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on Central and Western Asia |
| By: | Kubo, Koji |
| Abstract: | Myanmar maintained a multiple exchange rate system, and the parallel market exchange rate was left untamed. In the last two decades, the Myanmar kyat exchange rate of the parallel market has exhibited the sharpest fluctuations among Southeast Asian currencies in real terms. Since the move to a managed float regime in April 2012, the question arises of whether exchange rate policies will be effective in stabilizing the real exchange rate. This paper investigates the sources of fluctuations in the real effective exchange rate using Blanchard and Quah’s (1989) structural vector autoregression model. As nominal shocks can be created by exchange rate policies, a persistent impact of a nominal shock implies more room for exchange rate policies. Decomposition of the fluctuations into nominal and real shocks indicates that the impact of nominal shocks is small and quickly diminishes, implying that complementary sterilization is necessary for effective foreign exchange market interventions. |
| Keywords: | Myanmar, Foreign exchange, Real and nominal effective exchange rates, Structural VAR |
| JEL: | F31 F41 O53 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper388&r=cwa |
| By: | Catherine Locatelli (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I) |
| Abstract: | The Russian gas sector is undergoing significant changes which is opening the way for an original reform. Because of the particular institutional and economic context of the country, this reorganisation is not taking place along the lines of the de-integrated model of the EU. It is characterised by increasingly significant competitive fringes. Gazprom remains the main actor of the Russian gas industry but the company is facing challenges on its main export market and an increasing competition at home with the arrival of new gas firms, independents and Russian oil companies. For Gazprom, the aim issue is to develop more flexible strategies for export markets but also on its internal market. These internal changes will not be without consequence on the country's export strategy and the implication for international markets could be considerable. |
| Keywords: | Russia ; reform of the gas organisational model ; institutional analysis ; Gazprom ; gas industry |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00853776&r=cwa |
| By: | Bekchanov, Maksud; Bhaduri, Anik; Ringler, Claudia |
| Abstract: | Increasing water demand due to population growth, irrigation expansion, industrial development, and the need for ecosystem improvements under mounting investment costs for developing new water sources calls for the efficient, equitable and sustainable management of water resources. This is particularly essential in the Aral Sea Basin (ASB) where ineffective institutions are the primary reason of intersectoral and inter-state water sharing conflicts and lack of sufficient investments for improving water use efficiency. This study examined market-based water allocation as an alternative option to the traditional administrative allocation to deal with water scarcity issues in the ASB. Potential economic gains of tradable water use rights were analyzed based on a newly constructed integrated hydro-economic river basin management model. The analysis differentiates between inter-catchment and intra-catchment water trading. The former does not consider any restrictions on water trading whereas the latter is based on the assumption that water trading is more likely to happen between neighboring water users located within the same catchment area. The analyses show that compared to fixed water allocation, inter-catchment water trading can improve basin-wide benefits by US$ 373 and US$ 476 million depending on water availability. Similarly, additional gains of US$ 259 to US$ 339 million are estimated under intra-catchment water trading depending on relative water availability. Trading gains are higher under drier conditions. However, water trading carries a series of transaction costs. We find that transaction costs exceeding US$0.05 per m3 of water traded wipe out the economic potential for water trading. Enforcement of the rule of law, infrastructural improvements, participation of representatives of all water stakeholders in decision making processes, and friendly relationships among the riparian countries are suggested as means for reducing transaction costs of water trading contracts. |
| Keywords: | inter-catchment and intra-catchment water trading, transaction costs, hydro-economic model, Agribusiness, International Development, International Relations/Trade, Land Economics/Use, Resource /Energy Economics and Policy, |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:155504&r=cwa |
| By: | Duvvuru, Narasimha Reddy; Motkuri, Venkatanarayana |
| Abstract: | The present paper examines the changing nature of labour use in rice cultivation in Andhra Pradesh. The study observed that there is a fast decline in labour use in respect of rice cultivation in Andhra Pradesh. All three forms of labour (family, casual and attached) have followed the same trend. But the share of casual labour in the total labour used in rice cultivation is increasing with a corresponding decline in the share of family labour. By gender, although both male and female labour use in rice cultivation has been declining, it is faster for female labour. Also, a noticeable decline in the share of harvesting and threshing/winnowing which are increasingly mechanized, in total labour used per hectare of rice cultivation. Between wage rate and labour inputs, it is observed that there are relatively higher female labour inputs per hectare in areas (Zones) where male wages are lower and vice versa. |
