|
on Central and Western Asia |
| By: | Mohieldin, Mahmoud; Iqbal, Zamir; Rostom, Ahmed; Fu, Xiaochen |
| Abstract: | The core principles of Islam lay great emphasis on social justice, inclusion, and sharing of resources between the haves and the have nots. Islamic finance addresses the issue of"financial inclusion"or"access to finance"from two directions -- one through promoting risk-sharing contracts that provide a viable alternative to conventional debt-based financing, and the other through specific instruments of redistribution of the wealth among the society. Use of risk-sharing financing instruments can offer Shariah-compliant microfinance, financing for small and medium enterprises, and micro-insurance to enhance access to finance. And redistributive instruments such as Zakah, Sadaqat, Waqf, and Qard-al-hassan complement risk-sharing instruments to target the poor sector of society to offer a comprehensive approach to eradicating poverty and to build a healthy and vibrant economy. Instruments offered by Islam have strong historical roots and have been applied throughout history in various Muslim communities. The paper identifies gaps currently existing in Organisation of Islamic Cooperation (OIC) countries on each front, that is, Shariah-compliant micro-finance and financing for small and medium enterprises and the state of traditional redistributive instruments. The paper concludes that Islam offers a rich set of instruments and unconventional approaches, which, if implemented in true spirit, can lead to reduced poverty and inequality in Muslim countries plagued by massive poverty. Therefore, policy makers in Muslim countries who are serious about enhancing access to finance or"financial inclusion"should exploit the potential of Islamic instruments to achieve this goal and focus on improving the regulatory and financial infrastructure to promote an enabling environment. |
| Keywords: | Access to Finance,Debt Markets,Banks&Banking Reform,Emerging Markets,Islamic Finance |
| Date: | 2011–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5920&r=cwa |
| By: | Tanja A. Börzel; Vera van Hüllen |
| Abstract: | The EU’s Eastern Enlargement is considered to be one of the (few) successful experiments of promoting good – both effective and legitimate – governance. By contrast, the EU’s transformative power appears to be weak or non-existent vis-à-vis its (old) neighbors in the South and its (new) neighbors in the East. Both are not only marked by ‘bad governance’ but also lack a (credible) membership perspective. While the Western Balkans and Turkey have made significant progress towards good governance, both with regard to government effectiveness and democratic legitimacy, the European Neighborhood Countries (ENCs) appear to be stuck in transition or never got that far in the first place. Even when the effectiveness of their governance institutions has improved, they remain well behind the other regions and especially their democratic legitimacy is still wanting or even in decline. The paper shows that there is a correlation between an EU membership perspective and the successful transformation of neighboring countries. Therefore, it has been argued that the ineffectiveness of the European Neighbourhood Policy (ENP) is due to the lack of this ‘golden carrot’. However, we argue that the prospects of EU membership stabilizes rather than drives the move towards effective and legitimate governance in candidate countries. Thus, a membership perspective is unlikely to either turn around negative or speed up positive developments in the EU’s neighborhood. Even if the ENCs received a membership perspective, it would be unlikely to push them significantly towards democratic and effective governance as long as there is no endogenously driven process of change. Given the EU’s preference for stability and state-building, the ENP does not provide an alternative for promoting good governance either. The ENP clearly lacks transformative power and where it might have some domestic impact, it risks consolidating rather than undermining authoritarian regimes by helping to strengthen their capacities for effective governance. |
| Keywords: | East-Central Europe; East-Central Europe; EU-South-Eastern Europe; EU-South-Eastern Europe; Turkey; neighbourhood policy; governance |
| Date: | 2011–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:erp:kfgxxx:p0035&r=cwa |
| By: | Belousova, Veronika (BOFIT); Goel, Rajeev K. (BOFIT); Korhonen, Iikka (BOFIT) |
| Abstract: | This paper examines determinants of corruption across Russian regions. Key contributions include: (i) a formal study of economic corruption determinants across Russian regions; (ii) comparisons of determinants of perceived corruption versus those of actual corruption; and (iii) studying the influence of market competition and other factors on corruption. The results show that economic prosperity, population, market competition and urbanization are significant determinants of Russian corruption. The use of alternative corruption measures reveals that economic prosperity and population have a largely similar impact on corruption perceptions and corruption incidence. However, there are significant differences in the effects of competition and urbanization. |
