nep-dev New Economics Papers
on Development
Issue of 2008‒03‒08
23 papers chosen by
Jeong-Joon Lee
Towson University

  1. Skill-based technology adoption: firm-level evidence from Brazil and India By Rupert Harrison
  2. Financial globalization, convergence and growth By Delfim Gomes Neto; Francisco José Veiga
  4. Attitudes to equality : the " socialist legacy " revisited By Tiongson, Erwin R.; Murthi, Mamta
  5. How to interpret the growing phenomenon of private tutoring : human capital deepening, inequality increasing, or waste of resources ? By Rogers, F. Halsey; Dang, Hai-Anh
  6. Lessons from China for Africa By Dollar, David
  7. Fiscal policy for growth and development in Tajikistan By Canagarajah, Sudharshan; Brownbridge, Martin
  8. Valuing access to water - a spatial hedonic approach applied to Indian cities By Lall, Somik; Deichmann, Uwe; Lozano-Gracia, Nancy; Anselin, Luc
  9. The extent of the market and stages of agricultural specialization By Shilpi, Forhad; Emran, M. Shahe
  10. Isolation and subjective welfare : evidence from South Asia By Shilpi, Forhad; Fafchamps, Marcel
  11. Heterogeneous technology and panel data : the case of the agricultural production function By Larson, Donald F.; Butzer, Rita; Mundlak, Yair
  12. Preferential liberalization and its economy-wide effects in Honduras By Medvedev, Denis
  13. License to sell : the effect of business registration reform on entrepreneurial activity in Mexico By Bruhn, Miriam
  14. The fiscal impact of foreign aid in Rwanda : a theoretical and empirical analysis By Lahiri, Sajal; Kebede, Ephraim; Ezemenari, Kene
  15. Governance arrangements for state owned enterprises By Vagliasindi, Maria
  16. The development impact of the illegality of drug trade By Soares, Rodrigo R.; Loayza, Norman V.; Keefer, Philip
  17. Modeling services liberalization : the case of Kenya By Tarr, David G.; Rutherford, Thomas F.; Balistreri, Edward J.
  18. Responding to Afghanistan ' s Opium economy challenge : lessons and policy implications from a development perspective By Byrd, William A.
  19. Socio-Political Conflict and Eonomic Performance in Bolivia By Jose Luis Evia; Roberto Laserna; Stergios Skaperdas
  20. Information and communication technologies and geographic concentration of manufacturing industries: evidence from China By Fu, Shihe; Hong, Junjie
  21. Product Quality at the Plant Level: Plant Size, Exports, Output Prices and Input Prices in Colombia By Kugler, M., Verhoogen, E.A.
  22. Consumer Price Inflation across the Income Distribution in South Africa By Morné Oosthuizen
  23. The State of Collective Bargaining in South Africa: An Empirical and Conceptual Study of Collective Bargaining By Shane Godfrey; Jan Theron; Margareet Visser

  1. By: Rupert Harrison (Institute for Fiscal Studies)
    Abstract: <p><p><p>This paper provides the first firm-level econometric evidence on the skill-bias of ICT in developing countries using a unique new dataset of manufacturing firms in Brazil and India. I use detailed information on firms' adoption of ICT and the educational composition of their workforce to estimate skill-share equations in levels and long differences. The results are strongly suggestive of skill-biased ICT adoption, with ICT able to explain up to a third of the average increase in the share of skilled workers in Brazil and up to one half in India. I then use variation in the relative supply of skilled workers across states within each country to identify the skill-bias of ICT. The results are again consistent with skill-bias in both countries, and are mainly robust to various methods of controlling for unobserved heterogeneity across states. The magnitudes of the estimated effects from both approaches are surprisingly similar for the two countries. Overall, the results suggest that new developments in ICT are diffusing rapidly through the manufacturing sectors of both Brazil and India, with similar implications for the demand for skills in two very different and geographically distant countries. This evidence is consistent with ongoing pervasive skill-biased technological change associated with ICT throughout much of the developed and developing world. The implications for future developments in inequality both within and between countries are potentially far-reaching.</p></p></p>
    JEL: J2 O14 O33
    Date: 2008–02
  2. By: Delfim Gomes Neto (Universidade de Vigo and RGEA); Francisco José Veiga (Universidade do Minho - NIPE)
    Abstract: We provide evidence that the composition of foreign capital, measured by the ratio foreign direct investment over total liabilities, a.ects growth directly and through the speed of convergence. Developing countries benefit relatively more as their initial GDP is smaller. The dataset comprises the period 1970-2004 and 96 countries, and the results are robust to di.erent measures of the composition of foreign capital, restricted time period, developing countries, and alternative explanations of convergence and growth. These results are consistent with the neoclassical growth model with credit constraints presented in this paper, in which the composition of foreign capital a.ects the transition dynamics through a positive e.ect on the speed of convergence and steady state GDP.
