Fixed capital stock depreciation in developing countries: Some evidence from firm level data

Abstract

Previous growth accounting studies suggest severe capital underutilisation and mismeasurement of the stocks of capital in some developing countries. Using the firm level data sets from the World Bank surveys, this paper estimates the economic depreciation rates of fixed capital stocks in the manufacturing industries of seven developing countries. The findings indicate that the stocks of fixed capital may depreciate at higher rates in these countries, as compared with the normal rates usually assumed for advanced industrial countries. This study also discusses the economic and social forces that may influence the incentive to maintain capital appropriately and the implications of high depreciation for the total factor productivity (TFP) growth estimates and volatility of capital accumulation.     

Buying schools with social capital: how local response to state reform fosters education revenue inequality

In this article, the author tests the hypothesis that social capital leads to greater inequality in public school revenue. Research has linked social capital – the manifestation of social networks of trust and shared norms – to efforts that can alleviate inequality. By conducting a comparative analysis of the counties and school districts in California, this article finds competing evidence. Instead, the author finds that local areas with more membership associations generate more revenue for their schools, despite efforts by the state government to equalise revenue across districts. The local residents appear to be increasing their revenue by using their social capital to generate the collective action needed to increase their property-tax contribution.     

Tansnationals and foreign trade: Evidence from Brazil

A recursive model of exports and imports of manufactures, in which imports depend in part on exports, is estimated using data for a cross‐section of 17,053 industrial firms. In this sample, 652 firms are foreign‐owned. Explanatory variables include firm size, skill intensity, advertising and other variables in addition to foreign ownership. Foreign ownership has a large, independent effect on both export performance and import propensities, but foreign ownership in itself explains little of the relatively low export/import ratios registered by affiliates of transnationals.     

Structural reform,institutions and earnings: Evidence from the formal and informal sectors in urban Peru

Reforms undertaken in Peru in the early 1990s might have resulted in a slight reduction of the informal sector. Costs associated with becoming and staying informal, and benefits of becoming formal might have increased. This, when a legalistic definition of informality is used. Earnings differentials between formal and informal self‐employed workers are negligible although they persist between formal and informal salaried workers. Skilled workers are more likely to be found in the formal sector and informal wage earners tend to be younger and less skilled. The earnings generating process for both the formal and the informal self‐employed workers is similar.     

Credit access,human capital and class structure mobility

This article examines the impact of microenterprise credit programmes on class structure mobility in developing countries. It develops a model that endogenously generates an eight‐fold class structure. Class membership is determined by optimal choice of labour activity, which is a function of access to credit and human capital endowments. Predictions from the model suggest that better access to credit will foster upward class mobility among self‐employed entrepreneurs, and that this upward class mobility will be accentuated among entrepreneurs with high levels of human capital. Theoretical predictions from the model are compared with data on class structure mobility collected first‐hand in western Guatemala. Empirical results show that upward class structure mobility increases substantially with access to credit, and also suggest that the combined effect of innate entrepreneurial ability and credit access has a greater impact on upward class structure mobility than the interaction between formal schooling and credit access.     

Political Competition and Local Social Spending: Evidence from Brazil

Electoral theories of democracy imply electoral competition insures accountability. Using data on local elections, socioeconomic factors, and municipal budgets from more than 5,000 municipalities in Brazil for the years 1996, 2000, and 2004, we find that municipalities with more competitive elections allocate less to social spending compared to municipalities with little political competition. We argue that previous theory on political competition and public goods obscures the critical role that financial resources play in shaping the dynamics of social spending and political competition. Municipalities with small budgets lack the resources necessary to engineer convincing electoral victories. Where resources are negligible, voter turnout is low, and incumbents rarely win reelection. Incumbent parties in municipalities with large financial resources win big. Armed with adequate resources, incumbent parties mobilize voters and win by large margins. This new argument and evidence reconcile contradictory findings in the existing literature on competition and public goods.     

