nep-dev New Economics Papers
on Development
Issue of 2009‒10‒17
six papers chosen by
Mark Lee
Towson University

  1. Entrepreneurship and Growth: Evidence from China By Hongbin Li; Zheyu Yang; Xianguo Yao; Junsen Zhang
  2. Innovation and Economic Development By Fagerberg, Jan; Srholec, Martin; Verspagen, Bart
  3. Rural Health Services at Cross-Roads: Insights from Gujarat By Ratnawali Sinha
  4. Bayesian estimation of Cox models with non-nested random effects: an application to the ratification of ILO conventions by developing countries By Bernhard Boockmann.; Dragana Djurdjevic.; Guillaume Horny.; François Laisney.
  5. Poverty and Health in India: A Comparative Study about Pre-Reform and Post-Reform Periods By sarvalingam, a; sivakumar, marimuthu
  6. Microfinance and Moneylender Interest Rate: Evidence from Bangladesh By Mallick, Debdulal

  1. By: Hongbin Li; Zheyu Yang; Xianguo Yao; Junsen Zhang
    Abstract: This paper examines the impact of entrepreneurship on economic growth by using a panel data set of 29 provinces in China over 20 years. Two indicators of entrepreneurship are defined and introduced into the traditional growth regression framework that is estimated using the system generalized method of moments. We also use the ratio of staff and workers of state-owned enterprises and per capita sown land area as the instrumental variables to identify the causal effect of entrepreneurship on economic growth. Our results suggest that entrepreneurship has a significant positive effect on economic growth and this finding is robust even after we control for other demographic and institutional variables. Our study provides some evidence that may be used as a basis for evaluating the effect of China’s policy on private business which has been increasingly relaxed since the late 1970s.
    JEL: L26 O53 O53
    Date: 2009–10
  2. By: Fagerberg, Jan (Centre for Technology, Innovation and Culture, University of Oslo); Srholec, Martin (Centre for Technology, Innovation and Culture, University of Oslo); Verspagen, Bart (UNU-MERIT, and Maastricht University)
    Abstract: Is innovation important for development? And if so, how? One popular perception of innovation, that one meets in media every day, is that has to do with developing brand new, advanced solutions for sophisticated, well-off customers, through exploitation of the most recent advances in knowledge. Such innovation is normally seen as carried out by highly educated labour in R&D intensive companies, being large or small, with strong ties to leading centers of excellence in the scientific world. Hence innovation in this sense is a typical “first world” activity. There is, however, another way to look at innovation that goes significantly beyond the high-tech picture just described. In this broader perspective, innovation (the attempt to try out new or improved products, processes or ways to do things) is an aspect of most if not all economic activities. It includes not only technologically new products and processes but also improvements in areas such as logistics, distribution and marketing. The term may also be used for changes that are new to the local context, even if the contribution to the global knowledge frontier is negligible. In this broader sense, it is argued, innovation may be as relevant in the developing part of the world as elsewhere. The paper surveys the existing literature on the subject with a strong emphasis on recent evidence on the macro and, in particular, micro level.
    Keywords: innovation and development, innovation capabilities, technology transfer
    JEL: O14 O19 O31 O33 O40
    Date: 2009
  3. By: Ratnawali Sinha
    Abstract: The health status of the rural population from a study carried out in ten villages of Bharuch district in South Gujarat is presented. The objective is to i) understand and document the morbidity profile, ii) examine utilisation of health services, and iii) estimate approximate expenses on health care by the rural households.
    Keywords: health status, rural population, villages, morbidity, househols, utilisation, services, infrastructurs, area, population, Rural health services, Primary, Health Centre, Sub Centres, Morbidity, Major illness, Minor, illness, Out of pocket expenditure, on health, Mobilisation of finance, gujarat,
    Date: 2009
  4. By: Bernhard Boockmann.; Dragana Djurdjevic.; Guillaume Horny.; François Laisney.
    Abstract: We use a multivariate hazard model to analyse the ratification behaviour of ILO conventions by developing countries. The model accounts for two random effects: one at the country level, the other at the convention level. After investigating identification, we use a semi-parametric Bayesian approach based on the partial likelihood. We find diverging results between Bayesian and frequentist estimates concerning the importance of the two unobserved heterogeneities.
    Keywords: Gibbs sampling, partial likelihood, frailties, duration analysis.
    JEL: C11 C14 C15 C41 D78 J80 O19
    Date: 2009
  5. By: sarvalingam, a; sivakumar, marimuthu
    Abstract: In India, Economic Reforms has been explicitly started in 1991. Even with some controversy in the initial period now it intruded in almost all the sectors. At present days economic reforms is mingled with every sphere of economic activities. But the effects of economic reforms are highly debatable.Social sector is an important ingredient for over all development of a country. Development of social sector reveals the standard of living of people as well as the volume and potential of human resource in a country. Hence the analysis of economic reforms and its impact on social sector is imperative. This paper analysis poverty and health status during pre-reforms and post-reforms periods and compare them to find out that during which period the decrease in poverty and the increase in health status are better. For the analysis of poverty, people living below poverty line and for health status analysis life expectancy at birth and infant mortality are used in this study.
    Keywords: Economic Reforms; Social Sector; Poverty; Health; Below Poverty Line; Life Expectancy at Birth; Infant Mortality Rate; India.
    JEL: I3 I38 D60 I10 I1
    Date: 2009–10–12
  6. By: Mallick, Debdulal
    Abstract: The linkage between the formal and informal credit markets has long been of great interest to development economists. This paper addresses one important aspect of the linkage by empirically investigating the impact of the microfinance program expansion on the moneylender interest rates in Bangladesh, and finds that moneylender interest rates increase with microfinance program expansion. MFI program expansion increases moneylender interest rates in the villages in which more loans are invested in productive economic activities than consumption. Borrowers resort to moneylenders for additional funds because of inadequate supply, unavailability of seasonal working capital from MFIs, and tight repayment schedule, which in turn increases demand for moneylender loans.
    Keywords: Moneylender; microfinance; interest rate; informal sector.
    JEL: O17 C31 O12
    Date: 2009–05

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