    Keywords: composition of foreign capital; speed of convergence; growth.
    JEL: F21 F36 F43 O47
    Date: 2008
  3. By: Argentino Pessoa (Faculdade de Economia da Universidade do Porto, Portugal)
    Abstract: Five decades ago, Simon Kuznets expressed an important hypothesis about the relationship between the degree of income inequality within a country and its level of economic development: the Kuznets’s inverted-U hypothesis. The lack of longitudinal data has forced the use of cross-section or pooled datasets in order to draw conclusions about that relationship. In the present note we highlight the lack of international comparability of surveys where the measures of inequality are based, and we show two main findings: 1) data comparability goes on constituting a problem, particularly in what respects to the different welfare indicators used in national surveys, and 2) the procedure usually used to minimize the problem of noncomparability is likely to enforce the bias rather than to solve it.
    Keywords: Inequality, Kuznets’s hypothesis, economic development, income distribution
    JEL: C21 D31 O15
    Date: 2008–02
  4. By: Tiongson, Erwin R.; Murthi, Mamta
    Abstract: It is routinely assumed that residents of post-socialist countries have a preference for greater income equality, other things being equal, owing to the legacy of socialism. This proposition is examined in the context of Eastern Europe and the former Soviet Union using data from three waves of the World Values Survey. Contrary to expectations, the authors find little evidence of a ' socialist legacy ' en bloc. Considering the former Soviet Union separately from other post-socialist countries, the analysis finds that as a group these countries display significantly lower preference for moving toward greater income equality than both Eastern Europe and other comparator groups (developed and developing countries). These findings hold up even when controlling for the conventional determinants of attitudes such as income level and employment status of the individual respondent, as well as national factors such as per-capita income and its distribution. Moreover, the preference for greater income inequality appears to have persisted at least since the mid-1990s and possibly since the early 1990s (data difficulties preclude a robust examination of this latter question). The results are consistent with the fairly low levels of public spending on redistribution commonly found in the former Soviet Union.
    Keywords: Access to Finance,Inequality,,Poverty Impact Evaluation,Corporate Law
    Date: 2008–02–01
  5. By: Rogers, F. Halsey; Dang, Hai-Anh
    Abstract: Private tutoring is now a major component of the education sector in many developing countries, yet education policy too seldom acknowledges and makes use of it. Various criticisms have been raised against private tutoring, most notably that it exacerbates social inequalities and may even fail to improve student outcomes. This paper surveys the literature for evidence on private tutoring-the extent of the tutoring phenomenon, the factors that explain its growth, and its cost-effectiveness in improving student academic performance. It also presents a framework for assessing the efficiency and equity effects of tutoring. It concludes that tutoring can raise the effectiveness of the education system under certain reasonable assumptions, even taking into account equity concerns, and it offers guidance for attacking corruption and other problems that diminish the contributions of the tutoring sector.
    Keywords: Teaching and Learning,Tertiary Education,Education For All,Primary Education,
    Date: 2008–02–01
  6. By: Dollar, David
    Abstract: China has been the most successful developing country in this modern era of globalization. Since initiating economic reform after 1978, its economy has expanded at a steady rate over 8 percent per capita, fueling historically unprecedented poverty reduction (the poverty rate declined from over 60 percent to 7 percent in 2007). Other developing countries struggling to grow and reduce poverty are naturally interested in what has been the source of this impressive growth and what, if any, lessons they can take from China. This paper focuses on four features of modern China that have changed significantly between the pre-reform period and today. The Chinese themselves call their reform program Gai Ge Kai Feng, " change the system, open the door. " " Change the system " means altering incentives and ownership, that is, shifting the economy from near total state ownership to one in which private enterprise is dominant. " Open the door " means exactly what it says, liberalizing trade and direct investment. A third lesson is the development of high-quality infrastructure: China ' s good roads, reliable power, world-class ports, and excellent cell phone coverage throughout the country are apparent to any visitor. Wha t is less well known is that most of this infrastructure has been developed through a policy of " cost recovery " that prices infrastructure services at levels sufficient to finance the capital cost as well as operations and maintenance. A fourth important lesson is China ' s careful attention to agriculture and rural development, complemented by rural-urban migration.
