development of financial markets and the size distribution of manufacturing establishments international comparisons abstract institutional determinants have largely been neglected in explaining international differences in the size distribution of manufacturing establishments this paper draws on recent developments in institutional analysis to derive certain hypotheses concerning the way in which the size distribution within manufacturing is affected by the degree of development of the markets for debt and equity these hypotheses are tested on the basis of an international cross section of 54 countries the results are generally supportive of the hypotheses especially in the case of developing countries

determinants of inter firm technology licensing in the eu this article investigates the determinants of technology licensing focusing on how country specific characteristics affect technology holders incentives to sell their proprietary technologies through licensing alliances an empirical examination of licensing is done using a unique panel data set of licensing transactions involving companies in the eu the strength of intellectual property rights ipr protection the degree of economic freedom the level of country risk and the number of patent granted in the country are found to be important determinants of inter firm technology licensing in addition firms with prior independent experience as a licensor and public companies tend to license technology more

nigeria s energy policy inferences analysis and legal ethics toward re development the study critically assessed the various policy issues of sustainable energy development in nigeria the basic focus was to discuss and analyze some of the laws of the federation as it relates to the development of renewable energy in nigeria it surveyed the nation s energy policy statement and the vision 20 2020 of the federal government the renewable energy master plan developed by the joint efforts of the energy commission of nigeria and united nations development programs were also appraised the level of development and the index of renewable energy production as stated by the policy statement the vision 20 2020 and the renewable energy master plan were highlighted the study found some policy challenges which include weak government motivation lack of economic incentives multiple taxations non existent favorable customs and excise duty act to promote renewable energy technologies further to this some legal reforms which may aid the promotion of renewable energy development in nigeria and also make robust the nation s energy policy were proposed some of the laws that require amendment to promote renewable energy include the land use act environmental impact assessment decree and the investment laws of the federation of nigeria

subsistence response to market shocks microeconomic models posit that transaction costs isolate subsistence producers from output market shocks we integrate microeconomic models of many heterogeneous households into a general equilibrium model and show that supply on subsistence farms may respond in apparently perverse ways to changes in output market prices price shocks in markets for staple goods are transmitted to subsistence producers through interactions in factor markets in the case presented a decrease in the market price of maize reduces wages and land rents stimulating maize production by subsistence households however real incomes of subsistence households fall

measuring the demand for improved urban sanitation services results of a contingent valuation study in ouagadougou burkina faso in developing countries there are few institutional mechanisms for the incorporation of demand information in the planning of public services as a result misjudgements about consumer preferences have often led to poor project design and performance the contingent valuation method which relies on direct elicitation of consumer preferences and willingness to pay has emerged as one approach to address this shortcoming the paper describes an application of the method to facilitate demand driven planning for provision of improved sanitation in ouagadougou burkina faso the results suggest that demand information about unfamiliar technologies can be successfully obtained and can serve as a useful input in the design of public services

estimation of substitution possibilities between water and other production inputs the traditional approach to measuring the demand for water by industries relies upon fixed water use coefficients water supply planners base decisions about system expansion partly upon fixed coefficients applied to projected levels of industrial growth among the restrictive assumptions implied by this approach is that producers are generally unresponsive to the relative price of water compared with other factors earlier studies focused on industry by industry assessments of present and potential water use technologies and the possibilities for substituting other productive inputs for water most of these studies are economic engineering in form thompson and young and russell are analyses of the steam electric generating industry and the petroleum refining and petrochemical industry respectively because they used linear programming techniques their results must be interpreted cautiously the flexible functional forms which have become

examining the differences in self and publicly supplied firms water demands this research examines the fac tors influencing the decision made by manufac turing firms regarding their source of water sup ply and tests whether self supplied firms exhibit demands for intake water different from firms supplied by a public utility the first stage of the estimation model involves a probit analysis of the supply source choice and the second stage employs a regression model with endogenous switching to estimate the demand equations for the two types offirms results indicate that eco nomic factors such as annual connection fees influence the supply source decision jel q25

demand side management potentials for mitigating energy poverty in south africa abstract south africa is severally posited to be africa s most industrialized nation with an economy heavily reliant on energy with depleted electricity reserve margin which led to massive load shedding and rationing of electricity in 2008 eskom has stepped up the construction of additional power plants to cover for growing supply deficits emerging trends however favour demand side management dsm initiatives as alternatives to building additional supply capacity due to environmental and economic constraints this research evaluates the electricity per capita for 2007 2011 and 2016 on provincial basis assuming 100 and 36 8 residential sector consumption of generated electricity to show declining electricity per capita values a scenario simulation for 100 50 and 30 household participation of cloth washers and cloth dryers optimal dispatch is then modelled to show the enormous dsm potentials in terms of electricity cost reduction and supply flexibility a modified genetic algorithm mga is used in the dispatch of participating loads on the medupi power plant which has been modelled to operate with carbon capture and sequestration ccs technology dsm potentials of 6938 34 mw 3469 18 mw and 2081 51 mw are computed for 100 50 and 30 household participation for cloth washers and cloth dryers