| Keywords: | corruption perceptions; corruption incidence; Russia; government; competition |
| JEL: | K42 O42 P37 |
| Date: | 2011–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2011_031&r=cwa |
| By: | Haider, Adnan; Din, Musleh ud; Ghani, Ejaz |
| Abstract: | This paper presents a theoretical model with micro-foundations that captures some important features of Pakistan's economy which have emerged in sixty-four years of its history. A comparison of Pakistan’s economic performance during different regimes shows that macroeconomic fundamentals tend to show an improvement during the autocratic regimes as compared with those prevailing during democratic regimes. In particular, periods of autocratic regimes are typically characterized by low inflation, robust growth and low level of bureaucratic corruption due to better governance. In contrast, the economic performance during the democratic regimes has been observed to worsen with weak governance and high levels of corruption, high inflation due partly to reliance on seigniorage to finance public spending, and lackluster growth. Using annual data from 1950 to 2011, computational modeling is carried out by applying Markov-Regime switching technique with maximum-likelihood procedures. The estimation results based on empirical modeling setup are supportive of the above stylized-facts and also confirm the implications of the theoretical model. |
| Keywords: | Political Instability; Governance; Corruption; Inflation; Growth |
| JEL: | D73 O42 E31 H6 |
| Date: | 2011–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35584&r=cwa |
| By: | De Sousa, Jose |
| Abstract: | Estimating a theoretical gravity model over a sixty-year period, from 1948 to 2009, I found an unexpected trend: the currency union impact on trade is decreasing over time. This result suggests that with trade and financial globalization currency unions become less and less important to promote trade. |
| Keywords: | Currency; Unions; Dollarization; Trade; Gravity; Poisson |
| JEL: | F15 F33 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35448&r=cwa |
| By: | Iqbal, Javed; Hanif, Muhammad Nadim |
| Abstract: | Stochastic approach to index number (and its change) has recently attracted renewed attention of researchers as it provides the standard error of index number (and its change). One of the most important uses of index number is in the case of measurement of the general price level in an economy (and then inflation of course). In this study we estimate standard errors of month on month and year on year inflation in Pakistan under stochastic approach, following Clement and Izan (1987). We contribute in this study by providing mechanism and estimating the standard error of period average of YoY inflation and apply this to Pakistan data. |
| Keywords: | Inflation; Pakistan |
| JEL: | C43 E31 |
| Date: | 2010–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35422&r=cwa |
| By: | Muhammad, Shahbaz |
| Abstract: | This study contributes to energy economic literature by incorporating financial development in neo-classical production function to investigate the electricity consumption and economic growth nexus in case of Pakistan. ARDL bounds testing approach has been applied to examine cointegration between the series over the period of 1971-2009. The direction of causal relationship between the variables is tested by applying VECM Granger causality approach and robustness of causality has been checked by innovative accounting approach (IAA). Our findings confirm the existence of cointegration among the variables. The results indicate that financial development, electricity consumption, capital and labour contribute to economic growth. The VECM Granger causality analysis reveals that feedback hypothesis is found between electricity consumption and economic growth, financial development and electricity consumption, economic growth and financial development, capital and economic growth and, capital and financial development. This implies that energy (electricity) conservation policies will not be appreciated in case of Pakistan. Furthermore, government of Pakistan should encourage making investments on research and development to articulate new energy savings technology to sustain economic growth. In this manner, financial sector should launch new financial policy to encounter the rising demand for electricity and enhance the process of capitalization to raise economic growth by offering and distributing financial resources to efficient and profit oriented ventures. |
| Keywords: | Electricity Consumption; Financial Development; Economic Growth |
| JEL: | Q4 |
| Date: | 2011–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35588&r=cwa |
| By: | Elif Bascavusoglu-Moreau (Centre for Business Research, Judge Business School, University of Cambridge); Mustafa Colakoglu (TTGV Turkey Technology Development Foundation) |
