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on Development |
| By: | Giorgio Gobbi (Bank of Italy, Department of Structural Studies on the Italian Economy.); Roberta Zizza (Bank of Italy, Department of Structural Studies on the Italian Economy.) |
| Abstract: | The paper investigates the relationship between the underground economy and financial deepening. Entrepreneurs can only access external finance by disclosing credible information in formal documentation. This may be impossible for many informal producers, who lack proper accounting records. Similarly, irregular workers may have difficulty borrowing to finance consumption and house purchases. Using panel data on local credit markets in Italy, we find that the share of irregular employment has a strong negative impact on outstanding credit to the private sector. According to our estimates, a shift of 1 per cent of employees from regular to irregular work corresponds to a decline of 1-2 percentage points of GDP in the volume of business lending and of 0.3 percentage points in outstanding credit to households. By contrast, the feedback effects of financial deepening on the size of the informal sector are weak and statistically not significant. Applying a difference-in-difference approach that exploits the exogenous variation induced by the regularization programme for immigrant workers launched in 2002, we also find that irregular labour has a negative effect on banksÂ’ decisions to enter local credit markets. |
| Keywords: | irregular employment, bank lending, school drop-out, entry, branching, regularisation program |
| JEL: | G21 O17 R23 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_646_07&r=dev |
| By: | Gustav Ranis (Economic Growth Center, Yale University); Frances Stewart (Oxford University); Emma Samman (Oxford University) |
| Abstract: | This paper adopts a more expansive definition of Human Development than that encompassed by the Human Development Index in order to explore diverse country patterns of behavior in relation to these broadened dimensions. We proceed by first identifying the dimensions to be investigated and subsequently present the methodology adopted for clarifying country behavior with respect to these dimensions. Countries are shown to differ substantially in terms of their choices among the independent dimensions of well-being which may or may not be constrained by history or culture. We then group countries by level of per capita income, experience with internal conflict, region of the world, oil, wealth, distance from the equator, distance from the sea, in the search for identifiable differential behavior patterns by country typology. We find that choices do exist across the board. For example, even low income countries can achieve well in all categories while high income countries do poorly. |
| Keywords: | Human Development, Quality of Life, Happiness, Capabilities, Country Behavior |
| JEL: | I31 O15 O57 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:958&r=dev |
| By: | Curran, Declan (BOFIT); Funke, Michael (BOFIT); Wang, Jue (BOFIT) |
| Abstract: | This paper considers the persistent differences in economic performance across Chinese regions. We introduce a new county- and city-level dataset that spans all of mainland China and provides a detailed view of Chinese regional growth over the period 1997-2005. Non-parametric kernel density estimation is employed to establish the cross-sectional GDP per capita distribution, and the distributional dynamics are investigated using the probability matrix technique and associated stochastic kernel estimator. A set of explanatory variables is then introduced, and several regressions are run to test for conditional ƒÒ-convergence and to pinpoint influential factors for economic growth across counties and cities. |
| Keywords: | regional economic growth; China |
| JEL: | O11 R11 |
| Date: | 2008–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2007_021&r=dev |
| By: | Tilman Brück (DIW Berlin, Humboldt University Berlin, PRUS and IZA); Alexander M. Danzer (DIW Berlin and Humboldt University Berlin); Alexander Muravyev (DIW Berlin and European University Institute); Natalia Weißhaar (DIW Berlin and Humboldt University Berlin) |
| Abstract: | The paper analyzes the incidence, the severity and the determinants of household poverty in Ukraine during transition using two comparable surveys from 1996 and 2004. We measure poverty using income and consumption and contrast the effects of various poverty lines. Poverty in both periods follows some of the determinants commonly identified in the literature, including greater poverty among households with children and with less education. We also identify specific features of poverty in transition, including the relatively low importance of unemployment and the existence of poverty even among households with employment. Poverty determinants change over time in line with the experience of transition and restructuring. |
