Laila Arjuman Ara, Mohammad Masudur Rahman, Chanwahn Kim
{"title":"Impact of Microcredit on Second Generation Borrowers in Bangladesh: Revisited","authors":"Laila Arjuman Ara, Mohammad Masudur Rahman, Chanwahn Kim","doi":"10.1177/1391561420908086","DOIUrl":"https://doi.org/10.1177/1391561420908086","url":null,"abstract":"This article investigates the economic impact of continuing borrowers’ participation in the microcredit programme on poverty eradication in Bangladesh. A panel data set was collected through a field survey for the years 2013–2016 to identify the impact of a microcredit programme on continuous participation borrowers. The propensity score matching (PSM) method is used to eliminate selection bias and the difference-in-difference (DID) model is applied for the empirical analysis. The findings of the study demonstrate that more benefits are realized from continued participants compared to discontinued participants. JEL: C83, D14, G21, O12","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85497568","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Susara J. Jansen van Rensburg, R. Rossouw, W. Viviers
{"title":"Liberalizing Bangladesh’s Services Trade: Is Joining Trade in Services Agreement the Way to Go?","authors":"Susara J. Jansen van Rensburg, R. Rossouw, W. Viviers","doi":"10.1177/1391561420903198","DOIUrl":"https://doi.org/10.1177/1391561420903198","url":null,"abstract":"Although currently limited, services trade holds great potential for Bangladesh, as services already make a major contribution to GDP and employment. Services represent an important alternative (in the longer term) or complement (in the shorter term) to ready-made garments (RMGs), which have long dominated Bangladesh’s export mix. The country is poised to see declining RMG export revenues when the country graduates out of least developed country (LDC) status and loses its trade preferences in global markets. To build domestic capacity with a view to developing its services export sector, Bangladesh needs to open its market to services imports. But what approach would be best? Can a plurilateral trade agreement (PTA) like the Trade in Services Agreement (TiSA), whose members have sought to stimulate their services sectors through more liberalized trade, ever be an option? We use a dynamic computable general equilibrium (CGE) model to simulate the effects of TiSA membership on Bangladesh’s economy. The results show that, overall, Bangladesh would derive marginal benefit from TiSA, but employment and exports would suffer. The worst-affected sectors would be agriculture and textiles and clothing, the country’s largest employers. To lessen the impact of increased foreign competition, a regional trade approach is recommended, supported by a sound national services strategy which would include a roadmap for tackling the country’s myriad supply-side shortcomings. JEL: F13, F14, F15, F16","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-02-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86857522","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Impact of Remittances on Domestic Investment: A Panel Study of Six South Asian Countries","authors":"R. Dash","doi":"10.1177/1391561420903199","DOIUrl":"https://doi.org/10.1177/1391561420903199","url":null,"abstract":"Remittances inflow to South Asian countries increased significantly and is now one of the major sources of external finance overtaking traditional capital inflows such as foreign direct investment (FDI), foreign portfolio investment (FPI) and aid. However, the role of remittances in economic development has not been examined extensively, particularly for South Asian countries. This article examines the impact of remittances on domestic investment for South Asia over 1991–2017. Advanced panel estimation methods (unit root, cointegration and causality) are employed to account for potential country-specific heterogeneity and the endogeneity problem. Results of this study suggest that remittances increase domestic investment in the short term as well as in the long run for South Asia. This indicates that remittances are used not only for consumption purposes but also for investment activities such as human and physical capital development. The panel causality results suggest the presence of uni-directional causality running from remittances to domestic investment. Therefore, the result of this study supports the theoretical argument and previous empirical studies for other developing countries JEL: C3, 01, F3, F22","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-02-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77430216","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Anatomy of Non-tariff Barriers in India–Sri Lanka Free Trade Agreement: An Empirical Investigation","authors":"B. Pal, S. Pohit","doi":"10.1177/1391561420903210","DOIUrl":"https://doi.org/10.1177/1391561420903210","url":null,"abstract":"This article attempts to answer one crucial research question: why the utilization of India–Sri Lanka Free Trade Agreement (ISFTA) route for trade is very poor by the Indian exporters (13%) as compared to their Sri Lankan counterpart (65%) even after one decade of its implementation? The available studies have blamed the non-tariff barriers (NTBs) which are hamstringing the growth of trade between these partners development of international trade. However, these have considered NTBs as subset of non-tariff measures (NTMs) which are quite narrow sense of finding the hidden barriers within the International trade process. Therefore, this article has analysed in detail the logistic process involved in international trade between India and Sri Lanka to understand various NTBs sheltered within this logistic process. Further, the article has identified issues which are not directly beyond the logistic process which are affecting the international trade between these two countries. JEL: F0, F1","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85794129","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Dimensions of Informality in Bangladesh Labour Market and the Consequent Wage Penalty","authors":"Mustafiz Rahman, D. Bhattacharya, Md. Al-Hasan","doi":"10.1177/1391561419850303","DOIUrl":"https://doi.org/10.1177/1391561419850303","url":null,"abstract":"The article examines the various dimensions and underlying causes of informal employment in the Bangladesh labour market and the associated wage penalty. Based on labour force survey data for successive points, we trace the dynamics of employment in Bangladesh along the informal–formal divide over time. Given that wage differential remains a key feature concerning the two market segments, we have carried out mean and quantile decomposition exercises to estimate the wage penalty originating from informality. We find significant wage gaps between formal- and informal-paid employees, formal paid and informal day labour, and formal paid and informal self-employed. The wage gaps range between 65.0 per cent and 225.0 per cent. The gap arises from a combination of observed differences in human capital and job characteristics, and the wage premium accruing from formal employment. JEL: C21, J31","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76514589","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Tests of