    Keywords: Transport Economics Policy & Planning,Environmental Economics & Policies,Emerging Markets,Population Policies,Debt Markets
    Date: 2008–02–01
  7. By: Canagarajah, Sudharshan; Brownbridge, Martin
    Abstract: Tajikistan ' s economy has recovered strongly after the collapse of the 1990s, but sustaining rapid economic growth over the long term and reducing poverty present major challenges for policymakers. This paper contributes to the debate over the strategic role for fiscal policy to play in meeting these challenges, utilizing the " fiscal space " approach to assess the long-term potential for expanding public provision of growth-promoting goods and services and evaluating the priorities for public spending. It also analyzes the long-term risks to fiscal sustainability, from external public debt and the quasi fiscal deficit of the electricity sector. The paper contends that institutional reforms in key areas, notably public financial management, tax administration, and the energy sector, are crucial for generating fiscal space and for ensuring that higher levels of public spending are translated into stronger economic growth and poverty reduction. The priorities for government spending should be education, health, and the maintenance of the core networks of the existing infrastructure for energy and transport, rather than new public investment projects.
    Keywords: Public Sector Expenditure Analysis & Management,Debt Markets,,Banks & Banking Reform,Access to Finance
    Date: 2008–02–01
  8. By: Lall, Somik; Deichmann, Uwe; Lozano-Gracia, Nancy; Anselin, Luc
    Abstract: An important infrastructure policy issue for rapidly growing cities in developing countries is how to raise fiscal revenues to finance basic services in a fair and efficient manner. This paper applies hedonic analysis that explicitly accounts for spatial spillovers to derive the value of improved access to water in the Indian cities of Bhopal and Bangalore. The findings suggest that by looking at individual or private benefits only, the analysis may underestimate the overall social welfare from investing in service supply especially among the poorest residents. The paper further demonstrates how policy simulations based on these estimates help prioritize spatial targeting of interventions according to efficiency and equity criteria.
    Keywords: Town Water Supply and Sanitation,Housing & Human Habitats,Water Supply and Sanitation Governance and Institutions,Water and Industry,Water Use
    Date: 2008–02–01
  9. By: Shilpi, Forhad; Emran, M. Shahe
    Abstract: This paper provides empirical evidence of nonlinearity in the relationship between crop specialization in a village economy and the extent of the market (size of the urban market) relevant for the village. The results suggest that the portfolio of crops in a village economy becomes more diversified initially as the extent of the market increases. However, after the market size reaches a threshold, the production structure becomes specialized again. This evidence on the stages of agricultural diversification is consistent with the stages of diversification identified in the recent literature for the economy as a whole and also for the manufacturing sector. The evidence highlights the importance of improving farmers ' access to markets through investment in transport infrastructure and removal of barriers to trading.
    Keywords: Transport Economics Policy & Planning,Markets and Market Access,Political Economy,Debt Markets,Crops & Crop Management Systems
    Date: 2008–02–01
  10. By: Shilpi, Forhad; Fafchamps, Marcel
    Abstract: Using detailed geographical and household survey data from Nepal, this article investigates the relationship between isolation and subjective welfare. This is achieved by examining how distance to markets and proximity to large urban centers are associated with responses to questions about income and consumption adequacy. Results show that isolation is associated with a significant reduction in subjective assessments of income and consumption adequacy, even after controlling for consumption expenditures and other factors. The reduction in subjective welfare associated with isolation is much larger for households that are already relatively close to markets. These findings suggest that welfare assessments based on monetary income and consumption may seriously underestimate the subjective welfare cost of isolation, and hence will tend to bias downward the assessment of benefits to isolation-reducing investments such as roads and communication infrastructure.
    Keywords: Transport Economics Policy & Planning,Economic Theory & Research,Health Monitoring & Evaluation,Consumption,Inequality
    Date: 2008–02–01
  11. By: Larson, Donald F.; Butzer, Rita; Mundlak, Yair
    Abstract: The paper presents empirical analysis of a panel of countries to estimate an agricultural production function using a measure of capital in agriculture absent from most studies. The authors employ a heterogeneous technology framework where implemented technology is chosen jointly with inputs to interpret information obtained in the empirical analysis of panel data. The paper discuss es the scope for replacing country and time effects by observed variables and the limitations of instrumental variables. The empirical results differ from those reported in the literature for cross-country studies, largely in augmenting the role of capital, in combination with productivity gains, as a driver of agricultural growth. The results indicate that total factor productivity increased at an average rate of 3.2 percent, accounting for 59 percent of overall growth. Most of the remaining gains stem from large inflows of fixed capital into agriculture. The results also suggest possible constraints to fertilizer use.
