The long‐term effects of forcible assimilation policy: The case of Indian boarding schools

For decades in North America and Australia, Indigenous children were forcibly removed from their homes and placed in boarding schools. These schools had the stated goal of cultural assimilation and are perceived as educational failures. I offer the first causal evidence on the long‐run effects of these schools. I identify these effects using the interaction of changes in Canadian national policy and regional variation in the power of the Catholic Church. I find that the average boarding school had substantial effects on both cultural and economic assimilation. However, I find suggestive evidence this is not true for highly abusive schools.     

Entrepreneurship in post‐conflict transition1

We examine new self‐employment entry and its viability in Bosnia and Herzegovina, using a rich household survey for the years 2001–2004. We find that wealthier households are more likely to engage in viable self‐employment and create employment suggesting an important role for financing constraints. Specifically, although having an existing bank relationship is not significantly related to the entry decision, it is positively related to the survival for new entrepreneurs and their employment creation. We also find a non‐linear relationship between remittances and entry in that individuals not receiving remittances are more likely to enter self‐employment; but, if they do receive them, the likelihood of starting a business increases in the fraction of wealth received from domestic remittances. Finally, people working in the informal sector are more likely to become viable entrepreneurs, particularly those provided with loans from micro‐credit organizations. These findings support the perception of the informal sector as an incubator for formal self‐employment in the early years of transition.     

Growth in fragile states in Africa: Conflict and post‐conflict capital accumulation

This article analyses the pattern of capital accumulation in Africa and its interaction with political fragility. Political fragility, defined as armed conflict or civil war, retards or reverses gains with respect to capital accumulation, slowing long‐term economic growth. Many countries experience negative rates of capital accumulation, particularly during periods of acute political instability. In post‐war periods, countries generally continue to experience capital destruction, lending support to the “war ruin hypothesis.” This has implications for long‐term economic growth in view of the strong association between capital accumulation and economic performance. The main policy implication of the analysis is that African countries and their international partners should pay more attention to capital accumulation, including capital reconstruction after periods of political instability, to lay the foundations for sustainable economic growth.     

Firm Investment decisions in the post‐conflict context

Economic and political transition can occur through peaceful or violent means. Violent transition disrupts the incentive for firms to make productive investments. This paper studies the determinants of profit reinvestment for firms in post‐conflict transition economies. Results indicate that while access to finance is an important determinant of reinvestment during transition, it is not as important in the post‐conflict context. However, property rights protections, in particular institutions of contract enforcement, are a more important determinant of profit reinvestment for firms operating in the post‐conflict environment than for firms in general. This indicates that obstacles to investment are context specific.     

The apparel industry in the post‐Multifiber Arrangement environment: A review

The apparel industry contributes significantly to the economic development of many developing countries. Between 1974 and 2004, the Multifiber Arrangement (MFA) heavily regulated this industry. Since the total abolition of the MFA in 2005, competition in apparel trade has increased many folds and some developing countries, such as Bangladesh and Vietnam, have been successful while some others, such as Mexico and the Philippines, are struggling to meet this challenge. This study presents a historical evolution of the apparel industry before and after the introduction of MFA and analyzes the factors that enhance apparel export performance during the post‐MFA period. The analysis reveals that cheap labor, firm size, product quality, foreign ownership, availability of local input materials, new product development, preferential market access and working conditions are the major factors that help gaining competitiveness in apparel exports during the post‐MFA period. These observations provide new insights to the policy makers and business managers to formulate and implement appropriate policies in order to become competitive in apparel exports.     

Human rights protection and foreign direct investment: The case of post‐socialist countries

The main aim of the paper is to evaluate the impact of respect for human rights in post‐socialist countries on the volume of foreign direct investment (FDI). The methodology used in the study consists of the two econometric model specifications–GMM spatial panel Durbin error model and panel gravity ordinary least squares model. The main results indicate a positive and significant relationship between respect for human rights and foreign investment. The outcomes of the spatial model suggest the presence of competition and reinforcement effects of particular kinds of human rights on FDI as well as significance of the ‘human rights distance’.     

