Directed credit and investment in small‐scale industry in India: Evidence from firm‐level data 1965–78

Panel data on 788 modern sector Indian firms during 1965–78 are used to analyse the link between the size of a firm and its financial environment. Exogeneity tests reveal that large firms with improved investment prospects could obtain external finance at the margin, but that small firms could not. The policy of directing bank credit accordingly relaxed a binding constraint on small firms, raising investment. Assuming that all of the rise in the credit‐sales ratio in small firms was policy‐induced then so was about one third of the 170 per cent rise during 1965—78 in their investment—sales ratio.     

Traditional and small‐scale culture goods in international trade and employment

The literature in economics has relegated to an unimportant role the traditional and small‐scale industries in the process of development. Instead, manufacturing development is essentially seen as a transformation process from traditional to modern, from rural to urban and from agrarian to industrial. The main stress in development has been laid on industries with scale economies and positive externalities, and on the inducement of modern, capital‐intensive techniques. Small‐scale production has been taken to mean inefficient and backward; large‐scale production has become synonymous with the efficient and modern. Moreover, the consumer is characterized as preferring standardized products, while traditional goods are believed to be inferior and easily replaced by factory goods.     

Farm‐to‐market transaction costs and specialisation in small‐scale agriculture: Explorations with a non‐separable household model

Using an integrated household model with endogenous transaction costs, this article illustrates how, even in the absence of risk, the tension between gains from specialisation and corresponding increases in transaction costs may lead to enterprise diversification on small farms. A numerical example illustrates that this tension may contribute to the prevalence of inter‐cropped cash‐crops on small farms, in apparent disregard for foregone yield and income from greater specialisation involving pure‐stands. By implication, measures that augment households’ abilities to override trading costs may be critical complements to efforts seeking to raise productivity and incomes in small‐scale agriculture via increased specialisation.     

Subcontracting,growth and capital accumulation in small‐scale firms in the textile industry in Turkey

This study examines capital accumulation and growth among subcontracting small‐scale textile firms. We find that, in spite of the higher average profitability of non‐subcontracting production relative to subcontracting, the average annual rate of capacity expansion between the two groups is not statistically different from the former. This implies that the higher average productive capacity of the non‐subcontractors relative to that of the subcontracting firms are due to differences in their initial capacity. The study further suggests that there may be no easy transition from subcontracting to independent production. For many subcontractor firms in the sample, the cost of inputs required for independent production exceeds the current value of their gross earnings by a multiple.     

The role of ASEAN institutes of strategic and international studies in developing security cooperation in the Asia‐pacific region

As the Association of Southeast Asian Nations (ASEAN) governments are facing new challenges, the need to re‐evaluate the significance of the track‐two activities has been recognised. As there has been insufficient research on the ASEAN Institutes of Strategic and International Studies (ISIS), this article analyses their role in the development of security cooperation. It shows that ASEAN‐ISIS has contributed to the establishment of the ASEAN Regional Forum (ARF) by analysing the common/cooperative security thinking, the establishment of an inter‐governmental forum for a security dialogue, and the extension of ASEAN's diplomatic style over a larger geographical area. As ASEAN‐ISIS has contributed to inter‐governmental cooperation by promoting ideas, this article concludes that the significance of their activities in contemporary Asian politics should be understood in terms of the introduction and promotion of such innovative ideas.     

The determinants of earnings among low‐income workers in Bombay: An analysis of panel data

This article estimates the determinants of earnings among workers in low income settlements of Bombay. It uses panel data on workers in two homeless (pavement‐dwelling) communities and two slum communities. The estimated earnings functions, adjusted for community‐ and time‐specific fixed effects, show a good fit. Age and education are significant in all the regressions; however, some of the job‐related variables appear to be more important than the standard human capital variables in determining earnings. In conclusion, while a complex set of factors seem to determine earnings of workers in low‐income communities, institutional factors play an important role.     

North‐South trade and female labour in manufacturing: An asymmetry

A simple method of measuring the impact of North‐South trade on the female intensity of manufacturing is applied to data for developed and developing countries. The results confirm that growth of exports has increased the relative demand for female labour in the South. However, there does not appear to have been a general counterpart reduction in the relative demand for female labour in Northern manufacturing, even among blue‐collar workers. There are several possible reasons for the apparent conflict between these findings and other evidence that in Northern manufacturing females have been disproportionately displaced by trade with the South.     

The extraterritorial dimensions of biofuel policies and the politics of scale: live and let die?