Income Convergence in ASEAN and SAARC Trading Blocs","authors":"U. Zia, Z. Mahmood","doi":"10.1177/1391561419858239","DOIUrl":"https://doi.org/10.1177/1391561419858239","url":null,"abstract":"The cherished goal of speedy economic growth in the Asian regional blocs cannot be achieved without attaining income convergence among them. Economic integration and assessment of income convergence or disparities among Asian blocs is the aim of this study. This study assesses a number of factors, such as trade openness, foreign direct investment, intellectual property rights protection and governance, to see how open economies are integrating themselves while competing with each other. Findings reveal that the SAARC group has not shown intra-regional income convergence, while the ASEAN group provides sufficient evidence. Although simultaneously considering SAARC and ASEAN groups in the form of a panel, there is evidence of non-convergence between the two regional groups. An important policy implication of the study is that the ASEAN and SAARC blocs are in dire need for combined and collective policy framework at the regional level. JEL: O19, O31, F15","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78781701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Nexus between Openness to Trade and Economic Growth: An Empirical Investigation of Afghanistan","authors":"Nassir Ul Haq Wani","doi":"10.1177/1391561419858242","DOIUrl":"https://doi.org/10.1177/1391561419858242","url":null,"abstract":"The notion that the international trade is the foundation of economic growth dates long back, and even now, an irresistible body of literature confirms a strong and positive link between trade openness and economic growth. However, most of these studies are focused on developed countries. Indeed literature from developing countries are scant, those from under developed and a landlocked country like Afghanistan are almost non-existent. This article endeavours to innovatively scrutinize the relationship between trade liberalization and economic growth in Afghanistan, using biannual data for the period 1995–2016 and thus evaluates the comparative effect of three different measures of trade openness on the economic growth by using more rigorous econometric techniques. Autoregressive distributed lag (ARDL) method, JJ CO-integration and ordinary least square (OLS) results suggest significant positive long-run relationship between export and economic growth. In contrast, total volume of trade and imports have significant negative effect on the economic growth. The addition of variables and results of fully modified OLS suggest that the results are robust. The Granger causality and variance decomposition analysis indicate the unidirectional causality between trade openness and economic growth. In export model, causality runs from export to growth. Whereas, in the model with total volume of trade and import, causality runs from growth to total volume of trade and imports in Afghanistan. From the findings, it is concluded that the policymakers should focus on export promotion strategy to enhance the economic growth in Afghanistan. Besides, efficient utilization of capital goods should be ensured and reliance on non-capital goods should be less in order to ensure high domestic production in the country. JEL: F10, F43, C22","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89820001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
K. Ravinthirakumaran, E. Selvanathan, S. Selvanathan, Tarlok Singh
{"title":"Tourism and Foreign Direct Investment Inflows in Sri Lanka","authors":"K. Ravinthirakumaran, E. Selvanathan, S. Selvanathan, Tarlok Singh","doi":"10.1177/1391561419858475","DOIUrl":"https://doi.org/10.1177/1391561419858475","url":null,"abstract":"This article examines the relationship between tourism and foreign direct investment (FDI) and the factors that enhance tourism in Sri Lanka using data over the years 1978–2015, under a vector autoregressive framework. The results reveal that there is a significant long-run equilibrium relationship between tourism, and a number of variables such as FDI, exchange rate, tourism price and civil war of the country. The results also reveal that there exist unidirectional causal relationships from FDI to tourism and tourism price to tourism, in both the long run and the short run. In light of this finding, it is recommended that Sri Lanka should introduce policies that would increase FDI inflows into the tourism industry and maintain a competitive tourism price to attract more tourist arrivals. JEL: C32, F19, F41, O53","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86504839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?","authors":"Sulekha Hembram, Souparna Maji, Sushil Kr. Haldar","doi":"10.1177/1391561419850300","DOIUrl":"https://doi.org/10.1177/1391561419850300","url":null,"abstract":"The objective of this study is to investigate the presence of ‘club convergence’ in respect of income among 15 major states in India during 1982–2014 using Markov chain along with stochastic kernel. The distributional dynamics observed among the major states support the process of ‘club convergence’. The empirical findings prove the hypotheses that economies that are similar in their structural characteristics and initial per capita income levels will converge with each other in per capita terms in the long run. The present study empirically re-establishes the hypotheses of ‘low-level equilibrium trap’ caused by low human capital investment. JEL: C14, H51, H52, O49, O53","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80245773","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Size-Competition-Productivity Nexus: Evidence from Indian Manufacturing Firms","authors":"L. Satpathy, B. R. Mishra","doi":"10.1177/1391561419859185","DOIUrl":"https://doi.org/10.1177/1391561419859185","url":null,"abstract":"Over the years, researches have witnessed incongruence nature and direction of relationship among product market competition and firm size with the growth of firms’ productivity across the globe. Considering these gaps, this study aims to establish both short- and long-run relationships among these three characteristics of Indian manufacturing firms and intends to find their directions of causalities. This study uses firm-level data over a period of 1998–1999 to 2012–2013. Using Panel ARDL-PMG method, the results reveal the existence of a long-run association among product market competition, firm size and productivity growth for the full sample and for subsamples, categorizing relatively efficient and inefficient firms, and innovative and non-innovative firms. From the panel VECM Granger causality test, it has been observed that there is the long-run feedback relationship among these three variables. The empirical evidence suggests that as the intensity of competition becomes stronger and the firm-specific capabilities expand, they impart improved productivity via within and between firm effects. This draws some major implications for policymakers to embrace more competitive prone policies along with encouragement to firm specificities to realise value-added productivity. JEL: C33, D24, L11, L60","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75969384","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}