities of their interest rates (have raised monetary autonomy) after the regime change, while India without any change in currency regime has continued to raise the sensitivities of its interest rates (has lowered monetary autonomy) in line with increased financial integration. Second, in all sample economies, the accumulation of foreign reserves has contributed to retaining monetary autonomy in terms of preventing the sensitivities of interest rates from rising. We speculate that their accumulation might take a role as an anchor for monetary autonomy to the emerging market economies facing “fear of floating”. |
| Keywords: | monetary autonomy, financial integration, currency regime, foreign reserves, Asian emerging market economies, fear of floating |
| JEL: | E52 F33 F41 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:macroe:2459&r=cwa |
| By: | Cooray, Arusha (University of Wollongong) |
| Abstract: | This study examines the effect of the quantity and quality of education on economic growth. Using a number of proxy variables for the quantity and quality of education in a cross section of low and medium income countries, this study finds that education quantity when measured by enrolment ratios, unambiguously influences economic growth. The effect of government expenditure on economic growth is largely indirect through its impact on improved education quality. |
| Keywords: | Economic Growth, Education Quantity, Enrolment, Government Spending on Education, Education Quality, Cross Country |
| JEL: | O11 O15 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:uow:depec1:wp10-14&r=cwa |
| By: | Christian Kalhoefer (Faculty of Management Technology, The German University in Cairo); Sara Shenouda (Faculty of Management Technology, The German University in Cairo); Ahmed Badawi (Faculty of Management Technology, The German University in Cairo) |
| Abstract: | The forward premium puzzle in the exchange rate market, resulting from the deviation and failure of interest rate parity, has awakened the interest of speculators to perform carry trade activities. Across literature the main risk associated and measured for carry trade has been the exchange rate risk and crash risk related to the relevant currencies used. But within the literature, the influence of maintained currencies on the carry trade results has not yet been covered. This paper analyzes the potential performance and the risk of carry trade strategies within a maintained exchange rate regime. For this analysis an empirical study of carry trade strategies applied between the EGP and other currencies has been used and compared to those with the USD as an example for a maintained exchange rate. Our risk and return analysis clearly shows a combination of high return and low risk for the maintained currency carry trade. |
| Keywords: | Carry Trade Performance, Uncovered Interest Parity, Maintained Exchange Rates, Value at Risk |
| JEL: | F31 G15 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:guc:wpaper:24&r=cwa |
| By: | Adireksombat, Kampon; Fang, Zheng; Sakellariou, Chris |
| Abstract: | Using unconditional quantile regression combined with Oaxaca-Blinder decomposition, we study the gender wage differentials over the whole distribution in Thailand from 1991 to 2007. A V-shape pattern of the overall gender gap is observed in each year, most attributable to the wage structure effect (“discrimination”), and persistent sticky floors are documented. We also develop a “double decomposition” method to analyze the over-time changes in gender wage gaps, and find that the degree of gender inequality in the Thai labor market has improved compared to the 1990s, while relative changes in characteristics explained only very small part of the total changes. |
| Keywords: | Southeast Asia; Thailand; unconditional quantile regression; sticky floors; discrimination |
| JEL: | J71 C31 J16 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27516&r=cwa |
| By: | Georgios E. Chortareas; Claudia Girardone; Jesus Gustavo Garza-Garcia |
| Abstract: | The wave of consolidation and the rapid increase in market concentration that took place in most Latin American countries has generated concerns about the rise in banks' market power and its potential effects on consumers. This paper advances the existing literature by testing the market power (Structure-Conduct-Performance and Relative Market Power) and efficient structure (X- and scale efficiency) hypotheses for a sample of over 2,500 bank observations in nine Latin American countries over 1997-2005. We use the Data Envelopment Analysis technique to obtain reliable efficiency measures. We produce evidence supporting the efficient structure hypotheses. Finally, capital ratios and bank size seem to be among the most important factors in explaining profits for these Latin American banks. |
| Keywords: | Structure-Conduct-Performance, Efficient Structure, Banking System in Some Latin American Countries, Data Envelopment Analysis (DEA) |
| JEL: | G21 D24 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2010-20&r=cwa |
| By: | Liliana Fernandes (Faculdade de Economia e Gestão - Universidade Católica Portuguesa, Porto); Américo Mendes (Faculdade de Economia e Gestão - Universidade Católica Portuguesa, Porto); Aurora Teixeira (Faculdade de Economia - Universidade do Porto) |
| Abstract: | The research on indicators on the state of child well-being is a growing field and one that has experienced several changes through time. Due to the growing supply of data on children, and in order to facilitate conclusions and tracking trends, researchers have been led to develop child well-being summary indexes. Several proposals have already been presented. In the present work, we critically review the most prominent summary child well-being indexes recently constructed, the Index of Child and Youth Well-Being in the United States, the Child Well-being Index for the European Union, the Microdata Child Well-Being Index, and the Deprivation Index. The examination is carried out according to the contributions and innovations the indexes have brought to the field. A critical assessment of the methods used in the construction of the indexes is made and their main limitations identified. Accordingly, some future lines of research to improve child well-being measurement through summary indexes are put forward. |
| Keywords: | child well-being, measurement, composite indices |
| JEL: | I31 I32 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:cap:wpaper:022010&r=cwa |
| By: | Eric Bahel; Walid Marrouch |
| Abstract: | In this paper we study the effects on the food market of the introduction of biofuels as a substitute for fossil fuel in the energy market. We consider a world economy with an oil cartel and a competitive fringe of farmers producing energy in the form of biofuels. Farmers also produce food and sell it on the world food market. We determine the resulting relationship between prices in the energy and food markets and characterize the cartel's extraction path and the price path of energy. We show that the price of food will be growing as long the oil stock is being depleted, whether population is growing or not, and that it will keep growing after the oil stock is exhausted if population is growing. |
