the simple macroeconomics of north south interaction recently there has been an upsurge of interest in macroeconomic linkages between the developed countries the north and less developed countries the south there are several reasons for this first it is partly a response to the recent ldc debt crisis and its possible consequences for northern financial markets and southern growth prospects second the effects of northern macroeconomic policies on primary commodity prices and hence on northern inflation and output and on southern debt are of interest for the world economy third the study of international interdependence in the context of the northern economies has highlighted a missing link the southern economies that are not modeled in detail in existing models of north north interactions analysis of these issues may well prove to be significantly influenced by the behavior of the missing bloc comprising the south what is so particular about north south interactions two asymmetries are normally held to represent the key differences between the economies of developed and developing countries these have to do with the workings of goods and financial markets and are captured in the following simple stylized way 1 northern production consists of industrial goods the output of which is endogenous and the market for which clears through changes in the volume produced by contrast southern production consists of agricultural goods the output of which is exogenous and the market for which clears through changes in the price of agricultural goods relative to industrial goods the association of industry with the north and agriculture with the south is clearly an oversimplification 2 the north has developed capital markets with endogenous interest rates that affect expenditure but in the south credit markets are imperfect the only financial effect on expenditure is a wealth effect that reduces southern expenditure as indebtedness in the south arises we have recently contributed to three surveys of the modeling and policy issues involved in studying interactions between these two rather different kinds of economies see d currie et al 1988 currie v muscatelli and vines 1988 muscatelli and vines 1988 the present paper attempts to distill that work and to model in the simplest possible way some of the key processes at work we concentrate on two important policy issues in global macroeconomics i the effect on the south of reaganomics in the north and ii the effect of debt relief for the south and aid to the south

let s not throw the baby out with the bath water the role of urban villages in housing rural migrants in china in the era of china s economic growth and urbanisation providing adequate and affordable housing for rural urban migrants in urban areas is crucial for the success of china s multifaceted reforms

identifying the impacts of rail transit stations on residential property values abstract prior studies that have empirically investigated the impact of rail station proximity on property values have not fully investigated the factors that may account for this relationship stations may raise the value of nearby properties by reducing commuting costs or by attracting retail activity to the neighborhood possibly countering these positive effects are negative externalities emitted by stations and the access to neighborhoods that stations provide to criminals this paper sorts out these effects by presenting the results from estimating a hedonic price model and auxiliary models for neighborhood crime and retail activity results show that all four effects play a role in defining the relationship between property values and rail stations but the relative importance of these effects varies with distance from downtown and the median income of the neighborhood

land tenure arrangements and rural urban migration in china summary obstacles to internal migration in china contribute to inefficiency inequality and land degradation academic and policy debate has primarily focused on discrimination against rural migrants on arrival in urban areas meanwhile barriers to migration out of rural areas have received less attention this paper examines the role of incomplete rural property rights in the migration decisions of rural households we examine the relationship between tenure insecurity and restrictions on land rentals and participation in outside labor markets the results indicate that tenure insecurity reduces migration this relationship is particularly pronounced on forest land which has implications for the conservation of recently replanted forest areas

how urban segregation distorts chinese migrants consumption summary this paper provides a new explanation for china s low consumption to gdp ratio by highlighting the constraints of the household registration system hukou on china s household consumption our baseline results show that the consumption of migrants is 16 20 lower than that of local urban residents we further find evidence suggesting that caused by hukou restrictions migrants save more for precautionary purposes have lower expectation of permanent income and consume much less durable goods because of high mobility moreover we have found no evidence that the consumption heterogeneity can be explained by migration effects culture or other forms of household heterogeneity as both the number and income level of migrants are rising quickly the constraining effects of hukou on household consumption is increasing 2014 elsevier ltd all rights reserved

great expectations the subjective well being of rural urban migrants in china summary this paper is among the first to link the literatures on migration and on subjective well being in developing countries it poses the question why do rural urban migrant households settled in urban china have an average happiness score lower than rural households three basic hypotheses are examined migrants had false expectations about their future urban conditions or about their future urban aspirations or about their future selves estimated happiness functions and decomposition analyses based on a 2002 national household survey indicate that certain features of migrant conditions make for unhappiness and that their high aspirations in relation to achievement influenced by their new reference groups also make for unhappiness although the possibility of selection bias among migrants cannot be ruled out it is apparently difficult for migrants to form unbiased expectations about life in a new and different world

globalisation and unequalisation what can be learned from value chain analysis although many have gained from the process of globalisation there remains a stubbornly large number of people living in absolute poverty and a rise in inequality within and between countries the issue is thus not whether to participate in the global economy but how to do so in a manner which provides for sustainable and equitable income growth this study shows how value chain analysis can be used to chart the growing disjuncture between global economic activity and global income distribution and to provide causal explanations for this outcome in so doing value chain analysis provides valuable insights into policy formulation and implementation

which way is up in upgrading trajectories of change in the value chain for south african wine summary global value chain gvc analysis uses the concept of upgrading to highlight paths for developing country firms to move up the value chain usually through the lenses of four categories product process functional and inter sectoral upgrading the implicit normative expectation is that these firms move toward producing higher value added products and or take on more sophisticated functions along a value chain in this article upgrading is approached more broadly as reaching a better deal including a balance between rewards and risk the case study of south african wine shows that better product quality improved processes and some functional upgrading have co existed with processes of downgrading higher risks and limited rewards especially in traditional export markets a reflection on further conceptual development and directions for empirical research is also provided

