Social norms and female labor force participation in urban China

This study investigates the impact of social norms on the labor supply decision of married women in urban China. Our estimation results indicate that men raised by non-working mothers are more likely to support traditional gender roles, are more averse to having working wives, and tend to be less productive or less willing to engage in housework than other men. Consequently, the labor force participation rate of married women with non-working mothers-in-law is 5–18 percentage points lower than that of married women with working mothers-in-law in urban China.     

Growth,inequality, and poverty reduction in developing countries: Recent global evidence

The study presents comparative global evidence on the transformation of economic growth to poverty reduction in developing countries, with emphasis on the role of income inequality. The focus is on the period since the early-mid-1990s when growth in these countries as a group has been relatively strong, surpassing that of the advanced economies. Both regional and country-specific data are analyzed for the $1.25 and $2.50-level poverty headcount ratios using World Bank Povcalnet data. The study finds that on average income growth has been the major driving force behind both the declines and increases in poverty. The study, however, documents substantial regional and country differences that are masked by this ‘average’ dominant-growth story. While in the majority of countries, growth was the major factor behind falling or increasing poverty, inequality, nevertheless, played the crucial role in poverty behavior in a large number of countries. And, even in those countries where growth has been the main driver of poverty-reduction, further progress could have occurred under relatively favorable income distribution. For more efficient policymaking, therefore, idiosyncratic attributes of countries should be emphasized. In general, high initial levels of inequality limit the effectiveness of growth in reducing poverty while growing inequality increases poverty directly for a given level of growth. It would seem judicious, therefore, to accord special attention to reducing inequality in certain countries where income distribution is especially unfavorable. Unfortunately, the present study also points to the limited effects of growth and inequality-reducing policies in low-income countries.     

Debt,seigniorage, and the Growth Laffer Curve in developing countries

The endogenous growth literature established the existence of an inverted-U curve between taxes and economic growth, namely a Growth Laffer Curve, but empirical evidence on this relationship in developing countries is rather limited. Given that seigniorage and public debt are also important means of financing public spending in these countries, we take into account in this paper their respective impacts on growth, as they might deform the existing relationship between taxes and growth. To this end, we develop a growth model with public investment as the engine of perpetual growth, and look for the effect of debt, tax and money financing on economic growth. We study in particular the way fiscal and monetary policies deform the Growth Laffer Curve in developing countries. An empirical section based on a panel of 100 developing countries over the period 1980–2010 provides both OLS-Fixed Effects and GMM-system estimations that support our theoretical conclusions, namely the existence of Growth Laffer Curves indexed by the levels of debt and of seigniorage.     

Fiscal policy and private consumption in industrial and developing countries

This paper empirically studies the effects of fiscal policy shocks on private consumption. Further, it investigates if the initial financing needs of the government or previous fiscal deficits affect that relationship. We use yearly data between 1970 and 2000 for 40 countries, of which 19 are industrialized and 21 are developing countries. In general, the estimation results seem to indicate that government consumption shocks have Keynesian effects for both industrial and developing countries. In the case of tax shocks, the evidence is mixed. Furthermore, there is no evidence that favors the hypothesis of expansionary fiscal consolidations.     

Against the Wind: Labor Force Participation of Women and Economic Instability in Iran

In the last three decades, Iranian women's educational attainment has continuously increased while their fertility rate has fallen rapidly. Yet in spite of these developments, which in many countries have a positive effect on women's labor force participation, female labor force participation (FLFP) rates have remained at low levels. This paper argues that despite its overall static trend, FLFP of some Iranian women responded to economic pressures induced by macroeconomic instabilities. Looking at the Iranian economic crisis of 1994–5, the study shows that, controlling for individual fixed effects, married women in rural areas and never-married women in urban areas increased their participation rate by as much as 38 percent. No change in hours worked was found for any group of women. The differences in responses and their underlying reasons have policy implications for many developing countries.     

Fertility,household structure,and parental labor supply: Evidence from China

This study examines the effects of fertility on household structure and parental labor supply in China. To solve the endogeneity problem, we use a unique survey on households with twin children and a comparison group of non-twin households. The ordinary least squares estimates show a negative correlation between fertility and parental labor supply in rural China. Using twinning as a natural experiment, we do not find evidence on the negative effects of fertility on parental labor supply. By contrast, we find that the twinning-induced increase in fertility significantly enhances the coresidence of grandparents in rural China. We suggest that the negative effects of fertility on parental labor supply are mitigated by the childcare provided by grandparents in rural China. We also find that fertility does not induce coresidence of grandparents in urban China. Our results have important implications for population and public childcare policies.     

