Public sector motivation and development failures

This paper provides a theoretical analysis of the relationship between public sector motivation and development. In the model the public sector produces a public good and workers are heterogeneous in terms of public sector motivation (PSM). Wages in the private sector increase with the quality of the public good. In this context, public sector wage premia (PSWP) have two opposite effects: low PSWP helps screen workers with PSM into the public sector, while high PSWP helps motivate workers to be honest. Raising PSWP may not improve the quality of governance and multiple equilibria might arise. The model highlights that the relative importance of workers selection and provision of ”on the job” incentives in the public sector varies in systematic ways with wages in the private sector. We provide anecdotal and original empirical evidence consistent with the theoretical predictions and discuss some policy implications for public sector reforms in developing countries.     

Labor market dynamics in urban China and the role of the state sector

This paper studies the effect of state-owned enterprises (SOEs) on the dynamics of the Chinese urban labor market. Using longitudinally matched monthly panel data, we document very low labor force dynamics in the state sector, which leads to a high long-term unemployment rate. We develop and estimate an equilibrium search and matching model with three differences between the state and non-state sectors: labor productivity, labor adjustment cost, and workers’ bargaining power. Counterfactual analysis shows that, among the three channels, reducing the bargaining power of state sector workers is most effective in reducing unemployment duration and unemployment rate.     

Urbanization,informal sector,and development

Urbanization is a universal phenomenon in the postwar world, but its qualitative nature is varied across countries. Some nations have experienced urbanization that accompanied skill upgrading, industrialization, and the expansion of the urban formal (modern) sector, but others urbanized without such modernization and underwent the expansion of the urban informal (traditional) sector simultaneously. The question that naturally arises is what are the underlying causes for the differences. The purpose of the paper is to tackle this question analytically based on a dynamic model of urbanization and development.     

Do more jobs in the modern sector increase urban unemployment?

This note considers the effect of an increase in the rate of urban job creation on migration and urban unemployment. The different results obtained when the issue was previously analyzed are reconciled. The period of time allowed for adjustment and the specification of the migration function are crucial in explaining the different results.     

Governance experimentation and factors of success in socio-technical transitions in the urban water sector

The necessity of a shift towards more sustainable urban water management practice is widely acknowledged and advocated. Experimentation that enables social learning is regarded of high importance for realising such a change. For instance, literature on Transition Management suggests that governance, as opposed to purely technical, experimentation is considered a critical factor in achieving a socio-technical transition. When analysing the water sector it becomes clear that modern urban water systems have almost exclusively focused upon technological experimentation with little attention directed towards the importance of governance experimentation for social learning. Empirically little is known neither on how governance experimentation actually unfolds nor about its effectiveness for socio-technical transitions. This research paper presents a critical analysis of a unique process of governance experimentation within the Australian urban water sector which generated sufficient social–political capital to change an established water governance framework. Conclusions of this research reveal some theoretically conjectured processes, like deepening, broadening and scaling-up, are found in this contemporary, real-life example. Furthermore, factors which influenced the success of this governance experimentation process are revealed and the role of various forms of learning therein is described.     

The role of the government in financial sector development

This study examines the impact of two dimensions of the government, namely, size and quality, on two dimensions of the financial sector, size and efficiency, in a cross section of 71 economies. The study finds that increased quality of the government as measured by governance and legal origin positively influences both financial sector size and efficiency. The size of the government proxied by government expenditure and the government ownership of banks has a negative effect on financial sector efficiency, and a positive impact on financial sector size, particularly in the low income economies.     

Micro-heterogeneity and aggregate productivity development in the German manufacturing sector

A decomposition of aggregate productivity growth of German manufacturing firms that pertain to 11 different industries at a roughly two-digit level observed over the period 1981–1998 is performed. Productivity is measured by a nonparametric frontier function approach. The decompositions of productivity allow for an explanation of the aggregate outcomes by the quantification of the effect of structural change and the contributions of entering and exiting firms. Our results show that these forces drive aggregate productivity to a considerable extent. Remarkably, the large productivity improvements after the German reunification are mainly driven by structural change.

Scenario development in China's electricity sector

The continuing growth of China's electricity sector will affect global environmental and economic sustainability due to its impacts on greenhouse gas emissions and global resource depletion. In 2005, the generation of electricity in China resulted in the emissions of 2290 million metric tonnes of carbon dioxide (approximately 53% of the nation's total) and required 779 million metric tonnes of coal (approximately 50% of China's total coal consumption). These figures are expected to increase with China's economic growth. In order to gauge the range in which fuel consumption and CO₂ emissions could grow a scenario-based conceptual model has been developed by the authors (published in (vol.) of this journal). The application and analysis of this shows that under a business as usual (BAU) scenario, electricity generation could contribute upwards of 56% of China's energy related greenhouse gas emissions by 2020. Meanwhile, consumption of coal will also increase, growing to nearly 60% of total national demand by 2020. However, variations in a number of key drivers could produce significant deviation from the BAU scenario. With accelerated economic output, even with greater technological advances and greater potential to bring natural gas on stream, carbon dioxide emissions would rise 10% above the BAU. Alternatively, in a scenario where China's economy grows at a tempered pace, less investment would be available for advanced technologies, developing natural gas infrastructure, or nuclear energy. In this scenario, reduced economic growth and electricity demand would thereby be countered by reduced efficiency and a higher contribution of coal.     

