...001 Economic Liberalization, the Changing Role of the State and ‘‘Wagner’s Law’’: China’s Development Experience since 1978 DAMIAN TOBIN * CeFiMS, SOAS, University of London, UK Summary. — The paper applies Wagner’s Law of increasing state activity to illustrate the changing function of the state in China as a consequence of economic liberalization. Wagner’s Law describes the association between increasing national wealth in progressive states and the rise in state activity and expenditure. This indicates that the causes of bureaucratic expansion are to be sought, not just in terms of political pressures, but the interplay between political considerations and the economic necessities, resulting from the emergence of new property rights. A simple illustrative model is developed to measure the effects of increasing national wealth and the growth of the public sector. This suggests that the patterns of economic development observed by Wagner in 19th century Europe are not unlike those observed in China today. Ó 2005 Elsevier Ltd. All rights reserved. Key words — Asia, China, economic growth, public sector 1. INTRODUCTION The relationship between economic growth and the size of the state sector has long been a topic of interest for public policy practitioners and academics alike. Throughout history, the role of the state has been critical in determining particular economic outcomes. Research in this area has in general focused on how economic policies impact upon economic growth...
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...Transition The First Ten Years Analysis and Lessons for Eastern Europe and the Former Soviet Union Transition The First Ten Years Analysis and Lessons for Eastern Europe and the Former Soviet Union THE WORLD BANK Washington, D.C. © 2002 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 All rights reserved. 1 2 3 4 5 05 04 03 02 The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or inclusion in any information storage and retrieval system, without the prior written permission of the World Bank. The World Bank encourages dissemination of its work and will normally grant permission promptly. For permission to photocopy or reprint, please send a request with complete information to the Copyright Clearance Center, Inc, 222 Rosewood...
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...ATPC African Trade Policy Centre Work in Progress No. 77 ATPC Economic Commission for Africa The Impact of Chinese Investment and Trade on Nigeria Economic Growth 2009 Djeri-wake Nabine Abstract This paper examines the impact of Chinese foreign direct investment and bilateral trade with Nigeria economic growth. The study use an augmented aggregate production function (APF) growth model, three methods are performed to test the hypothesis that there is no causal relationship between foreign direct investment, exports, imports and economic growth. The statistical methods used are: the Ordinary Least Squares Method (OLS) and the Granger causality test. Using time-series and panel data from 1990 to 2007, The estimated both short and long-run analysis for Nigeria-China relationship shows that in short term the bilateral trade doesn’t contribute to Nigeria economic growth but the long term relationship can enhance Nigeria economic growth; it should then be the policy priority for Nigeria to make sure that FDI inflows from China and its trade relationship with China exert the reinforcing and beneficial effects on GDP and exports through active acquisition of advanced technology and open trade regime. A - CEA EC E ATPC is a project of the Economic Commission for Africa with financial support of the Canadian International Development Agency (CIDA) Material from this publication may be freely quoted or reprinted. Acknowledgement is requested...
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...FOREIGN DIRECT INVESTMENT 5 MAJOR IMPACTS OF FDI 8 EXPORTS 8 TREND IN EXPORT IN INDIA 9 MAJOR FACTORS THAT AFFECT EXPORTS 10 EXPORT TRENDS AND THE WAY AHEAD 12 IMPACT OF FDI ON EXPORT 12 HOW FDI DRIVES EXPORT 12 IMPACT ON SERVICE INDUSTRY 13 METHEDOLOGY 14 PERIOD OF STUDY 14 SOURCES OF DATA 14 HYPOTHESIS 14 RESULT 15 ANALYSIS 16 IMPLICATION 16 CONCLUSION 16 REFERENCES 18 EXHIBITS 20 FIGURES 23 INTRODUCTION Foreign direct investment is an important part of the economy of every country.It helps expedite the globalisation process. Firms across the world interact with other firms situated in different countries. This results in mutual growth of firms and states. Over the years FDI as a percentage of GDP of world has increased significantly. In 1980 the total stock of FDI equalled only 6.6 per cent of world gross domestic product, while in 2003 the share had increased to close to 23 per cent. This implies that the world economy is getting increasingly interconnected resulting into the flow of goods and capital into developing nations. India has seen tremendous growth in the FDI inflow over the past two decades. By 1997 India became the ninth largest recipient of such investment among the developing economies. Flow of capital and goods has impacted various macroeconomic variables of the economy. Export is one of the variables that gets affected due to the increase in FDI.It has seen exponential growth during the past two decades. For example...
