nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2018‒10‒29
two papers chosen by
Sultan Orazbayev


  1. Non-farm employment trends and policy in rural areas of Samarkand region (Uzbekistan) By Hasanov, Shavkat; Sanaev, Golib
  2. Do sanctions reduce the military spending in Iran? By Sajjad. F. Dizaji; Mohammad Reza Farzanegan

  1. By: Hasanov, Shavkat; Sanaev, Golib
    Abstract: Nonfarm employment plays an important role in absorbing unemployment in rural areas of developing countries. The agricultural transition in Uzbekistan followed by structural transformations in the economy changed the rural economy. Although farm restructuring and farm optimization policies led to agricultural growth, they had a negative impact on rural employment. The government of Uzbekistan promoted many policies to create jobs within the country. A presidential decree launched the State Program on Rural Development and Well-being in 2009, which played a crucial role in developing the economic and social infrastructure of rural areas. Small business and private entrepreneurship were given priority to absorb the rising unemployment, especially in rural areas. Against this background, the paper studies non-farm employment trends in rural areas of Samarkand region. In particular, we explore the main drivers of non-farm business development and its impact on rural employment in the Samarkand region. The main employment trends in rural areas of Samarkand region are described using statistical data. We also explore migration trends in Uzbekistan and Samarkand regions. A survey was conducted with 34 mahallas’ (community) chairpersons and representatives to better analyze the intersectoral and international migration of the agricultural workforce. Although remittances are crucial in poverty alleviation of Central Asian countries, including Uzbekistan, the economic crisis in 2008–2009 in Russia cast a shadow on the further prospects of migration. We show how the development of non-agricultural business in the Samarkand region increased the incomes of the rural population. The agro-processing sector plays a vital role in creating clusters based on the agro-industrial complex, which in turn will create more opportunities for employment in rural areas of the country.
    Keywords: Community/Rural/Urban Development, Labor and Human Capital
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:ags:iamodp:279145&r=cwa
  2. By: Sajjad. F. Dizaji (Tarbiat Modares University); Mohammad Reza Farzanegan (University of Marburg)
    Abstract: This study focuses on short and long-term effects of sanctions on military spending in Iran. Utilizing the annual data from 1960 to 2017 and the auto regressive distributed lag (ARDL) model, we show that the increasing intensity of sanctions dampen the military budget of Iran. By separating unilateral sanctions (where only the United States sanctions Iran) and multilateral sanctions (where, the United States acts in conjunction with other countries to sanction Iran), we show that only the latter class of sanctions have a statistically significant and negative impact on military spending of Iran. The negative effects of the multilateral sanctions on military budget are observed in both the short and long run time horizons. The results remain robust when controlling for other determinants of military spending such as gross domestic product (GDP), oil rents, trade openness, population, quality of political institutions, military expenditure of the Middle East region, non-military spending of government and the war period with Iraq.
    Keywords: sanctions; military spending; Iran; ARDL
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:mar:magkse:201831&r=cwa

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