north south growth and the terms of trade a model on kaldorian lines this paper examines equilibrium growth and stability in the world economy using a north south model in which there is assumed to be surplus labor in both the north and south at an exogenously determined level of real wages the model allows for substitution in consumption between primary commodities and industrial goods in the north and treats the cases of both surplus and scarce land in the south in the case of an exogenous shock to the model the north south terms of trade may overshoot its equilibrium value and or converge to this value along a cyclical path there is no guarantee that the adjustment path is stable

labor migration and earnings differences the case of rural china this article presents empirical evidence supporting the hypothesis that the decision of chinese rural people to migrate is affected by noneconomic forces using the 1820 rural household survey from sichuan province migration behavior and earnings are analyzed logistic probability models show that the decision to migrate is driven largely by the availability of rural non farm employment opportunities however if jobs are available in the province even at lower wages rural people will choose to stay rather than to migrate the major deterrent to migration is the lack of safety during transportation and in destination cities as well as forced separation from families moreover rural migrants are denied the legal right to reside permanently in cities furthermore findings reveal that although labor productivity in migrant activities is higher than it is in local non farm sectors the economic cost of migration in china is so high as to significantly limit reallocation one implication of this study is that without artificial barriers to labor migration the number of migratory workers would be higher since the important objective of the chinese government is to control rural to urban migration it is likely that restrictive migration policies will continue however putting aside the issue of social justice the economic efficiency loss under the chinese system should not be ignored

does land renting out increase farmers subjective well being evidence from rural china although the literature finds that renting out farmland can increase farmer s income whether lessors subjective well being swb increases or not has been under analysed we use data from the 201

national wage trends and migration in a chinese village economy a micro level modeling approach based on a composite utility function china s economy is experiencing a regime shift away from a fully elastic supply of labor from a large pool of rural surplus labor and toward a situation of increasing labor scarcity and rising wage rates moreover faster wage increases in the regions of origin of many rural urban migrants are likely to affect the dynamics of inter regional migration these wage trends have implications at the local level in particular in a setting in which migration connects rural communities to the national labor market and in which migration is of high importance for the livelihoods of rural households taking a village perspective this article develops a village computable general equilibrium model to study local impacts of current wage trends in china as a central piece of the model the role of access to migration for household livelihoods is recognized access to migration is linked to household demographics and included in the model through a composite utility function that captures household preferences and disutilities associated with alternative off farm activities simulation results illustrate how households utility considerations affect migration responses to national wage changes statements about possible impacts on village level labor supply land use and agricultural production are made when migration wages and local off farm wages are simulated to increase an overall increase in household and village migration and a higher supply of labor to local off farm labor markets is accompanied by a contraction of farm production although land is reallocated between households with different migration responses total agricultural output declines

the dark side of chinese growth declining social capital and well being in times of economic boom summary over the last two decades subjective well being in china declined using data from the world values survey we identify predictors of the trend in life satisfaction in china during 1990 2007 social comparisons and the decline of social capital explain the decrease in well being and they are strictly connected to the increasing orientation of chinese people toward materialistic values the increasing role of social comparisons is also a key factor in the increase of well being inequalities between income classes

interprovincial migration and the stringency of energy policy in china the authors thank eni s p a icf international shell international limited and the french development agency afd founding sponsors of the china energy and climate project we also gratefully acknowledge the support of the energy information administration at the u s department of energy we are also thankful for support provided by the ministry of science and technology of china the national development and reform commission and rio tinto china we further gratefully acknowledge the financial suppo rt for this work provided by the mit joint program on the science and policy of global change through a consortium of industrial sponsors and federal grants this work is also supported by the doe integrated assessment grant de fg02 94er61937

changes in the structure of public housing provision in urban china housing provision in a socialist country is generally characterised by the dominance of public housing however provision of public housing is a complicated process which involves various social agencies in the case of china the simple notion of state provision covers huge differences between municipally managed and work unit housing the lack of understanding in the structure of public housing provision has led to unsuccessful efforts in promoting the commercialisation of housing in recent years this paper adopting a perspective of structure of housing provision shp attempts to examine the changes in public sector housing in china and to reveal the critical role of state work units in the shp housing reform has led to some significant changes in the shp the transformation however is far from a process of commercialisation or privatisation of public housing stock on the production side work units do withdraw themselves from direct involvement in housing construction however on the con

the impact of modern economic growth on urban rural differences in subjective well being summary at low levels of economic development there are substantial gaps favoring urban over rural areas in income education and occupational structure and consequently a large excess of urban over rural life satisfaction despite important urban problems of pollution congestion and the like at more advanced development levels these economic differentials tend to disappear and rural areas approach or exceed urban in life satisfaction both across country and within country regression analyses of 2005 08 data from the gallup world poll support these conclusions

consumption and happiness we examine the relationship between relative consumption and happiness using panel data for china an important developing country we find that consumption has a positive effect on happiness an

