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on Development |
| By: | DINH Thi Hoang Yen (Ph.D. Student of Department of International Development, GSID, Nagoya University) |
| Abstract: | Vietnam, a transitional economy that started its historic economic reform in 1986, has been pursuing both the market-oriented and state-controlled developments for more than twenty years. This study focuses on the country's liberalization on internal and international trade polices, an important path of economic reform, by measuring an index for import liberalization policy and then employing "channel analysis" to quantify impacts of import liberalization on the country's economic growth. The study applies the method proposed by Wacziarg (2001) to Vietnamese data for the period 1986-2006 with necessary revisions to accommodate features of the Vietnamese economy. The estimated results by 3SLS regression indicate positive impact of import liberalization on economic growth once the full information of linking channels (government expenditure, macroeconomic quality, black market premium, domestic trade, FDI and exports) have been accounted for. The study concludes that one unit increase of import liberalization index improves economic growth rate by 0.304 percentage point. Of this, increase in technological capability of exports, macroeconomic stabilization, and the efficiency domestic trade is the prominent factors, each occupies roughly 25-30% of the overall channels' impact. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:1909&r=dev |
| By: | Huynh Truong Huy (Center for Migration and Intercultural Studies, Antwerpen University, Belgium) |
| Abstract: | <p>This paper reports the results of a survey from 148 households in the Mekong Delta regarding the household's decision of migration. Recent studies of migration indicated that a decision of migration for a certain person is not made individually by himself, but it is often made with impacts from other members in family. The logistic regression model is applied in this paper to examine the determinants of decision of migration to both migration and non-migration households.</p><p>According to the descriptive measure, it is found that the decision of migration for a typical household is significantly associated with the factors, namely "push" and "pull" factors. Among those are lack of job and low wages in home village, landless, job opportunities, higher wages and links to relatives from urban areas. Furthermore, the result of the estimated model displays the household's migration decision is strongly positively associated with household size, housing status, landless, but negative to number of dependants, plot size and income from non-farming activity.</p> |
| Keywords: | Vietnam, Rural, Urban, Migration, Mekong Delta, household |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:1709&r=dev |
| By: | Gustav Ranis (Yale University, Economic Growth Center) |
| Abstract: | This paper suggests that area studies and economics have a better chance to be married successfully if we shift our attention from the exclusive emphasis on economic growth towards improvements in human development, especially the much broadened version of that concept. Different areas are shown to differ substantially in terms of the choices they make among the various independent dimensions of well-being and the various indicators within each dimension. The particular characteristics of each area play an important role in determining the choices societies make and the extent to which they are constrained by their initial conditions. |
| Keywords: | Economics, Human Development, Area Studies |
| JEL: | O1 O2 O5 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:975&r=dev |
| By: | Amuedo-Dorantes, Catalina (San Diego State University, California); Mazzolari, Francesca (University of California, Irvine) |
| Abstract: | The magnitude of remittance flows to Latin America exceeds the combined inflows of foreign direct investment and official development assistance to the region. Since the United States is the destination country of the vast majority of migrants from Mexico, as well as from other Latin American countries, U.S. immigration policy can have a significant impact on the volume of remittances to the Latin American region. This paper studies how a generalized amnesty – a provision in the 1986 Immigration Reform and Control Act (IRCA), affected immigrants' remitting patterns. In models that control for immigrants' length of residence in the United States and for economic conditions in both the U.S. state of residence and the country of origin, we estimate substantial post-legalization drops in remittances sent home by Mexican-born migrants who legalized through IRCA. Given the potential positive impact of remittances on investment levels, entrepreneurship rates and the development of the financial sector, this finding underscores the importance of gaining a better understanding of the impact that immigration policies in immigrant-receiving countries may have on the stream of remittance flows to immigrant-sending communities in developing regions. |
| Keywords: | remittances, Latin American migrants, legal status, amnesty |
| JEL: | F24 O15 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4318&r=dev |
| By: | Warin, Thierry (Middlebury College); Wunnava, Phanindra V. (Middlebury College); Tengia, Optat (Brown University); Wandschneider, Kirsten (Occidental College) |
| Abstract: | This paper investigates the feasibility of creating a common-currency union consisting of 16 countries in Southern Africa. We estimate an augmented-gravity model that includes public deficit, public debt, public expenditure, inflation, and the foreign reserves position. We also integrate Africa-specific variables such as existing economic blocs in the region, colonial heritage, and the convergence of living standards. Our analysis shows that the prospect for further integration in Southern Africa is promising, but many challenges still persist. The existing economic blocs can provide a first stepping stone to a larger currency union, but countries continuously have to cultivate good governance and fiscal discipline. |
