|
on Central and Western Asia |
|
Issue of 2011‒03‒05
seven papers chosen by Bibhu Prasad Nayak Institute for Social and Economic Change |
| By: | Basher, Syed Abul; Fachin, Stefano |
| Abstract: | The relationship between national saving and investment over the long term is examined for six Gulf Arab oil-exporting developing countries -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. We show that, provided some large outliers are properly accounted for, long-run equilibrium relationships between saving and investment (both total and fixed) exist in these countries. Since these countries have typically large current account surpluses such relationships cannot be explained by standard arguments. Our hypothesis is that the response of investment to saving largely depends on domestic absorptive capacity. |
| Keywords: | Saving-investment correlation; oil-exporting developing countries; GCC countries; absorptive capacity; outlier detection; integrated process. |
| JEL: | H54 C32 E22 O16 E21 |
| Date: | 2011–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:29077&r=cwa |
| By: | Frederick van der Ploeg; Cees Withagen |
| Abstract: | Optimal climate policy is studied. Coal, the abundant resource, contributes more CO2 per unit of energy than the exhaustible resource, oil. We characterize the optimal sequencing oil and coal and departures from the Herfindahl rule. "Preference reversal" can take place. If coal is very dirty compared to oil, there is no simultaneous use. Else, the optimal outcome starts with oil, before using oil and coal together, and finally coal on its own, The "laissez-faire" outcome uses coal forever or starts with oil until it is no longer profitable to do so and then switches to coal. The optimum requires a steeply rising CO2 tax during the oil-only phase and a less steeply rising CO2 tax during the subsequent oil-coal and coal-only phases to avoid the abrupt switch from oil to coal thus leaving a lot of oil in situ. Finally, we analyze the effects on the opitamal transition times and carbon tax of a carbon-free, albeit expensive backstop (solar or wind). Without a carbon tax, a prohibitive coal tax leads to less oil in situ, substantially delays introduction of renewable, and thus curbs global warming substantially. Subsidizing renewables to just below the cost of coal does not affect the oil-only phase. The gain in green welfare dominates the welfare cost of the subsidy if the subsidy gap is small and the global warming challenge is acute. |
| Keywords: | Herfindahl rule, Hotelling rule, non-renewable resource, dirty backstop, coal, global warming, carbon tax, renewables, tax on coal, subsidy on renewables |
| JEL: | Q30 Q42 Q54 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:056&r=cwa |
| By: | Gerhard Mangott |
| Abstract: | This report tracks the major geo-economic and geo-strategic ruptures between the EU and Russia on the future patterns of gas supplies and shipping routes to the EU and the Western Balkans. It identifies the objectives and interests of the actors involved in this struggle: Russia, the EU, various EU members, the countries of the Caspian Basin (Kazakhstan, Uzbekistan, Turkmenistan, Azerbaijan) and the Middle East (Iran, Iraq, Qatar, Egypt) as well as the Maghreb countries (Algeria, Libya). It analyses in great detail the colliding interests of all actors at the intersection of business and (geo-) politics. |
| Keywords: | energy security, EU, Russia, gas, Southern Gas Corridor, South Stream, Nabucco |
| JEL: | F14 F59 L71 L78 L95 Q41 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:367&r=cwa |
| By: | Stanely L. Winer (Carleton University, CESifo and ICER); Lawrence W. Kenny (University of Florida); Walter Hettich (California State University, Fullerton) |
| Abstract: | In this paper, we assess the contributions of current research in political economy to provide answers to these questions, while also presenting some new statistical results on the relation between tax structure and political regimes. Our discussion of the literature is selective and is empirically oriented. Our primary goal is to give a sense of some of the empirical research possibilities that lie ahead. |
| Date: | 2010–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1022&r=cwa |
| By: | Jorge Martinez-Vazquez (International Studies Program. Andrew Young School of Policy Studies, Georgia State University); Andrey Timofeev (International Studies Program. Andrew Young School of Policy Studies, Georgia State University) |
| Abstract: | Until 2009, the Russian economy had been enjoying above 5% annual growth since it hit bottom along with the oil prices in 1998. However, the dynamics of the economic recovery have been very uneven across Russian regions. Thus, the determinants of regional economic growth are likely to have a strong sub-national level component. In this paper we examine the potential role played by the fiscal relations between regional governments and their constituent localities. Our empirical results strongly suggest that intra-regional fiscal inequality across local governments and inter-jurisdictional equalization policies pursued by the regional governments have a substantial impact on regional growth. Specifically, we find the following policy tradeoff: one standard deviation higher level of regional equalization translates into half a standard deviation lower rate of regional growth. One question for future research is whether decentralization designs into a hierarchical system result in more local government equalization in comparison to other inter-governmental design, such as a bifurcated system, where the central government is in charge of local equalization. |
| Date: | 2010–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1011&r=cwa |
| By: | Todd Moss |
| Abstract: | Many of the world’s poorest and most fragile states are joining the ranks of oil and gas producers. These countries face critical policy questions about managing and spending new revenue in a way that is beneficial to their people. At the same time, a growing number of developing countries have initiated cash transfers as a response to poverty, and these programs are showing some impressive results. In this paper, Todd Moss proposes putting these two trends together: countries seeking to manage new resource wealth should consider distributing income directly to citizens as cash transfers. Beyond serving as a powerful and proven policy intervention, cash transfers may also mitigate the corrosive effect natural resources revenue often has on governance. |
| Keywords: | cash transfers, resource curse, direct cash payments |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:237&r=cwa |
| By: | Brown, Colin; Waldron, Scott |
| Abstract: | In its ongoing efforts to identify more socially inclusive forms of development that target households in rural areas of Tibet, the Chinese central government has begun to focus more attention and resources on agricultural modernisation and development. Although agriculture continues to play a pivotal role in rural areas of Tibet, the nature of agriculture and rural society is changing.3 This paper first highlights some of the macroâlevel changes that are occurring and some of the underlying drivers behind these changes. It then describes a model used to understand farm household systems at a microâlevel for the main agricultural areas of the Yalong river and its tributaries . The models explore the impact of agricultural innovations and changing agricultural practices on household consumption, resources, and economic returns. Although the model and analysis are still in a preliminary stage, they reveal detailed insights about the role of agriculture in the livelihoods of Tibetan farm households. |
| Keywords: | Community/Rural/Urban Development, International Development, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100729&r=cwa |