|
on Development |
| By: | Brian McCaig |
| Abstract: | Can a small, poor country reduce poverty by gaining increased market access to a large, rich country? The 2001 U.S.-Vietnam Bilateral Trade Agreement provides an excellent opportunity to examine this question as, unlike other bilateral trade agreements, the U.S. tariff cuts were not influenced by Vietnamese industries. Between 2002 and 2004, provinces that were more exposed to the U.S. tariff cuts experienced faster decreases in poverty. An increase of one standard deviation in provincial exposure leads to a reduction in the poverty headcount ratio of approximately 11 to 14 percent, but this effect diminishes the further the province is from a major seaport. Three labour market channels from the trade agreement to poverty alleviation are subsequently explored. Provinces that were more exposed to the tariff cuts experienced (1) increases in provincial wage premiums for low-skilled workers, (2) faster movement into wage and salaried jobs for low-skilled workers, and (3) more rapid job growth in formal enterprises |
| JEL: | F14 F16 I32 O11 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2009-502&r=dev |
| By: | Rod Tyers; Feng Lu |
| Abstract: | China's industrial reforms have left many key industries dominated by few, often state owned, firms. Until recently, these firms were not required to pay dividends to the state and the post-2000 surge in growth made them very profitable, with their economic profits adding corporate saving amounting to a fifth of GDP. This bolstered China's overall saving-investment gap and hence its controversial current account surplus. In other countries, oligopolistic industries tend to be taxed more heavily and they are commonly subjected to price regulation. This study offers an economy-wide analysis of approaches to oligopoly rents in China. The results suggest that, while policy changes targeting national saving, including increased corporate taxation, expansionary fiscal policy and SOE privatisation all help to control the external imbalance, they tend also to turn demand inward, inducing higher oligopoly rents and slower growth. Competition policy, embodying both price cap regulation and free entry, proves more effective both in controlling the external imbalance and in fostering continued growth. |
| JEL: | D43 D58 F32 L13 L43 L51 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2009-496&r=dev |
| By: | Martine Mariotti |
| Abstract: | Conventional wisdom holds that international political pressure and domestic civil unrest in the mid-1970s and 1980s brought an end to apartheid in South Africa. I show that, prior to these events, labor market pressure in the late 1960s/early 1970s caused a dramatic unraveling of apartheid in the workplace. Increased educational attainment among whites reduced resistance to opening semi-skilled jobs to Africans. This institutional change reflected white economic preferences rather than a relaxation of attitudes toward apartheid. I show that whites benefited from the relaxation of job reservation rules and that this is the primary cause of black occupational advancement. |
| JEL: | N37 J71 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2009-503&r=dev |
| By: | Rod Tyers; Ling Huang |
| Abstract: | Initially, the global financial crisis caused a surge of financial inflows, raising Chinese investment but this abated in 2008, to be replaced by a slowdown in export demand. The government's key response has been to commit to an unprecedented fiscal expansion. Two oft-ignored consequences are, first that government spending is on non-traded goods and services and so enlarges the consequent real appreciation and, second, that a more inward-looking economy causes firms to face less elastic demand and hence to increase oligopoly rents, further enlarging the real appreciation. Both are important for China because of the contribution of its real-exchange-rate sensitive, low-margin labour-intensive export sector to total employment. An economy-wide analysis is offered, using a model that takes explicit account of oligopoly behaviour. The results suggest that a conventional fiscal expansion would further contract the Chinese economy and, moreover, that the structural changes required would be considerable and painful. On the other hand, accelerated industrial reform, emphasising the sectors that remain dominated by state-owned oligopoly firms, would reduce costs and foster further export led growth in both output and modern sector employment. |
| JEL: | D43 D58 F32 L13 L43 L51 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2009-501&r=dev |
| By: | Navas-Ruiz, Antonio (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.) |
| Abstract: | This paper explores the relationship between trade openness and economic growth through a change in institutions. To do so, the paper creates a theory of endogenous institutional change where there are three social groups, each one owns a specific production factor. An ellite (landowners) controlling the political power fix higher taxes to extract rents from the other groups of the society (capitalists). This reduces investment in capital, the source for endogenous growth. Endogenous institutional change is done by allowing the rival group (capitalists) to invest in a military action which expels out the group in power. The model studies optimal taxation, growth and institutional change under two scenarios, autarky and free trade. The model is calibrated according to the Western European experience in the Modern Age. Generally, economies opened to trade will experiment higher growth and earlier institutional change although economies specializing in manufacturing products tend to grow more and rise the institutional change earlier. These results are qualitatively very robust to change in parameter values. |