Valuing cultural heritage in developing countries: comparing and pooling contingent valuation and choice modelling estimates

A substantial part of the United Nation’s World Heritage Sites (WHSs) can be found in developing countries, but many of them are in a bad state. Thus, there is a need to document the social benefits of these global goods in order to justify the costs of restoration and preservation programmes (RPPs). This study adds to the scarce literature on economic benefits of WHSs in developing countries, and reduces the need to perform very uncertain benefit transfers from European or US valuation studies. We apply Contingent Valuation (CV) and Choice Modelling (CM) to estimate the social benefits of RPPs for the My Son world cultural heritage site in Vietnam; both to foreign visitors and the local residents. We then compare the estimates from the CV and CM methods, and pool the results from the two methods. The results show that both CV and CM are suited to estimating the economic benefits of preserving cultural heritage of My Son. The two methods produce very similar results, which can be interpreted as a test of convergence validity. The pooling results give evidence to show that the CV and CM models have the same underlying preference structures. Thus, these valuation models can be successfully used in cost-benefit analyses to assess the benefits to cultural heritage of measures to reduce air pollution, soil erosion, climate change and other causes to deterioration of cultural heritage sites.

The transmission of world commodity prices to domestic markets under policy reforms in developing countries

This paper examines the degree to which world price signals have been transmitted into domestic prices for eight countries and ten commodities, a total of 31 country/commodity pairs. The main characteristic of these countries was that they all undertook substantial policy reforms during the mid‐1980s to early 1990s. The paper investigates the effect of reforms on the speed at which signals were transmitted to domestic markets and on the extent of price transmission. We find that Chile, Mexico, and Argentina are the only countries whose domestic commodity markets were integrated with world markets. For the remaining cases (Ghana, Madagascar, Indonesia, Egypt, and Colombia) in only a few country/commodity pairs is there some passthrough of world price changes. In terms of the effects of policy reforms, in the majority of the cases the hypothesis of a structural break following the reform year is rejected.     

The Determinants of Married Women's Autonomy in Indonesia

Abstract

This paper investigates the determinants of married women's autonomy in Indonesia using the 2000 Indonesian Family Life Survey 3 (IFLS3). It considers the role of kinship norms and the effect of labor force participation on married women's autonomy. The measure of autonomy is based on self-reported answers to an array of questions relating to decision-making authority in the household. They include own-clothing, child-related and personal autonomy, physical mobility, and economic autonomy. The analysis examines if variations in women's autonomy are due to the prevailing kinship norms related to marriage in the community. In keeping with the anthropological literature, the analysis finds that living in patrilocal communities reduces physical autonomy for married women, whereas living in uxorilocal communities improves personal and child-related decision-making autonomy. Estimation results show that labor force participation, higher educational attainment, and increases in household wealth all have positive effects on married women's autonomy in Indonesia.     

Can corporate social responsibility resolve the sanitation question in developing Asian countries?

The existing state of sanitation in developing Asian countries fails to deliver a level of service that is adequate for meeting the human right to a standard of living consistent with dignity and health, or for sustaining the capacity for future generations to have access to clean water resources and healthy ecosystems. We argue that translating the current neo-centralised technologies and institutional arrangements mainstreamed by industrialised countries would not resolve the problem in the context of developing countries. Instead it is necessary to ‘leap frog’ to the emerging technological and institutional arrangements that are responsive to current needs and contexts and to potential risks. The sustainability focus and often decentralised technologies of this emergent stage in sanitation present many opportunities for new actors to enter the urban sanitation industry. At the same time, there are many barriers to entry, particularly from the perspective of conventional business management focused on increasing shareholder value.We propose that perspectives from the corporate social responsibility discourse have the potential to provide both the ‘pull’ for seizing the business opportunity for profit while serving social needs, and the ‘push’ to overcome the barriers in order to serve a wider social purpose for corporations. The wealth of nations, at least as reported in ubiquitous GDP terms, has greatly increased through the activities of corporations driven by a profit motive; but the increased poverty, injustice and ecosystem degradation that have resulted from economic activity suggest that corporations perhaps ought to have regard for broader concerns beyond shareholder value. We explore how the alternative relational view of a corporation, as a metaphorical person within society who adopts a moral code consistent with both Buddhist economics and Adam Smith's philosophy, may facilitate profitable corporations that provide better economic, ecological and social outcomes in serving the need for sustainable sanitation services in developing Asian countries.     