| Keywords: | poverty, transition, survey, Ukraine |
| JEL: | P20 I32 J20 O15 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3228&r=dev |
| By: | Randolph Bruno (DARRT, University of Bologna and IZA); Marco Stampini (Sant’Anna School of Advanced Studies) |
| Abstract: | This paper explores how cross-sectional data can be exploited jointly with longitudinal data, in order to increase estimation efficiency while properly tackling the potential bias due to unobserved individual characteristics. We propose an innovative procedure and we show its implementation by analysing the determinants of consumption in Nicaragua, based on data from three Living Standard Measurement Study surveys from 1993, 1998 and 2001. The last two rounds constitute an unbalanced longitudinal data set, while the first is a cross-section of different households. Under the assumption that the relationship between observed and unobserved characteristics is homogeneous across time, information from longitudinal data is used to clean the bias in the unpaired sample. In a second step, corrected unpaired observations are used jointly with panel data. This reduces the standard errors of the estimation coefficients and might increase their significance as well, otherwise compromised by the limited variation provided by the short longitudinal data. |
| Keywords: | panel data, estimation efficiency, pseudo-panel, consumption model, Nicaragua |
| JEL: | C33 C42 I38 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3231&r=dev |
| By: | Sumon Kumar Bhaumik (Brunel University, WDI and IZA); Manisha Chakrabarty (Indian Institute of Management and Keele University) |
| Abstract: | Few researchers have examined the nature and determinants of earnings differentials among religious groups, and none has been undertaken in the context of conflict-prone multireligious societies like the one in India. We address this lacuna in the literature by examining the differences in the average (log) earnings of Hindu and Muslim wage earners in India, during the 1987-2005 period. Our results indicate that education differences between Hindu and Muslim wage earners, especially differences in the proportion of wage earners with tertiary education, are largely responsible for the differences in the average (log) earnings of the two religious groups across the years. By contrast, differences in the returns to education do not explain the aforementioned difference in average (log) earnings. In conclusion, we discuss some policy implications. |
| Keywords: | earnings gap, education, decomposition, religion |
| JEL: | J31 J15 I28 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3232&r=dev |
| By: | Randall K. Q. Akee (IZA) |
| Abstract: | Existing research examining the self-selection of immigrants suffers from a lack of information on the immigrants’ labor force activities in the home country, quotas limiting who is allowed to enter the destination country, and non-economic factors such as internal civil strife in the home country. Using a novel data set from the Federated States of Micronesia (FSM), I analyze a migration flow to the U.S. that suffers from none of these problems. I find that high-skilled workers (relative to the home country skill distribution) are the most likely to migrate from the FSM to the U.S. and that their behavior is explained mainly by the difference in average wages for their skill group. This finding suggests that previous immigration studies have overemphasized the role played by differences in the distributions of countries’ wages and skills. Including information on the immigrants’ characteristics prior to migration is central to my analysis, which highlights the importance of datasets that contain both home and destination country data on immigrants. Given the home country information, I use weather shocks to predict the probability of outmigration, which overcome the usual endogeneity problems in determining self-selection of immigrants. Second, I conduct nearest neighbor matching for immigrants prior to their leaving the home country using home country wages as the outcome variable to determine the nature of selection on unobservable characteristics. |
| Keywords: | immigration, developing country, self-selection |
| JEL: | O15 J31 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3268&r=dev |
| By: | Zhong Zhao (IZA) |
| Abstract: | This paper investigates the evolution of earnings inequality in urban China from 1989 to 2006. After decomposing the variance of log of earnings into transitory and permanent two parts, we find that both components are important contributors to the total variance of earnings. We also find that the share of the transitory part has been decreasing from early 1990 to 2004; however, this decreasing trend is reversed from 2004 to 2006. Compared female to male, though these two populations share similar trends in the changes of transitory and permanent components, changes are more pronounced for female than for male. Our results suggest that the time-invariant part and time related part in permanent earnings are negatively correlated. This implies converge of earnings profile in long run and also implies that there is more mobility within the distribution of long-term earnings. |