江浙模式及民营经济在全国的发展

Along with the implementation of reform and open up policy in China, Jiangsu and Zhejiang, two provinces have got rapid economic development and greatly contributed to China’s market transition. Jiangsu, Zhejiang together with Shanghai, have shaped China’s economic heartland—the Yangtze River Delta Economic Region. Undoubtedly, the private sector is the driving force for the tremendous economic development in the Yangtze River Delta, particularly for facilitating institutional transition and economic development. Fortunately, this kind of economic development driven by the private sector was not only restricted in the Yangtze River Delta Region, but also across the country as it has been gradually extended nationwide. This paper is to look at the development of the private sector in Jiangsu and Zhejiang areas and particularly trace its fantastic effects on nationwide economic development and market transition.      

Informal sector, income inequality and economic development

This paper addresses - with the help of numerical simulations - some of the issues relating to income distribution in the context of development of an economy with an informal sector and migration of both low- and high-skilled workers from the rural to the urban area. A major aim has been to see under what conditions we do or do not get an inverted U-shaped curve of income distribution. The paper finds that the tendency always is for the Gini coefficient to rise and then decline. However, once it starts declining, it need not continuously decline; it may rise, then decline, then rise again and indeed rise above the previous peak before starting to decline again and may well end at the end of the simulation at a higher value than at the start. Any case for the redistribution of income is seen to be much stronger at the later stages of development that at earlier stages, even though at later stages, Gini coefficient may be lower than at earlier stages. The policy implications of the findings are considered.     

Urban unemployment, informal sector and development policies

We analyze the effects of wage subsidy policies on unemployment and welfare in the model that is characterized by the existence of both open unemployment and the informal sector that producesfinal goods. Our main findings are as follows. Wage subsidies to the agricultural and informal sectors increase welfare and decrease urban unemployment. The effects of a wage subsidy to manufacturing sector on welfare and unemployment are conditional. We identify some sufficient conditions for the definite results and interpret them.     

Trade openness,internet finance development and banking sector development in China

This paper investigates the impact of trade openness on Internet finance development in China. Using a unique panel data set for 29 Chinese provinces, we find that trade openness has a positive impact on Internet finance development and is a leading indicator of Internet finance development. Further analyses show that higher trade openness is associated with faster Internet finance development in wealthier provinces. Moreover, we investigate the effect of Internet finance development on the banking sector development. The empirical results suggest that Internet finance development has a positive effect on the banking sector size and efficiency.     

Clans,entrepreneurship, and development of the private sector in China

This paper examines the role of clans in China's unprecedented development of the private sector. Although with no well-developed financial and legal systems, China witnesses a boom of private sector, which has contributed to most of its economic growth during the past three decades. Using inter-census population survey and economic census data, I find that the clan is positively associated with the likelihood of entrepreneurship and the share of economy in the private sector. Exploring possible mechanisms, I find that the clan helps privately-owned enterprises overcome financing constraints and escape from local government's “grabbing hand”. In addition, the clan is significantly related to a set of individual values, which are arguably relevant for private business. Finally, I find that the support of clans for private business is limited as clans deter private businesses from growing into large firms. The results also suggest that the role of clans reduces as formal institutions develop.     

Financial sector development and domestic savings in South Asia

Given the limited capital flows to developing countries in South Asia, domestic savings is the primary source of investment and growth. Financial sector development and access to financial institutions are important determinants of savings ratios in developing countries. In this context, we empirically examine the role of financial development on savings ratios of five South Asian countries after controlling for other relevant variables for the period 1975–2010 and also for two sub-periods—the pre-reforms period (1975–1991) and the post-reforms period (1992–2010). We find that financial sector development positively affects total and private savings in South Asia along with per capita income, share of agriculture and foreign savings. Results also support the humped-shaped relationship between financial development and savings. The causality results support that financial development leads to higher savings mobilisation in South Asia.     

开放、竞争与合作--中国移动通信企业发展战略

随着加入WTO后形势的发展，中国移动通信市场将日趋开放，国外的电信运营商必将参与到中国国内更趋激烈的市场竞争中来。它们无论从资金、管理还是技术上，都占有很大优势。中国移动通信企业将何去何从？唯一的途径是通过实施有效的竞争策略，迅速地发展壮大，提高自身的核心竞争力。市场：潜力巨大问题尚存在国家产业政策的扶持下，作为国民经济新的增长点，移动通信产业的投资额和市场增长率都保持了较高的发展速度。截止到2001年12月底，中国移动电话用户总量达到了1.448亿户，成为了世界上最大的移动通信市场，GSM网络覆盖全国绝大部…     

Fungibility and the impact of development assistance: Evidence from Vietnam's health sector

The apparent fungibility of aid is a challenge to the evaluation of donor-funded development projects, requiring a comparison of the observed outcomes with the outcomes that would have occurred if the project had not gone ahead. Where projects are targeted on specific geographic areas, counterfactual outcomes in each can differ from observed outcomes because the amount of government spending (gross of aid) differs, the productivity of government spending differs, or both. This paper estimates the benefits of two concurrent World Bank health projects in Vietnam targeted on specific provinces. Estimates are derived from a model linking outcomes (under-five mortality) to government spending before and after the project and in project and nonproject provinces, and are presented for different assumptions regarding fungibility of funds (zero and full fungibility) and the impacts of the project on the productivity of government spending (the project modifies productivity in both sectors equally and in neither sector). The estimated mortality reductions are highly insensitive to the assumed degree of fungibility, but highly sensitive to the assumed productivity effects (the estimates range from 1 to 25%). The wide range reflects the uncertainty due to the lack of a genuine control group of provinces.     

我国城市发展规划存在的问题及对策

本文分析了当前我国城市发展规划中存在的问题.并对如何解决这些问题提出了一些对策建议:强化整体、突出重点,基于文化底蕴、塑造城市特色,注重规划的区域协调性,强化生态规划理念,加强城市规划的公众参与力度,提高监督水平,以期为我国城市的健康协调发展提供一定的参考.