nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2018‒09‒17
three papers chosen by
Sultan Orazbayev


  1. ANALYSIS OF OLIGOPOLISTIC BEHAVIOUR OF KAZAKH AND RUSSIAN EXPORTERS IN THE SOUTH CAUCASUS WHEAT MARKET By Gafarova, Gulmira; Perekhozhuk, Oleksandr; Glauben, Thomas
  2. Macroeconomic Conditions and Child Schooling in Turkey By Güneş, Pinar Mine; Ural Marchand, Beyza
  3. WATER FOR IRRIGATION, GROUNDWATER DEPLETION AND POLITICAL ECONOMY OF ENERGY SUBSIDY FOR INTENSIVE GROUNDWATER PUMPING IN IRAN By Jaghdani, Tinoush Jamali; Kvartiuk, Vasyl

  1. By: Gafarova, Gulmira; Perekhozhuk, Oleksandr; Glauben, Thomas
    Abstract: This study explores whether Kazakh and Russian wheat exporters use their privileges of being important players in the South Caucasus countries to exercise market power. We use a three-stage least squares (3SLS) estimation for systems of simultaneous equations and Zellner’s seemingly unrelated regression (SUR) thmethods for our residual demand elasticity (RDE) analysis. The results show that Kazakh exporters are able to exercise market power only in the Georgian wheat market, while Russian exporters are able to do so in both the Armenian and Georgian markets. Neither country is able to exercise market power in the Azerbaijani wheat market. Further, Kazakh and Russian wheat exporters constrain each other’s market powers in Azerbaijan and Georgia. Similarly, Ukrainian exporters are able to intervene to Kazakh and Russian exporters’ market powers in the Azerbaijani and Georgian wheat markets, but not in the Armenian market.
    Keywords: Industrial Organization
    Date: 2017–08–28
    URL: http://d.repec.org/n?u=RePEc:ags:eaae17:261429&r=cwa
  2. By: Güneş, Pinar Mine (University of Alberta); Ural Marchand, Beyza (University of Alberta)
    Abstract: This paper examines the effects of macroeconomic shocks on child schooling in Turkey using household labor force surveys from 2005-2013. We use variation in local labor demand as an instrumental variable, particularly regional industry composition and national industry employment growth rates. The results demonstrate that child schooling is pro-cyclical in Turkey, with the most acute effects among children with less educated parents and living in rural areas. Finally, as hypothesized, we find asymmetric effects on child schooling based on skill composition of economic growth. Higher unemployment among unskilled workers increases schooling, whereas higher unemployment among skilled workers decreases schooling.
    Keywords: schooling, unemployment, business cycles, Turkey
    JEL: J13 J24 O15
    Date: 2018–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp11686&r=cwa
  3. By: Jaghdani, Tinoush Jamali; Kvartiuk, Vasyl
    Abstract: The depletion of groundwater resources due to irrigation water pumping in Iran has become a serious problem which threatens both rural life and sustainable development in the country. The latest estimates show that 70% of groundwater resources have been overexploited in the last 15 years. Intensive and ever-increasing use has become one of the primary reasons behind the devastation of groundwater resources, both quantitatively and qualitatively. For many years, huge energy consumption subsidies (electricity or gasoline) have been provided for pumping irrigation water from aquifers. The resulting cheap energy makes deep water pumping possible and huge investment in deepening and relocating wells feasible. Since the reforms appear to be very difficult to implement on the political level, we focus on the political economy of subsidy provision for irrigation water and energy for pumping in Iran. We analyse how the interests of rural inhabitants are represented in Iranian parliament and examine the decision-making process of the parliamentarians in voting for eliminating the subsidies. Results show that Iranian leaders follow the logic of regime maintenance and may have incentives to strategically overrepresent rural interests in the parliament. Importantly, we found that the decision to support subsidies for irrigation water is motivated by economic factors rather than by ideological incentives. Political economy appears to be a useful framework to understand the obstacles of phasing out subsidies depleting not only ground water resources but the state budget as well.
    Date: 2018–09–01
    URL: http://d.repec.org/n?u=RePEc:ags:gewi18:275892&r=cwa

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