| Keywords: | Growth, Institutions, Trade Openness |
| JEL: | F43 O41 O43 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpaper:200905&r=dev |
| By: | Subhayu Bandyopadhyay; Javed Younas |
| Abstract: | Understanding the causes of terrorism is important in predicting it and in developing an effective counterterrorism strategy. Data on the incidence of terrorist attacks and casualties suggest that domestic terrorism poses a substantially larger threat than transnational terrorism in developing countries. In spite of this fact, research has focused mostly on the latter. In analyzing both types, we find that political freedom and civil liberties affect domestic terrorism in a non monotonic way. Countries with either authoritarian regimes or with mature democratic systems experience less terrorism. This result has important policy implications: It suggests that one needs to be patient in the path to democracy, because the transition is likely to be associated with more violence. Interestingly, more religious fractionalization is associated with less terrorism in most of our specifications, while ethnic fractionalization raises domestic terrorism. On the other hand, poverty and lack of education do not appear to directly influence either domestic or transnational terrorism. All specifications show that “rule of law” reduces terrorism. |
| Keywords: | Terrorism |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2009-23&r=dev |
| By: | Christian Morrisson; Fabrice Murtin |
| Abstract: | This paper presents a historical database on educational attainment in 74 countries for the period1870-2010, using perpetual inventory methods before 1960 and then the Cohen and Soto (2007)database. The correlation between the two sets of average years of schooling in 1960 is equal to 0.96.We use a measurement error framework to merge the two databases, while correcting for a systematicmeasurement bias in Cohen and Soto (2007) linked to differential mortality across educational groups.Descriptive statistics show a continuous spread of education that has accelerated in the second half ofthe twentieth century. We find evidence of fast convergence in years of schooling for a sub-sample ofadvanced countries during the 1870-1914 globalization period, and of modest convergence since1980. Less advanced countries have been excluded from the convergence club in both cases. |
| Keywords: | Inequality, human capital, economic history, copula function |
| JEL: | D31 E27 F02 N00 O40 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0934&r=dev |
| By: | Fabio Manca (Faculty of Economics, University of Barcelona) |
| Abstract: | We generalize a standard technology diffusion model by allowing for IPRs regimes to be endogenously defined by the development level of each country. Also we insert differences in the composition of human capital between North (leader) and South (followers) which shape the relative costs of innovation and imitation. Results show how an optimal growth trajectory is found for the follower country which initially imitates and that, once a "threshold development stage" is reached, optimally switches to innovation by fully enforcing IPRs achieving a higher proximity with the technology frontier in the long-run. Other scenarios, such as a premature increase in the enforcement of IPRs or a switch from imitation to innovation at early stages of development of the followers are found to be sub-optimal. |
| Keywords: | IPRs, Human capital, Technology transfer. |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:200914&r=dev |
| By: | Lourdes Gallardo; Hugo Nopo |
| Abstract: | Returns to labor for workers with similar endowments of productive characteristics in Ecuador are influenced by two characteristics that, arguably, should play no role on the determination of wages: gender and ethnicity. This paper analyzes wage gaps due to both characteristics in Ecuador for the period 2003-2007, applying a matching comparisons technique developed in Ñopo (2008). The results indicate ethnic wage gaps that are notably higher than gender wage gaps. Furthermore, ethnic wage gaps are higher among males than among females. Differences in human capital characteristics, however, explain almost one-half of the ethnic wage gaps but only a small fraction of the gender wage gaps. Both gender and ethnic wage gaps are more pronounced at the lower extremes of the earnings distribution. |
| Keywords: | Matching, Non-parametric, Wage Gaps, Gender, Ethnicity, Latin America |
| JEL: | C14 D31 J16 O54 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4625&r=dev |
| By: | Alberto Chong; Mark Gradstein |