| Keywords: | earnings inequality, covariance structure of earnings, China |
| JEL: | D31 O15 J31 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3270&r=dev |
| By: | Svetlana Andrianova; Panicos Demetriades; Chenggang Xu |
| Abstract: | This paper contributes to the finance-growth literature by examining the political economy origins of some of the most successful financial markets in Europe and Asia. It provides historical evidence from London, Amsterdam and Hong Kong that highlights the essential role played by the government sector in kick-starting financial development. We show that the emergence of financial systems did not occur through laissez-faire approaches and that secure property rights alone were not sufficient for financial development. In the cases of London and Amsterdam, governments created large trade monopolies which were responsible for all the major financial innovations of the time. In the case of Hong Kong, where the financial developmentmodel was bank-based, large banking monopolies with close links to the state were created. We argue that the three examples are not special cases and the role of government in the early stages of financial development has been widespread world-wide. |
| Keywords: | Monopoly; politics; institutions; finance |
| JEL: | G18 N20 O16 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:08/1&r=dev |
| By: | Aksoy, M. Ataman; Ng, Francis |
| Abstract: | The purpose of this paper is to update the information on net food importing countries, using different definitions of food, separating countries by their level of income, whether they are in conflict and whether they are significant oil exporters. The study also estimates the changes in net food importing status of these countries over the last two and a half decades, and, most important, the study measures the relative importance of these net food imports in the import basket of the countries. Our results show that while many low-income countries are net food importers, the importance and potential impact of the net food importing status has been highly exaggerated. Many low-income countries that have larger food deficits are either oil exporters or countries in conflict. Food deficits of most low-income countries are not that significant as a percentage of their imports. Our results also show that only 6 low-income countries have food deficits that are more than 10 percent of their imports. Last two decades have seen a significant improvement in the food trade balances of low-income developing countries. SSA low-income countries are an exception to this trend. On the other hand, there are a g roup of countries which are experiencing civil conflicts which are large importers of food, and these countries can not meet their basic needs. They also need special assistance in the distribution of food within their boundaries. Therefore, one should modify the WTO Ministerial Declaration, and focus on these conflict countries rather than the broad net food importers. |
| Keywords: | Food & Beverage Industry,Emerging Markets,Currencies and Exchange Rates,Economic Theory & Research, |
| Date: | 2008–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4457&r=dev |
| By: | Iimi, Atsushi |
| Abstract: | In public-private partnership transactions in the water sector, one of the alleged concerns is that there is little market competition at the auction stage. This paper casts light on a tradeoff between the competition effect at the auction level and potential economies of scale in service operation. If the authorities design a large-scale public-private partnership water transaction, it is expected to exploi t operational scale economies. But the competition effect may have to be sacrificed. The paper shows a risk that the selection of the contract size could be a very restrictive condition that excludes many prospective bidders. Moreover, the paper quantifies the optimal size of public-private partnership contracts in the sector by estimating a cost function. The analysis shows that economies of scale exist but tend to diminish quickly as production increases. When the amount of water sold exceeds about 40 million m3, the statistical significance of economies of scale disappears. And there is no rationale for auctioning the water operation with annual water delivery of more than 400 million m3 under a single contract. |
| Keywords: | Town Water Supply and Sanitation,Water Supply and Sanitation Governance and Institutions,Water and Industry,Water Conservation,Urban Water Supply and Sanitation |
| Date: | 2008–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4459&r=dev |
| By: | Straub, Stephane |