| Keywords: | optimum currency area, gravity model, Southern African integration, endogenous optimum currency area theory |
| JEL: | F1 F3 F4 O24 O55 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4316&r=dev |
| By: | Schober, Thomas (University of Linz); Winter-Ebmer, Rudolf (University of Linz) |
| Abstract: | Seguino (2000) shows that gender wage discrimination in export-oriented semi-industrialized countries might be fostering investment and growth in general. While the original analysis does not have internationally comparable wage discrimination data, we replicate the analysis using data from a meta-study on gender wage discrimination and do not find any evidence that more discrimination might further economic growth – on the contrary: if anything the impact of gender inequality is negative for growth. Standing up for more gender equality – also in terms of wages – is good for equity considerations and at least not negative for growth. |
| Keywords: | growth, gender wage gap |
| JEL: | J16 O15 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4323&r=dev |
| By: | Krisztina Kis-Katos; Robert Sparrow (Department of International Economic Policy, University of Freiburg) |
| Abstract: | We examine the effects of trade liberalization on child work and schooling in Indonesia. Our estimation strategy identifies geographical differences in the effects of trade policy through district and province level exposure to reduction in import tariff barriers. We use seven rounds (1993 to 2002) of the Indonesian annual national household survey (Susenas), and relate workforce participation and school enrolment of children aged 10-15 to geographic variation in relative tariff exposure. Our main findings show that increased exposure to trade liberalization is associated with a decrease in child work and an increase in enrolment among 10 to 15 year olds. The effects of tariff reductions are strongest for children from low skill backgrounds and in rural areas. However, a dynamic analysis suggests that these effects reflect the long term benefits of trade liberalization, through economic growth and subsequent income effects, while frictions and negative adjustment effects may occur in the short term. |
| Keywords: | child labor, trade |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:fre:wpaper:8&r=dev |
| By: | Abhijit Banerjee |
| Abstract: | This paper studies the role played by caste, education and other social and economic attributes in arranged marriages among middle-class Indians. A unique data set on individuals who placed matrimonial advertisements in a major newspaper, the responses they received, how they ranked them, and the eventual matches is used. The preferences for caste, education, beauty, and other attributes are estimated. A set of stable matches is computed, which is compared to the actual matches that are observed in the data. |
| Keywords: | caste, marriages, India, middle-class, Indians, education, caste, data |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2144&r=dev |
| By: | Subhasis Bera |
| Abstract: | This paper attempts to compare the characteristics of South-South FDI versus North-South FDI in the context of India. The analysis is carried at two levels. First t the overall trends of FDI flows (both inward & outward) is looked at region wise (North versus South), country wise and sector wise. Econometric analysis at the sectoral /industry level for inward FDI from the North and from the South to examine the difference in the characters (if any) of FDI from the two sources was carried out. [WP no. 238]. |
| Keywords: | FDI inflows and outflows, North-South FDI, globalization,, South-South FDI, econometric analysis, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2143&r=dev |
| By: | Arindam Banerjee |
| Abstract: | The paper attempts to appraise the extent of the constraint of credit relations on agricultural production and its differential impact across peasant classes. Additionally, the analysis of the structure of rural indebtedness across peasant classes and size-class groups reveal the significance of a debt-relief policy in the current context and also brings out some of the shortcomings of the ADWDRS announced recently by the government. For this purpose, household-level farm production data is used which was collected in 2006 through a primary field enquiry in three regions, one in West Bengal and two in Andhra Pradesh. [WP 410]. |
| Keywords: | data, production, rural indebtedness, government, vulnerable, price stabilization, credit market, Indian agriculture, Agricultural Policy, Farm Households, House Hold Farm Production, west bengal, andhra pradesh, debt relief, Price Policy |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2150&r=dev |
| By: | Yanai, Akiko |
| Abstract: | Recently, there has been a surge in bilateral and regional trade arrangements between developed and developing countries, which are known as North-South RTAs. Under the current legal system of the WTO, North-South RTAs are governed by Article XXIV of the GATT or Article V of the GATS, which means such RTAs must be reciprocal and must cover substantially all the trade. On the other hand, there is another category of rules on RTAs based on the so-called Enabling Clause, which, in exceptional circumstances, provides special and differential treatment (SDT) for RTAs among developing countries. This paper considers the applicability of the SDT concept to North-South RTAs by examining why rules on RTAs and the concept of SDT were incorporated into the GATT/WTO legal framework so as to permit the derogation of most-favored-nation (MFN) obligations. |