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...India has come a long way in terms of economic growth. There is broad consensus that the global centre of economic growth is moving to Asia, and as a large emerging nation with a growing middle class, India has captured the attention of developed economies looking for new investment and trade opportunities. The Softer indicators of economy – aspirations, health, and literacy – are all registering discernible improvements. Over two decades, India has implemented wide-ranging reforms that opened up the economy, dismantled the old licensing system and introduced competition into a number of sectors that had previously been dominated by public monopolies. Now, we live in a generation of relative abundance. While for the Western world it is going to be a demographic winter, we in India with some effort should be reaping a demo- graphic dividend. It is an India full of goodies –better consumption and lifestyle are in attendance all around. From the past two decades, we saw the twists in its growth and also twist in political atmosphere. With 27 per cent of the economy stagnant, it is no surprise that overall growth in India has slipped below 6 per cent. We are referring to the industrial sector, which has recorded an insipid 0.4 per cent growth in the first five months of this fiscal year beginning April 2013. It needs no emphasis that without a turnaround in this sector, a material lift to India's GDP growth is not possible. Industrial growth had slipped during the Lehman crisis as...
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...The Impact of Trade Liberalization on Gender Wage Differentials in India’s Manufacturing Sector* Nidhiya Menon, Brandeis University Yana van der Meulen Rodgers, Rutgers University April 2007 Abstract: As trade liberalization in India has unleashed a new wave of competitive forces in the economy since 1991, firms have faced growing pressure to cut costs in order to continue production. This study addresses the question of whether the increasing competitive forces from India’s trade liberalization affected the wages of male and female workers differently. Neoclassical theory implies that costly discrimination against female workers should diminish over time with increased competition (Becker 1971). We incorporate this idea into a theoretical model of competition and industry concentration in which the net impact of international trade on the gender wage gap could be positive or negative depending on the initial size of Becker’s discrimination coefficient. Our study tests the theoretical model using repeated cross sections of India’s NSSO household survey data merged with trade and production data from 1983 to 2004. We employ OLS and Fixed Effects techniques at the industry level to estimate the relationship between the male-female residual wage gap and measures of domestic concentration and international trade competition. Results indicate that increasing openness to trade is associated with a widening in the wage gap in India’s concentrated manufacturing...
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...Financial Markets, Insurance and Entrepreneurship in the countries of the Middle East and North Africa (MENA) region Draft not to be cited February 27, 2013 1. Introduction The goal of the paper is to focus on the countries of the Middle East and North Africa (MENA) region and particularly those of the of the South of the Mediterranean, and examine the relationship between insurance – defined as the capability of covering the cost of future harmful events-and entrepreneurship broadly defined as the capability to start independent businesses activities and possibly introduce new combinations of productive factors. The analysis is based on the distinction between uncertainty and risk that Knight unveiled (Knight, 2012) arguing that risk involves situations where a decision maker face unknown outcomes but known ex-ante probability distributions, while uncertainty is characterized by situations in which the probability distribution of a random outcome is unknown. Consequently, while risk can be covered by insurance, uncertainty normally is not. The other pillar of this research is the role of entrepreneurship; a factor that the economic literature has not considered for long time and that in the last 20 years has become the center of any strategy for economic growth in emerging and advanced economies. The discovery of the role of entrepreneurs dates back to Schumpeter (Schumpeter, 1982a) who regards entrepreneurs as the engine of economic growth. Schumpeter (Schumpeter...
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...The Investment Climate, Governance, and Inclusion in Bangladesh Nicholas Stern Chief Economist and Senior Vice President, World Bank1 Speech delivered at Bangladesh Economic Association, Dhaka January 8, 2002 Mr. Chairman, Ladies and Gentlemen: It is a great pleasure for me to return to Bangladesh after nearly 15 years and to have this opportunity to speak at the Bangladesh Economic Association. I last visited this beautiful country in 1986 as a member of an economic advisory team working on tax reforms. I have followed your country’s significant achievements since the early 1980s: a steady pace of economic growth, strong increases in primary education enrollment and girls’ education, striking reductions in fertility and infant mortality rates, widespread immunization, success in exports of ready-made garments, increases in food production, improvements in disaster preparedness and flood relief, and the emergence of an impressive NGO system and grassroots strengths. These are achievements that many observers would have thought impossible three decades ago, when some were sufficiently foolish as to refer to Bangladesh as a “basket case.” The aggregate statistics on growth and poverty illustrate this progress. As you know, the growth rate of GDP per capita accelerated steadily, from less than 1% a year in the 1970s to 1.8% in the 1980s and above 3% in the 1990s. By the 1990s, Bangladesh’s I am grateful to Shahrokh Fardoust and Halsey Rogers for their contributions to the preparation...