The determinants of EST adoption by manufacturing plants in developing countries

This article reports on the findings of a survey undertaken in late 2001-early 2002 on the determinants of environmentally sound technology (EST) adoption by 98 plants in eight developing countries. We review the literature on technology diffusion and technology capabilities as well as empirical studies with an exclusive focus on developing countries that explicitly addressed environmental performance or EST adoption to formulate our heuristic model that guided our investigation. We examine in some detail the determinants of both prevention and abatement technologies, which has seldom been investigated, in developing countries.In full recognition of literature that cites a host of reasons that cause plants to adopt EST we take into account both contextual and plant-specific factors. We use an ordered choice model that revealed that plant-specific factors assume a pre-dominant role in explaining the adoption of higher order of complexity EST. Plant-specific factors, specifically environmental commitment, technological capabilities, and ownership, and market factors, specifically foreign involvement and water and energy price perception, matter in determining the type of technological response and thus in explaining the adoption of higher-order complexity EST. Two governmental factors, regulatory implementation strategy and international donor assistance, also play a role in the adoption of EST. However, civil society, in particular community pressure that has been identified as an important determinant of environmental performance, does not play a role because of the way the dependent variable is constructed to capture higher orders of technological complexity.     

Cultural Factors in Women's Labor Force Participation in Chile

Abstract

This article analyzes determinants of female participation in the Chilean labor force using classic determinants such as age, education, marital status, and number of children. The results indicate that the greater a woman's education level, the greater her labor participation; that older women participate more, though the rate of growth of this effect is decreasing; and the number of children that a woman has is negatively correlated to her decision to participate in the labor force. The article also examines machismo and other cultural values that influence female labor participation. The evidence suggests that the more the women have internalized machista and conservative cultural values, the less they participate in the labor market. Finally, the article concludes that the existence of these cultural factors as a group more than compensates for the positive effect of human capital variables and is statistically associated with low female labor participation in Chile.     

Differences in long run exchange rate pass-through into import prices in developing countries: An empirical investigation

This paper investigates the exchange rate pass-through into import prices in a sample of 24 developing countries over the period from 1980 to 2003. We estimate a pass-through equation determined by a combination of the nominal exchange rate, the price of the competing products, the exporter's costs and demand conditions. We adopt non-stationary panel estimation techniques and tests for cointegration. In the long run, homogeneity of pass-through rates across countries can be rejected. Moreover, we show that most of these differences in exchange rate pass-through into import prices are due to three macroeconomics determinants: exchange rate regimes, trade barriers and inflation regimes.     

Economies of density, scale and scope in the water supply and sewerage sector: a study of four developing and transition economies

Using panel data, we estimate measures of density, scale and scope economies in four countries that differ substantially in their levels of economic development and in their piped water and sewerage coverage: Brazil, Moldova, Romania and Vietnam. We find evidence of economies of scale in Moldova, Romania and Vietnam. In Brazil, we cannot reject the null hypothesis of constant returns to scale. The results of this study show that the cost structure of water and sewerage utilities varies significantly within and between countries and over time.      

Pro-market institutions and labor market outcomes: A panel-data analysis of U.S. metropolitan areas

We expand previous U.S. state-level research on the relationship between pro-market institutions and labor market outcomes by examining this relationship at the U.S. metropolitan-area level. Using panel data for 1992–2012 in a fixed-effects model, we investigate the effect of pro-market institutions on the unemployment rate, labor force participation rate, employment-population ratio, and employment growth across 366 U.S. metropolitan areas. The results indicate that pro-market institutions are associated with a lower unemployment rate, higher employment-population ratio, and faster employment growth. These results suggest that local-area policies are important for achieving favorable labor market conditions at the local level.     

