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on Central and Western Asia |
| By: | Hovhanesian, Hasmik (Yerevan State University); Manasyan, Heghine (CRRC-Armenia) |
| Abstract: | Regional integration could be turned into a basic factor for economic growth if combined with a strong economic-development-oriented governmental strategy. The effects of regional integration can be maximized for countries stressing open trade as opposed to creating trade-diverting conditions, which requires drafting different kinds of agreements, particularly free trade agreements (FTAs). The impact of regional integration is significant, especially for small open economies—such as Armenia, Azerbaijan, and Georgia, which together comprise the South Caucasus—entering into an FTA with a large economy like the People’s Republic of China (PRC). At the same time, FTAs have mutual economic and geopolitical benefits for all participant countries. Moreover, taking into consideration the interests of countries like Turkey, Iran, and the Russian Federation in the economic and geopolitical potential of this region, the PRC may have to re-think its role in the South Caucasus. This paper assesses the PRC’s FTA strategy, the potential for regional integration in the South Caucasus, and the likely impacts of an FTA on the economies of Armenia, Azerbaijan, Georgia, and the PRC by using several specific trade indicators and a partial equilibrium modeling approach (SMART Model). |
| Keywords: | Free trade agreements; regionalization; South Caucasian countries; PRC; SMART model analysis |
| JEL: | F13 F15 F17 F43 F53 |
| Date: | 2014–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0125&r=cwa |
| By: | Zhuang, Juzhong (Asian Development Bank Institute); Kanbur, Ravi (Asian Development Bank Institute); Rhee, Changyong (Asian Development Bank Institute) |
| Abstract: | This paper looks at the recent trends of rising inequality in developing Asia, asks why inequality matters, examines the driving forces of rising inequality, and proposes policy options for tackling high and rising inequality. Technological change, globalization, and market-oriented reform have driven Asia’s rapid growth, but have also had significant distributional consequences. These factors have favored owners of capital over labor, skilled over unskilled workers, and urban and coastal areas over rural and inland regions. Furthermore, unequal access to opportunity, caused by institutional weaknesses and social exclusion, has compounded the impacts of these forces. All these combined have led to a falling share of labor income in national income, increasing premiums on human capital, and growing spatial disparity—all contributing to rising inequality. The three drivers of rising inequality cannot and should not be blocked, because they are the same forces that drive productivity and income growth. This paper outlines a number of policy options for Asian policy makers to consider in addressing rising inequality. These options, aiming to equalize opportunities and, thereby, reduce inequality, include efficient fiscal measures that reduce inequality in human capital, policies that work toward increasing the number and quality of jobs, interventions that narrow spatial disparity, and reforms that strengthen governance, level the playing field, and eliminate social exclusion. |
| Keywords: | growth; globalization; inequality; governance |
| JEL: | D63 O15 O53 |
| Date: | 2014–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0463&r=cwa |
| By: | Ilhom Abdulloev; Gil S. Epstein (Bar-Ilan University); Ira N. Gang (Rutgers University) |
| Abstract: | Some immigrants try to keep their ethnicity hidden while others become ever deeply more mired in their home culture. We argue that among immigrants this struggle manifests itself in the ethnic goods they choose to consume. Different types of ethnic goods have vastly different effects on immigrant assimilation. We develop a simple theoretical model useful for capturing the consequences of this struggle, illustrating it with examples of Central Asian assimilation into the Muscovite economy. |
| Keywords: | assimilation, migrants, culture, ethnic goods |
| JEL: | J15 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1409&r=cwa |
| By: | Petrick, Martin; Oshakbaev, Dauren; Wandel, Jürgen |
| Abstract: | Kazakhstan is now widely regarded as a key player on world agricultural markets, with considerable export potential in the wheat, beef and dairy sectors. Based on unique farm-level data covering all production systems currently relevant, we offer new insights into the constraints that hamper further economic growth and provide an assessment of the government´s agricultural development strategy. A frequently mentioned bottleneck is agriculture´s lacking access to finance. But most farm managers in the farm survey doubt that agricultural investments deliver a sufficiently reliable return required for credit funding and thus do not take loans. Despite the vast land resources, a lack of land supply is now the most cited constraint to farm expansion in the highly regulated land market of the northern grain region. Another set of constraints in wheat production is related to the market power of elevators, the vagaries of