Despite criticism, global biofuel production continues to rise, using primarily food crops. Between 2001 and 2012 it increased nearly six-fold, driven primarily by domestic policies, yet raising strong international concerns, eg over impacts on global food prices. Nevertheless, little international biofuel governance has emerged. This article examines the various extraterritorial dimensions of domestic biofuel policies and investigates why international biofuel governance has remained vague, despite its controversial nature. It uses the politics of scale to analyse why countries may wish to frame it as a global or domestic issue. Three extraterritorial dimensions are identified: global environmental impacts, global socioeconomic impacts, and attempts at extraterritorial control over biofuel production abroad. While major producers have successfully avoided liability for impacts by preventing the scaling up of much biofuel governance to the international level, major importers have tried to fill perceived governance gaps using policies aimed at extraterritorial control. We show that both the rise of nationally oriented development policies with extraterritorial impacts and of unilateral sustainability rule making primarily affect weaker countries, making global inequalities more pronounced. It is essential that adaptation governance take into account both environmental and global socioeconomic changes, such as higher agricultural commodity prices.     

Women,work and Weil‐being in the Middle East: An outline of the relevant literature

This paper argues that a formalised small-scale gold mining sector could ameliorate Sierra Leone's emerging ‘crisis of youth’. Burgeoning pockets of unemployed young men now found scattered throughout the country, the mobilisation of whom proved instrumental in prolonging civil war in the 1990s, have fuelled fresh concerns about renewed violence. If supported, small-scale gold mining could provide immediate economic relief in the form of direct employment and downstream activities. Its promotion, however, is contingent upon a radical change in mindset in policymaking circles. Gold mining continues to be associated with diamond mining, an industry which perpetuated the country's civil war.     

The economic viability and stability of ‘capitalised family farming’: An analysis of agricultural decollectivisation in Peru

Abstract

The overall goal of this study is to examine if there is a dropout problem in rural China and to explore the effectiveness of a Conditional Cash Transfer (CCT) programme on the rate of dropping out. To meet this goal, we conduct a randomised controlled trial (RCT) to assess the impact of the CCT using a sample of the poorest 300 junior high school students in a nationally-designated poor county in Northwest China. We find that the annual dropout rate in the study county was 7.8 per cent and even higher, 13.3 per cent, among the children of poor households. We demonstrate that a CCT program reduces dropout by 60 per cent. The programme is most effective among students with poor academic performance, and likely more effective among girls and younger students.     

The place of corporate ownership and management in local government anti‐poverty strategy in Britain

Since devolution in 1999, the Welsh Government has developed a distinctive approach to the management of local government policy. Alongside an emphasis on welfarism and partnership, local authorities have been exhorted to put the citizen at the centre of public service delivery. Drawing on the notion of assemblage, developed in the governmentality literature, this paper identifies two different rationalities running through Welsh Government policy documents. On the basis of a series of interviews with government officials and their counterparts in the Welsh Local Government Association we find evidence of important tensions in the Welsh approach. While the emphasis on the citizen has worked in building a ‘political rationality’, the evidence from our interviews suggests that it works less well as a ‘government technology’.     

The behaviour of indigenous and non‐indigenous farmers: A case study

This paper contrasts the economic performance of a group of immigrant Chinese paddy farmers in West Malaysia with their native Malay counterparts. The situation involves their differing response to the introduction of doublecropping. Productivity measures, production function estimates, and field observations indicate significant differences in performance. The reasons for these differences are attributed to the characteristics of immigrant groups, differences in perception of the innovations, and historical factors.     

How to lend like mad and make a profit: A micro‐credit paradigm versus the start‐up fund in South Africa

In current debates about micro‐credit, joint‐liability schemes are often viewed as the only viable way to non‐collateralised lending, and are thus seen as almost synonymous with micro‐credit. This article reports about an alternative, non‐participatory approach to micro‐credit. Prompted by the apparent inability of group credit schemes to reign in lending costs, the article sets out the institutional requirements for cheap, ‘mass‐produced’ credit. It argues that such credit can be viable if mechanisms are in place enforcing the self‐selection of potential borrowers and self‐motivation of existing borrowers. The analysis of a ‘mass‐minimalist’ micro‐credit institution from South Africa supports the argument.     

Potato‐led growth: The macroeconomic effects of technological innovations in Bolivian agriculture

Through the use of a Computable General Equilibrium model we measure the economy‐wide effects of improving the production technology of relatively non‐traded staples (potatoes, maize), import crops (wheat), and export crops (soybeans) in Bolivia. The results of the analysis suggest that technological innovations in the production technology of potatoes would benefit the Bolivian economy most. We discuss the reasons for the limited effects of technological innovations in tradeable crops.