| Abstract: | The purpose of this paper is to explore the determinants of innovative capabilities in an emerging country context. We focus more particularly on the impact of recent changes in SME policies in Turkey. Using a unique firm-level survey conducted on 45.000 SMEs, innovative capabilities of firms are assessed at three different levels; their innovation efforts, innovation decision and innovative intensity. We analyze and compare the impact of two different incentive schemes; one a purely financial support, and the second, consultancy and technological assistance coupled with financial facilities. Whereas all firms seem to benefit from financial support, only less innovative firms take full advantage of the advisory services. Overall, the determinants of innovative capabilities depend considerably on the type of firms, suggesting the need for differentiated policy measures. |
| Keywords: | Small and Medium-Sized Enterprises (SMEs), technological capability building, innovation, SME policies |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1105&r=cwa |
| By: | M. Teoman Pamukçu (TEKPOL, Science and Technology Policy Studies, Middle East Technical University); Erkan Erdil (Department of Economics, Middle East Technical University) |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1104&r=cwa |
| By: | Berna Beyhan (TEKPOL, Science and Technology Policy Studies, Middle East Technical University); M. Teoman Pamukçu (TEKPOL, Science and Technology Policy Studies, Middle East Technical University); Erkan Erdil (Department of Economics, Middle East Technical University) |
| Abstract: | Emerging nanotechnologies bring a new challenge for developing countries to improve knowledge and technology transfer between universities and firms. In developing countries, weaker ties between academia and the industry seem to be one of the main barriers to the dissemination of nanotechnology innovations. This study aims to understand individual and organizational factors affecting university-industry interactions in emerging nanotechnologies in a developing country context, namely Turkey. For this study, 181 questionnaires were collected from a sample of nano-science and nanotechnology academics who are currently employed by Turkish universities. The results provide that informal / interpersonal and research-related interactions are the most common forms of relationship between academics and firms. On the other hand, the study provides a useful insight to understand how human and social capitals of university-scientists as well as organizational resources/ capabilities influence the formation of links between universities and the industry. |
| Keywords: | Nanotechnology, nanoscience, emerging technologies, technology transfer, university-industry relations, science and technology policies, probit model, disproportionate stratified sampling, emerging economies, Turkey. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1106&r=cwa |
| By: | Berna Beyhan (TEKPOL, Science and Technology Policy Studies, Middle East Technical University); M. Teoman Pamukçu (TEKPOL, Science and Technology Policy Studies, Middle East Technical University) |
| Abstract: | We deal with nanotechnology research activities in Turkey. Based on publication data retrieved from ISI Web of SSCI database, the main actors and the main characteristics of nanotechnology research in Turkey are identified. Following a brief introduction to nanoscience and nanotechnology research, it goes on with a discussion on nanotechnology related science and technology policy efforts in developing countries and particularly in Turkey. Then using bibliometric methods and social network analysis techniques, this paper aims to understand the main actors of the nanoscale research in Turkey and how they collaborate across institutes and disciplines. The research indicates that there has been an exponential growth in the number of research articles published by Turkish nanoscience and nanotechnology (NST) scholars for the last ten years. However, the analysis of the main characteristics of nanotechnology research carried out at Turkish universities indicates some drawbacks and barriers to the future development of nanotechnology research in Turkey. These barriers are (i) a high concentration of nanoscale research at certain universities; (ii) low level of interdisciplinarity; (iii) a large number of universities which are not well connected to other universities in the field, and finally (iv) low level of international collaborations. Finally, science and technology policy implications of this research are discussed in the conclusion. |
| Keywords: | Emerging technologies nanotechnology, nanoscience, scientific publications, SSCI, bibliometric data, social network analysis, collaborations, interdisciplinarity, science and technology policies, emerging economies, Turkey. |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1107&r=cwa |
| By: | Alper Sönmez (Department of Economics, Middle East Technical University); M. Teoman Pamukçu (TEKPOL, Science and Technology Policy Studies, Middle East Technical University) |