household consumption smoothing through ethnic ties evidence from cote d ivoire abstract this paper investigates the hypothesis that households in cote d ivoire take part in spatially diversified risk sharing arrangements with members of their own ethnic group empirical tests are presented using several estimation methods to deal with heteroscedasticity measurement error and extreme value problems to examine whether results are robust across estimation procedures the hypothesis of complete risk sharing within ethnic groups is rejected however there appears to be some partial insurance performed by individual households with other members of the same ethnic group particularly for the households residing in the regions least likely to have access to formal financial arrangements

community comparisons and subjective well being in a divided society using a south african data set the paper poses six questions about the determinants of subjective well being much of the paper is concerned with the role of relative concepts we find that comparator income measured as average income of others in the local residential cluster enters the household s utility function positively but that income of more distant others others in the district or province enters negatively the ordered probit equations indicate that as well as comparator groups based on spatial proximity race based comparator groups are important in the racially divided south african society it is also found that relative income is more important to happiness at higher levels of absolute income potential explanations of these results and their implications are considered

trade policy reform and the competitive response in kwazulu natal province south africa like many other formerly protected economies the liberalization of the external trade regime has placed new competitive pressures on south african enterprises detailed research in over 130 enterprises in the kwazulu natal kzn province of south africa shows the extent to which firms have been able to respond to these new competitive pressures and particularly on their ability to hear and to meet more demanding customers requirements inevitably the response has been varied but there are reasons to be concerned that the pace of adjustment has been suboptimal this reflects imperfections in information markets the challenges poses by the need for new social relations in production and the limited implementation of new supply sided policies designed to compensate firms for the reduction in protective barriers

import compression and export performance in developing countries the debt crisis that began in 1982 forced a number of developing countries that had relied on external financing into rapid adjustment of their current account positions in many of these countries external adjustment mainly took the form of import reduction or what has been termed import compression to generate trade balance surpluses necessary to service the existing stock of foreign debt while the effects of import compression on consumption and growth have been discussed in the literature there has been little concern expressed with regard to the direct effects such a policy can have on export performance this paper develops a model that takes explicit account of the feedbacks between imports and exports that arise through the effects of imported inputs on exports and the availability of foreign exchange on imports empirical tests of this model for 34 developing countries tend to confirm both these hypotheses these results point clearly for additional foreign financing to reduce the need for import compression and its attendant negative effects on the supply of exports

successful adjustment in indian industry the case of ludhiana s woolen knitwear cluster abstract this paper examines the case of adjustment in a labor intensive export industry woolen knitwear to understand how traditional sectors in developing regions cope with external crises and rise above them india s woolen knitwear industry concentrated in ludhiana recently survived two crises the collapse of its largest export market the former soviet union and the simultaneous opening up of the domestic market to freer trade after an unusually short downturn the cluster not only recovered rapidly but is increasingly diversifying into more demanding and competitive external markets four factors are key to explaining this surprisingly resilient recovery first the best performing firms had a strong and simultaneous presence in dynamic segments of the domestic market alongside exports this generated key organizational learning and built managerial and production capacities that helped firms adapt quickly to more demanding markets later second an important feature of the learning relationship between first time exporters and their foreign buyers was the small scale nature of contracts and a customization of fit between the producer and the feedback giving intermediary third better performing firms paid equal if not greater attention to making organizational changes in their work practices than to the purchase of new equipment fourth the embedded nature of production networks and the government s past programs to assist local firms have indirectly helped create a dynamic middle tier of locally rooted exporters who appear to be leading the cluster s transformation and modernization

fiscal decentralization rural industrialization and undocumented labour mobility in rural china 1982 87 chen y p fiscal decentralization rural industrialization and undocumented labour mobility in rural china 1982 87 regional studies this paper explores the relationship between fiscal decentralization which gave greater rural industrialization and fiscal authority to local governments and the emergence of rural rural undocumented inter provincial labour migration during china s initial reform period a heckman model is employed to correct for the zero observation problems and to estimate consistently the labour mobility with a modified gravity equation given the institutional barriers the fiscal decentralization has two contending effects on labour market integration local economic development promotes labour mobility but local public goods crowding restrains the inflow of labour at the destination the crowding effect is stronger at lower levels of government

moving to despair migration and well being in pakistan abstract internal migration has the potential to substantially increase incomes especially for the poor in developing countries and yet migration rates remain low we evaluate the impact of internal migration on both objective and subjective measures of well being using a unique longitudinal study in rural pakistan spanning 1991 2013 we account for selection using covariate matching migrants have roughly 35 40 percent higher consumption yet are less likely to report being happy calm and or in excellent health and more likely to report having been sick recently our results suggest that deteriorating physical health coupled with feelings of stress and relative deprivation underlie the disparity between objective and subjective well being thus despite substantial monetary gains from migration people may be happier and less mentally distressed by remaining at home if traditional market mechanisms cannot reduce psychic costs it may be more constructive to address regional inequality by shifting production rather than workers across space

an inquiry into the rapid growth of the garment industry in bangladesh abstractthe export oriented garment industry in bangladesh has grown rapidly for the last 3 decades and now ranks among the largest garment exporters in the world while its early success is attributed to the initial technology transfer from south korea such a one time infusion of knowledge alone is insufficient to explain the sustained growth for 3 decades this article uses primary data collected from knitwear manufacturers and garment traders to explore the process of the continuous learning of advanced skills and know how it finds among other things that the high profitability of garment manufacturing due to the initial infusion of specific human capital attracted a number of highly educated entrepreneurs to the industry that the division of labor between manufacturers and traders has facilitated the expansion of the industry and that enterprise growth has lasted long because of the continuous learning from abroad by the highly educated entrepreneurs