| Keywords: | biofuel, oil depletion, population growth, energy price, food price |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:vpi:wpaper:e07-26&r=cwa |
| By: | Chia-Lin Chang; Philip Hans Franses; Michael McAleer (University of Canterbury); Les Oxley (University of Canterbury) |
| Abstract: | The paper is concerned with analysing what makes a great journal great in the sciences, based on quantifiable Research Assessment Measures (RAM). Alternative RAM are discussed, with an emphasis on the Thomson Reuters ISI Web of Science database (hereafter ISI). Various ISI RAM that are calculated annually or updated daily are defined and analysed, including the classic 2-year impact factor (2YIF), 5-year impact factor (5YIF), Immediacy (or zero-year impact factor (0YIF)), Eigenfactor, Article Influence, C3PO (Citation Performance Per Paper Online), h-index, Zinfluence, PI-BETA (Papers Ignored - By Even The Authors), Impact Factor Inflation (IFI), and three new RAM, namely Historical Self-citation Threshold Approval Rating (H-STAR), 2 Year Self-citation Threshold Approval Rating (2Y-STAR), and Cited Article Influence (CAI). The RAM data are analysed for the 6 most highly cited journals in 20 highly-varied and well-known ISI categories in the sciences, where the journals are chosen on the basis of 2YIF. The application to these 20 ISI categories could be used as a template for other ISI categories in the sciences and social sciences, and as a benchmark for newer journals in a range of ISI disciplines. In addition to evaluating the 6 most highly cited journals in each of 20 ISI categories, the paper also highlights the similarities and differences in alternative RAM, finds that several RAM capture similar performance characteristics for the most highly cited scientific journals, determines that PI-BETA is not highly correlated with the other RAM, and hence conveys additional information regarding research performance. In order to provide a meta analysis summary of the RAM, which are predominantly ratios, harmonic mean rankings are presented of the 13 RAM for the 6 most highly cited journals in each of the 20 ISI categories. It is shown that emphasizing THE impact factor, specifically the 2-year impact factor, of a journal to the exclusion of other informative RAM can lead to a distorted evaluation of journal performance and influence on different disciplines, especially in view of inflated journal self citations. |
| Keywords: | Research Assessment Measures (RAM); impact factors; Immediacy; Eigenfactor; Article Influence; Cited Article Influence; h-index; C3PO; Zinfluence; PI-BETA; IFI; H-STAR; 2Y-STAR |
| JEL: | C45 C10 Z0 |
| Date: | 2010–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cbt:econwp:10/75&r=cwa |
| By: | Kato, Kazuhiko |
| Abstract: | The paper compares emission tax and emission quota in a mixed duopoly when the partial privatization of a public firm is allowed. Furthermore, we consider the following two cases with regard to the objective of the public firm: (1) the public firm maximizes the weighted average of its profit and wefare and (2) the public firm maximizes the weighted average of its profit and the sum of consumer surplus and producer surplus. We show that emission tax is welfare superior to emission quota regardless of the degree of partial privatization in (1), whereas the former is inferior to the latter when the degree of partial privatization is high in (2). |
| Keywords: | environment; mixed duopoly; quota; tax |
| JEL: | L33 Q58 |
| Date: | 2010–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27630&r=cwa |
| By: | Sumit Agarwal; Sujit Chakravorti; Anna Lunn |
| Abstract: | Using a unique administrative level dataset from a large and diverse U.S. financial institution, we test the impact of rewards on credit card spending and debt. Specifically, we study the impact of cash-back rewards on individuals before and during their enrollment in the program. We find that with an average cash-back reward of $25, spending and debt increases by $79 and $191 a month, respectively during the first quarter. Furthermore, we find that cardholders who do not use their card prior to the cash-back program increase their spending and debt more than cardholders with debt prior to the cash-back program. In addition, we find that 11 percent of cardholders that did not use their cards in the previous 3 months prior to the cash-back program spent at least $50 in the first month of the program. Finally, we find heterogeneous responses by demographic and credit constraint characteristics. |
| Keywords: | Credit cards ; Consumption (Economics) |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedhwp:wp-2010-19&r=cwa |
| By: | Oswald, Andrew J. (University of Warwick) |
| Abstract: | This paper argues – in line with the proposals of the recent Stiglitz Commission on the Measurement of Economic Performance and Social Progress – that we should now be measuring a nation's emotional prosperity rather than its economic prosperity (that is, we ought to focus on the level of mental well-being not the number of pounds in people's bank accounts). The paper reviews recent ideas in this field. It also describes seven recent studies that, worryingly, suggest that emotional prosperity may be declining through time. For labour-market specialists, a key question for future research is how much this downward trend can be traced back to increased pressures in working life. That question currently remains open. |
| Keywords: | well-being, biomarkers, GHQ, happiness, Easterlin paradox |
| JEL: | I1 I3 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5390&r=cwa |
| By: | Yamamura, Eiji |
| Abstract: | Since the end of the 1990s, local governments in Japan have enacted Information Disclosure Ordinances, which require the disclosure of official government information. This paper uses Japanese prefecture-level data for the period 1998–2004 to examine how this enactment affected economic growth. Furthermore, this paper explores how generalized trust is associated with the effect of information disclosure on economic growth. The Dynamic Panel model is used to control for unobserved prefecture specific effects and endogenous bias. The major findings are: (1) disclosure of government information has a positive effect on GDP growth; and (2) generalized trust enhances this effect on GDP growth. This implies that social trust has a critical influence on the effectiveness of policy. |
| Keywords: | Information disclosure; Local government; Trust; Growth |
| JEL: | D73 D78 Z13 D79 |
| Date: | 2010–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27703&r=cwa |