| Abstract: | Thi s paper presents a survey of recent research on the economics of infrastructure in developing countries. Energy, transport, telecommunications, water and sanitation are considered. The survey covers two main set of issues: the linkages between infrastructure and economic growth (at the economy-wide, regional and sectoral level) and the composition, sequencing and efficiency of alternative infrastructure investments, including the arbitrage between new investments and maintenance expenditures; OPEX and CAPEX, and public versus private investment. Following the introduction, section 2 discusses the theoretical foundations (growth theory and new economic geography). Section 3 assesses the analysis of 140 specifications from 64 recent empirical papers-examining type of data used, level of aggregation, econometric techniques and nature of the sample-and discusses both the macro-econometric and micro-econometric contributions of these papers. Finally section 4 discusses directions for future research and suggests priorities in data development. |
| Keywords: | Transport Economics Policy & Planning,Economic Theory & Research,Non Bank Financial Institutions,Infrastructure Economics,Political Economy |
| Date: | 2008–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4460&r=dev |
| By: | Mattoo, Aaditya; Hoekman, Bernard |
| Abstract: | The competitiveness of firms in open economies is increasingly determined by access to low-cost and high-quality producer services - telecommunications, transport and distribution services, financial intermediation, etc. This paper discusses the role of services in economic growth, focusing in particular on channels through which openness to trade in services may increase productivity at the level of the economy as a whole, industries and the firm. The authors explore what recent empirical work suggests could be done to enhance comparative advantage in the production and export of services and how to design policy reforms to open services markets to greater foreign participation in a way that ensures not just greater efficiency but also greater equity in terms of access to services. |
| Keywords: | Economic Theory & Research,Banks & Banking Reform,Transport Economics Policy & Planning,ICT Policy and Strategies,Emerging Markets |
| Date: | 2008–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4461&r=dev |
| By: | Wane, Waly; Gauthier, Bernard |
| Abstract: | This paper investigates individuals ' bypassing behavior in the health sector in Chad and the determinants of individuals ' facility choice. The authors introduce a new way to measure bypassing using the patients ' own knowledge of alternative health providers available to them instead of assuming that information as previously done. The authors analyze how perceived health care quality and prices impact patients ' bypassing decisions. The analysis uses data from a Quantitative Service Delivery Survey in Chad ' s health sector carried out in 2004. The survey covers 281 primary health care centers and 1,801 patients. The matching of facility data and patient data allows the analysis to control for a wide range of important patient and facility characteristics, such as income, severity of illness, quality of health care, or price of services. The findings show that income inequalities translate into health service inequalities. There is evidence of two distinct types of bypassing activities in Chad: (1) patients from low-income households bypass high-quality facilities they cannot afford to go to low-quality facilities, and (2) rich individuals bypass low-quality facilities and aim for more expensive facilities that also offer a higher quality of care. These significant differences in patients ' facility choices are observed across income groups as well as between rural and urban areas. |
| Keywords: | Health Monitoring & Evaluation,Health Systems Development & Reform,Health Law,Housing & Human Habitats,Gender and Health |
| Date: | 2008–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4462&r=dev |
| By: | Ravallion, Martin |
| Abstract: | At the outset of China ' s reform period, the country had a far higher poverty rate than for Africa as a whole. Within five years that was no longer true. This paper tries to explain how China escaped from a situation in which extreme poverty persisted due to failed and unpopular policies. While acknowledging that Africa faces constraints that China did not, and that context matters, two lessons stand out. The first is the importance of productivity growth in smallholder agriculture, which will require both market-ba sed incentives and public support. The second is the role played by strong leadership and a capable public administration at all levels of government. |
| Keywords: | Rural Poverty Reduction,Population Policies,Achieving Shared Growth,Services & Transfers to Poor |
| Date: | 2008–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4463&r=dev |
| By: | Maksimovic, Vojislav; Demirguc-Kunt, Asli; Ayyagari, Meghana |