a structuralist perspective on the role of technology in economic growth and development abstract this paper presents an integrated view of what is termed a structuralist perspective to economic growth and development that stands in contrast to the mainstream orthodox or neoclassical view in the structuralist view structural changes are causes of growth rather than outcomes of a process of capital accumulation and of rising per capita incomes moreover the growth process may be punctuated by periods of discrete shifts in resource allocation creative destruction and growth acceleration rather than being smooth throughout structural changes need not be automatic they require a skill specific infrastructure of new capabilities which when established generate new comparative advantages market failures may be pervasive due to problems of human capital accumulation critical mass and discrete choice among alternative growth paths thus in addition to creating a favorable environment for business and assuring through macroeconomic policy adequate investment successful growth may require an adequate industrial and technological policy particularly at nodes of structural change the paper surveys the structuralist insights appearing in the literature starting with the early postwar economic development literature and including recently developed formal models it also proposes a kinked or scalloped aggregate production function as a simple tool for structuralist analysis

technological capabilities and industrialization abstract this paper reviews the implications for industrial strategy of recent research on technological capabilities at the firm and national levels after exploring the nature and determinants of microlevel technological development a simple framework for explaining the growth of national capabilities is set out based on the interplay of incentives capabilities and institutions each may suffer market failure and so require corrective intervention the experience of some industrializing countries is described to assess the validity of this framework it is concluded that interventions carefully and selectively applied are necessary for industrial success

the government financial system and large private enterprises in the economic development of south korea abstract the paper investigates the main characteristics of the government business relationship in south korea in the past three decades to find out how it may have contributed to south korea s economic development it proposes that the government and large private enterprises in south korea should be viewed as constituting an internal organization namely a quasi internal organization as such extensive intervention by the government with south korea s financial system can be viewed as an internal capital market and consequently it could have led to a more efficient allocation of credit than possible in a free market financial system it also argues that the quasi internal organization has made it possible for the government to efficiently implement its developmental policies it is however pointed out that for the quasi internal organization to be successful in accelerating the pace of economic development the country must have a political leadership committed to the goal of economic development and must adopt an outward oriented development policy

banking reform and the financing of firm investment an empirical analysis of the chilean experience 1983 92 this article investigates whether the chilean banking reforms of the 1980s have contributed to reducing market imperfections in chilean financial markets in the late 1980 and early 1990s to analyse this issue patterns of investment and its finance for different types of firms are studied based on balance sheet information of a panel of 70 firms the most important conclusion is that those specific reforms aimed at reducing intra conglomerate lending seem to have been successful since access of non conglomerate firms has increased indicating a reduction of existing market imperfections for such firms

les liaisons dangereuses a minskyan approach to the relation of credit and investment in argentina during the 1990s we classify firms according to their financial behaviour in the short term using a minskyan taxonomy that classifies firms as hedge speculative and ponzi we measure financial constraints across that taxonomy using panel data for argentina during 1992 2001 after controlling for profitability we find that firms with an oppressed financial structure in the short term had to rely on their internal funds for long term investment we interpret this finding from a minskyan keynesian framework arguing that credit allocation followed conventional rules about the quality of borrowers and not necessarily about the quality of the project because of being a highly unstable country argentinean firms quality is defined on a short term basis

on measuring energy poverty in indian households summary the relationship between energy and poverty is obvious and goes both ways recognizing this this paper provides a short overview of different approaches to measuring energy poverty it then presents a novel two dimensional measure of energy poverty and energy distribution that combines the elements of access to different energy types and quantity of energy consumed an assessment of the extent of energy poverty and changes in energy distribution pattern are analyzed by applying this measure to indian household survey data for 1983 2000 the analysis shows a significant reduction in the level of energy poverty and a rapidly developing subcontinent the new measure is a good complement to conventional monetary measures and is general enough to be applied to other developing countries

are foreign institutional investors good for emerging markets in den 1990er jahren waren die portfolio flows institutioneller investoren die dynamischsten kapitalstrome in die emerging markets in dieser arbeit leiten wir in einem rahmen asymmetrischer information funf aussagen ab stellen diese in einen zusammenhang mit der existierenden empirischen literatur und entwickeln daraus entsprechende wirtschaftspolitische implikationen die undurchsichtige informationslage auf den emerging markets behindert vor allem auslandische marktteilnehmer daruber hinaus konnen institutionelle investoren in folge finanzwirtschaftlicher offnung die position lokaler investoren unabsichtlich durch unausgewogene diversifikation und undurchsichtige risiken verschlechtern schlieslich verstarken institutionelle investoren aus dem ausland oft investitionsbooms oder finanzielle ansteckung deshalb sollten kapitalverkehrs und finanzielle liberalisierung stets von sorgfaltiger regulierung begleitet werden