valuing rail access using transport innovations this paper uses a powerful empirical method to evaluate the benefits of rail access to consumers we study the effects on house prices of a transport innovation that altered the distance to the nearest station for some households but left others unaffected the transport innovation we study is the construction of new stations in london in the late 1990s using this innovation we implement a quasi experimental approach that allows us to avoid the biases inherent in cross sectional valuation work our evidence on distance station effects on local prices identified through distance changes induced by the transport innovation suggests that households value rail access and that these valuations are large compared to the valuations of other local amenities

do migrants really save more understanding the impact of remittances on savings in rural china abstract this article studies the impact of remittances on the savings behaviour of rural households in china using a primary survey undertaken by the authors in 2006 allowing for endogeneity and left censoring of remittances we find that the marginal propensity to save out of remittances is well below half of that out of other sources of incomes moreover we find no evidence of any direct effect of remittances on either capital input or gross output of farm production these findings are robust with respect to alternative definition of savings and are in line with recent studies which conclude that remittances are largely used for consumption purposes by rural chinese households

the rural non farm economy prospects for growth and poverty reduction summary policy makers have high expectations for the rural non farm economy rnfe given high income shares growing employment and frequently low capital requirements they see the rnfe as a potential pathway out of poverty for their rural poor yet available evidence suggests that pro poor rural non farm growth does not occur automatically for the poor to benefit from rural non farm growth policy makers must stimulate buoyant rural economies with robust non farm income growth not simply low productivity employment moreover the poor must gain access to growing market niches fluid labor markets provide one important bridge linking the rural poor to growing non farm opportunities

third world debt and macroeconomic interactions between the north and south in this article the authors examine three issues the causes of the south s debt crisis the nature of the macroeconomic linkages between the north and south and some of the debt rescheduling programmes the crisis was due not only to domestic policies in the south but also to the macroeconomic linkages between the south and the oecd economies these linkages may also play an important part in its cure debt adjustment with growth for the south needs a package of measures including greater co operation on macroeconomic policies and trade issues between north and south and a commonly agreed position on outstanding debt

what stopped the inflation unemployment or commodity prices the main object of this paper is to argue that most of the deceleration of inflation in the oecd countries in general including britain that took place between i980 and i982 should be attributed not to the direct impact of higher unemployment on the labour market but to the fall in commodity i e primary product prices from i980 to i982 following their very sharp rise accompanying the second oil shock between i978 and i980 this led to a dramatic turn round of about 50 60 in the prices of primary products imported into the oecd countries from the rest of the world and from other oecd countries which in turn can account for the deceleration of about 20 25 in the import prices for the average industrialised country and our econometric estimates show that the pace of wage inflation is closely correlated with import prices by contrast our estimates for a variety of model specifications and choice of data do not show statistically significant correlations between aggregate unemployment and wage inflation we have not attempted to establish statistically that the turn round in commodity prices was caused mainly by the strength and duration of the posti979 recession in the industrialised countries as a whole but like most commentators we assume that this is the case given this assumption therefore our results imply that the recession in the industrialised world did not as is widely believed slow down the inflation by acting directly on the labour market e g by crushing the unions or bringing a new breath of realism into wage negotiations instead it worked by inducing a collapse of commodity prices or in the case of oil inducing a slight fall by comparison with the preceding sharp rise insofar as our results are valid there are various obvious implications for some central topical economic debates first if there is no stable direct relationship between unemployment within any country and its own rate of wage inflation then there would be no nairu and no clearly identifiable phillips curve as some other investigators have found hence debates as to whether and how far individual economies have unemployment rates above or below their nairus and so on are irrelevant in the conclusions we summarise what seem to be the main policy implications for individual countries but secondly insofar as levels of demand in the industrialised countries taken as a whole influence commodity prices which feed back on wage inflation via

the impact of migration on rural poverty and inequality a case study in china large numbers of agricultural labor moved from the countryside to cities after the economic reforms in china migration and remittances play an important role in transforming the structure of rural household income this article examines the impact of rural to urban migration on rural poverty and inequality in a mountainous area of hubei province using the data of a 2002 household survey since migration income is a potential substitute for farm income we present counterfactual scenarios of what rural income poverty and inequality would have been in the absence of migration our results show that by providing alternatives to households with lower marginal labor productivity in agriculture migration leads to an increase in rural income in contrast to many studies that suggest that the increasing share of nonfarm income in total income widens inequality this article offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons 1 migration is rational self selection farmers with higher expected return in agricultural activities and or in local nonfarm activities choose to remain in the countryside while those with higher expected return in urban nonfarm sectors migrate 2 households facing binding constraints of land supply are more likely to migrate 3 poorer households benefit disproportionately from migration

where did all the remittances go understanding the impact of remittances on consumption patterns in rural china we focus on the impact of migrants remittances on consumption patterns in china using a large homogenous sample of rural households surveyed in 2001 and 2004 we find that remittances are spent on nonhousing consumption expenditures at the margin virtually dollar for dollar when we instrument remittances and local employed earnings using proxies of social networks our findings are robust to intra household division of labour and to fixed effect for the county in which the respondents are registered these results imply that rural households largely take remittances as permanent income and are consistent with the prevalence of circular and repeat migration in china