| Abstract: | China is often mentioned as a counterexample to the findings in the finance and growth literature since, despite the weaknesses in its banking system, it is one of the fastest growing economies in the world. The fast growth of Chinese private sector firms is taken as evidence that it is alternative financing and governance mechanisms that support China ' s growth. This paper takes a closer look at firm financing patterns and growth using a database of 2,400 Chinese firms. The authors find that a relatively small percentage of firms in the sample utilize formal bank finance with a much greater reliance on informal sources. However, the results suggest that despite its weaknesses, financing from the formal financial system is associated with faster firm growth, whereas fund raising from alternative channels is not. Using a selection model, the authors find no evidence that these results arise because of the selection of firms that have access to the formal financial system. Although firms report bank corruption, there is no evidence that it significantly affects the allocation of credit or the performance of firms that receive the credit. The findings suggest that the role of reputation and relationship based financing and governance mechanisms in financing the fastest growing firms in China is likely to be overestimated. |
| Keywords: | Access to Finance,Banks & Banking Reform,,Debt Markets,Bankruptcy and Resolution of Financial Distress |
| Date: | 2008–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4465&r=dev |
| By: | Axel Dreher (KOF Swiss Economic Institute, ETH Zurich); Stefanie Walter (University of Zurich, Institute for Political Science, and ETH Zurich, Switzerland) |
| Abstract: | Using panel data for 68 countries over the period 1975-2002 this paper examines how IMF programs, disbursed loans, and compliance with conditionality affect the risk of currency crises and the outcome of such crises. Specifically, we investigate whether countries with previous IMF intervention are more likely to experience currency crises. In a second step, we analyze the IMF’s impact on a country’s decision to adjust the exchange rate, once a crisis occurred. We find that IMF involvement reduces the probability of a crisis. Once in a crisis, IMF programs significantly increase the probability that the authorities devalue the exchange rate. The amount of loans and compliance with conditionality have no impact. Our results suggest that the IMF – contrary to the Fund’s critics – does indeed fulfill its functions of promoting exchange rate stability and helping its members to correct macroeconomic imbalances. |
| Keywords: | IMF programs, growth, compliance, conditionality |
| JEL: | F33 F34 O57 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:08-186&r=dev |
| By: | Salahuddin Ahmad; Dilli Raj Khanal (Uttara University) |
| Abstract: | This study assesses the strengths and weaknesses of reforms in the banking and insurance industries. Banking sector performance is analysed using various indicators as well as Principle Component Analysis techniques. A comparative case study of three banks with different ownership structures is presented. The study concludes with important conclusions and policy implications for future reforms based on the findings. |
| Keywords: | Service Trade, Bangladesh |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:3807&r=dev |
| By: | Dilli Raj Khanal (Institute for Policy Research and Development) |
| Abstract: | This study reviews the development of the banking and insurance sectors in Nepal and the effect of reforms and commitments linked to these sectors since the 1980s, when financial sector liberalization in Nepal began with deregulation of the interest rate structure and opening of the banking sector to foreign investors. |
| Keywords: | Service Trade, Nepal |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:3907&r=dev |
| By: | Muthi Samudram (Monash University) |
| Abstract: | This study reviews the development of the banking and insurance sectors in Malaysia since the 1980s, with a particular attention to the effects and sequencing of the various reforms as well as the impact of services trade liberalization and related commitments. |
| Keywords: | Service Trade, Malaysia |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4007&r=dev |
| By: | Dilli Raj Khanal (Institute for Policy Research and Development) |
| Abstract: | This paper draws from three country case studies of the liberalization and development of the banking and insurance service sectors in Bangladesh, Nepal and Malaysia undertaken as part of an ARTNeT regional study on trade in services led by the author. |
| Keywords: | Service Trade, Bangladesh,Nepal, Malaysia |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4107&r=dev |
| By: | Tulus Tambunnan (Centre for Industry and SME Studies, University of Trisakti) |