a revised tobit procedure for mitigating bias in the presence of non zero censoring with an application to milk market participation in the ethiopian highlands fixed transactions costs that prohibit exchange engender bias in supply analysis due to censoring of the sample observations the associated bias in conventional regression procedures applied to censored data and the construction of robust methods for mitigating bias have been preoccupations of applied economists since tobin econometrica 26 1958 24 this literature assumes that the true point of censoring in the data is zero and when this is not the case imparts a bias to parameter estimates of the censored regression model we conjecture that this bias can be significant affirm this from experiments and suggest techniques for mitigating this bias using bayesian procedures the bias mitigating procedures are based on modifications of the key step that facilitates bayesian estimation of the censored regression model are easy to implement work well in both small and large samples and lead to significantly improved inference in the censored regression model these findings are important in light of the widespread use of the zero censored tobit regression and we investigate their consequences using data on milk market participation in the ethiopian highlands

solar energy applications and development in nigeria drivers and barriers abstract in this study current perspectives of solar energy utilization as a renewable energy option in nigeria are examined and discussed from the standpoint of sustainable development the country being a world crude oil and natural gas producer is over dependent on these energy sources for electricity generation and other energy applications this has currently put the country at a risk of impending energy crises in view of the fast diminishing fossil reserves inadequate refining capacity to meet domestic consumption and serious cases of energy insecurity in restive regions where exploitations exist in spite of the vast fossil based energy reserves a meager electricity production capacity that is put at 4517 6 mw as at december 2012 is generated to support the economy of a teeming population of approximately 170 million people nigeria is naturally endowed with abundant deposit of renewable energy resources of which solar energy from the sun being the world s most abundant and permanent energy source has for decades been enjoying very high level utilization by rural dwellers for agricultural processings in the country it is vastly deposited with an estimated 17 459 215 2 million mj day of solar energy falling on the country s 923 768 km2 land area approximate range of 12 6 mj m2 day in the coastal region to about 25 2 mj m2 day in the far north the different applications to which solar resources have been put and the extent of utilization including details of existing projects in the country were thoroughly investigated and discussed the possible motivations for extensive development of solar energy conversion systems in nigeria are also discussed and some of the barriers and challenges are presented steps and policy measures to overcome the barriers and facilitates the utilization of this resource are suggested

microeconomic adjustments in chile during 1977 1981 the importance of being a grupo abstract this paper uses the financial statements of industrial firms to provide an integrated firm level view of the changes in the chilean economy during 1977 1981 both real side and financial shocks had major effects on the performance of some types of firms exportable goods producers did relatively poorly in real activities for reasons probably tied to chile s real prolonged exchange rate appreciation import competing firms that began the period with high protection did even worse apparently reflecting the larger change in their output prices as protection was dismantled the reforms thus shifted demand away from industries least in line with the country s comparative advantage but they also hurt exportables the very sector authorities intended to promote on the financial side the highly positive real cost of peso borrowing reduced industrial profits considerably a handful of powerful conglomerates grupos generated large but presumably unrealized capital gains by investing in the securities of related enterprises such activities allowed them to offset relatively poor returns on real operations and their ownership of the country s major banks allowed them to consolidate control of a large volume of assets with debt finance these two results explain why the grupos were suddenly in considerable financial difficulty when the chilean boom ended in 1982

a dynamic stochastic frontier model to evaluate regional financial efficiency evidence from chinese county level panel data abstract studies have widely used stochastic frontier models to assess financial efficiency however traditional static approaches do not take dynamic characteristics of financial systems into account this article develops a dynamic stochastic frontier model to evaluate regional financial efficiency and provides an empirical test of the model by using panel data of 62 chinese counties during the 2001 2010 period the model measures the dynamic impact of the input output variables and environmental variables on financial efficiency and allows for the separation of technical change from the change in technical efficiency the results show that the dynamic model provides a better fit to the data than the static model in addition a gradient difference emerges in the regional financial efficiency among the six major regions of china the results offer practical implications for the development of regional financial services in china as well as other developing countries and emerging economies

financial liberalization and the industrial response concentration and entry in malawi it has been suggested that financial liberalization may be a key policy to promote industrialization as it removes the credit access constraint on firms especially small and medium ones we investigate the effect of credit expansion in the wake of liberalization on the structure of the industrial sectors in malawi and find that in contrast to the hypothesis above it resulted in an increase in industrial concentration and a decrease in net firm entry especially in sectors that are more finance dependent the case of malawi is interesting because financial liberalization has been justified precisely as a means for industrial development and because the implementation of the policy has been regarded as relatively successful

social networks and factor markets panel data evidence from ethiopia we investigate the role of an indigenous social network in ethiopia the iddir in facilitating factor market transactions among smallholder farmers we use detailed longitudinal household survey data and employ fixed effects estimation approaches to identify the effect of iddir membership on factor market transactions among farmers we find that joining an iddir network improves households access to land labour and credit transactions our findings also hint that iddir networks may crowd out borrowing from local moneylenders locally referred as arata abedari a relatively expensive credit source these results suggest that non market institutions can play crucial roles in facilitating market transactions