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...SUMMARY OF RESULTS OF THE SURVEY Franco Viciani Kostas G. Stamoulis Alberto Zezza Franco Viciani nd Alberto Zezza are consultants, and Kostas G. Stamoulis is a Senior Economist, Agriculture and Economic Development Analysis Division (ESA), FAO, Rome. | 1. Introduction 2. Poverty, Inequality and Food Insecurity 3. Policy Reforms Affecting Agriculture and Rural Development, and Changes in the Role of the State 4. Globalization and International Trade Liberalization 5. Increasing Agricultural Production: Sustainability and Technology Changes 1. INTRODUCTION The first step in the CUREMIS exercise was a survey conducted among all the regional and sub-regional policy officers and outposted staff of the Economic and Social Department of FAO. The survey was based on a questionnaire which was distributed to them and was structured around "major trends affecting food, agriculture and rural development" as identified in the process of preparing the FAO Strategic Framework, namely: * changes in the role and functions of the state and implication for food, agriculture and rural development * trade liberalization, globalization and increased reliance on regional blocks * persistence of poverty, mounting inequality, food insecurity and continuing risks of emergencies * population growth, urbanization and related changes in demand on agriculture; increasing pressure on natural resources and the environment * research and technology development and inequality...
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...Research Paper No. 2009/03 Source of Finance, Growth and Firm Size – Evidence from China Jun Du1 and Sourafel Girma2 January 2009 Abstract Using a comprehensive firm-level dataset spanning the period 1998-2005, this paper provides a thorough investigation of the relationship between firm size, total factor productivity growth and financial structure in China, controlling for the endogeneity of the latter. Generally, it finds financing source matters for firms of different size, and the extent to which financing source matters for firm growth is greater for small firms than big firms. Self-raised finance appears to be most effective in promoting small firms to grow, and bank loan seems to be more supportive to big firms. The relationship between size, finance and growth also depends on ownership. In addition, there exist strong complementarities between formal and informal finance, as well as between indigenous and foreign finance. Keywords: China, finance, firm size, growth JEL classification: O5, G2, L11, L25, O1 Copyright © UNU-WIDER 2009 1 Aston University, UK, e-mail: j.du@aston.ac.uk; 2 Nottingham University Business School, UK, e-mail: Sourafel.Girma@nottingham.ac.uk This study has been prepared within the UNU-WIDER project on Southern Engines of Global Growth, co-directed by Amelia U. Santos-Paulino and Guanghua Wan. UNU-WIDER gratefully acknowledges the financial contributions to the research programme by the governments of Denmark (Royal Ministry of Foreign...
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...RETHINKING THE EAST ASIAN MIRACLE JOSEPH E. STIGLITZ AND SHAHID YUSUF Editors RETHINKING THE EAST ASIA MIRACLE JOSEPH E. STIGLITZ AND SHAHID YUSUF Editors A copublication of the World Bank and Oxford University Press i Oxford University Press Oxford • New York • Athens • Auckland • Bangkok • Bogotá • Buenos Aires • Calcutta • Cape Town • Chennai • Dar es Salaam • Delhi • Florence • Hong Kong • Istanbul • Karachi • Kuala Lumpur • Madrid • Melbourne • Mexico City • Mumbai • Nairobi • Paris • São Paulo • Singapore • Taipei • Tokyo • Toronto • Warsaw and associated companies in Berlin • Ibadan © 2001 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, N.W., Washington, D.C. 20433, USA Published by Oxford University Press, Inc. 198 Madison Avenue, New York, N.Y. 10016 Oxford is a registered trademark of Oxford University Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Cover design and interior design by Naylor Design, Washington, D.C. Manufactured in the United States of America First printing June 2001 1 2 3 4 04 03 02 01 The findings, interpretations, and conclusions expressed in this study are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations...