| Abstract: | This paper examines the causal link between education and democracy. Motivated by a model whereby educated individuals are in a better position to assess the effects of public policies and hence favor democracy where their opinions matter, the empirical analysis uses World Values Surveys to study the link between education and democratic attitudes. Controlling for a variety of characteristics, the paper finds that higher education levels tend to result in rodemocracy views. These results hold across countries with different levels of democracy, thus rejecting the hypothesis that indoctrination through education is an effective tool in non-democratic countries. |
| Keywords: | Education, democracy |
| JEL: | I20 I30 Y80 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4627&r=dev |
| By: | Eduardo Fernandez-Arias; Peter Montiel |
| Abstract: | This paper examines the countercyclical policy options available to Latin American countries in the face of the current global economic crisis, concluding that most of the major countries in the region appear to possess the fiscal space (as measured by credible fiscal sustainability and debt headroom) to run prudent countercyclical fiscal deficits. Those countries should undertake a constrained fiscal expansion focused on productive public spending and financed by “rainy day” funds—large stocks of foreign exchange reserves that they have accumulated during recent years—rather than by market borrowing. The recent surge in multilateral financial activity to alleviate market illiquidity, whether intended for reserve or budget support, strengthens the case for this policy prescription: with multilateral support, the appropriate policy response is more expansionary, and its financing is less reliant on market borrowing. |
| Keywords: | countercyclical policy, fiscal space, international reserves, multilateral financial support |
| JEL: | E62 E63 F34 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:idb:wpaper:4628&r=dev |
| By: | Ajit Zacharias; Vamsi Vakulabharanam |
| Abstract: | In this paper, we conduct the novel exercise of analyzing the relationship between overall wealth inequality and caste divisions in India using nationally representative surveys on household wealth conducted during 1991–92 and 2002–03. According to our findings, the groups in India that are generally considered disadvantaged (known as Scheduled Castes or Scheduled Tribes) have, as one would expect, substantially lower wealth than the "forward" caste groups, while the Other Backward Classes and non-Hindus occupy positions in the middle. Using the ANOGI decomposition technique, we estimate that between-caste inequality accounted for about 13 percent of overall wealth inequality in 2002–03, in part due to the considerable heterogeneity within the broadly defined caste groups. The stratification parameters indicate that the forward caste Hindus overlap little with the other caste groups, while the latter have significantly higher degrees of overlap with one another and with the overall population. Using this method, we are also able to comment on the emergence and strengthening of a "creamy layer," or relatively well-off group, among the disadvantaged castes, especially the Scheduled Tribes. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_566&r=dev |
| By: | Erich Gundlach; Martin Paldam |
| Abstract: | Long-run development (in income) causes a large fall in the share of agriculture commonly known as the agricultural transition. We confirm that this conventional wisdom is strongly supported by the data. Long-run development (in income) also causes a large increase in democracy known as the democratic transition. Elsewhere we have shown that it is almost as strong as the agricultural transition. Recently, a method has been presented to weed out spuriousness. It makes the democratic transition go away by turning income insignificant, when it is supplemented by a set of formal controls. We show that the same method makes the agricultural transition go away as well. Hence, it seems to be a method that kills far too much, as suggested by the subtitle. This suggestion leads to a discussion of the very meaning of long-run causality |
| Keywords: | Long-run growth, transitions, causality and spuriousness |
| JEL: | O1 P5 Q1 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1521&r=dev |
| By: | Alberto BUCCI; Herb E. KUNZE; Davide LA TORRE |
| Abstract: | The aim of this paper is twofold. First of all we re-examine the long-run relationship between population and economic growth. To do this we extend the Lucas-Uzawa model along two different directions: we introduce the growth of the physical capital stock into the human capital supply equation and include in the intertemporal maximization problem of the representative household a preference parameter controlling for the degree of agents’ altruism towards future generations. These two extensions allow us to capture eventual complementarity/substitutability links between physical and human capital in the production of new human capital and to study how such links, along with agents’ altruism, may impact on the interplay between economic and demographic growth along the balanced growth path equilibrium. In the second part of this paper we develop the inverse problem for this extended Lucas-Uzawa model. The method we are going to use is based on fractals and has been developed by two of the authors in recent papers. Through the solution of the inverse problem one can get the estimation of some key-parameters such as the total factor productivity, the productivity of human capital in the production of new skills, the physical capital share in total income, the inverse of the intertemporal elasticity of substitution in consumption, the depreciation rate of (physical and human) capital and the parameter controlling for the degree of altruism towards future generations. |