fortune favors the prepared firm a critical factor in industrial competitiveness is the ability of firms to exploit new technological developments we term this ability a firm s absorptive capacity and argue that such a capability not only enables a firm to exploit new extramural knowledge but to predict more accurately the nature of future technological advances we develop a stylized model in which we focus exclusively on firms decisions to invest in their absorptive capacities we first examine a monopolist s investment decision analyzing the path dependence of its investment and the effect of uncertainty we then consider the effect of competition by modeling the impact of entry on an incumbent s investment behavior implications for management and public policy are then discussed

south korean and taiwanese development and the new institutional economics the publication of books by both alice amsden and robert wade provide an opportune moment to reflect on the study of east asian development after an initial surge of interest beginning in the 1970s the field has reached a plateau and scholars recently have cast a wide net in searching for ways to extend the field in assessing the state of the art regarding the economic development of the east asian newly industrialized countries nics this review will treat three themes first i will argue that the focus on states versus markets is becoming stale and that much of the scholarly interest lies in the politics behind the economics second i argue that political scientists have underexplored the historical origins of korean and taiwanese capitalism and that such attention promises to strengthen both theories and explanations of development third i argue that the international system has been more important in promoting development in east asia than accounts in the first wave have recognized the purpose of this review is to assess the field reveal

economic stabilization and structural transformation lessons from the chilean experience 1973 87 abstract this paper evaluates the experience of economic reforms and stabilization efforts in chile during 1973 87 the paper presents a brief historical background and then reviews the main goals policy tools and results of the economic program implemented since the military government came to power in september 1973 the paper discusses in detail the stabilization and structural transformation aspects of the economic program including the privatization of the economy and the trade and financial liberalization the main conclusion is that despite a healthy improvement in the economic situation during 1985 87 the future of the chilean economy remains uncertain and vulnerable to external shocks the paper concludes by summarizing the main policy lessons of the chilean experience

effects of financial liberalisation and political connection on listed chinese firms financing constraints this paper examines the impact of recent financial liberalization in china on the financing constraints of publicly listed chinese firms with and without politically connected ceo chairman two continuous indices are used to measure the evolution and intensity of financial reforms a financial liberalization index and a capital control index the results indicate that while firms without politically connected ceo chairman face significant financing constraints and politically connected firms do not financial liberalization has reduced the constraints for the former similarly lower capital control in china s equity market lessens credit constraints for non connected firms no statistically significant impact is detected with regards to firms that have ceo chairman with powerful political background

energy for sustainable development a case of developing countries abstract today there are 1 4 billion people around the world that lack access to electricity some 85 of them in rural areas without additional dedicated policies by 2030 the number of people drops but only to 1 2 billion some 15 of the world s population still lack access the majority of them living in sub saharan africa the number of people relying on the traditional use of biomass is projected to rise from 2 7 billion today to 2 8 billion in 2030 addressing these inequities depends upon international recognition that the projected situation is intolerable a commitment to effect the necessary change and setting targets and indicators to monitor progress a new financial institutional and technological framework is required as is capacity building in order to dramatically scale up access to modern energy services at the local and regional levels in this paper we discussed the energy situation of the developing countries for sustainable development

analysis of the energy access improvement and its socio economic impacts in rural areas of developing countries abstract access to modern energy is one of the most basic requirements for development in rural areas of developing countries there are a large number of people who do not have access to lpg and depend on traditional biomass such as wood crop and dung for cooking in addition energy has numerous and complex links with poverty reduction therefore it is important to estimate the impacts of energy access improvement on socio economic situation in the rural areas of developing countries quantitatively this study focuses on socio economic impacts of cooking demand through changes in stoves adopted by the rural households we have developed an energy economic model of rural areas in india to analyze the links between energy income and health hazard applying both opportunity cost for using fuelwood and exposure to resipirable suspended particulate matter rspm as a result of the analysis there is a positive relation between the opportunity cost and the average rspm exposure of women in the rural areas following to increase in the opportunity cost that is income the cost of an improved wood stove becomes relatively lower first than that of a traditional wood stove and then a gas stove attains price competitiveness it is achieved that the average rspm exposure is below the who and japanese criteria for suspended particulate matter spm 190 and 100 g m3 at the opportunity cost of us 9 and 15 gj respectively