| Keywords: | preferential treatment, regional trade agreement, WTO, Developing countries, Developed countries, International trade, International agreements |
| JEL: | F15 K33 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper197&r=dev |
| By: | Ishizuka, Futaba |
| Abstract: | This paper aims to capture the changing features of local SOEs under the national SOE restructuring program in the 2000s. The national policy on SOE reform in this phase had an effect of considerably clarifying and narrowing down the raison d'être of SOEs, which has been put into practice at the local level through provincial master plans. Consequently, some signs of an important change are observed: the structure of the local SOE sector is being standardized to a certain extent, and the remaining local SOEs are becoming more geared to the needs of a market economy. This trend would have far-reaching implications for the policy implementation and public service delivery by localities, which in turn would affect the long-term development of non-state sectors. |
| Keywords: | State owned enterprise, Local government, Vietnam, Government enterprises |
| JEL: | L32 L33 P39 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper193&r=dev |
| By: | Tsujita, Yuko |
| Abstract: | This paper showed the basic educational status of slum children between 5 and 14 years old. The attendance ratio of slum children is much lower than that of children in Delhi as a whole. Parental perception of education and financing education are the major constraints. Even if children are attending schools, the majority of them are over-aged. There are both demand and supply side reasons for discouraging slum children from attending schooling. As opposed to school-based surveys in previous literature, children in slums are more likely to go to government schools rather than low-fee paying private schools. Some policies are suggested. |
| Keywords: | Education, Slum, India, Children, Poverty |
| JEL: | I20 I21 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper199&r=dev |
| By: | Oka, Natsuko |
| Abstract: | Despite the ethnicisation of power since independence in 1991, Kazakhstan has managed to maintain political stability without experiencing large-scale mobilisation to oppose Kazakh domination. This paper examines government strategy to avoid ethnic voting in an attempt to explain why ethnic divisions were rarely reflected in the struggle for power in the republic. While the arbitrary use of legal provisions considerably limited participation in elections by ethnic leaders, powerful pro-president parties that exhibited a cross-ethnic character were created to curtail ethnically based movements. The control strategy in elections aimed not simply at ethnicising the parliament in favour of Kazakhs, but at having loyal Russians and other minorities represented in the legislature through nomination by the president and catch-all pro-regime parties, or through the presidential consultative body—Assembly of the People of Kazakhstan. This well-controlled representation of minorities served not only to placate non-Kazakhs but also to provide legitimacy for the Kazakh-dominated leadership by projecting the image of cross-ethnic support for the president and some degree of power-sharing. |
| Keywords: | Ethnic minority, Election, Kazakhstan, Minority Ethnic group, Politics |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper194&r=dev |
| By: | Roland Straub (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.); Christian Thimann (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.) |
| Abstract: | This paper sheds new light on the external and domestic dimension of China’s exchange rate policy. It presents an open economy model to analyse both dimensions of macroeconomic adjustment in China under both flexible and fixed exchange rate regimes. The model-based results indicate that persistent current account surpluses in China cannot be rationalized, under general circumstances, by the occurrence of permanent technology or labour supply shocks. As a result, the understanding of the macroeconomic adjustment process in China requires to mimic the effects of potential inefficiencies, which induce the subdued response of domestic absorption to permanent income shocks causing thereby the observed positive unconditional correlation of trade balance and output. The paper argues that these inefficiencies can be potentially seen as a by-product of the fixed exchange rate regime, and can be approximated by a stochastic tax on domestic consumption or time varying transaction cost technology related to money holdings. Our results indicate that a fixed exchange regime with financial market distortions, as defined above, might induce negative effects on GDP growth in the medium-term compared to a more flexible exchange rate regime. JEL Classification: E32, E62. |
| Keywords: | DSGE modelling, China, current account. |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20091040&r=dev |
| By: | George Shih-Ku Chen |
| Abstract: | We investigate the impact of agglomeration economies on the distribution of Taiwanese investment in China for the period 1996-2005. We find that the uneven distribution of Taiwanese investment can be explained by agglomeration economies related to industrial linkages, labour-market pooling and monitoring costs. Furthermore, we find evidence that the nature of agglomeration forces attracting Taiwanese investment not only differs across regions but also changes over time. Importantly, we find mild evidence that this investment is affected by a `market crowding effect', or that the benefit from agglomeration decreases once the market size exceeds a critical threshold. |
| Keywords: | Agglomeration economies; China; Taiwanese investment |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2009-01&r=dev |