a transitional institution for the emerging land market in urban china chinese economic reforms since 1978 have been a continuous process of fundamental institutional change the new institution of ambiguous property rights over state owned urban land evolves from the

the global business revolution the cascade effect and the challenge for firms from developing countries the global business revolution since the 1980s has witnessed an unprecedented degree of industrial consolidation and concentration of business power at a global level firms with powerful globally recognised technologies and or brands constitute the systems integrators at the apex of extended supply chains this paper examines the supply chains in four different sectors aerospace telecommunications automobiles and beverages it finds that these sectors have striking similarities in the way in which the core systems integrators have stimulated industrial concentration across the whole supply chain this cascade effect has profound implications for firms from developing countries in catching up at the firm level

rising power clusters and the challenges of local and global standards this paper explores the intersection between three processes associated with globalisation first the rise of emerging economies like china brazil and india the so called rising powers and their potential to define the contours of globalisation global production arrangements and global governance in the twenty first century second the importance of corporate social responsibility csr goals in the shaping of global trade rules and industrial practices third the significance of small firm clusters as critical sites of industrial competitiveness some of the most significant examples of successful innovative and internationally competitive small firm clusters from the developing world are located in the rising powers and cluster promotion is a core element of national industrial policy in some of these countries there is also evidence of engagement by clustered actors with corporate social responsibility goals around labour and environmental impacts while these three processes have been separately studied there has been no attempt to explore their intersections this paper addresses this gap through a comparative analysis of secondary data and a detailed reading of the literature on csr and clusters in brazil china and india it assesses the evidence on small firm clusters in the rising power economies and considers how these rising power clusters engage with csr goals pertaining to labour social and environmental standards it argues for a greater focus on the formal and informal institutional context termed the social contract in explaining divergent experiences and practices observed across these countries this raises important questions for future academic and policy research on clusters csr and the rising powers the paper concludes by outlining a research agenda to explore the local and global consequences of the relationship between rising power clusters and international labour and environmental standards

segmentation or competition in china s urban labour market in china urban residents have traditionally been protected against labour marketcompetition from rural urban migrants over the period of urban economic reform rural urban migration was allowed to increase in order to ll the employment gap asgrowth of labour demand outstripped that of the resident labour force in urbanareas however as reforms gained pace and controls were lifted it is plausible thatcompetition for work between migrants and urban residents would have increased the paper examines whether the relationship is one of segmentation or competitionin the labour market it uses attitudinal responses from two urban surveys theurban workers who perceive competition from migrants are those who are mostvulnerable the ndings are consistent with the presence of continued labourmarket segmentation but suggest also that competition between the two groups isincreasing key words labour markets wages migration labour market segmentation chinajel classi cations j30 j40

job satisfaction and co worker wages status or signal we use matched employer employee panel data to show that individual job satisfaction is higher when other workers in the same establishment are better paid this runs counter to substantial existing evidence of income comparisons in subjective well being we argue that the difference hinges on the nature of the reference group we here use co workers their earnings not only induce jealousy but also provide a signal about the worker s own future earnings in our data this positive future earnings signal outweighs any negative status effect this phenomenon is stronger for men and in the private sector but weaker for those nearer retirement

happiness and job satisfaction in urban china a comparative study of two generations of migrants and urban locals this study investigates determinants of happiness and job satisfaction of urban locals first generation migrants and new generation migrants in china s urban workforce we present evidence to suggest that new generation migrants are less satisfied with their jobs and lives than first generation migrants despite having higher income this finding is consistent with aspirations rising faster than income in china s fast growing urban economy

valuing school quality better transport and lower crime evidence from house prices housing prices within urban areas exhibit highly localized variation that cannot be explained solely by differences in the physical attributes of dwellings we consider the role of local amenities and disamenities in generating price variation within urban areas focusing on three highly policy relevant urban issues transport accessibility school quality and crime our survey of the recent empirical literature highlights what is known and what is not known on these issues and considers the relevance and reliability of this evidence for policy design and evaluation although there are serious empirical challenges we argue that research on housing values based on careful research designs can offer credible estimates of the social value of place specific attributes and amenities

life satisfaction in urban china components and determinants survey data from urban china in 2002 show levels of life satisfaction to be low but not exceptionally so by international comparison many of the determinants of life satisfaction in urban china appear comparable to those for people in other countries these include inter alia unemployment income marriage sex health and age communist party membership and political participation raise life satisfaction people appear fairly satisfied with economic growth and low inflation and this contributes to their overall life satisfaction there is dissatisfaction over pollution but this like job insecurity does not appear to impact on life satisfaction