Policy responses to capital inflows: lessons from mexico

This paper has two basic objectives. The first is to examine the impact large inflows of foreign capital have on the economies of developing countries. This is important because international investment in many “emerging” markets has increased rapidly, particularly since 1990. The second objective is to explain Mexico's recent (1994-95) currency and financial crisis and to assess the role large capital inflows (and outflows) played in these events. In general, the paper concludes that the Mexican crisis was a direct outgrowth of the large inflows of foreign portfolio investment that followed the announcement of the NAFTA in early 1990. But while these capital inflows served as the catalyst, the policy responses adopted by the Mexican authorities to deal with these flows bear the ultimate responsibility for the crisis. Accordingly, this paper reviews the most common alternatives for redressing the effects of capital inflows on the recipient's economy and balance of payments, and uses Mexico's recent experience to draw general lessons for countries that encounter similar situations in the future.     

日本政党格局的新变化

11月10日凌晨,日本第43届众议院选举尘埃落定。此次大选,朝野力量各有消长,显露出了不同于以往选举的特点,对未来日本政治格局与基本走向有重要影响。 各政党的得失 本次大选,各个政党各展所能,推出不同的政策和采取符合自身特色的竞选策略,以赢得选民的支持。其结果是各有得失,悲喜不同。 一、以自民党为首的原执政党联盟继续获得“绝对稳定多数”议席,在总数480个议席中占据278个席位,联合执政的势态得以持续。其中,自民党虽有小泉的“人气”和经济初步复苏作为支撑,但未能实现其席位单独过半的预定目标,由原来的247席降至237席。其受挫主要是因为小泉     

Global inequality: Bringing politics back in

Data on contemporary global inequality are dramatic, widely known and a new conventional backdrop. In research and policy economists lead the way and the emphasis is on global poverty rather than inequality. Within nations poverty is a challenge, while inequality is not; on a world scale, arguably it is the other way round. The international policy focus on poverty alleviation coexists with neoliberal policies that widen inequality domestically and internationally. A strategic question is where the data depart from the conventional wisdom. Thus a general assumption is that inequality within countries is largest in poor countries; the widest inequality, however, is found within the USA and UK. The conventional assumption is that neoliberal policies and free trade lift all tides; those countries and periods, however, where this policy has been most consistently implemented show the steepest increase in inequality. Global inequality helps sustain domestic privilege. The belief that the risks that global inequality poses can be contained in the global margins is contradicted by the cross-border effects of environmental degradation, migration, transnational crime and terrorism. In explaining global inequality, economic accounts ignore inequal relations of power. The combined policies of developmental discipline, global integration, and marginalisation and containment may be viewed as part of a single process of hierarchical integration, which has turbulence built in.     

Regional Offices in the New NHS: An Analysis of the Effects and Significance of Recent Changes

This article reports on a two-year, multi-method, qualitative study in two regional offices in the UK National Health Service of the changing role of the regional tier from the autumn of 1994. The nature of the changes from fourteen semiautonomous regional health authorities to eight regional offices of the NHS Executive, whose staff became civil servants, are described together with the way this reorganization changed the role and relationships of NHS Executive HQ, the regional offices and the field. By the end of our research in the autumn of 1996, the change from regional health authority to regional office had gone well in the two regional offices studied; they had become smaller organizations, had established closer working with HQ and believed they had more influence over policy, while retaining good relations with health authorities. Emerging issues from the changes and some of their implications are discussed, particularly the pressures towards greater centralization and the particular forms that these have taken, despite the aim, and in part the achievement, of greater devolution, and the cultural differences between the NHS and the civil service. We conclude by assessing what the future holds for regional offices, in the light of the recent NHS White Paper (Secretary of State for Health 1997)     

Sex differences in earnings: An analysis of Malaysian wage data

The conventional human capital earnings function is applied to a rich set of Malaysian wage data in an attempt to determine the origins of sex differences in average earnings. Several findings are of interest, the first being that the relationships estimated from the earnings function are similar to those typically reported for non‐LDCs. Second, less than a third of the average monthly wage difference between the sexes of about 34 per cent appears to be the consequence of either females having lower (measured) productivity than males, or females receiving lower rates of return to human capital than males. The major part of the earnings difference is apparently a consequence of employment distributions: females are much more likely to be in the low‐paying occupations.