power sector renewable energy integration for expanding access to electricity in sub saharan africa abstract a looming energy supply crisis in sub saharan africa ssa raises concerns about a long lasting energy shortage this energy crisis is expected to persist for an indefinite period in the region unless immediate actions are taken to reverse the trend although global aspiration to reduce greenhouse gas ghg emissions into the atmosphere is high such desire is low in ssa regional stakeholders are more worried about increasing power generation capacity to enhance better access to different sorts of development to progress in line with advanced patterns of energy development globally to increase the availability of electrical energy and to sustain emissions reductions exploitation of local renewable energy re resources is inevitable consequently this paper presents a comprehensive review of re integration for expanding access to electricity in ssa the review covers the sustainability of re resources in ssa the regional status of re applications and the necessity of re power generation integration planning from a management aspect finally the benefits of re integration into the power sector of ssa and some conceptual challenges affecting its integration in the region are highlighted

nigeria s energy poverty insights and implications for smart policies and framework towards a smart nigeria electricity network a thorough and exhaustive review of relevant literature and associated works is carried out to critically examine energy poverty in nigeria with respect to ownership and income using the desktop approach and empirical formulas the persistent failure of public infrastructure like healthcare education and security to the poor electricity generation transmission and distribution capacity in the country is examined alongside current government s contribution to buoying our generation capacity and electricity access through policies and investment the findings of the review reveal the urgent need for the smart roll out of distributed generation units in order to stimulate and encourage the ongoing diversification of the economy and also the need for a sustainable road map that incorporates the successes of countries faced with similar challenges this review paper also proposes the need for palliatives in form of subsidized solar home systems shss through a sustainable and economically viable means for off grid homes to assuage the effects of non availability of grid electricity

exports economic growth and the consolidation of peace in el salvador abstract the pillars of inclusive growth in el salvador have to be nontraditional export growth investment and government determination to reduce income inequality and poverty this article analyzes the key obstacles to the development of a competitive and dynamic export sector dutch disease driven by aid and remittances a significant decline in real wages and lack of productivity growth policies can and must focus on productivity growth rather than wage repression in the pursuit of peace consolidation and long term competitiveness

energy poverty alleviation and climate change mitigation is there a trade off energy poverty alleviation has become an important political issue in the most recent years several initiatives and policies have been proposed to deal with poor access to modern sources of energy in many developing countries given the large number of people lacking basic energy services an important question is whether providing universal access to modern energy could significantly increase energy demand and associated co2 emissions this paper provides one of the few formal assessments of this problem by means of a simple but robust model of current and future energy consumption the model allows mapping energy consumption globally for different classes of energy use quantifying current and future imbalances in the distribution of energy consumption our results indicate that an encompassing energy poverty eradication policy to be met by 2030 would increase global final energy consumption by about 7 roughly 20 ej the same quantity of energy could be saved by reducing by 15 energy consumption of individuals with standards above current european levels the additional energy infrastructure needed to eradicate energy poverty would produce 44 183 gtco2 over the 21st century and contribute at most 0 13 c of additional warming

water reuse in brazilian manufacturing firms this article examines the factors influencing manufacturing firms water reuse decision and analyses whether the structure of intake water demand differs between firms that adopt water reuse practices and those which do not the first stage of the estimation model involves a probit analysis of the water reuse decision and the second stage employs an endogenous switching regression to estimate the intake water demand equations results suggest that water charges may act as an effective mechanism in inducing firms to undertake water reuse investments and in reducing intake water demand estimates of the water demand price elasticities indicate that plants that reuse water are more sensitive to water price increases than plants without access to reuse technologies

scale economies wage differentials and north south trade abstract this paper attempts to isolate the effect of external economies of scale in production on the pattern of north south trade the results show that when the relative wage is higher in the north and only the north innovates the south produces and exports those goods with the lowest economies of scale while the remaining set of goods is produced and exported by the north production subsidies offered by the south raise southern income and welfare but if the north introduces a new set of goods the benefits of the subsidies to the south dissolve

estimating the structure of industrial water demands the case of canadian manufacturing this study considers water use by canadian manufacturing firms the estimation of water demands is based on a detailed cross sectional survey of establishment level observations on water prices quantities and expenditures industrial water use is modeled as having four components intake treatment prior to use recirculation and discharge average values for the estimated own price elasticity for water intake range from 0 1534 to 0 5885 water recirculation is found to be a substitute for both water intake and water discharge this confirms that expanding the use of economic incentives e g effluent fees may be effective in encouraging firms to reduce their water use while increasing in plant recirculation

externalities in economies with imperfect information and incomplete markets this paper presents a simple general framework for analyzing externalities in economies with incomplete markets and imperfect infonnation by identifying the pecuniary effects of these externalities that net out the paper simplifies the problem of determining when tax interventions are pareto improving the approach indicates that such tax interventions almost always exist and that equilibria in situations of imperfect information are rarely constrained pareto optima it can also lead to simple tests based on readily observable indicators of the efficacy of particular tax policies in situations involving adverse selection signaling moral hazard incomplete contingent claims markets and queue rationing equilibria traditional discussions of externalities have emphasized the distinction between technological externalities in which the action of one individual or firm directly affects the utility or profit ofanother and pecuniary externalities in which one individual s or firm s actions affect another only through effects on prices while the presence of technological externalities imply in general that a competitive equilibrium may not be pareto efficient pecuniary externalities hy themselves are not a source of inefficiency the fact that prices change has of course important consequences there are both distributional and allocational effects but the distribution effects net out gains for example hy firms whose prices increase are precisely offset by losses e g to individuals who must pay higher prices and there are no welfare losses from the allocation effects as long as the price changes involved are small if firms are maximizing profits and individuals are maximizing utility both facing prices that correctly refiect opportunity costs then standard envelope theorem arguments imply that changes in profits or utility induced by changes in allocations resulting from any small change in prices are negligible