| Abstract: | Technology spillovers from foreign to domestic firms in emerging economies are considered to be the most important channel through which Foreign Direct Investment (FDI) influence the host economy. Empirical evidence about the existence, magnitude and direction of FDI-related spillovers in these countries is contradictory pointing to the necessity of conducting more econometric studies using firm-level data. We conduct an econometric analysis to assess the impact of FDI-related horizontal technology spillovers on output growth of domestic firms in the Turkish manufacturing industry over 2003-2006. When a broad definition of foreign ownership is adopted, our findings suggest that horizontal spillovers occur from foreign to local firms in the sector of activity. Export-oriented firms do not benefit from these spillovers in contrast to firms producing mainly for the domestic market. However, when foreign ownership is defined according to whether the minority or majority of capital is detained by the foreign partner, horizontal spillovers seem to originate from foreign firms with majority or full foreign ownership while no such effect is associated with minority-owned foreign firms. |
| Keywords: | Foreign Direct Investment (FDI), multinational corporations, foreign ownership, productivity, technology spillovers, knowledge spillovers, horizontal spillovers, Turkey. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1103&r=cwa |
| By: | M. Teoman Pamukçu (TEKPOL, Science and Technology Policy Studies, Middle East Technical UniversityAuthor-Name:Alper Sönmez; Department of Economics, Middle East Technical University) |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1109&r=cwa |
| By: | Abdurrahman Aydemir (Sabanci University); Murat G. Kirdar (Middle East Technical University) |
| Abstract: | This paper examines the employment effects of an increase in labor supply using the politically-driven exodus of ethnic Turks from Bulgaria into Turkey in 1989. The strong involvement of the Turkish state in the settlement of earlier waves of repatriates provides us a strong source of exogenous variation in the 1989 immigrant shock across locations. Using a potential sample of 613 cities and towns in Turkey with variable treatment intensity - in some locations the change in the labor force is almost 10 percent - this analysis places much attention on constructing a matched sample that is well balanced in terms of covariate distributions of the treatment and comparison groups, including matching based on an estimated propensity score. We find a positive effect of repatriates on the unemployment of non-repatriates. In fact, in certain regions, a 10-percentage-point increase in the share of repatriates in the labor force increases the unemployment rate of natives by 4 percentage points. When the analysis is done according to skill groups, we find that the impact is the strongest on the young and on non-repatriates with similar educational attainment. |
| Keywords: | Labor Force and Employment, Immigrant Workers, Quasi experiments |
| JEL: | J21 J61 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1123&r=cwa |
| By: | Fort, Margherita (Department of Economics, University of Bologna, Bologna, Italy); Schneeweis, Nicole (Department of Economics, Johannes Kepler University, Linz, Austria); Winter-Ebmer, Rudolf (Department of Economics, Johannes Kepler University, Linz, and Institute for Advanced Studies, Vienna, Austria) |
| Abstract: | We study the relationship between education and fertility, exploiting compulsory schooling reforms in Europe as source of exogenous variation in education. Using data from 8 European countries, we assess the causal effect of education on the number of biological kids and the incidence of childlessness. We find that more education causes a substantial decrease in childlessness and an increase in the average number of children per woman. Our findings are robust to a number of falsification checks and we can provide complementary empirical evidence on the mechanisms leading to these surprising results. |
| Keywords: | Instrumental variables, education, fertility |
| JEL: | I2 J13 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:ihs:ihsesp:281&r=cwa |
| By: | He, Qichun |
| Abstract: | We consider fertility choice and weather in analyzing the effect of farmland abundance in economic development. We find that quality-adjusted agricultural land abundance may confer a type of "resource curse", in that it prolongs the tenure of an economy in the Malthusian regime. This lends new insights to Unified Growth Theory (Galor, 2011) by elucidating a particular determinant of the differential timing of the transition from Malthusian stagnation to industrialization. Moreover, opposite to the Matsuyama (1992) model, good weather is found to be a blessing for a small open economy, while it is a curse for a closed economy. |
| Keywords: | Weather; Fertility; Quality-adjusted Farmland per capita; Quality-adjusted Farmland Abundance Curse |
| JEL: | O41 O53 O13 Q15 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:35420&r=cwa |