| Abstract: | As this research seeks to bring to the fore benefits that have been or may be derived for SMEs from international trade and investment liberalization in Indonesia, it has three main questions: (1). how international trade and investment policy reforms affect local SMEs; (2) has growth of exports of SMEs accelerated since the reforms; and (3) does investment liberalization generate more subcontracting between local SMEs and FDI.? |
| Keywords: | Trade and Investment, SME, Indonesia |
| JEL: | F1 |
| Date: | 2007–08 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4207&r=dev |
| By: | Tham Siew Yean; Andrew Kam Jia Yi (Institute of Malaysian and International Studies, Malaysia) |
| Abstract: | This study aims to explore the trade and investment links in private higher education in Malaysia. Specifically, the study assesses whether, and if so, how trade and investment policies in general, and in the education sector in particular, are coordinated at the national level. |
| Keywords: | Trade and Investment, Education Services,Mode 1,Malaysia |
| JEL: | F1 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4307&r=dev |
| By: | Chandra Bhadra (Tribhuvan University, Nepal) |
| Abstract: | The general objective of the study is to assess the impact of Women Migrant Workers’ (WMWs) remittance in poverty reduction. The specific objectives are to investigate the financial aspect, to explore the human factors, and to examine WMWs’ perception and preferences of the State’s policy. |
| Keywords: | International, Labor, Migration, Napalese, women, Impact, remittances, Poverty, reduction |
| JEL: | F1 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4407&r=dev |
| By: | Santi Chaisrisawatsuk; Wisit Chaisrisawatsuk (School of Development Economics, NIDA, Bangkok, Thailand.) |
| Abstract: | This study explores how international trade and investment flows affect each other, using data from OECD and 6 ASEAN countries , and examines whether trade and investment linkages are different between developed and developing economies, or between countries that participate actively in bilateral and/or regional trade agreements. |
| Keywords: | Imports, Exports, Foreign, Investment, Interactions, Effects |
| JEL: | F1 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4507&r=dev |
| By: | Nagesh Kumar (Research Information System for Developing Countries (RIS, India)) |
| Abstract: | To exploit the locational advantages or synergies between the member countries of the regional trading bloc besides facilitating businesses reaping the economies of scale and specialization. |
| Keywords: | Investment, Provisions, Regional, Trading Arrangements, Asia, Emerging Trends, policy Implications |
| JEL: | F1 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4607&r=dev |
| By: | Gloria O. Pasadilla; Christine Marie M. Liao (Philippine Institute for Development Studies, Philippines) |
| Abstract: | The study tries to shed some light on this linkage in the Philippine case. |
| Keywords: | Liberalization, Strengthened, Link, Services, Manufacturing |
| JEL: | F1 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4807&r=dev |
| By: | Pierre Sauve (World Trade Institute, Berne, Switzerland) |
| Abstract: | This article takes stock of recent trends in the investment dimensions of deepening economic integration in Asia. |
| Keywords: | Investment, Regulation, Trade Agreements, Lessons, Asia |
| JEL: | F1 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4907&r=dev |
| By: | Yann Duval (Trade and Investment Division, UNESCAP) |
| Abstract: | this paper succinctly explores three emerging (in the case of customs valuation, re-emerging) issues, drawing from recent ARTNeT working papers as well as other relevant literature: (a) trade facilitation and regional trade agreements and initiatives; (b) trade facilitation and customs valuation; and (c) trade facilitation and services. |
| Keywords: | Trade, Facilitation, Doha, Negotiations |
| JEL: | F1 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:5007&r=dev |
| By: | Serajul Hoque |
| Abstract: | This paper examines the economic effects of removing tariffs in Bangladesh using a computable general equilibrium (CGE) modelling approach. The results of the simulations indicate that in the short-run a funded tariff cut with fixed real national savings would increase employment slightly and hence would expand GDP. There would be a small economy-wide welfare gain as measured by real consumption. The sectoral results showed that export-oriented industries would experience an expansion in output and employment. There also would be positive effects on the suppliers to these industries. Lightly-protected industries, which rely heavily on imported intermediate inputs, are projected to show robust expansion as they would benefit from a cost reduction. However, highly-protected, import-competing industries would suffer a contraction in output and employment as they would face increased competition from imports due to the removal of tariffs. The simulation results also indicate that there would have some noticeable effects on the distribution of real consumption between different household groups. Overall, urban households would experience an expansion in real consumption and rural households would suffer a contraction as a consequence of the funded tariff cut with fixed real national savings. |