| By: | Kenneth Hartgen (University of Göttingen); Stephan Klasen (University of Göttingen); Mark Misselhorn (University of Göttingen) |
| Abstract: | Spurred by international commitments and expanded funding at the national and international level, attendance in education and associated years of schooling have expanded substantially in developing countries in recent years. But has this expansion in enrolments reduced existing inequalities in educational access and achievements? This paper analyzes differences in improvements in the access to the education system and in educational outcomes across the welfare distribution between and within countries, and also by gender and regions for a sample of 37 developing countries using Demographic and Health Surveys (DHS). For the analysis, the toolbox of pro-poor growth analysis is applied to several educational indicators. We find drastic inequalities in educational attendance across the income distribution. Interestingly, inequalities in attendance declines with rising average attendance, while inequality in completion rates or schooling years increases with rising completion rates or schooling years. We find great heterogeneity in the distribution of progress of education, with very little pro-poor progress in educational achievement indicators. Also, progress appears to be less pro-poor in countries with low initial educational achievement and high overall educational progress. We find no correlation between pro-poor progress and free education policies or initial inequality in education. At the regional level, educational progress was generally more pro-poor in Asia and Latin America, while in Africa the experience is very heterogeneous. While gender inequality has decreased slightly, large differences by region tend to persist over time. |
| Keywords: | education; human capital; inequality; pro-poor growth |
| JEL: | I20 I29 I31 I32 |
| Date: | 2009–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:008&r=dev |
| By: | Adriana Cardozo (University of Göttingen); Melanie Grosse (University of Göttingen) |
| Abstract: | In this paper, we analyze how the distribution of selected non-income welfare indicators changed between 1997 and 2003 in Colombia. We use multidimensional propoor growth measurement techniques and create indices for assets, health, education, and subjective welfare using two alternative weighing techniques: polychoric principal components and normatively selected weights. Results show that while income and expenditures fluctuated according to economic growth, reflecting the effects of the 1999 economic crisis, non-income indicators had minor changes. While income and expenditures decreased for all income percentiles, and relatively more for the richest, the non-income dimensions stagnated and remained in 2003 as unequally distributed as in 1997. |
| Keywords: | Pro-Poor Growth; Inequality; Welfare Measurement; Multidimensionality of Poverty; Latin America; Colombia |
| JEL: | D30 I30 O10 O12 |
| Date: | 2009–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:009&r=dev |
| By: | Jeffrey G. Williamson (Harvard University and University of Wisconsin) |
| Abstract: | Most analysts of the modern Latin American economy hold to a pessimistic belief in historical persistence -- they believe that Latin America has always had very high levels of inequality, suggesting it will be hard for modern social policy to create a more egalitarian society. This paper argues that this conclusion is not supported by what little evidence we have. The persistence view is based on an historical literature which has made little or no effort to be comparative. Modern analysts see a more unequal Latin America compared with Asia and the rich post-industrial nations and then assume that this must always have been true. Indeed, some have argued that high inequality appeared very early in the post-conquest Americas, and that this fact supported rent-seeking and anti-growth institutions which help explain the disappointing growth performance we observe there even today. This paper argues to the contrary. Compared with the rest of the world, inequality was not high in pre-conquest 1491, nor was it high in the post-conquest decades following 1492. Indeed, it was not even high in the mid-19th century just prior Latin America’s belle époque. It only became high thereafter. Historical persistence in Latin American inequality is a myth. |
| Keywords: | Inequality; Development; Latin America |
| JEL: | N16 N36 O15 D3 |
| Date: | 2009–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:003&r=dev |
| By: | Kenneth Harttgen; Stephan Klasen |
| Abstract: | Migration continues to be a very important income diversi¯cation strategy, es- pecially for poor populations in developing countries. However, while there has been much analysis on the economic consequences of migration for migrants and the receiving regions, whether internal migration improves or deteriorates human development is not easy to determine. This papers applies a recently de- velopment analytical framework that allows to calculate the HDI for subgroups of a population. We use this approach to calculate the HDI by internal migra- tional status to assess the di®erences between the levels of human development of internal migrants compared to non-migrants, and also across countries as well as by urban and rural areas. An empirical illustration for a sample of 16 low and middle income countries shows that, overall, internal migrants slightly achieve a higher level of human development than non-migrants. The results further show that di®erences in income between migrants and non-migrants are generally higher than di®erences in education and life-expectancy. Disag- gregating the analysis by urban and rural areas reveals that urban internal migrants are better o® than urban non-migrants and rural migrants are better o® than rural non-migrants. |