| Keywords: | Labour Use, Employment, Agriculture, Rice Cultivation, India, Andhra Pradesh |
| JEL: | J22 J23 J31 Q12 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49204&r=cwa |
| By: | Hasan, Iftekhar (BOFIT); Jackowicz, Krzysztof (BOFIT); Kowalewski , Oskar (BOFIT); Kozlowski , Lukasz (BOFIT) |
| Abstract: | The Central European banking industry is dominated by foreign-owned banks. During the recent crisis, for the first time since the transition, foreign parent companies were frequently in a worse financial condition than their subsidiaries. This situation created a unique opportunity to study new aspects of market discipline exercised by non-financial depositors. Using a comprehensive data set, we find that the recent crisis did not change the sensitivity of deposit growth rates to accounting risk measures. We establish that depositors’ actions were more strongly influenced by negative press rumors concerning parent companies than by fundamentals. The impact of rumors was especially perceptible when rumors turned out ex post to be founded. Additionally, we document that public aid announcements were primarily interpreted by depositors as confirmation of a parent company’s financial distress. Our results, indicating that depositors react rationally to sources of information other than financial statements, have policy implications, as depositor disci-pline is usually the only viable and universal source of market discipline for banks in emerging economies. |
| Keywords: | depositor behavior; market discipline; crisis; emerging markets; market rumors |
| JEL: | G21 G28 |
| Date: | 2013–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2013_021&r=cwa |
| By: | Morgan, Peter J. (Asian Development Bank Institute); Pontines, Victor (Asian Development Bank Institute) |
| Abstract: | The purpose of this study is to better understand the likely impact on Asian economies and financial institutions of various recent global financial reforms, including Basel III capital adequacy and liquidity rules. Overall, the authors find that the Basel III capital adequacy rules are likely to have limited impacts on economic growth in Asia, but other financial regulations, including liquidity standards and rules for over-the-counter (OTC) derivatives, could have stunting effects on financial development in the region. |
| Keywords: | asian economies; financial institutions; global financial reforms; basel iii; capital adequacy rules; liquidity rules; otc derivatives |
| JEL: | E17 G01 G18 G21 |
| Date: | 2013–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0433&r=cwa |
| By: | JUDE, Cristina; LEVIEUGE, Gregory |
| Abstract: | This paper investigates the effect of FDI on economic growth conditional on the institutional quality of host countries. We consider institutional heterogeneity to be an explanation for the mixed results of previous empirical studies and we develop several arguments to show that institutional quality modulates the intensity of FDI impact on growth. Using a comprehensive data set for institutional quality, we test this hypothesis on a sample of 94 developing countries over the period 1984-2009. The use of Panel Smooth Transition Regression (PSTR) allows us to identify both the heterogeneity and the threshold of institutional quality that influence the FDI growth effect. These results have significant implications for policy sequencing in developing countries. In order to benefit from FDI-led growth, the improvement of the institutional framework should precede FDI attraction policies. While some features of institutional quality have an immediate effect on fostering FDI-led growth, others need a consistent accumulation of efforts, therefore challenging the effectiveness of institutional reforms in developing countries. |
| Keywords: | FDI, growth, heterogeneity, institutional quality, PSTR, Developing economies |
| JEL: | C34 F21 F43 O16 |
| Date: | 2013–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49321&r=cwa |
| By: | Dissanayake, Srinath |
| Abstract: | This small note on defining entrepreneurship is produced due to the apparent pursue of stereotyped knowledge among students in general. The author postulates to be an accountant or a finance manager should not be the prime concerns of students. There are other emerging areas as well. for an instant, Business Technology, Entrepreneurship, Value Based Marketing, Green Accounting, Personal Management etc. Given the unimportance of stereotyped knowledge, the author intends to define Entrepreneurship concisely to convince the students about the value of such a field. With some scholarly definitions on entrepreneurship, the author writes what entrepreneurship is and who is an entrepreneur. Most notably, in the definition of entrepreneur, the author adds the notion of Intrapreneurship allowing students to think out of the box. |
| Keywords: | Entrepreneurship, Intrapreneurship, Stereotyped Knowledge |
| JEL: | M00 |
| Date: | 2013–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49255&r=cwa |
| By: | Pierre-Alexandre Balland; Ron Boschma; Koen Frenken |
| Abstract: | Despite theoretical and empirical advances, the proximity framework has remained essentially static in that the given proximity between actors explains the extent to which they interact in knowledge networks and profit from such interactions. We propose a dynamic extension of the proximity framework of Boschma in which we account for co-evolutionary dynamics between knowledge networking and proximity. For each proximity dimension, we describe how proximities might increase over time as a result of past knowledge ties. We capture these dynamics through the processes of learning (cognitive proximity), integration (organizational proximity), decoupling (social proximity), institutionalization (institutional proximity), and agglomeration (geographical proximity). We end with discussing several avenues for future research on the dynamics of knowledge networking and proximity. |
