BORDER BARRIERS IN AGRICULTURAL TRADE AND THE IMPACT OF THEIR ELIMINATION: EVIDENCE FROM EAST ASIA

We investigate the impact of the elimination of import tariffs and nontariff policy barriers (NTPBs) on agricultural trade in a notional East Asian Free Trade Agreement using a Global Trade Analysis Project (GTAP)-based computable general equilibrium model. The investigation is divided into two parts. We first measure the NTPBs by employing a widely used method derived from the literature on border effects. Then, by adding into the GTAP database our estimates on the NTPBs, which the original GTAP database by its nature does incorporate, we compute the impact of the entire elimination of policy barriers (the complete reduction of import tariffs and NTPBs) on GDP. The result shows that there are remarkable differences between the effect of abolition of import tariffs and that of entire elimination of all import barriers.     

CORRUPTION AND THE COMPOSITION OF TAX REVENUE IN MIDDLE EAST AND AFRICAN ECONOMIES1

Regression results from a panel of 53 Middle East and African economies suggest that corruption has a quite large negative and statistically significant impact on tax revenues, mainly reflecting the impact of corruption on tax collections from social security, and taxes on domestic goods and services and international trade transactions. Policy changes to boost tax revenues might usefully focus on changes in direct taxes and efforts to combat corruption in tax collections should focus on indirect taxes.     

GOVERNANCE INSTITUTIONS AND PRIVATE INVESTMENT: AN APPLICATION TO THE MIDDLE EAST AND NORTH AFRICA

This paper addresses the issue of the low level of private investment in the Middle East and North Africa (MENA) region, with special emphasis on the role of governance. Based on the existing published reports, we categorize what types of governance institutions are more detrimental to entrepreneurial investments. We then estimate a simultaneous model of private investment and governance quality where economic policies concurrently explain both variables. Our empirical results show that governance plays a significant role in private investment decisions. This result is particularly true in the case of “administrative quality” in the form of control of corruption, bureaucratic quality, investment‐friendly profile of administration, law and order, as well as for “political stability.” Evidence in favor of “public accountability” is also found. Our estimations also stress that structural reforms like financial development, trade openness, and human development affect private‐investment decisions directly, and/or through their positive effect on governance.     

THE COMPETITIVENESS OF UK MANUFACTURING: EVIDENCE FROM IMPORTS

The paper presents an empirical analysis of the behaviour ofUK imports of manufactures, intended to develop understandingof non-price competitiveness by evaluating the impact of capacityconstraints, international specialisation, and industrial standards.Two data sets are employed: aggregate data for the period 1970–93,and a panel of 81 industries for 1985–90. Structural stabilityin a model of the former suggests that no competitiveness improvementhas occurred in domestic UK manufacturing which matches thatfound elsewhere for exports The panel model shows the importantimpact of standards on imports, while confirming that skilledlabour shortages are a key source of volatility.     

FINANCE AND GROWTH: NEW EVIDENCE ON THE ROLE OF INSURANCE

This paper provides new evidence that sheds light on the impact of insurance sector development on output growth, capital accumulation and productivity improvement, using data from 51 countries (developed and developing) during 1981‐2005. The dynamic panel data analysis results demonstrate that insurance sector development affects growth predominantly through productivity improvement in developed countries, while in developing countries it promotes capital accumulation.     

THE IMPACT OF M&As ON SHAREHOLDER WEALTH: EVIDENCE FROM TAIWANESE CORPORATIONS

This study, using forty‐six M&A events in Taiwan between 1987 and 1998, investigates the effects of M&As on shareholder wealth. The shareholders of the acquiring firms gain modestly positive abnormal returns around the announcement dates. We also distinguish M&As of different purposes, finding that M&As for technology‐acquiring purposes are most favored by the market, while vertical M&As are detrimental to shareholder wealth.     

THE IMPACT OF HEALTH ON POVERTY: EVIDENCE FROM THE SOUTH AFRICAN INTEGRATED FAMILY SURVEY

This paper examines the impact of health status on poverty status, accounting for the endogeneity of health status. Using exogenous measures of health status from the South African Integrated Health Survey, we instrument for health status while allowing for covariation among the unobservables influencing both health and household poverty status. Health status, as captured by the body mass index, is shown to strongly influence poverty status. Households that contain more unhealthy individuals are 60 per cent more likely to be income poor than households that contain fewer unhealthy individuals, and this finding appears invariant to the choice of poverty line.     

THE MIDDLE CLASSES IN THAILAND: THE RISE OF THE URBAN INTELLECTUAL ELITE AND THEIR SOCIAL CONSCIOUSNESS

This paper, based on an analysis of quantitative survey data, reexamines the stereotype of the Thai “middle class” as a homogeneous elite class at loggerheads with the lower strata. Our results support the contention that the Thai middle classes are, in fact, of mixed social origins, and suggest that their process of emergence is characterized by the fact that a large number have risen from the lower urban strata We argue that because of these characteristics, the social consciousness of the Thai middle classes is more complex than the stereotyped explanation, and contains elements that cannot be fully explained by a perspective based on class theory     

THE IMPACT OF ACQUISITIONS ON COMPANY PERFORMANCE: EVIDENCE FROM A LARGE PANEL OF UK FIRMS

This paper investigates the impact of acquisitions on companyperformance using a large panel of UK-quoted companies observedover a long time period. The results indicate that acquisitionshave a detrimental impact on company performance and that companygrowth through acquisition yields a lower rate of return thangrowth through internal investment. Given the penchant for takeoversin the UK, as witnessed by the record level of takeovers onthe London equity market last year, our findings suggest thatneither firms nor shareholders are being best served by theexisting financial and industrial system.     

EFFECTS OF THE REAL EXCHANGE RATE ON OUTPUT AND INFLATION: EVIDENCE FROM TURKEY

This paper assesses the effects of real depreciation on the economic performance of Turkey by considering quarterly data from 1987:I to 2001:III. The empirical evidence suggests that, contrary to classical wisdom, the real depreciations are contractionary, even when external factors like world interest rates, international trade, and capital flows are controlled. Moreover, the results obtained from the analyses indicate that real exchange rate depreciations are inflationary.     

THE DISTRIBUTION OF MALE AND FEMALE EARNINGS 1973--91: EVIDENCE FOR BRITAIN

This paper analyses the major developments in the structureof male and female pay in Britain between 1973 and 1991 Theseare the narrowing of the gender pay gap and the increasing inequalityof male and female earnings The first innovation is decomposingthe changing gender pay gap into three components: prices, characteristics,and unmeasured (residual) effects at any percentile level ofinterest to the investigator. An important role for prices innarrowing the gender gap is found and the second innovationis a method to identify which prices are critical Qualificationsturn out to be the key factor.