when are sanctions effective a bargaining and enforcement framework although a considerable literature identifies the conditions under which sanctions are more likely to be successful few studies examine the question of when sanctioning states or senders are willing to enforce their sanctions laws against their firms using a game theoretic model we argue that imposing sanctions creates a strategic dilemma for senders we demonstrate that senders often have disincentives to enforce their sanctions policies given that the restriction on economic transactions with targeted states may undermine their firms competitiveness the model indicates that sanctions are more likely to succeed when the sender s firm retains a moderate share of the target s market relative to its foreign competitors however the model also demonstrates that sanctions are likely to be imposed only when the conditions do not favor their success the empirical implications of the model are tested using the threat and imposition of economic sanctions ties data set

the effect of financial liberalization on the capital structure and investment decisions of indonesian manufacturing establishments this article analyzes the consequences of financial liberalization using a large panel of indonesian manufacturing establishments it discusses whether financial reforms have had an impact on investment and on the allocation of credit and whether the effects differ depending on the type of firms the overall conclusion is that shifting from administrative toward market based allocation of credit has increased borrowing cost particularly for smaller firms but at the same time has benefited firms by giving them widened access to finance

markets market failures and development a central question in development economics is how can we account for differences in the levels of income and the rates of growth between the developed and less developed economies in the 1950s and 1960s there was a standard answer to this question the poor are just like the rich except they are poorer they have less human and nonhuman capital there was an immediate prescription for this diagnosis increase the resources of ldcs either by transferring capital to them either direct aid or education or by encouraging them to save more today these answers seem less convincing that they did two decades ago if the problem were primarily a shortage of physical capital the return to capital should be much higher in ldcs than in developed countries and the natural avarice of capitalists would lead to a flow of capital from the more developed to the less developed economies see howard pack 1984 and my 1988 paper if the problem were primarily a shortage of human capital then the educated in ldcs should receive a higher absolute as well as relative income than the educated in more developed economies how then can we account for high levels of unemployment among the educated and the migration of the educated from ldcs to more developed economies moreover the predictions of the standard neoclassical growth model of a convergence of growth rates in per capita income with permanent differences in per capita consumption being explained by differences in savings rates and reproduction rates do not seem to have been borne out these observations suggest that the ldcs differ from the developed countries in at least some other important respects and this view is corroborated by those studies which have looked at the productivity of similar plants operating in developed and less developed economies see pack 1984 1987 the difference can be attributed perhaps tautologically to differences in economic organization to how individuals factors of production interact and to the institutions which mediate those interactions among the most important of these institutions are markets it is by now well recognized that there are many instances of market failures in more developed economies see bruce greenwald and myself 1986 in some cases market failures may be ameliorated by nonmarket institutions if for instance capital markets do not function well perfectly if only because of costly and imperfect information nonmarket institutions internal capital markets within large conglomerates may develop market failure is more prevalent in ldcs and the nonmarket institutions that ameliorate its consequences are at least in many instances less successful in doing so the objective of this paper is to explore the causes and consequences of these market failures and the failure of private nonmarket solutions and to suggest possible roles for government intervention tdiscussants anne 0 krueger duke university stanley fischer world bank

electricity consumption and economic growth in nigeria a revisit of the energy growth debate abstract this paper examines the dynamic causal linkages between electricity consumption and economic growth in nigeria within a trivariate vecm for the period 1971 2011 the paper obviates the variable omission bias and the use of cross sectional techniques that characterise most existing studies the results show that there is a distinct causal flow from electricity consumption to economic growth both in the short run and in the long run this finding supports the electricity led growth hypothesis that has been conjectured in the literature the paper urges policy makers in nigeria to implement policies which enhance the generation and consumption of electricity in order to engineer economic growth appropriate monetary policies must also be put in place in order to moderate inflation thus enhancing growth

risk attitudes and economic well being in latin america abstract a common conjecture in both the theoretical and policy literatures on development is that people remain poor because they are too impatient and risk averse to accumulate the resources needed to improve their well being the empirical literature however suggests that this conjecture is far from proven we sample more than 3000 participants drawn representatively from six latin american cities and find little correlation between baseline risk aversion and well being measured as an index of eight outcomes we do however find that measures of ambiguity aversion loss aversion and the willingness to take advantage of a risk pooling scheme all correlate with well being participants who are ambiguity averse loss averse and who react conservatively in the risk pooling condition all have significantly lower scores on our well being index these results are robust to the inclusion of a variety of important controls like human capital accumulation and access to credit

an energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries the purpose of this paper is to investigate price support for market penetration of renewable energy in developing nations through a decentralized supply process we integrate the new decentralized energy support renewable premium tariff to analyze impacts of tariff incentives on the diffusion of renewable technology in senegal based on photovoltaic and wind technologies and an assessment of renewable energy resources in senegal an optimization technique is combined with a cash flow analysis to investigate investment decisions in renewable energy sector our findings indicate that this support mechanism could strengthen the sustainable deployment of renewable energy in remote areas of senegal although different payoffs emerged profits associated with a renewable premium tariff are the highest among the set of existing payoffs moreover in analyzing impacts of price incentives on social welfare we show that price tariffing schemes must be strategically scrutinized in order to minimize welfare loss associated with price incentives finally we argue that a sustainable promotion of incentive mechanisms supporting deployment of renewable technology in developing nations should be carried out under reliable institutional structures the additional advantage of the proposed methodology is its ability to integrate different stakeholders producers investors and consumers in the planning process

the economic value of lng in the korean manufacturing industry abstract although lng is an important input to industrial production for manufacturing firms its economic value has been rarely investigated in the literature this paper attempts to estimate the economic value of lng in korea s manufacturing sector by employing the concept of the value of marginal product vmp for this we used data on 328 firms using lng as an input two types of production functions the cobb douglas and trans log functions are applied the result of the specification test indicates that the trans log function is more appropriate for estimating the data the output elasticity and vmp of industrial lng are estimated to be 0 1346 and krw 6844 usd 6 22 per m 3 respectively the results have important implications for various areas of industrial lng management for example any cost benefit analysis of new projects providing industrial lng requires information on the economic value of industrial lng in addition such information is useful for the korean government s future policies on lng pricing

what moves and works broadening the consideration of energy poverty greater detail on the specific technological and planning challenges facing energy deprived developing economies is required to improve energy policy making and development assistance practice the current literature tends to highlight electricity services and to a lesser extent clean cooking this article calls for a closer look at mobility and mechanical power as essential energy services in addition to a refinement of the specific institutional arrangements needed to reduce energy poverty and deprivation this article augments and refines arguments made by morgan bazilian and his colleagues in their viewpoint more heat and light

valuing water for chinese industries a marginal productivity analysis a marginal productivity approach is developed for valuing industrial use of water and applied using data from chinese industrial firms where water as well as capital labour and raw materials are treated as inputs to a production function models on price elasticity of water demand associated with the marginal productivity approach are also developed and estimated for different chinese industrial sectors

debt relief through debt conversion a critical analysis of the chilean debt conversion programme the purpose of this study is to look at the effects of debt conversion transactions in the case of chile the decision to centre on chile lies in the fact that chile is nowadays considered to have the most successful programme of debt conversion among debtor countries however the chilean debt conversion programme presents some shortcomings in fact as this study shows the conversion scheme may have negative effects regarding direct foreign investment and the balance of payments

investment in segmented capital markets bankers screening devices are identified to determine firms probability of borrowing in the formal segment of the capital market in pakistan incorporating this information investment functions are estimated using a two stage switching regressions model with endogenous switching it is concluded that firms that borrow in the formal markets behave according to the flexible accelerator model of investment while non borrowing firms plough back profits furthermore the former have higher capital output ratios and find it less difficult to adjust to their desired capital stocks compared to the latter investment determinants related to entrepreneurial and firm features are also identified

towards understanding the benefits and challenges of smart micro grid for electricity supply system in nigeria the poor state of electricity supply system in nigeria is threatening the welfare and security of life and properties of millions of individuals with adverse economic consequences for the country the inadequacy of the national grid especially the inability of the electricity generation capacity to match increasing demand in the country has led to increasing agitation for increased penetration of renewable energy sources ress into the electricity supply mix while great attention has been focused on the potential of ress for electricity generation in the country little or no attention has been given to the application of smart micro grid sm g technologies to the ageing nigeria grid infrastructures and electrification of the rural areas the aim of this paper is to bring into focus the benefits and challenges of enabling sm g in the electricity supply system in nigeria sm g will bring benefits to the electricity stakeholders in form of improvements in reliability efficiency economics environment security and safety the paper gives an overview and reviews the current state of the electricity supply system in the country it discusses the sm g concepts and associated technologies and highlights how they can help address the electricity problems in the country the challenges of applying these concepts in nigeria context are also discussed enabling sm g in the country will not only lead to improvement in the quality efficiency and reliability of the electricity grid but also promote the provision of electricity supply to the remote rural areas using ress

