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on Central and Western Asia |
| By: | Sen, Kunal (University of Manchester) |
| Abstract: | The relationship between governance and economic development is one of the most important areas of research in international development. Much of the previous literature has focused on whether better governance leads to higher levels of income. In this paper, we examine the relationship between governance and broader development outcomes, with a specific focus on developing Asia. In our empirical analysis, we use disaggregated measures of governance to capture different dimensions of governance, and to allow for the possibility that different dimensions of governance such as administrative capacity, legal infrastructure, and state accountability can affect development indicators differentially. We find a clear role for governance in affecting most development outcomes except levels of schooling. This is particularly evident for state administrative capacity and legal infrastructure, and less evident for state accountability. However, we find that the benign relationship between governance and development is weaker for Asian countries for several of the development indicators. We also find that the key mechanism by which governance affects development is by increasing the mobilization of domestic resources and by increasing the effectiveness with which these resources are spent on social sectors. Along with the fact that governance quality is lower in Asia than other regions of the world (except sub-Saharan Africa), this suggests that improvements in governance along with the strengthening of the mechanisms by which governance affects social development can deliver clear gains in development outcomes in developing Asia. |
| Keywords: | governance; development outcomes; Asia |
| JEL: | I30 O11 O53 |
| Date: | 2013–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0384&r=cwa |
| By: | Guy Michaels; Ferdinand Rauch |
| Abstract: | After the fall of the Roman Empire, urban life in France became a shadow of its former self, but in Britain it completely disappeared. Guy Michaels and Ferdinand Rauch use these contrasting experiences as a natural experiment to explore the impact of history on economic geography - and what leads cities to get stuck in undesirable locations. |
| Keywords: | Economic Geography, Economic History, Path Dependence, Transportation |
| JEL: | R11 N93 O18 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:408&r=cwa |
| By: | Smink; Simona Negro; Marko Hekkert |
| Abstract: | Despite the centrality of niche-regime interaction in the Multi Level Perspective, scant attention has been paid to how exactly this interaction unfolds at the micro-level. This article sets out to deepen insights in niche-regime interaction by focusing on the confrontation between niche and regime rule-sets. We draw on the concept of ‘institutional logics’ to identify divergent types of practices and underlying belief systems in the case of biomethane injection in the Dutch natural gas grid. Based on interviews and background documents we find diverging logics for network operators and biomethane producers, which hampers cooperation due to trust and communication issues. We observe that ‘boundary bridging’ organizations step in to connect and translate between the different groups to bridge this gap. This research shows that we cannot ignore the social dimension of transition processes: transitions do not only depend on the well-known technical, economic and regulative dimensions, but also on the ability of people to change their belief systems and practices and thus open up new avenues for change. |
| Keywords: | Sustainability transitions, Niche-regime interaction, Institutional logics, Boundary bridging, Biomethane, Gas sector |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:uis:wpaper:1401&r=cwa |
| By: | Ungureanu, George; Brezuleanu, Stejarel; Stanciu, Mihai; Brezuleanu, Carmen O.; Boghita, Eduard |
| Abstract: | This paper attempts to provide an updated diagnosis of regional development in Romania and assess its global implications on the diversification of the rural economy and create jobs. The subject of the study includes theoretical treatment of the regional development management system problems and characteristics of the phenomena studied, directed and coordinated with the help of contemporary management. During/In our research we chose to analyze: - problematic regions and regional development - evolution of the concept of European regional policy, in chapter I opted for a historical perspective, due to the numerous events that contributed to the emergence and development of this type of policy, - how to implement regional policy with structural instruments, - the manner in which Romania has prepared for accessing structural instruments and implementation of European regional policy. The object studied a multitude of issues, and can be analyzed from several perspectives: historical (evolution over time), legal (implications on sovereignty or national policy implementation), economic and social (impact of this type of policy in a given territory), management (given complex system programming and administration policy and its measures). |
| Keywords: | urban, rural, implementation, management system, development, Agribusiness, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa140:163404&r=cwa |
| By: | Cai, Hongbin; Wang, Miaojun; Yan, Se |
| Abstract: | Using a simple game-theoretical model, this paper provides a new explanation for why large firms in developing economies may willingly pay higher wages than market wage rate. We show that large firms can strategically create entry barriers to the modern sector by setting high wage standards. They may do so to reduce competition or to distort the government's resource allocation. Focusing on the latter case, we also show that the size of the primitive sector will be larger than the efficient level, and public resource allocation will be biased in favor of incumbent large businesses despite the benevolent nature of the government. Using a survey of Chinese industrial firms, we find that industrial concentration is positively correlated with the size-wage effect, and such effect is stronger in less developed provinces. These findings are consistent with our theoretical prediction. |
| Keywords: | size-wage effect; entry deterrence; government resource allocation |
| JEL: | J21 J31 J42 L11 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53538&r=cwa |
| By: | Bertay, A.C. (Tilburg University, Center for Economic Research) |
| Abstract: | Abstract: This paper investigates the credit supply of banks in response to domestic and foreign real estate price changes. Using a large international dataset of multinational banks, we find evidence of a significant transmission of domestic real estate shocks into lending abroad. A 1% decrease in real estate prices in home country, in particular, leads to a 0.2-0.3% decrease in credit growth in the foreign subsidiary. This response, however, is asymmetric: only negative house price changes are transmitted. Stricter regulation of activities of parent banks can reduce this effect, indicating a role for regulation in alleviating the transmission of real estate shocks. Further, the analysis of the impact of real estate shocks on foreign subsidiary funding indicates that shocks are transmitted through changes in long-term debt funding and equity. |
| Keywords: | Internal capital markets;multinational banking;transmission of real estate shocks |
| JEL: | F23 F36 G21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2014011&r=cwa |
| By: | Doerrenberg, Philipp; Peichl, Andreas |
| Abstract: | Due to behavioral effects triggered by redistributional interventions, it is still an open question whether government policies are able to effectively reduce income inequality. We contribute to this research question by using different country-level data sources to study inequality trends in OECD countries since 1980. We first investigate the development of inequality over time before analyzing the question of whether governments can effectively reduce inequality. Different identification strategies, using fixed effects and instrumental variables models, provide some evidence that governments are capable of reducing income inequality despite countervailing behavioral responses. The effect is stronger for social expenditure policies than for progressive taxation. -- |
| Keywords: | Inequality,Redistribution,Social Expenditure,Progressive Taxation |
| JEL: | D31 D60 H20 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14012&r=cwa |