| Keywords: | CGE model, trade liberalisation, income distribution, Bangladesh |
| JEL: | C68 F13 O15 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-170&r=dev |
| By: | Lu, Jiangyong |
| Abstract: | In this paper, we document spatial distribution of economic activities in China based on two recent nationwide censuses of establishments. This paper provides the whole picture of agglomeration of economic activities in China for the first time in the literature. The robust increasing trend of agglomeration supports the argument that interregional trade barriers in China decreased during the period of 1996-2001. We extend the agglomeration literature by studying agglomeration patterns of establishments with various ownership types. We find that non-public owned establishments are more spatially concentrated compared with public owned establishments. We also examine determinants of agglomeration economies with multivariate regressions. Results show that micro-foundations of agglomeration work well in explaining agglomeration of non-public owned establishments, but not for public owned establishments in China. |
| Keywords: | Geographic Concentration; Micro-foundations; Ownership |
| JEL: | R10 |
| Date: | 2008–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6596&r=dev |
| By: | Lu, Jiangyong; Tao, Zhigang |
| Abstract: | This paper investigates trends and determinants of the spatial concentration of China’s manufacturing industries using a large firm-level data for the time period of 1998 to 2005. It is found that the overall industrial agglomeration in China has increased steadily in recent years though it is still much lower than those of the well-developed market economies (such as United States, United Kingdom, and France). It is also found that local protectionism among China’s various regions obstructs China’s industrial agglomeration while Marshallian externalities facilitate the process of spatial concentration of manufacturing industries. On an optimistic note, there is evidence that the negative impacts of local protectionism have become less significant over time but those of Marshallian externalities are gaining in importance, which is consistent with the overall trend of China’s industrial agglomeration. |
| JEL: | R1 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6597&r=dev |
| By: | Bai, Chong-En; Lu, Jiangyong; Tao, Zhigang |
| Abstract: | Using a comprehensive panel data set of China’s state-owned enterprises, we investigate the impacts of privatization, of different time sequences and extent of non-state ownership, on social welfare and firm performance. Attention has been focused on the sources of gain in firm performance and the long-run impacts of privatization. It is found that the privatization of China’s state-owned enterprises was achieved with limited compromise on social welfare responsibilities, and significant gain in firm performance was obtained by motivating the management and reducing agency cost at the management level. |
| JEL: | L2 |
| Date: | 2007–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6599&r=dev |
| By: | Lu, Jiangyong; Xu, Bin; Liu, Xiaohui |
| Abstract: | The impact of corporate governance on export decisions is an important yet under- explored research issue. This paper examines this issue with respect to Chinese listed firms. We adopt an analytical framework in which the effects of corporate governance on export decisions are associated with institutional environment. We test several hypotheses derived from this framework. The sample firm’s export propensity and export intensity are found to be positively impacted by CEO ownership share and independent director ratio, and negatively impacted by private/family control. The export-promoting effects of CEO ownership share and independent director ratio are found to be positively moderated by a well-established institutional environment. |
| JEL: | F0 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6600&r=dev |
| By: | Shafaeddin, Mehdi; Pizarro, Juan |