Public–private wage differential in a post‐transition economy

In this study, we estimate the public sector wage premium in a post‐transition economy, a quarter of a century since the collapse of the old regime. Our methodology uses a copula method to estimate the switching regression model, which allows for the relaxation of the restrictive assumption of joint normality. We control for employment selection into both sectors using an instrument based on information regarding learned professions. We use data from the Polish Survey of Earnings by Occupations (2012). Contrary to earlier results for Poland, we found positive selection into employment in both sectors, with positive average treatment effect on the treated and negative average treatment effect on the untreated. The results suggest that both private and public sector employees select themselves into the sector in which they earn more than they would in a counterfactual scenario.     

Roma employment in Hungary after the post‐communist transition1

We analyse the magnitude and the causes of the low formal employment rate of the Roma in Hungary between 1993 and 2007. The employment rate of the Roma dropped dramatically around 1990. The ethnic employment gap has been around 40 percentage points for both men and women and has remained remarkably stable. Differences in education are the most important factor behind the gap, the number of children is important for female employment and geographic differences play little role once education is controlled for. Conditional on employment, the gap in log earnings is 0.3, and half of it is explained by educational differences.     

The gender wage gap among recent post‐secondary graduates in Canada: a distributional approach

Using the National Graduates Survey, we examine the trends in the gender wage gap among recent post‐secondary graduates in Canada between 1988 and 2007. Female graduates earn on average 6–14% less than males during the period two to five years after graduation. Decompositions show that observable personal characteristics and job attributes can explain only a small portion of the wage gap. We also find that men earn more than women at every point of the distribution. Interestingly, the wage difference shrank in the lower half of the distribution in recent years, while it increased in the upper half.     

Predictors of microcredit default in Indian self‐help groups

This exploratory study was conducted to examine the reasons behind credit defaults in Self‐help Group‐based microfinance programs in India. The study adopted the mixed‐method approach. Focus group discussions (FGDs) were conducted to collect information, and thematic analysis was followed to analyze data to identify the possible causes of loan defaults in self‐help groups (SHGs). Further, 120 defaulting and 120 performing SHGs were selected through stratified random sampling method. Finally, 960 respondents were randomly selected from 240 SHGs to collect information for quantitative inquiry. The ordinary least square (OLS) and probit models were engaged to process the data. This study identified three important attribution sets causing credit defaults, (i) bank‐related attributes, (ii) agency related attributes, and (iii) group dynamics. The probability of defaults in SHGs was predicted by the amount of loan disbursed by bank, agency's help in enterprise development, age of the microenterprise, microentrepreneurship of the SHG member, SHG visits to the bank, members dropped out from SHG, tenure of the president and secretary, and monthly membership saving in the SHG.     

The Innovation‐R&D Nexus in an Emerging Economy: Evidence from the Indian Manufacturing Sector

While R&D is considered an important input for innovation, its relationship with the output of the innovation process continues to remain enigmatic, especially in developing countries with low levels of domestic research. Using patents and knowledge capital stock as proxies for the output and input of the innovation process, we study their nexus in the emerging economy of India using a large sample of manufacturing firms over the period 2001–2010. Using a specification that addresses the problem of ‘excess zeroes’ in count data, the firm's non‐technical knowledge stock as an additional factor of the success with which R&D transforms into patents, and a linear feedback mechanism that yields consistent estimators, we find that a one unit increase in knowledge capital likely raises expected patent count by only about 4.3% at most. Further, although patenting experience, resource access and knowledge spillovers are strongly significant in explaining patent counts, the magnitude of these effects is marginal at best. In brief, evidence for the knowledge production function is rather weak even in the context of a dynamic developing economy.     

On the relationship between body mass index and marital dissolution

The economic literature on body mass index (BMI) and marital dissolution uses simple correlations to suggest that it is the latter that alters the former. We argue here that the opposite is also possible because the higher the BMI, the lower the remarriage potential and the greater the demand for health care, which should decrease the probability of marital dissolution. We empirically explore the role of BMI on marital dissolution showing that those who are overweight are more likely to stay married. This is maintained when we examine causality by exploiting the exogeneity of the dates during which data are collected combined with BMI’s seasonality. Although BMI appears to stabilize marriage, this implies a reduction in the bargaining power of individuals with a high BMI in marriage, which, according to our findings, has a greater impact on White women.     