the european monetary system list of figures list of tables preface 1 introduction niels thygesen part i the international environment 2 the european monetary system the dollar and the yen rudiger dornbusch discussion robert triffin discussion charles wyplosz part ii disinflation external adjustment and cooperation 3 monetary discipline and cooperation in the european monetary system a synthesis jacques melitz discussion jose vinals 4 the role of the exchange rate regime in a disinflation empirical evidence on the european monetary system francesco giavazzi and alberto giovannini discussion william branson 5 inflation and the european monetary system susan m collins discussion jean jacques rey 6 economic growth and exchange rates in the european monetary system their trade effects in a changing external environment stefano vona and lorenzo bini smaghi discussion david begg part iii exchange rates capital mobility and monetary coordination 7 exchange rates interest rates capital controls and the european monetary system assessing the track record michael j artis and mark p taylor discussion emil maria claassen and eric peree 8 the stability and sustainability of the european monetary system with perfect capital markets john driffill discussion daniel gros 9 competitiveness realignment and speculation the role of financial markets maurice obstfeld discussion marcus miller discussion herakles polemarchakis 10 interventions sterilisation and monetary policy in european monetary system countries 1979 87 cristina mastropasqua stefano micossi and roberto rinaldi discussion wolfgang rieke 11 monetary policy coordination within the european monetary system is there a rule massimo russo and giuseppe tullio discussion lucas papademos part iv the future of the european monetary system 12 the european monetary system a long term view tommaso padoa schioppa 13 a new phase in the european monetary system exchange rate constraint capital liberalisation and policy coordination a report of the conference panel discussion lamberto dini peter kenen rainer masera wolfgang rieke luigi spaventa and jacques waitzenegger index

housing tenure choice in transitional urban china a multilevel analysis summary using a 1996 national survey of housing in china and a multilevel modelling technique we examine housing tenure choice in transitional urban china where households have been granted limited freedom of choice in the housing market since the housing reforms of 1988 we e nd that both market mechanisms and institutional forces affect households tenure choice in urban china while some socioeconomic factors such as age household size household income and housing price have similar effects on tenure choice as in the west others such as the number of workers and marital status have rather different effects in addition factors characterising institutional relationships among the state work units and households such as hukou job rank and work unit rank still play important roles in tenure choice

marketing barriers facing developing country manufactured exporters a conceptual note conventional analysis of exporting by ignoring information gaps and transaction costs of various kinds neglects the role of marketing barriers to new entrants the nature of the barriers vary by industry and a variety of institutional mechanisms exists for overcoming them the appropriateness of the mechanism depends on the capabilities and dynamism of the exporter as well as the nature of information required the role of foreign buyers has received some attention in recent research in the export of simple consumer goods this note attempts to develop a more general conceptual framework for marketing barriers

leaving the countryside rural to urban migration decisions in china this paper employs a simple theoretical model of labor allocation within rural households given existing land arrangements in an attempt to explain why rural chinese do not fully participate in labor migration it first explores the mechanisms by which individual household and community characteristics affect the migration decision empirical results are then presented to substantiate the derived hypotheses the paper further explores the question of whether the migration decision is permanent by analyzing the responses of household consumption to income from migration excerpt

what is different about urbanization in rich and poor countries cities in brazil china india and the united states abstract are the well known facts about urbanization in the united states also true for the developing world we compare american metropolitan areas with analogous geographic units in brazil china and india both gibrat s law and zipf s law seem to hold as well in brazil as in the u s but china and india look quite different in brazil and china the implications of the spatial equilibrium hypothesis the central organizing idea of urban economics are not rejected the india data however repeatedly rejects tests inspired by the spatial equilibrium assumption one hypothesis is that spatial equilibrium only emerges with economic development as markets replace social relationships and as human capital spreads more widely in all four countries there is strong evidence of agglomeration economies and human capital externalities the correlation between density and earnings is stronger in both china and india than in the u s strongest in china in india the gap between urban and rural wages is huge but the correlation between city size and earnings is more modest the cross sectional relationship between area level skills and both earnings and area level growth are also stronger in the developing world than in the u s the forces that drive urban success seem similar in the rich and poor world even if limited migration and difficult housing markets make it harder for a spatial equilibrium to develop

north south interaction and commod control a simple model of north south interaction is presented with a keynesian north producing industrial goods and a classical south producing corn if the terms of trade clear the corn market then commodity price stabilisation can only slightly increase the average value of northern real consumption but if there is real wage resistance in the north then output deflation in the north is necessary to avoid inflationary pressure whenever the terms of trade tend to turn against the north commodity price stabilisation could in such circumstances greatly improve northern welfare the paper also examines whether fiscal policy in the north instead of commodity price stabilisation could provide equally large improvements in northern welfare

the globalization of product markets and immiserizing growth lessons from the south african furniture industry the central issue addressed in this paper is whether some developing countries will find it difficult to compete effectively in global product markets and will therefore be locked into processes of immiserizing growth it focuses on the role of south african producers in the global furniture value chain analyzing the factors affecting firm upgrading particularly the role of global buyers the paper observes a global industry characterized by increased competition and falling unit prices with local firms dependent on a falling exchange rate it concludes with implications for policy and future research including generalizing the findings to other sectors and countries

does local social capital deter labour migration evidence from rural china abstractthis article empirically investigates the effect of local social capital on job related migration in rural china a household s social ties in the region of origin which we refer to as local social capital may deter migration because local social capital is location specific and an individual cannot benefit from it if s he migrates in view of chinese gift giving culture we use household expenses on wedding gifts for family members outside household relatives and friends as a proxy for local social networks based on the data from the china health and nutrition survey we find that in rural china local social networks have a significantly negative effect on migration the iv results suggest that a 10 increase in wedding gifts expenses results in roughly a 1 1 percentage points decrease in migration probability