| Keywords: | Population Growth, Two-Sector Endogenous Growth Models, Human Capital Investment, Physical Capital Accumulation, Fractal-based Methods, Inverse Problems, Collage Theorem |
| JEL: | O41 J24 J10 |
| Date: | 2008–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2008-34&r=dev |
| By: | Alberto BUCCI |
| Abstract: | Using a balanced-growth model with physical and human capital accumulation, this article analyzes quantitatively the long run effects of changes in the saving rate and in income distribution (i.e., the shares of physical and human capital in income) on investment in human capital, growth of income, and the ratio of human to physical capital. In the long run the ratio of physical to human capital is constant, so that these two production factors can grow at the same rate. This rate is a function of the economy’s exogenous technological and preference parameters and depends positively on the share of skills invested in human capital formation. We also find that population growth is neither necessary nor conducive to economic growth and that the level of real income depends linearly on the level of human capital and is independent of population size. |
| Keywords: | Economic Growth, Human and Physical Capital Investment, Scale Effects |
| JEL: | O41 J22 J24 |
| Date: | 2008–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2008-29&r=dev |
| By: | Alberto BUCCI; Giovanna SEGRE |
| Abstract: | The aim of this paper is to investigate the role of culture, viewed according to Throsby’s definition of cultural capital (that is, an asset of tangible and intangible cultural expressions), in fostering economic growth. Recent literature in the field of cultural economics highlights a possible inversion of the usual causality relation, and culture can be seen as one of the engine of economic wealth. In this article we analyze one possible channel through which it may occur: human capital investment. Using a two-sectors endogenous growth model, the relation between cultural and human capital is deeply investigated. |
| Keywords: | Economic growth, culture, human capital, complementarities, externalities |
| JEL: | O40 O41 Z10 J24 |
| Date: | 2009–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2009-05&r=dev |
| By: | Alberto BUCCI; Luca GUERRINI |
| Abstract: | This paper offers an alternative way, based on the logistic population growth hypothesis, to yield transitional dynamics in the standard AK model with exogenous savings rate. Within this framework, we show that the dynamics of the capital stock per person and its growth rate can be non-monotonic over time. Moreover, even in the presence of negative growth, the capital stock per-capita can converge to a strictly positive level (different from the initial level) when time goes to infinity. In general, the analysis allows us to conclude that the dynamics of the Solow-Swan model with linear technology and logistic population growth is richer than the one with exponential population growth. |
| Keywords: | Transitional dynamics, AK model, Economic growth, Population dynamics, Physical capital investment |
| JEL: | O16 O41 J10 C61 |
| Date: | 2008–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2008-44&r=dev |
| By: | Alberto BUCCI |
| Abstract: | This paper analyzes the conditions under which, within a two-sector endogenous growth model with human and physical capital accumulation but without R&D-driven disembodied technological progress, it is possible to observe an ambiguous effect of population growth on economic growth, as empirical evidence suggests. We present three models. In each of them the engine of long-run growth is human capital accumulation. Population growth exerts ambiguous effects on economic growth only when human and physical capital are complementary for each other in the production of new human capital. This result is explained in terms of the interplay between the “dilution” and “accumulation” effects. In accordance with the growth literature exhibiting endogenous human capital accumulation and R&D activity, we also find that income growth can be positive even with stable population, that both the growth rate and the level of per-capita income are independent of population size, and finally that the level of per-capita income is proportional to per-capita human capital. We conclude that it is possible to reach the same results even without explicitly assuming endogenous and purposeful investment in research by firms |
| Keywords: | Population Size and Growth, Scale Effects, Per-Capita Income; Economic Growth, Human Capital Investment, Physical Capital Accumulation |
| JEL: | O41 J24 J10 |
| Date: | 2008–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2008-17&r=dev |
| By: | Alberto BUCCI; Cinzia COLAPINTO; Martin FORSTER; Davide LA TORRE |