| Abstract: | Abstract Both Mexico and China have started export orientation in some industries, through assembly operations, based on imported inputs a couple of decades ago. The literature on industrialization, has discussed the questions of import substitutions and outward-orientation mainly as alternative routes to industrialization. In both cases, it is argued that “learning” would contribute to industrial development. Proponent of import substitution argued that import substitution contributes to industrial development through “learning by doing”. Those in favour of free trade and outward orientation argue that trade contributes to the transfer of knowledge and technology. This study is the first part of a twin study in which the authors attempt to shed some light on the comparative experience of the two countries in the light of the above-mentioned literature. The present study is devoted to the establishment of facts, while in the second study an attempt will be made to provide an explanation for differences in the performance of the two countries and the role played by their government in order to see whether the process, if successful, is replicable elsewhere. China and Mexico the process of trade liberalization and development of export oriented industries started, following a period of pursuing import substitution strategy , more or less, at the same time-if not earlier in the case of Mexico. It will be shown in this study that both countries have managed to develop comparative advantage in many industries initiated through import substitution; but China has been more successful than Mexico in gradually increasing value added in export oriented industries by substituting domestic production for imported inputs in these industries. The first section is devoted to a brief survey of the literature. In the second section, we will shed some light on the general trends in development of export promotion industries and general performance of the manufacturing sector in exports and production. The third section is devoted to the analysis of processing trade and value added in assembly operations through production of domestic components. In section four we will investigate the evolution of revealed comparative advantage in exports, production and assembly operation of traded finished goods and parts and components in order to shed some light on their future export prospects. The final section will conclude the study. . 2 |
| Keywords: | Mexico; China; Industrialization; Value added; Trade policy; Import substitution; export expansion |
| JEL: | F0 N6 O5 O2 O1 F1 O3 O4 |
| Date: | 2007–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6650&r=dev |
| By: | Nguyen Thu Phuong (Centre for Analysis and Forecasting, Vietnam Academy of Social Sciences); Tran Ngo Thi Minh Tam (Centre for Analysis and Forecasting, Vietnam Academy of Social Sciences); Nguyen Thi Nguyet (Central Institute for Economic Management (CIEM), Vietnam); Remco Oostendorp (Free University, Amsterdam) |
| Abstract: | <p>This paper uses the recent Vietnam Household Living Standard Survey 2004 to analyze the determinants and impacts of migration in Vietnam. Most of the previous studies on the determinants and impacts of migration have focused on destination rather than origin areas of migration. This limits our understanding of the determinants of migration and also does not provide evidence on important impacts of migration such as on household inequality in origin areas.</p><p>In terms of determinants of migration, the study shows that migration is a highly selective process and strongly affected by household and commune characteristics, although differently across type of migration and across urban and rural areas. We do find evidence for the existence of a 'migration hump' for economic long-term migration, with an inverted U-shape in the probability of migration with respect to per capita expenditures. The presence of non-farm employment opportunities does reduce short-term migration but not long-term out-migration for economic reasons.</p><p>In terms of impacts the study analyzes the impact of migration on household expenditures and household inequality. Migration is found to have a strong positive impact on household expenditures but increases the Gini coefficient of per capita household expenditures from 0.38 to 0.42 in origin areas compared to the no-migration case.</p> |
| Keywords: | Migration; Vietnam; Household |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0108&r=dev |
| By: | Sen, Tapas K. (National Institute of Public Finance and Policy); Karmakar, Krishanu (National Institute of Public Finance and Policy) |
| Keywords: | Public expenditure ; Human development |
| Date: | 2007–05 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:hd2&r=dev |
| By: | Theodore Palivos (Department of Economics, University of Macedonia); Giannis Karagiannis (Department of Economics, University of Macedonia) |
| Abstract: | This paper characterizes the elasticity of factor substitution in one-sector convex growth models with a general production function. It shows that an elasticity of substitution that is asymptotically greater than one is a sufficient (but not a necessary) condition for the existence of a lower bound on the marginal product of capital, which in turn can lead to unbounded endogenous growth. Hence, an elasticity of substitution that becomes eventually greater than one can counteract the role of diminishing returns to capital. This renders factor substitution a powerful engine of growth. |
| Keywords: | Elasticity of Substitution, Endogenous Growth, Convex Models |
| JEL: | O11 O40 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2007_03&r=dev |