trading over long distances in an underdeveloped rail and seaport infrastructure, and the intervention activities of state agencies. In the cattle sector, there are significant problems in year-round fodder supply. The value chains for beef and dairy are bifurcated into an import-dependent chain for industrially processed products serving urban consumers, and a local chain of raw products serving rural consumers and urban bazaars. Recent modernisation strategies of the government tend to focus on the provision of subsidised capital, while they underestimate the knowledge and incentive problems inherent to a state-guided management of sector development. The government should rather focus on providing impartial, reliable and high-quality public services to the sector, making sure that the weakest links in food chain development are identified and private entrepreneurs are provided with the necessary incentives to strengthen them. Our evidence suggests that a bundle of measures improving the local institutional environment of agriculture is more important than massive state funding of certain production lines. -- Von internationalen Beobachtern wird Kasachstan eine zunehmend wichtige Rolle auf den Weltagrarmärkten zugeschrieben. Das Land verfügt über Exportpotenziale in den Bereichen Weizen, Rindfleisch und Milch. Basierend auf speziell erhobenen Betriebsdaten aller derzeit wichtigen Betriebsformen untersuchen wir die Hemmnisse für weiteres wirtschaftliches Wachstum in diesen Sektoren. Darüber hinaus bewerten wir die landwirtschaftliche Entwicklungsstrategie der kasachischen Regierung. Ein häufig genanntes Entwicklungshemmnis stellt der fehlende Zugang zu Finanzierungsquellen dar. Die meisten der befragten Betriebsleiter bezweifeln jedoch, dass landwirtschaftliche Investitionen hinreichend verlässliche Erträge nach sich ziehen, um damit einen Kredit zu bedienen. Sie sehen daher davon ab, Kredite aufzunehmen. Trotz der enormen Flächenausstattung nennen die Befragten das fehlende Angebot an Nutzflächen das bedeutsamste Hindernis für Betriebswachstum. Ein Grund dafür ist der stark regulierte Bodenmarkt im Norden des Landes. Weitere Hindernisse für die Ausdehnung der Weizenproduktion bestehen in der Marktmacht der Getreidehandelshäuser (Elevatoren), den Unsicherheiten des Handels über große Entfernungen bei wenig entwickelter Bahn- und Hafeninfrastruktur sowie den Markteingriffen der staatlichen Behörden. Zahlreichen Rinderhaltern bereitet es Schwierigkeiten, ihr Vieh ganzjährig mit ausreichendem Futter zu versorgen. Die Verarbeitungsketten für Rindfleisch und Milch sind zweigeteilt. Ein von Einfuhren abhängiger Zweig für industriell verarbeitete Produkte bedient vorwiegend städtische Verbraucher. Ein jeweils lokaler Zweig für unverarbeitete Rohware beliefert vor allem ländliche Verbraucher sowie städtische Basare. Der Schwerpunkt der jüngsten Modernisierungsstrategien der Regierung liegt auf der Bereitstellung von Kreditsubventionen, während sie die Wissens- und Anreizprobleme einer staatlich gelenkten Steuerung des Sektors unterschätzt. Stattdessen sollte die Regierung sich darauf konzentrieren, unparteiische, verlässliche und leistungsfähige öffentliche Dienstleistungen anzubieten. Sie sollte sicherstellen, dass die Schwachstellen in den Verarbeitungsketten erkannt werden und private Unternehmer mit den nötigen Anreizen versorgen, um sie zu stärken. Unsere Ergebnisse zeigen, dass ein Bündel an Maßnahmen zur Verbesserung der örtlichen institutionellen Rahmenbedingungen der Landbewirtschaftung wichtiger erscheint als die massive staatliche Finanzierung bestimmter agrarindustrieller Produktionslinien. |
| Keywords: | agricultural development strategy,agricultural finance,agricultural marketing,livestock feeding,Kazakhstan,landwirtschaftliche Entwicklungsstrategie,Agrarfinanzierung,landwirtschaftliche Vermarktung,Tierernährung,Kasachstan |
| JEL: | O13 P32 Q12 Q18 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iamodp:145&r=cwa |
| By: | Anna Ruzik-Sierdzinska |
| Abstract: | The future size and quality of the European labour force are important production factors for future economic growth in the region. The performance of many systems such as social security and health depends on the population of future potential tax payers. Older workers are an important and increasing share of the employment in Europe. Due to lower fertility and longer life expectancy, today, a larger than ever share of the population is over 50. Eurostat projections show that the share of people between the ages of 50 and 74 in the population aged 20-74 will increase in the EU27 countries from the current 40 per cent to 47 per cent in 2050. However, countries differ in terms of elderly activity. Existing studies show that this is related to various factors, including labour market institutions. As demographic ageing is expected to continue in the future, it is important to know more about these factors in order to recommend policies that could be efficient for the development of future labour markets and the economy as a whole. |
| Keywords: | Labor market, social policy and social services, Europe, Eastern Europe, Caucasus and Central Asia |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:sec:ebrief:0114&r=cwa |