    Keywords: Economic Theory & Research,Labor Policies,Economic Growth,E-Business,Rural Development Knowledge & Information Systems
    Date: 2008–02–01
  12. By: Medvedev, Denis
    Abstract: This paper quantifies the likely benefits of trade and investment liberalization in a small, poor, open economy, using the accession of Honduras to the Dominican Republic-Central American Free Trade Agreement as a case study. The results show that bilateral trade liberalization with the United States is likely to have almost no effect on welfare in Honduras, while the reciprocal removal of protection vis-a-vis the rest of Central America would lead to significantly larger gains. Potential gains from increased net foreign direct investment inflows overwhelm those expected from trade reform alone, particularly if the new foreign direct investment generates productivity spillovers. However, if it is to replace Honduran investment rather than complement domestic capital formation, growth performance is unlikely to improve and may even suffer. The paper ' s results identify several areas for policy attention by Honduran policy makers to make the Dominican Republic-Central American Free Trade Agreement more development-friendly. These include carefully considering the budgetary implications of trade reform, widening social safety nets to counter the trends toward increasing income inequality, and sequencing the reforms to ensure a close alignment of Honduras ' comparative advantage on the regional and global markets.
    Keywords: Economic Theory & Research,Currencies and Exchange Rates,Free Trade,Emerging Markets,Debt Markets
    Date: 2008–02–01
  13. By: Bruhn, Miriam
    Abstract: This paper studies the effect of business registration regulation on economic activity using micro-level data. The identification strategy exploits the fact that a recent business registration reform in Mexico wa s introduced in different municipalities at different points in time. Using panel data from the Mexican employment survey, I find that the reform increased the number of registered businesses by 5 percent in eligible industries. This increase was due to former wage earners opening businesses. Former unregistered business owners were not more likely to register their business after the reform. Moreover, employment in eligible industries went up by 2.8 percent, and people who were previously unemployed or out of the labor force were more likely to work as wage earners after the reform. Finally, the results imply that the competition from new entrants lowered prices by 0.6 percent and decreased the income of incumbent businesses by 3.2 percent.
    Keywords: E-Business,,Labor Policies,Competitiveness and Competition Policy,Business Environment
    Date: 2008–02–01
  14. By: Lahiri, Sajal; Kebede, Ephraim; Ezemenari, Kene
    Abstract: The inflow of large quantities of foreign aid into Rwanda since 1994 can have potential adverse effects such as aid dependency via a significant negative effect on tax efforts and on public investments. This paper carries out a theoretical and empirical study to examine these issues. The theoretical part develops a model in which the recipient government decides on the optimal level of tax and optimally allocates total government revenue between current expenditure and public investment. The theoretical model makes it possible to empirically test whether an increase in aid is likely to reduce the optimal tax rate and the proportion of public expenditure allocated to public investment. The econometric analysis uses time series data on Rwanda to show, in line with other studies in the literature, a negative relationship between increased aid and the tax rate; but the magnitude of the effects are extremely small. In the case of Rwanda, reforms to the tax administration and expansion of the tax base have had mitigating effects. As far as the effect on public investment, the overall effect was negative in the past; however, since 1995 the direction of this effect has changed.
    Keywords: Debt Markets,Economic Theory & Research,Public Sector Economics & Finance,,Access to Finance
    Date: 2008–02–01
  15. By: Vagliasindi, Maria
    Abstract: The aim of this paper is to shed new light on key challenges in governance arrangements for state owned enterprises in infrastructure sectors. The paper provides guidelines on how to classify the fuzzy and sometimes conflicting development goals of infrastructure and the governance arrangements needed to reach such goals. Three policy recommendations emerge. First, some of the structures implied by internationally adopted principles of corporate governance for state owned enterprises favoring a centralized ownership function versus a decentralized or dual structure have not yet been sufficiently " tested " in practice and may not suit all developi ng countries. Second, general corporate governance guidelines (and policy recommendations) need to be carefully adapted to infrastructure sectors, particularly in the natural monopoly segments. Because the market structure and regulatory arrangements in which state owned enterprises operate matters, governments may want to distinguish the state owned enterprises operating in potentially competitive sectors from the ones under a natural monopoly structure. Competition provides not only formidable benefits, but also unique opportunities for benchmarking, increasing transparency and accountability. Third, governments may want to avoid partial fixes, by tackling both the internal and external governance factors. Focusing only on one of the governance dimensions is unlikely to improve SOE performance in a sustainable way.