| Keywords: | proximity, innovation, knowledge networks, proximity dynamics, geographical proximity |
| JEL: | R10 R11 B52 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1314&r=cwa |
| By: | Kawai, Masahiro (Asian Development Bank Institute); Morgan, Peter J. (Asian Development Bank Institute) |
| Abstract: | The aftermath of the global financial crisis of 2007–08 underlined the importance of maintaining fiscal space and fiscal sustainability. Even though many Asian economies implemented fiscal stimulus policies during the crisis period, their fiscal conditions generally improved rapidly thereafter, and their overall government debt positions, aside from that of Japan, appear strong. Nonetheless, there are a number of reasons to believe that conditions in emerging Asian economies will not always be so supportive. The first objective of this paper is to identify long-term issues of fiscal sustainability risk for emerging Asian economies. The second objective is to recommend policies to reduce these risks to sustainability. |
| Keywords: | fiscal space; fiscal sustainability; emerging asia; emerging asian economies; global financial crisis; fiscal stimulus policies; government debt |
| JEL: | H20 H51 H54 H55 H62 H63 J11 |
| Date: | 2013–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0432&r=cwa |
| By: | DeTienne, Dawn (Colorado State University); Wennberg, Karl (Ratio and Stockholm School of Economics) |
| Abstract: | In this chapter we look at exit as a multidimensional and multidisciplinary phenomenon that may involve processes and outcomes operating at multiple levels of analysis. We do so because entrepreneurship research is often considered a phenomenondriven academic field (Shane, 2003; Sorenson and Stuart, 2008) and entrepreneurship is in itself a multidimensional concept: its definition depends on the focus of the research undertaken (Davidsson, Low, & Wright, 2001). In this field, it is surprising that exit has received much less attention than the phenomenon of entry, growth, or innovation among new firms; however, there has been renewed interest in this topic and this research crosses many disciplines and multiple theoretical perspectives. In this chapter, we provide an indepth review of that research which is applicable to small business. We review disciplinary approaches to research on exit, and then present a literature review of 28 empirical studies of entrepreneurial exit during the last 29 years. We summarize these studies under a number of topical areas and discuss the potential for further development in these areas. In doing so, we provide a framework and opportunities for future research. |
| Keywords: | Entrepreneurship; Exit |
| JEL: | L26 M13 |
| Date: | 2013–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0218&r=cwa |
| By: | Bird, Miriam (Stockholm School of Economics); Wennberg, Karl (Ratio and Stockholm School of Economics) |
| Abstract: | We integrate insights from family business and organizational ecology into the entrepreneurship field by constructing a theoretical framework that explains how the regional context impacts family and non-family start-ups in differing ways. Regional count data models based on a rich longitudinal dataset reveal that while economic factors such as population size and growth in regions are primarily associated with the number of non-family start-ups, factors related to regional embeddedness, such as pre-existing small family businesses as well as favorable community attitudes toward small businesses, are more strongly associated with the number of family start-ups. Our research provides support for the notion that ‘the regional context’ is an important yet under-theorized area for research on venture creation and family business. |
| Keywords: | Family Business; Start-up; Population Ecology; Regional Science |
| JEL: | L21 M13 R12 |
| Date: | 2013–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0212&r=cwa |
| By: | Albahari, Alberto; Pérez-Canto, Salvador; Barge-Gil, Andrés; Modrego, Aurelia |
| Abstract: | Although the notion of Science and Technology Parks (STPs) has become fairly widespread, however, the level of university involvement in these parks differs hugely. At the extremes, there are parks that are owned and managed by universities, and parks with no formal links of any kind with a university. We use data from the Community Innovation Survey (CIS) for Spain and a survey of STP park managers to analyse how the level of involvement of a university in the STP affects the innovation outputs of its tenants and their links with universities. We find that higher involvement of a university in the STP negatively affects tenant’s innovation sales and positively affects the number of patent applications. We find no robust evidence of the involvement of a university in the propensity for park firms to cooperate with a university or to purchase external R&D services from the university. |
| Keywords: | Science Parks, Technology Parks, Innovation Policy, Academia-Industry links |
| JEL: | L2 O25 O3 R11 |
| Date: | 2013–08–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49227&r=cwa |
| By: | Iwasaki, Ichiro; Tokunaga, Masahiro |