| Abstract: | We embed the Uzawa-Lucas human capital accumulation technology into the Mankiw-Romer-Weil exogenous growth model. The paper is divided into two parts. In the first part we assume that the rate of technological progress is exogenous and deterministic and study the local dynamics of the model around its steady-state equilibrium. The first order conditions lead to a system of four nonlinear differential equations. By reducing the dimension of the system to three, we find that the equilibrium is a saddle point. If the equations system is attacked in its original dimension, and by making use of an arbitrage condition, we prove that the equilibrium is unstable. In the second part of the paper technology is assumed to be subject to random shocks driven by a geometric Brownian motion. Using the Hamilton-Jacobi-Bellman equation, and through numerical simulations, we discuss the effects of technology shocks on the optimal policies of consumption and the allocation of human capital across sectors. |
| Keywords: | Economic Growth, Physical and Human Capital Accumulation, Technology Shocks |
| JEL: | C61 C63 J24 O41 O33 |
| Date: | 2008–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2008-36&r=dev |
| By: | Alberto BUCCI; Davide LA TORRE |
| Abstract: | We present a two-sector endogenous growth model with human and physical capital accumulation in order to analyze the long run relationship between population growth and real per capita income growth. Learning is assumed to affect agents’ decision of how much to invest in formal education. Along the balanced growth path equilibrium population change may have a positive, negative, or neutral effect on economic growth depending on whether physical and human capital are complementary/substitutes for each other in the production of new human capital and on their degree of complementarity. |
| Keywords: | Economic Growth, Population Chang, Learning by using, Human Capital Investment, Physical Capital Accumulation |
| JEL: | O41 J24 J10 |
| Date: | 2007–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2007-45&r=dev |
| By: | Pandey, Manoj K. |
| Abstract: | The paper examines the causal relationship between disability and poverty among Indian elderly. Using different poverty measures and statistical tests, the paper also attempts to analyze the depth of poverty among disabled elderly. A special round of National Sample Survey data on disability is used for this purpose. The results confirm the hypothesis of causal relationship between poverty and disability. Further, our analysis suggests for higher level of poverty and income inequality among disabled elderly and differences in the income levels vary significantly across different age groups, gender, social group and educational status. |
| Keywords: | Poverty; Disability; Inequality; Poverty measures; Elderly; Estimation |
| JEL: | C13 J14 D63 I32 |
| Date: | 2009–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15580&r=dev |
| By: | Kundishora, Phillip |
| Abstract: | This paper reviews the decentralization process in Eastern and Southern Africa. It begins with an analysis of the socio-economic as well as the political challenges confronting most countries in the region. This analysis places the decentralization debate into context as these challenges have a bearing on the outcome of any reforms undertaken. The paper goes on to define decentralization and local democracy in order to come up with a clear understanding of the different forms of decentralization as well as the tenets of local democracy. |
| Keywords: | decentralization; local governance; democracy. |
| JEL: | H77 H7 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15701&r=dev |
| By: | Chen, Xikang; Cheng, Leonard; Fung, K.C.; Lau, Lawrence J.; Sung, YunWing; Yang, C.; Zhu, K.; Pei, J.; Tang, Z. |
| Abstract: | We develop an input-output methodology to estimate how Chinese exports affect the country’s total domestic value added (DVA) and employment for 1995 and 2002. Total DVA generated by exports is obtained by subtracting all direct and indirect imported intermediate goods from the gross value of exports, and total employment is obtained by adding all direct and indirect employment generated by exports. To implement these estimations, we use hitherto unpublished Chinese government data to construct several completely new datasets, including an input-output table with separate input-output and employment-output coefficients for processing and non-processing exports. In 2002 (1995), for every US$1,000 dollar of Chinese exports, DVA and employment are estimated to be US$466 (US$545) and 0.242 (0.375) person-year, respectively. |
| Keywords: | Input-output tables; Chinese exports; employment; domestic value added |
| JEL: | P33 P45 F14 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15663&r=dev |
| By: | Akram, Naeem |