    Keywords: National Governance,Banks & Banking Reform,Public Sector Economics & Finance,Debt Markets,Public Sector Expenditure Analysis & Management
    Date: 2008–03–01
  16. By: Soares, Rodrigo R.; Loayza, Norman V.; Keefer, Philip
    Abstract: This essay reviews many of the less considered consequences of the war on drugs, particularly the consequences for developing countries, and weighs them against the evidence that exists regarding the likely efficacy of current strategies to curb drug use and trade. The most important unintended consequences of drug prohibition are the following. First, the large demand for drugs, particularly in developed countries, generates the possibility of massive profits to potential drug providers. Since they cannot be organized freely and under the protection of the law, they resort to the formation of organized crime groups, using violence and corruption as their means of survival and expansion. In severe cases, the challenge to the state is such that public stability and safety are severely compromised. Second, prohibition and its derived illegal marke t imply the expropriation of endowments and resources used to produce and trade drugs. In many instances, this entails the transfer of wealth from poor to rich countries and from poor peasants to rich (and ruthless) traders. Third, criminalization can exacerbate the net health effects of drug use. These consequences are so pernicious that they call for a fundamental review of drug policy around the world.
    Keywords: Crime and Society,Health Monitoring & Evaluation,Economic Theory & Research,Post Conflict Reconstruction,Population Policies
    Date: 2008–03–01
  17. By: Tarr, David G.; Rutherford, Thomas F.; Balistreri, Edward J.
    Abstract: This paper employs a 55 sector small open economy computable general equilibrium model of the Kenyan economy to assess the impact of the liberalization of regulatory barriers against foreign and domestic business service providers in Kenya. The model incorporates productivity effects in both goods and services markets endogenously, through a Dixit-Stiglitz framework. It estimates the ad valorem equivalent of barriers to foreign direct investment based on detailed questionnaires completed by specialists in Kenya. The authors estimate that Kenya will gain about 11 percent of the value of Kenyan consumption in the medium run (or about 10 percent of gross domestic product) from a full reform package that also includes uniform tariffs. The estimated gains increase to 77 percent of consumption in the long-run steady-state model, where the impact on the accumulation of capital from an improvement in the productivity of capital is taken into account. Decomposition exercises reveal that the largest gains to Kenya will derive from liberalization of costly regulatory barriers that are non-discriminatory in their impacts between Kenyan and multinational service providers.
    Keywords: Transport Economics Policy & Planning,Economic Theory & Research,Banks & Banking Reform,Emerging Markets,Debt Markets
    Date: 2008–03–01
  18. By: Byrd, William A.
    Abstract: Opium, Afghanistan ' s leading economic activity, lies at the heart of the challenges the country faces in state building, governance, security, and development. With their narrow law enforcement focus and limited recognition of development, security, and political implications, current global counter-narcotics polices impose a heavy burden on Afghanistan. This paper first provides a summary overview of Afghanistan ' s opium economy and the factors determining rural households ' decisions on cultivating opium poppy. It then discusses the dynamic evolution of the Afghan drug industry in recent years, in particular its consolidation around fewer, powerful, politically-connected actors and the associated compromising of parts of some government agencies by drug industry interests. The paper reviews the experience with different counter-narcotics interventions, analyzes some proposals not yet tried in Afghanistan, and draws lessons and policy implications. Unfortunately there are no " silver bullets " -easy, quick, or one-dimensional solutions, and a longer-term horizon along with sustained commitment and resources will be required in order to phase out the opium economy over time. The paper concludes by putting forward some broad principles and approaches of a " smart strategy " against drugs in Afghanistan.