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...Professor Submitted By: Tasnuba Nowrin ID-090316 Fatema Khatun ID- 090349 KHULNA UNIVERSITY Business Administration Discipline BBA Program 4th Year, 1st Term Course Title: Financial Management and Institution Course No: FIN-4203 September 10, 2012 Summary on previous article Foreign Direct Investment (FDI) is considered as a crucial component for economic development of a developing country. Countries that are lagging behind to attract FDI are now formulating and implementing new policies for attracting more investment. The determinants which play as a driving force for attracting FDI are geographical location, cheap labour cost, and government attitude towards liberalization of the existing laws of the host country, skilled manpower, incentives for investors, and exemption of taxes etc. According to Bangladesh Board of Investment Handbook (2007) Bangladesh offers an attractive investment climate compared to other South Asian Economies. But among the emerging economies India and China are the desired choice for investment (Baskaran and Muchie, 2008). FDI is considered as an important tool for economic development in a developing country. If the investing country is wealthier than the host country then capital will flow to the host country (Zhao, 2003). It contributes to growth of GDP; create employment generation, technology transfer, human resource development, etc. It is also perceived that FDI can play a significant role to reduce poverty of a developing country...
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... INDUSTRY AND EMPLOYMENT IN THE INDIAN ECONOMY Macro‐economic Implications of Emerging Pattern Sponsored by Indian Council of Social Science Research (ICSSR) New Delhi Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Historical Backdrop Foreign Trade in 2nd and 3rd Plan Development of Complex Regime Episode of trade Liberalization Economic Growth and Policy Framework of Foreign Trade Foreign Trade Policy Reforms after 1991‐92 Service Sector and Reform Export‐Import Growth Scenario Commodity Composition of Export and Import Basket Factor Intensity Analysis of Exports Factor Intensity Analysis of Imports Structural Weakness of India’s Foreign Trade Stability of India’s Comparative Advantage Rise of Service Sector Exports Relationship Between Economic Growth and Export Growth Relationship Between Trade and Employment Can India Skip Industrialization Phase? Conclusions List of Tables 1 2 3 4 5 Indicators of Long‐Term Indian Economic Performance, 1950‐2010 (Average annual growth) India’s Exports, Export Growth and Share in GDP Trade and Capital Account Balances (Million $) Evolution of India’s Trade Balances (Rs. Crores) SEZ Exports and India’s total Exports: A Comparison ~ ii ~ 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Exports, Imports, Trade Balance and Growth Rates for 1950‐51 to 1969‐70 (value in million US$ & percentages) ...
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...Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to approximately two-thirds of the world’s poor: 1.6 billion people who live on less than $2 a day, with 733 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. ASIAN DEVELOPMENT OUTLOOK 2015 FINANCING ASIA’S FUTURE GROWTH HIGHLIGHTS ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org ASIAN DEVELOPMENT BANK ASIAN DEVELOPMENT OUTLOOK 2015 Financing asia’s future GROWTH HIGHLIGHTS EVELOPMENT BANK ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2015 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org; openaccess.adb.org OARsupport@adb.org; publications@adb.org Some rights reserved. Published in 2015. Printed in the Philippines. Publication Stock No. FLS157141-3 The views expressed...
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...Changing Roles in the Context of Economic Reform and Globalization Shahra Razavi United Nations Research Institute for Social Development (UNRISD) Palais des Nations 1211 Geneva 10 Switzerland razavi @unrisd.org May 2003 (first draft: not to be quoted or cited without permission of author) Background Paper for the UNESCO Education for All Monitoring Report 2003: Gender and Education for All Introduction The 1980s and 1990s are frequently referred to as the era of globalization. While there is no consensus on what the term “globalization” means, for the purposes of this paper we use the term to refer to the greater openness of economies to international trade and finance, or external liberalization. The question that this paper will be tackling is how globalization has impacted on the growth of real economies in diverse regional contexts (Section One), their capacity to create employment (Section Two), and specifically how the new policy agenda has impacted on women’s labour force participation in diverse regional contexts and their enjoyment of social rights (Sections Three and Four). In addition to the available global data sets, the paper will be drawing on in-depth case studies from around the world in order to support the arguments that are being put forward. 1. International Economic Integration and Economic Growth The purpose of this section is to look at the growth implications of globalization...
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