齐拉西酮与喹硫平对精神分裂症患者体重指数的影响

目的比较齐拉西酮与喹硫平对精神分裂症患者体重指数的影响。方法将72例精神分裂症患者随机分为两组,分别选用齐拉西酮或喹硫平治疗,疗程8周。于治疗前及治疗第4周、6周、8周末分别测定患者体重和身高,计算体重指数(BMI,BMI=体重/身高2),同时采用阳性与阴性症状量表(PANSS)评分。结果治疗第4周末起,两组患者阳性与阴性症状量表(PANSS)评分均较治疗前有显著下降(P0.01);同期两组患者体重指数(BMI)比较均有显著差异(P0.01),齐拉西酮组患者体重指数(BMI)显著低于喹硫平组患者。结论齐拉西酮与喹硫平治疗精神分裂症疗效均显著,但齐拉西酮对患者体重指数影响较喹硫平小。     

Little Divergence: Evidence from Cotton Textiles in Japan and China 1868–1930

This paper looks at the role of textile exports in Japan and China's economic development in the period of 1868–1930 as a major explanation for the “Little Divergence” between the two countries in the context of the “Great Divergence” between Europe and Asia. Because of textiles' large weighting in proto‐industrialization gross domestic product (GDP), we postulate that China's initial 20‐year lag in textiles vis‐à‐vis Japan turns out to be fatal for its industry and that it eventually ordains totally different development patterns for the textile industry in the two countries, which ultimately led to different growth patterns for the overall economy. Although both countries saw rapid growth of textile exports, the nature of those exports and the entailed position of each country in the industry value chain of trade were quite different. We then use Granger causality tests to show that in one case (Japan) it is in support of the export‐led‐growth hypothesis (ELG) while in another (China) it is not. Our study then also explains why Japan's industrial revolution took place much earlier than China's.     

Antidumping Regulations: Anti‐Competitive and Anti‐Export

In a Bertrand duopoly model, it is shown that an antidumping regulation can be strategically exploited by the home firm to reduce the degree of competition in the home market. The home firm commits not to export to the foreign market which gives the foreign firm a monopoly in its own market. As a result the foreign firm will increase its price allowing the home firm to increase its price and its profits. If the products are sufficiently close substitutes then the higher profits in the home market are large enough to compensate for the loss of profits on exports.     

Influence of body image in urbanized areas: differences in long-term changes in teenage body mass index between boys and girls in Japan

Japanese prefecture level panel data for the period 1986?C2003 was used to analyze and compare the determinants of teenage body mass index (BMI) by sex. Major findings through random effects estimation were as follows: BMI was not influenced by the degree of population density in males and younger females. However, the BMI of 16-year-old females was markedly lower in more densely populated residential areas. These findings suggest that girls who reach adolescence are more likely to diet and that this tendency is more distinct in more urbanized areas.     

Indian women: well-being and survival

The authors examine sex differentials in sustenance and survival in developing countries using the example of India. Lower female life expectancy at birth and the declining ratio of females to males are discussed as evidence of female deprivation. Consideration is given to the feeding, survival, and neglect of female children, to differences in use of medical facilities by sex, and to regional differences by state. This pattern of discrimination is found to persist even in urban areas.     

Mecro‐Economic Voting: Local Information and Micro‐Perceptions of the Macro‐Economy

We develop an incomplete information theory of economic voting, where voters' information about macro‐economic performance is determined by the economic conditions of people similar to themselves. We test our theory using both cross‐sectional and time‐series survey data. A novel survey instrument that asks respondents their numerical assessment of the unemployment rate confirms that individuals' economic information responds to the economic conditions of people similar to themselves. Furthermore, these assessments are correlated with individuals' vote choices. We also show in time‐series data that state unemployment robustly correlates with evaluations of national economic conditions, and presidential support.     

The “V-factor”: Distribution,timing and correlates of the great Indian growth turnaround

We analyze a panel of output series for India, disaggregated by 15 states and 14 broad industry groups. Using principal components (Bai, 2004; Bai and Ng, 2004) we find that a single common “V-factor” captures well the significant shift in the cross-sectional distribution of state-sectoral output growth rates since the 2nd half of the 1980s. The timing of the turnaround implied by the V-factor is more closely related to the pattern of policy reforms than has been found in previous research. Regression-based analysis also provides some insights into the uneven distribution of the turnaround across Indian states.