economic and social upgrading in global value chains and industrial clusters why governance matters the burgeoning literature on global value chains gvcs has recast our understanding of how industrial clusters are shaped by their ties to the international economy but within this context the role played by corporate social responsibility csr continues to evolve new research in the past decade allows us to better understand how csr is linked to industrial clusters and gvcs with geographic production and trade patterns in many industries becoming concentrated in the global south lead firms in gvcs have been under growing pressure to link economic and social upgrading in more integrated forms of csr this is leading to a confluence of private governance corporate codes of conduct and monitoring social governance civil society pressure on business from labor organizations and non governmental organizations and public governance government policies to support gains by labor groups and environmental activists this new form of synergistic governance is illustrated with evidence from recent studies of gvcs and industrial clusters as well as advances in theorizing about new patterns of governance in gvcs and clusters

comparison of private incentive mechanisms for improving sustainability of filipino tuna fisheries this paper analyzes the influence of three private incentive mechanisms over decision making related to improved sustainability of fishing practices in filipino tuna fisheries the three mechanisms compared are the world wildlife fund for nature s fishery improvement project model marine stewardship council certification and the international seafood sustainability foundation pro active vessel register the main question addressed in this paper is how and to what extent the private incentive mechanisms support the development of fisher capabilities to respond to the requirements set out by these mechanisms applying a global value chain approach to analyze results collected from key actors involved in philippine tuna fishers contributing to both domestic and regional economic development in the western pacific we explore the structure and function of these private incentive mechanisms in achieving both environmental and economic development outcomes our results show that these private incentive mechanisms deliver different direct and indirect incentives for changing to more sustainable fishing practices and that the success of these mechanisms is dependent on the extent to which the mechanisms support the development of target fisher capabilities to comply with their sustainability requirements we conclude that the future success of these incentive mechanisms depends for a large part on stricter sustainability requirements but also on the capacity of the mechanisms to incentivize the inclusion of more developing country fishers these findings contribute to a wider understanding of how the capabilities of developing country producers are influenced by their relationship with chain and non chain actors and with the wide institutional arrangements that the producers operate in

the short term impacts of development induced displacement on wealth and subjective well being in the brazilian amazon displacement due to development projects such as dams mines and urban infrastructure often leads to livelihood decline among affected communities the challenge therefore lies in implementing projects that achieve national or regional development goals while also generating positive social and economic outcomes for displaced populations this paper uses a longitudinal mixed methods design to understand the short term changes in wealth and subjective well being of households displaced due to construction of the belo monte dam in the brazilian amazon the households were compensated by either cash or credit for their lost land and assets and were then responsible for finding and purchasing new property using pre and post displacement household survey and semi structured interview data as well as data from a small comparison group i find that wealth increased for the majority of the study population and that socioeconomic inequality decreased as poorer households experienced greater improvements in housing conditions assets and property ownership in addition subjective well being improved for most households particularly among those who did not own land at baseline those who gained assets such as vehicles those who remained closer to the original study area and those who remained in close proximity to other households from the study population moving to an urban destination was strongly associated with declines in well being as was moving far from family or friends these results suggest that investing sufficient resources in a compensation based resettlement program can benefit households displaced by large infrastructure projects in the short term but additional data collection is needed after the completion of dam construction to determine whether these benefits are sustained over the longer term

the blue revolution in asia upgrading and governance in aquaculture value chains summary in this article we examine the upgrading trajectories of selected aquaculture value chains in four asian countries and the links between upgrading and three factors of value chain governance coordination mechanisms types of drivers and domestic regulation we find instances of improving products processes and value chain coordination while moving up the value chain is rare we also find that the type of value chain driver and the quality of the domestic regulatory framework are main facilitators of upgrading we conclude by highlighting lessons on the potential limits and risks of upgrading the blue revolution in asia

people do not adapt new analyses of the dynamic effects of own and reference income on life satisfaction abstract do people adapt to changes in income in contradiction to much of the previous literature i find no evidence of adaptation to income in gsoep 1984 2015 and ukhls 1996 2017 data furthermore i find that people also do not adapt to changes in reference income instead reference income effects may be subject to reinforcement over time following the empirical approach of vendrik 2013 i obtain these findings by estimating life satisfaction equations in which contemporaneous and lagged terms for a respondent s own household income and their estimated reference income are simultaneously entered additionally i instrument for own income and include lags of a large set of controls what was found to be adaptation to raw household income in previous studies turns out to have been driven by reinforcement of an initially small negative effect of household size that grows large over time implications of this result for the estimation of equivalence scales with subjective data are discussed

the impact of operating in multiple value chains for upgrading the case of the brazilian furniture and footwear industries summary exporting has been upheld as the golden standard for industrial upgrading however research using the value chain approach shows that upgrading for developing country firms is often limited to the lowest value added activities based on comparative research carried out in two brazilian clusters furniture and footwear industries this paper shows that domestic and regional value chains can offer greater upgrading opportunities providing space for activities of higher value added better remunerated and difficult to replicate notably design marketing and branding moreover this study highlights that many firms simultaneously serve multiple value chains multichain and that multichain firms have better upgrading prospects than those primarily exporting via global value chains