capital market imperfections before and after financial liberalization an euler equation approach to panel data for ecuadorian firms using a large set of panel data for ecuadorian firms the authors analyze the role of capital market imperfections in investment decisions and investigate whether the financial reforms introduced in the 1980s in ecuador succeeded in relaxing financial constraints to facilitate capital accumulation and growth the ecuadorian government removed administrative controls on the interest rate and eliminated or scaled down directed credit programs the model used here allows both for an increasing cost of borrowing as the degree of leverage increases and for a ceiling on leverage the econometric results suggest that both types of capital market imperfections are important for small and young firms but not for large and old firms moreover the estimated equations do not provide evidence that financial reform in ecuador has helped to relax these financial constraints

corporate structure liquidity and investment evidence from japanese industrial groups this paper presents evidence suggesting that information and incentive problems in the capital market affect investment we come to this conclusion by examining two sets of japanese firms the first set has close financial ties to large japanese banks that serve as their primary source of external finance and are likely to be well informed about the firm the second set of firms has weaker links to a main bank and presumably faces greater problems raising capital investment is more sensitive to liquidity for the second set of firms than for the first set the analysis also highlights the role of financial intermediaries in the investment process

let there be light a multi actor approach to alleviating energy poverty in asia abstract energy poverty is the primary energy security issue impacting almost 800 million people particularly women and children in the developing countries of asia current trends indicate that should there be no change to existing policies and the governance systems and institutions underpinning them the absolute number of energy poor will barely shift most significantly addressing energy poverty is critical to absolute poverty reduction enhanced gender equality and political stability in the asian region we offer a solution to progress the energy poverty alleviation effort focused on encouraging sustainable development centred investment this will involve multi actor partnerships between developed and developing country governments investors and multilateral institutions we propose that there may be spill over effects for investing firms in the form of strengthened corporate reputation consequently energy poverty alleviation efforts can create new opportunities for commerce multilateral institutions ngos and developing and developed countries it is envisaged that the multi actor approach put forward by this paper will facilitate the partnerships programs and provisions needed to alleviate energy poverty in asia however critical to the success of this collaborative approach is a genuine shift in sentiment from the key stakeholders involved in the effort

economics imperialism and the new development economics as kuhnian paradigm shift abstract this paper addresses the evolving relationship between economics and other social sciences it sets the present intellectual scene as one in which economics imperialism is rampaging across other disciplines the designs of economics upon development studies are examined in terms of the kuhnian notion of paradigm shift thereby the conclusion is drawn of the potential prospect of open debate around the economy and development not least outside economics itself but there is danger of economics imperialism in the form of the post washington consensus foreclosing the analytical agenda at the expense of approaches based on the political economy of capitalism

characterizing social networks and their effects on income diversification in rural kerala india summary income diversification continues to be a key strategy for poor rural households including those that are progressively developing and those operating under increasing distress the ability of a household to diversify has been shown to depend upon its demographic and economic characteristics and its physical and social context this paper considers the effects of intra village social networks on household income diversification in one of the poorest and most ethnically diverse areas of the indian state of kerala using techniques adapted from spatial econometrics we find that social connections within a village magnify the impacts of household characteristics such as education and number of adults by a factor of 3 6 times models with alternative measures of network centrality degree and eigenvector indicate that the number of network connections that a household has is more important than the centrality of those connections finally we use social contact information to calculate assortative mixing based on caste the results suggest social stratification in these villages with higher levels of stratification associated with lower levels of income diversification

informal credit markets and economic development in taiwan abstract taiwan is a case which shows how informal credit markets help to compensate for the limitations of the formal financial system especially in satisfying the needs of medium and small enterprises government regulations and policies affect the way participants in informal credit markets solve selection enforcement and incentive problems recent changes demonstrate the continued resilience and relevance of informal credit markets during a process of financial liberalization

privatization and economic growth an empirical investigation from a sample of developing market economies this paper explores the economic determinants of privatization programmes and the macroeconomic impact of this institutional reform on the growth rate of the gdp a sample of thirty five developing market economies is considered over the 1988 92 period probit and tobit models are used to identify the determinants of successful privatization programmes then regressions are run where probabilities probit and expected values tobit are successively included as additional regressors beside the potential influence of other economic policy variables a significant positive effect is highlighted giving evidence of the importance of divestiture the economic effect is found to be stronger when this institutional reform took place in industry or infrastructure

why does liquidity matter in investment equations that liquidity variables affect investment spending is widely accepted despite important recent empirical work questions remain concerning the interpretation of liquidity variables in investment equations and the sources and economic importance of finance constraints these questions are addressed by estimating a variety of econometric models that exploit distinctive canadian institutional features to identify firms that face relatively severe information problems the initial econometric evidence confirms the existence of finance constraints and identifies their source as the problems faced by firms in credibly communicating private information to outsiders this conclusion is robust to biases from the capitalization of finance constraints into asset prices scale economies or imperfect competition which are accounted for directly in the econometric specifications copyright 1995 by ohio state university press