| Keywords: | Human Development; Migration Income Inequality; Differential Mortality; Inequality in Education |
| Date: | 2009–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:005&r=dev |
| By: | Michael Grimm (Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands); Kenneth Harttgen (Göttingen University, Germany); Stephan Klasen (Göttingen University, Germany); Mark Misselhorn (Göttingen University, Germany); Teresa Munzi (Luxembourg Income Study, Luxembourg); Timothy Smeeding (Luxembourg Income Study, Luxembourg) |
| Abstract: | One of the most frequent critiques of the HDI is that it does not take into account inequality within countries in its three dimensions. In this paper, we apply a simple approach to compute the three components and the overall HDI for quintiles of the income distribution. This allows comparison of the level in human development of the poor with the level of the non-poor within countries, but also across countries. This is an application of the method presented in Grimm et al. (2008) to a sample of 21 low and middle income countries and 11 industrialized countries. In particular the inclusion of the industrialized countries, which were not included in the previous work, implies to deal with a number of additional challenges, which we outline in this paper. Our results show that inequality in human development within countries is high, both in developed and industrialized countries. In fact, the HDI of the lowest quintiles in industrialized countries is often below the HDI of the richest quintile in many middle income countries. We also find, however, a strong overall negative correlation between the level of human development and inequality in human development. |
| Keywords: | Human Development; Income Inequality; Differential Mortality; Inequality in Education |
| Date: | 2009–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:006&r=dev |
| By: | Boris Branisa (University of Goettingen / Germany); Adriana Cardozo (University of Goettingen / Germany) |
| Abstract: | This paper investigates growth convergence across Colombian departments during the period of 1975 to 2000, following both the regression and the distributional approaches suggested in the literature, and using two income measures computed by Centro de Estudios Ganaderos (CEGA).We also discuss issues related to data provided by Departamento Administrativo Nacional de Estadısticas (DANE) used by previous convergence studies. Our results show no evidence supporting convergence using per capita gross departmental product, but rather persistence in the distribution. Using per capita gross household disposable income, we find convergence, but only at a low speed, close to one percent per year. Furthermore, we find no evidence of the existence of different steady states for the two variables considered. |
| Keywords: | Colombia, regional growth convergence, growth regression, kernel density estimators |
| JEL: | C11 O40 O54 |
| Date: | 2009–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:got:iaidps:194&r=dev |
| By: | Boris Branisa (University of Goettingen / Germany); Adriana Cardozo (University of Goettingen / Germany) |
| Abstract: | This paper investigates convergence in social indicators among Colombian departments from 1973 to 2005. We use census data and apply both the regression approach and the distributional approach (univariate and bivariate kernel density estimators). Using literacy rate as a proxy for education, we find convergence between 1973 and 2005, but persistence in the distribution between 1975 and 2000, when we use the infant survival rate and life expectancy at birth as proxies for health. Additionally, using data from Demographic and Health Surveys, we find convergence in the rate of children that are well-nourished between 1995 and 2005. |
| Keywords: | Colombia, regional convergence, distribution dynamics, social indicators, kernel density estimators |
| JEL: | I31 O18 O54 R11 |
| Date: | 2009–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:got:iaidps:195&r=dev |
| By: | Felicitas Nowak-Lehmann D. (University of Goettingen / Germany); Inmaculada Martínez-Zarzoso (University of Göttingen / Germany); Dierk Herzer (University of Frankfurt / Germany); Stephan Klasen (University of Goettingen / Germany); Axel Dreher (University of Goettingen / Germany) |
| Abstract: | In this paper we investigate the relationship between per capita income and foreign aid for a panel of 131 (alternatively 52) recipient countries over the period 1960 to 2006 by employing annual data and 5-year averages. Reliance on standard panel estimation techniques, such as 2-ways FE estimation, panel GMM and SUR estimation, points to some pitfalls (impossibility of possible cointegration between aid and growth, autocorrelation of the error terms, endogeneity of the variables) that must be dealt with panel time series techniques (such as panel unit root test, panel cointegration tests and panel dynamic feasible generalized least squares estimation (DFGLS)). Estimations with DFGLS show that aid has an insignificant or a minute negative significant impact on per capita income. This result holds for countries with above- and below-average aid-to-GDP ratios, for countries with different levels of human development, with different income levels and from different regions of the world. It can be shown that by not controlling for autocorrelation, one erroneously attributes to aid a larger, significant negative impact on per capita income. We also find that aid has a significant positive (even though) small impact on investment, but a negative and significant impact on domestic savings (crowding out) and the real exchange rate (appreciation). |
| Keywords: | Foreign aid; real per capita income; panel time series techniques; dynamic feasible generalized linear least squares (DFGLS) |
| JEL: | F35 O11 C23 C51 |
| Date: | 2009–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:got:iaidps:196&r=dev |