| Abstract: | The paper investigates the impacts of different health indicators on Economic growth in Pakistan. The Cointegration and Error Correction techniques were applied on the time series data of Pakistan for the period of 1972-2006. We find that Per capita GDP is positively influenced by health indicators in the long run and health indicators are having significant impact on per capita GDP. However, in the short run the health indicators fails to put significant impact on per capita GDP. It reveals that health indicators have a long run impact on economic growth. . It suggests that impact of health is only a long run phenomenon and in the short run there is no significant relationship exists between health variables and economic growth. The major policy implication of the study is that if we desire a high levels of per capita income, we can achieve it by increasing and improving the stock of health human capital, especially if current stocks are at lower end. Moreover, study also points out a rather diminutive role of public health expenditure in determining the per capita GDP. |
| Keywords: | Health human capital; Economic growth; Per capita GDP; Cointegration; Error Correction |
| JEL: | O1 O53 C22 O4 I1 |
| Date: | 2009–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15454&r=dev |
| By: | Vadlamannati, Krishna Chaitanya |
| Abstract: | The relationship between globalization and human rights remains highly controversial in African context. Neoliberals argue that globalization lead to growth and development generating respect for human rights. While skeptics contend that globalization process always tends to be ‘exclusive of poor’ increasing inequality leading to social unrest and economic insecurity. This leads to domestic violence and conflicts, allowing governments to resort to repressive measures. We unpack both these arguments and test several dimensions of human rights under the conditions of globalization. Previous studies have examined this issue for global sample with single indicators, such as trade openness and FDI. We however make use of Axel Dreher’s comprehensive measure of globalization index capturing the extent of globalization along the three dimensions of economic, political, and social globalization, to assess the propositions. Using the sample of 33 African countries for the period 1981 – 2005, our findings reveal a strong positive association between globalization and government respect for basic human rights, political terror scale. In contrast to the arguments of dependency school of thought, we also find positive relationship between disaggregated components of globalization and government respect for human rights. Of particular interest is that these results are reiterated for a sample of 28 Sub-Saharan African countries. |
| Keywords: | Globalization; Human rights; Africa. |
| JEL: | F15 O55 |
| Date: | 2009–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15290&r=dev |
| By: | Vincenzo Lombardo (Department of Economic Studies, Parthenope University of Naples) |
| Keywords: | - |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:prt:wpaper:10_2008&r=dev |
| By: | Vincenzo Lombardo (Department of Economic Studies, Parthenope University of Naples) |
| Keywords: | Dual economy, poverty, inequality, human capital, informal sector |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:prt:wpaper:12_2008&r=dev |
| By: | Hongbin Cai; J. Vernon Henderson; Qinghua Zhang |
| Abstract: | This paper studies the urban land market in China in 2003--2007. In China, all urban land is owned by the state. Leasehold use rights for land for (re)development are sold by city governments and are a key source of city revenue. Leasehold sales are viewed as a major venue for corruption, prompting a number of reforms over the years. Reforms now require all leasehold rights be sold at public auction. There are two main types of auction: regular English auction and an unusual type which we call a "two stage auction". The latter type of auction seems more subject to corruption, and to side deals between potential bidders and the auctioneer. Absent corruption, theory suggests that two stage auctions would most likely maximize sales revenue for properties which are likely to have relatively few bidders, or are "cold", which would suggest negative selection on property unobservables into such auctions. However, if such auctions are more corruptible, that could involve positive selection as city officials divert hotter properties to a more corruptible auction form. The paper finds that, overall, sales prices are lower for two stage auctions, and there is strong evidence of positive selection. The price difference is explained primarily by the fact that two stage auctions typically have just one bidder, or no competition despite the vibrant land market in Chinese cities. |
| JEL: | D44 H71 O38 O53 R14 R31 R52 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15067&r=dev |
| By: | Matthias Doepke; Fabrizio Zilibotti |
| Abstract: | In recent years, a number of governments and consumer groups in rich countries have tried to discourage the use of child labor in poor countries through measures such as product boycotts and the imposition of international labor standards. The purported objective of such measures is to reduce the incidence of child labor in developing countries and thereby improve children's welfare. In this paper, we examine the effects of such policies from a political-economy perspective. We show that these types of international action on child labor tend to lower domestic political support within developing countries for banning child labor. Hence, international labor standards and product boycotts may delay the ultimate eradication of child labor. |
| JEL: | J20 J88 O10 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15050&r=dev |