    Keywords: Rural Poverty Reduction,Alcohol and Substance Abuse,Crops & Crop Management Systems,Economic Theory & Research,Pharmaceuticals Industry
    Date: 2008–03–01
  19. By: Jose Luis Evia (Catholic University of Bolivia and Andean University "Simon Bolivar" of Bolivia); Roberto Laserna (CERES- Bolivia); Stergios Skaperdas (Department of Economics, University of California-Irvine)
    Abstract: We examine how socio-political conflict in Bolivia has affected its economic performance since the 1970s. Such conflict includes strikes, demonstrations, road blockades, and conventional rent-seeking. Since conflict has costs, it diverts resources away from production, tends to reduce investment and could therefore reduce economic growth. We first review the characteristics of conflict in Bolivia using a unique data set. We then provide estimates of the direct costs of conflict and examine the relationship with economic performance using hypotheses derived from a simple model. In particular, we make a distinction between economic growth that is due to external factors like changes in income due to movements in the terms of trade and economic growth that is due to productive investment. Growth due to external factors tends to be positively related to conflict, whereas growth due to productive investment should be negatively related to conflict. Finally, we discuss how levels of conflict, economic performance, and governance might be related in Bolivia’s recent history.
    Keywords: Economic growth; Property rights; Governance
    JEL: D70 H10 O11 O54
    Date: 2008–02
  20. By: Fu, Shihe; Hong, Junjie
    Abstract: Using the 2004 China economic census database, this paper examines the impact of information and communication technologies (ICT) on the geographic concentration of manufacturing industries, controlling for other determinants of industrial agglomeration. Higher geographic concentration is found consistently in industries where ICT are more widely adopted, and the association is stronger at higher geographic levels. Furthermore, young firms that have adopted ICT, although they are more footloose, contribute to industrial agglomeration. High-tech industries with advanced ICT also tend to agglomerate. Contrary to the prevalent argument that ICT lead to more dispersion, our study suggests that ICT promote industrial agglomeration.
    Keywords: Information and communication technologies; Geographic concentration; Agglomeration; China
    JEL: R32 R12
    Date: 2008–03–01
  21. By: Kugler, M., Verhoogen, E.A. (Wilfrid Laurier University)
    Abstract: This paper uses uniquely rich and representative data on the unit values of “outputs” (products) and inputs of Colombian manufacturing plants to draw inferences about the extent of quality differentiation at the plant level. We extend the Melitz (2003) framework to include heterogeneity of inputs and a complementarity between plant productivity and input quality in producing output quality and we show that the resulting model carries distinctive implications for two simple reduced-form correlations – between output prices and plant size and between input prices and plant size – and for how those correlations vary across sectors. We then document three plant level facts: (1) output prices are positively correlated with plant size within industries, on average; (2) input prices are positively correlated with plant size within industries, on average; and (3) both correlations are more positive in industries with more scope for quality differentiation, as measured by the advertising and R&D intensity of U.S. firms. The correlations between export status and input and output prices are similar to those for plant size. These facts are consistent with our model of quality differentiation of both outputs and inputs, and difficult to reconcile with models that assume homogeneity or symmetry of either set of goods. Beyond recommending an amendment of the Melitz (2003) model, the results highlight shortcomings of standard methods of productivity estimation, generalize and provide an explanation for the well-known employer size-wage effect, and suggest new channels through which liberalization of trade in output markets may affect input markets and vice-versa.
    Keywords: Quality upgrading; plant capability; exports
    JEL: O30 F10
    Date: 2008–01
  22. By: Morné Oosthuizen (Development Policy Research Unit, University of Cape Town)
    Abstract: Abstract: By monitoring the price changes experienced by some representative household, consumer price indices provide an important measure of changing purchasing power within a given economy. Group price indices offer one method of more accurately reflecting the inflation experiences of specific types of households, such as poor households, elderly households or households with children, for example. This study uses expenditure data from the 2000 Income and Expenditure Survey and price indices from Statistics South Africa to calculate inflation rates for expenditure deciles for the period 1998 to 2006. As a result, price indices and inflation rates calculated on the basis of these weights can not accurately reflect the rates of inflation experienced by what would be viewed as the ‘average’ household.
    Keywords: South Africa: consumer price index, Income distribution (South Africa), purchasing
    JEL: A1
    Date: 2007–11
  23. By: Shane Godfrey; Jan Theron; Margareet Visser (Development Policy Research Unit, University of Cape Town)
    Abstract: Abstract: The research examines the current state of collective bargaining, the nature of existing bargaining structures, alternative models that have developed, and the problems being experienced in the current system. The impact of collective bargaining on small business is also an aspect of the research. The aim was to understand how labour policy and regulation can better support collective bargaining.
    Keywords: South Africa: collective bargaining, bargaining structure, small business, regulation
    JEL: A1
    Date: 2007–11

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