More effective than we thought: Central bank independence and inflation in developing countries

This study examines the effect of legal central bank independence on inflation in developing countries. In spite of the policy consensus suggesting that central bank independence is an effective tool to control inflation, the evidence is still limited, particularly for developing countries. Using a novel dataset, we analyze the effect of central bank independence on inflation for a sample of 118 developing countries between 1980 and 2013. We find that higher central bank independence is associated with lower inflation rates. This effect on inflation is stronger the more democratic a country is, but it is also present in non-democratic countries. Our results are robust to different specifications and methodologies. Furthermore, we find that all dimensions included in the measurement of central bank independence (objectives, personnel, policy, and financial independence) contribute to curb inflation. Our results shed light on which types of reforms may be more effective at fighting inflation in developing countries.     

No escape from the dominant theories: The analysis of intellectual pillars of technology management in developing countries

This paper aims to identify the intellectual bases of the technology management (TM) literature generated in developing countries using citation and co-citation analyses and answer the question of whether the intellectual bases of the TM literature created by authors in developing countries diverge from those of the global TM literature. Based on a comprehensive bibliometric analysis of ten technology-innovation management (TIM) specialty journals through the period of 1998-2007, this study produces three important findings. First, the TM literature generated in developing countries is dominated by the knowledge and theories created in developed countries. Second, among these knowledge sources some authors from developing countries and focusing on the specialties of developing countries, such as Kim and Lall, come into prominence; however these authors are not even mentioned in the previous bibliometric studies covering overall TM research. Finally the researchers in developing countries tackle with the issues or topics specific to their own context through combining three major bulks of literature. These are (i) resource-based view (RBV)/core competencies and organizational learning related research; (ii) literature dealing with the evolutionary theorizing on economic change and growth and (iii) literature related to technological capabilities, technology transfer and industrialization in developing countries.     

Fertility and the puzzle of female employment in the Middle East and North Africa

Female labour force participation rates across the Middle East and North Africa (MENA) region have remained low for over four decades even though, in the same period, women's education rapidly increased and fertility rates substantially decreased. This study provides a better understanding of this surprising phenomenon by testing whether the number of children affects the mother's labour supply (using twins at first birth as an instrumental variable.) Despite a strong first stage, it does not find statistically significant effects in the second stage, even in the combined sample of over 100,000 observations. This non‐result, however, does not rule out that fertility affects women's employment in these countries. But it rejects impacts larger than 0.09. Similar twin‐studies in the United States found effects between 0.12 and 0.31. The paper discusses the implications of this result in understanding the puzzle of female participation in MENA and in designing policies to increase women's employment.     

Determinants of the real exchange rate in the long-run for developing and emerging countries: a theoretical and empirical approach

This paper presents a new framework for the determinants of real exchange in the long-run in developing and emerging countries (DECs). We assume that currencies should be regarded as an asset. In consequence, dealers in the foreign exchange market play a crucial role on its dynamics. To set our model, we connect the model developed by Kaltenbrunner, which is grounded on chapter 17 of the General Theory, with productivity’s differential effect. By doing so, it states that even short-run factors and monetary variables affect the long-run real exchange rate. Moreover, it points out that the hierarchical nature of the international monetary system is crucial to understand exchange rate movements in DECs. Besides presenting such theoretical approach, our contribution is to test it empirically for 45 DECs from 1990 to 2008 by applying econometric techniques appropriate for panel data. We use a new data-set, which comprises, among other variables, foreign portfolio flow, interest rate differential, external vulnerability measures, and international liquidity, on annual basis. The empirical results endorse this framework. Overall, it shows the primacy of financial factors as determinants of the long-run real exchange rate and points to the endogenous and self-perpetuating nature of international monetary system hierarchy.     

Social benefit-cost analysis and telecommunications investment in developing countries

Telecommunications expansion can make an important contribution to the social and economic development of less-developed countries. But that in itself does not mean that telecommunications projects should receive top priority in a country's investment budget. This is because projects in other sectors can also make strong claims to being vital for development. This situation points to a basic problem for development planners: how to allocate scarce resources between competing projects which more than exhaust the available investment budget. The analytical technique that has been developed in answer to this policy problem is a significant extension of social benefit-cost analysis. A pertinent question at this point is: how has the application of the new technique affected budgets for telecommunications investment in developing countries? This paper addresses that question by considering how the World Bank has applied social benefit-cost analysis in the area of telecommunications.