| Abstract: | In this paper, we conduct a meta-analysis of the literature that empirically examines the impact of foreign direct investment (FDI) on economic growth in Central and Eastern Europe and the former Soviet Union. We found that existing studies indicate a growth-enhancing effect of FDI in the region as a whole. The results of our meta-regression analysis suggest that the effect size and statistical significance of the reported estimates strongly depend on study conditions. In particular, the estimation period, data type, estimator, and type of FDI variable are important factors that explain the heterogeneity in the empirical results. The degree of freedom and the research quality greatly affect estimates of the FDI variable as well. We also found that the relevant studies fail to present genuine evidence of a non-zero FDI effect due to the presence of publication selection bias and insufficient numbers of empirical evidence. More research is necessary to identify the true effect. |
| Keywords: | economic transition, macroeconomic impacts of FDI, meta-analysis, publication selection bias, Central and Eastern Europe, former Soviet Union |
| JEL: | F21 F23 F43 P33 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:hit:rrcwps:39&r=cwa |
| By: | Hedman Jansson, Kristina; Lagerqvist, Carl Johan |
| Abstract: | This study attempts to develop performance indicators for the financial markets based on the findings in an earlier Factor Markets Working Paper (No. 33, “Agricultural credit market institutions: A comparison of selected European countries”) and on FADN (Farm Accountancy Data Network) data. Two indicators were developed. One measured the long-term economic sustainability of agriculturalfirms since the financial characteristics of the firms were perceived as important factors when rejecting a loan applicant. If the indicator works, it should show that a low value in this indicator is related to the performance in the financial markets. The second indicator was the loan-to-value (LTV), or debtto-asset ratio, the reasoning behind this indicator is that low values can point to credit constraints, and in WP 33 we saw that the interviewed experts expected LTVs to be much higher than what is actually the case. We find that the first indicator can’t be used to measure the performance of the financial institutions, since we can’t show any relationship between the indicator and activities in the financial markets. However, the indicator is valuable for its measurement of the long-term financial sustainability of the agricultural sector, or of the firms. The loan-to-value indicator does imply that most countries would have room to increase the credit. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:eps:fmwppr:155&r=cwa |
| By: | Naudé, Wim (Maastricht School of Management); Amorós, José Ernesto (Universidad del Desarrollo); Cristi, Oscar (Universidad del Desarrollo) |
| Abstract: | We study the effect of entrepreneurship and its allocation between necessity and opportunity entrepreneurship on three indicators of countries' wellbeing: monetary wellbeing, non-monetary wellbeing and our own indicator of a country's ability to translate economic growth into non-monetary wellbeing. We take into consideration that there is a feedback effect from monetary and non-monetary wellbeing to entrepreneurial allocation. Using data from the Global Entrepreneurship Monitor we establish that opportunity entrepreneurship may contribute towards national wellbeing and that better wellbeing in turn may stimulate opportunity entrepreneurship. Hence, entrepreneurship may contribute towards countries' wellbeing in a broad sense, and countries with higher levels of wellbeing may contribute towards opportunity entrepreneurship. |
| Keywords: | entrepreneurship, wellbeing, development, Global Entrepreneurship Monitor |
| JEL: | I31 M13 O50 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7547&r=cwa |
| By: | Lara LEBEDINSKI (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Vincent VANDENBERGHE (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)) |
| Abstract: | There is plenty of individual-level evidence, based on the estimation of Mincerian equations, showing that better-educated individuals earn more. This is usually interpreted as a proof that education raises labour productivity. Some macroeconomists, analysing cross-country time series, also support the idea that the continuous expansion of education has contributed positively to growth. Surprisingly, most economists with an interest in human capital have neglected the level of the firm to study the education-productivity-wage nexus. And the few published works considering firm-level evidence are lacking a proper strategy to cope with the endogeneity problem inherent to the estimation of production and wage functions. This paper taps into a rich, firm-level, Belgian panel database that contains information on productivity, labour cost and the workforce’s educational attainment. It aims at providing estimates of the causal effect of education on productivity and wage/labour costs. Therefore, it exclusively resorts to within firm changes to deal with time-invariant heterogeneity bias. What is more, it addresses the risk of simultaneity bias (endogeneity of firms’ education-mix choices in the short run) using the structural approach suggested by Ackerberg, Caves & Frazer (2006), alongside more traditional system-generalized method of moments (GMM) methods (Blundell & Bond, 1998) where lagged values of labour inputs are used as instruments. Results suggest that human capital, in particular larger shares of university-educated workers inside firms, translate into significantly higher firm-level labour productivity, and that labour costs are relatively well aligned on education-driven labour productivity differences. In other words, we find evidence that the Mincerian relationship between education and individual wages is driven by a strong positive link between education and firm-level productivity. |
| Keywords: | Education, Human capital, Firm-Level Productivity and Labour Cost, Cobb-Douglas, CES, imperfect substitutability |
| JEL: | J24 E24 C51 |
| Date: | 2013–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2013017&r=cwa |