does public investment improve homeowners happiness new evidence based on micro surveys in beijing the beijing government has made massive investments in rail transit construction since the 2000s while existing studies provide marginal values for rail access in the real estate market little is known about homeowners happiness evaluation of such public investment using large scale micro survey data this paper estimates in a difference in difference framework the effects on homeowners happiness about public commuting and other residential realms of a transport improvement that altered the residence station distance for some households whilst leaving others unaffected the estimation accounts for the endogeneity between the residential location choice and transport choice by using non market fang gai housing with pre determined residential location it is found that better rail access not only provides sizeable happiness about public commuting to beijing homeowners but also affects their happiness in other residential realms this finding adds to the evidence that public investment has an important role to play in influencing homeowners living experience

the impact of rural urban migration on subjective well being in south africa abstractthis paper quantifies the short to medium term impact of rural urban migration on an individual s subjective well being in south africa between 2008 and 2012 we work through different econometric specifications using instrumental variables to control for endogeneity caused by shock induced self selection and propensity score matching to control for migration self selection bias we find that rural urban migration leads to a decrease in subjective well being by 8 3 per cent we suspect that the decreased well being is a result of false expectations and changing relative groups used to peg aspirations as well as the emotional cost of being away from family and a home environment

quantifying value chain analysis in the context of livestock systems in developing countries the analysis of value chains has augmented our knowledge on the complexities inter linkages distributional benefits and institutional arrangements of production and marketing channels in developing countries however the analysis remains relatively qualitative and case specific with limited ability to rank or assess the impact of alternative interventions or to analyze sufficiently the complex market dynamics and feedbacks present in livestock systems this paper offers theoretical and applied insights on ways to improve the analytical rigor of the value chain methodology that combines both qualitative and quantitative approaches

moving off the farm land institutions to facilitate structural transformation and agricultural productivity growth in china agriculture has made major contributions to china s economic growth and poverty reduction but the literature has rarely focused on the institutional factors that might underpin such structural transformation and productivity this paper aims to fill that gap drawing on an 8 year panel of 1 200 households in six key provinces it explores the impact of government land reallocations and formal land use certificates on agricultural productivity growth as well as the likelihood of households to exit from agriculture or send family members to the non farm sector it finds that land tenure insecurity measured by the history of past land reallocations discourages households from quitting agriculture the recognition of land rights through formal certificates encourages the temporary migration of rural labor both factors have a large impact on productivity at about 30 percent each mainly by encouraging market based land transfers a sustained increase in non agricultural opportunities will likely reinforce the importance of secure land tenure which is a precondition for successful structural transformation and continued economic attractiveness of rural areas

on the price of land and the value of amenities a house represents not only a bundle of structural characteristics but also a set of location specific characteristics adding locational coordinates and site area to other house characteristics makes it possible to estimate a land rent surface as well as thle hedonic prices attached to local patterns of land use and other neighbourhood characteristics one can then estimate how the value of such location specific characteristics are capitalized into land prices this analysis illustrated with estimates based on data from two british towns has a number of wider implications it generates a more parsimonious method of estimating amenity values it also reveals likely systematic biases produced by conventional hedonic studies which exclude land and location finally it clarifies the conceptual definition of land and suggests that monocentric models can perform well despite recent criticism

a numerical simulation analysis of hukou labour mobility restrictions in china abstract we use numerical simulation methods to analyze the hukou system of permanent registration in china which many believe has supported growing relative inequality over the last 20 years by restraining labour migration both between the countryside and urban areas and between regions and cities our aim is to inject economic modelling into the debate on sources of inequality in china which thus far has been largely statistical we first use a model with homogeneous labour in which wage inequality across various geographical divides in china is supported solely by quantity based migration restrictions urban rural areas rich poor regions eastern central and western non coastal zones eastern and central western development zones eastern central western zones more disaggregated 6 regional classifications and an all 31 provincial classification we calibrate this model to base case data and when we remove migration restrictions all wage and most income inequality disappears results from this model structure points to a significant role for hukou restrictions in supporting inequality in china we then present a further model extension in which urban house price rises retard rural urban migration the impacts of removing hukou restrictions on migration are smaller but are still significant finally we modify the model to capture labour productivity differences across regions calibrating the modified model to estimates of both national and regional gini coefficients removal of migration barriers is again inequality improving but less so

learning from global buyers an increasing number of developing countries engage in contract manufacturing for a decreasing number of global buyers this constellation characterises many labour intensive export sectors the positioning of developing country enterprises in such buyer driven chains is central to research concerned with identifying the winners and losers from globalisation this study contributes to this debate by seeking answers to two questions first what can researchers learn from global buyers about the relative strengths and weaknesses of developing country producers second what can these producers learn from global buyers and what circumstances facilitate or constrain such learning

migration incentives migration types the role of relative deprivation the authors explore the role of relative deprivation versus absolute income as an incentive for migration in developing countries in section i of this paper we outline the relative deprivation model of migration and present an illustration of the divergent policy implications of a relative deprivation model versus an absolute income model an attempt is made to identify distinct empirical implications of relative and absolute income motives for migrating in section ii a migration decision model is estimated and is used to explore absolute and relative income motives for internal and international migration in a sample of rural mexican households as well as to test the extent to which discontinuity in labour markets shapes the choice of migrant destination in section iii we present our conclusions excerpt