EDRC Reports

  • Fiscal Policy, Income Distribution, and Growth
    1 Nov 1999

    Fiscal Policy, Income Distribution, and Growth

    This study seeks to discern whether the current distribution of income determines the evolution of future income distribution and economic growth through fiscal policy. Fiscal policy is determined by the level of development, distribution of income, and degree of political franchise. Reduced form equations are obtained from the political equilibrium endogenous growth models addressing distributional issues. Empirical tests of these reduced form equations are carried out using cross-country data and time series data from India and Taipei,China.
  • Foreign Direct Investment in Pakistan: Policy Issues and Operational Implications
    1 Jul 1999

    Foreign Direct Investment in Pakistan: Policy Issues and Operational Implications

    Given its fragile balance of payments position and urgent need to boost industrial production, Pakistan needs to significantly increase its mobilization of foreign resources. However, long-term official assistance will become increasingly scarce, while promoting large portfolio investments is not a proper policy option due to Pakistan's underdeveloped and narrow capital market. Significant increases in commercial borrowings are also not desirable. It is therefore crucial to accord high priority to foreign direct investment (FDI).
  • Total Factor Productivity Growth in East Asia: A Critical Survey
    1 Sep 1997

    Total Factor Productivity Growth in East Asia: A Critical Survey

    This paper surveys the empirical literature on total factor productivity (TFP) and the sources of growth in the East Asian countries. It raises the question whether the literature has helped us understand better the factors that have propelled growth in the region. The paper discusses the main theoretical aspects in the estimation of TFP growth, as well as the empirical results, and provides a survey of estimates of TFP growth for nine East and South East Asian countries.
  • Saving Transitions in Southeast Asia
    1 Feb 1996

    Saving Transitions in Southeast Asia

    This paper examines the evolution of saving in five Southeast Asian countries over the period 1972-1991. In different ways, each of these economies experienced a 'saving transition' during this time. Four of the five economies in the panel are now among the highest saving economies in the world, but their stellar saving rates are of comparatively recent origin. In the remaining economy, the Philippines, saving plummeted to Latin American levels from a comparatively high base.
  • Incentives and Regulation for Pollution Abatement with an Application to Waste Water Treatment
    1 Oct 1995

    Incentives and Regulation for Pollution Abatement with an Application to Waste Water Treatment

    This paper first compares alternative regulation and fiscal-financial incentive based policy instruments for pollution control in terms of different choice criteria. Since no single instrument can be shown to dominate all others in either theory or actual experience, the paper goes on to spell out an experimental menu of alternative incentive structures for supporting predetermined standards.
  • Rural Reforms, Structural Change and Agricultural Growth in the People's Republic of China
    1 Aug 1994

    Rural Reforms, Structural Change and Agricultural Growth in the People's Republic of China

    This paper attempts to explain agriculture growth in the PRC between 1979-91 by focusing on the linkage between agricultural growth and the rapid structural change within agriculture since the rural economic reforms began in 1978. The data used in this study are cross-section time-series data for 29 provinces during 1979-1991. The main finding from this study is that the structural change in agriculture, which moved the sector toward greater emphasis on noncropping, has greatly contributed to agricultural growth.
  • The Role of Government in Export Expansion in the Republic of Korea: A Revisit
    1 Feb 1994

    The Role of Government in Export Expansion in the Republic of Korea: A Revisit

    It is widely agreed that Korea's rapid economic development since the early 1960s resulted from the rapid expansion in exports and that the Korean government has been heavily involved in this process. There is, however, disagreement over the role of the government in the economic development, particularly in relation to the market forces. Some studies regard the Korean growth model as a neoclassical model that stands upon a free-market and free-trade system, but others not.
  • A Computable General Equilibrium Model of Nepal
    1 Oct 1993

    A Computable General Equilibrium Model of Nepal

    Multisector Computable General Equilibrium (CGE) models provide an attractive alternative to econometrically based macro model. First, they allow the establishment of a very direct and transparent link between the economic structures as embodied in a Social Accounting Matrix (SAM) and the results provided by the CGE model simulation.
  • The Need for Fiscal Consolidation in Nepal: The Results of a Simulation
    1 Jul 1993

    The Need for Fiscal Consolidation in Nepal: The Results of a Simulation

    Negotiations for a three-year (1992/93-1994/85) economic program of structural adjustment under an Enhanced Structural Adjustment Facility has been concluded recently by Nepal with the International Monetary Fund. Using a small structural macroeconomic model of Nepal, the paper shows that slippages in the government's fiscal program, specifically shortfall in revenue targets, imply detrimental effects on the economy in the form of lower growth and/or higher inflation and external imbalances.
  • Medium-Term Growth-Stabilization Relationship in Asian Developing Countries and Some Policy Considerations
    1 Feb 1993

    Medium-Term Growth-Stabilization Relationship in Asian Developing Countries and Some Policy Considerations

    The monetarist/structuralist debate on the relationship between economic growth and stabilization in price and the balance of payments has existed since the 1950s. Monetarists argue that though it may not be the balance of payments has existed since the 1950s. Monetarists argue that though it may not be a sufficient condition, price stabilization is a prerequisite for promoting economic growth and protecting the balance of payments. Structuralists contend that in developing countries, economic growth inevitably brings inflation and deterioration in the balance of payments.

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