This paper constructs and analyses a long-run time-series for regional inequality in China from the Communist Revolution to the present. There have been three peaks of inequality in the last fifty years, coinciding with the Great Famine of the late 1950s, the Cultural Revolution of the late 1960s and 1970s, and finally the period of openness and global integration in the late 1990s. Econometric analysis establishes that regional inequality is explained in the different phases by three key policy variables; the ratio of heavy industry to gross output value, the degree of decentralization, and the degree of openness.
Topic:
Development, Economics, Industrial Policy, and Political Economy
We argue that spatial inequality of industry location is a primary cause of spatial income inequality in developing nations. We focus on understanding the process of spatial industrial variation—identifying the spatial factors that have cost implications for firms, and the factors that influence the location decisions of new industrial units. The analysis has two parts. First we examine the contribution of economic geography factors to the cost structure of firms in eight industry sectors and show that local industrial diversity is the one factor with significant and substantial cost reducing effects. We then show that new private sector industrial investments in India are biased toward existing industrial and coastal districts, whereas state industrial investments (in deep decline after structural reforms) are far less biased toward such districts. We conclude that structural reforms lead to increased spatial inequality in industrialization, and therefore, income.
Topic:
Development, Economics, Industrial Policy, and Political Economy
India's capital account displays a sharp swing in external financing from official assistance to private capital transfers in the 1990s. This paper examines the implications of this transition for the country. An analysis of the private resource transfer reveals that unlike official flows, private capital flows are associated with real exchange rate appreciation, expansion in domestic money supply and stock market growth, liquidity and volatility. The paper concludes with a discussion on the implications of the transition for economic policy.
Topic:
Economics, International Trade and Finance, and Political Economy
This paper examines the impact of changes in poverty and public health spending on inter-temporal variations in longevity using a unique regional-level dataset that covers 77 regions of Russia over the period 1994-2000. The dynamic panel data model is used as a tool for the empirical analysis. The model is estimated using the Arellano-Bond dynamic panel data estimator. The changes in regional levels of poverty and real per capita public health expenditure are identified to be significant determinants of the variations observed in longevity over time. The empirical results indicate that while male life expectancy responds more strongly than female life expectancy to economic circumstances, the latter appears to be more predisposed to the influence of public health spending. The results support the idea that the (positive) effect of public health spending on life expectancy is larger for those regions that experience higher incidences of poverty. The paper also finds that the financial crisis which hit Russia at the end of 1998 had a significant negative effect on longevity independently of the factors directly related to poverty and public health spending.
Realist theory occupies a special place in the theoretical development of International Relations discipline. As the dominant theory of the discipline from mid-1930s up until mid-1980s, realism has often been dubbed as the theory of the International Relations because of its overwhelming influence on IR academia. In addition to controversial concepts it brought into IR discussions, realism has served the discipline by pioneering the study of international developments through conceptual analysis instead of traditional methods based on historical, legal, and philosophical studies. Although its various fundamental aspects (such as its conservative approach to world politics, emphasis on state and power, failure to define national interest convincingly, deterministic approach to international politics) have been criticized over the years from many perspectives, realist tradition has re-emerged time and again as the leading conceptual explanation of the discipline. Finally, despite all its exposed weaknesses, the realist theory of IR, with its clear and simple explanations, is still the most widely used approach in the area.
Topic:
International Relations, International Political Economy, and Political Economy
Public confidence is essential to America's 1.5 million charitable organizations and the 11 million Americans they employ. Confidence clearly affects the public's willingness to donate time and money, shapes the political and regulatory environment that governs charitable organizations, and has at least some influence on morale within the charitable workforce.
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Why should anyone be interested in Finnish strategic thinking and the historical experiences informing it? After all, the country is one of the smallest and most peripheral in a continent that is rapidly marginalizing itself in international politics. While being safe and boring can sometimes be a result of a successful grand strategy – especially for a small state – the answer to the question above might lie in realizing that for half a millennium Finland's external security environment has been anything but safe and boring, and yet the country has managed to develop a republican/liberal political culture and to defend it against external threats.
Topic:
Civil Society, Government, International Political Economy, and Political Economy
Willy Lam, William R. Hawkins, Harvey Stockwin, and Li Thian-hok
Publication Date:
05-2003
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
The spread of Severe Acute Respiratory Syndrome—the SARS virus—throughout China is a phenomenon that had previously been denied by authorities and had gone unreported. But the penetration of the disease is now being admitted publicly, and efforts to combat it have begun. While the immediate epidemic in Beijing appears to be in decline, the fear remains that the spread of SARS within China will still be difficult—and maybe impossible—to control, let alone to eliminate. World Health Organization (WHO) officials admit that what happens in China will “make or break” the course of the epidemic. China's neighbors, and particularly Hong Kong, worry that a failure to curtail the virus will inevitably result in a fresh round of crossborder infection, further intensifying the already grave economic impact of SARS on the region. At worst, a sustained epidemic could bring China's opening-up to the outside world to a screeching halt.
Topic:
International Relations, Government, and Political Economy
Willy Lam, Arnold Zeitlin, John Tkacik, and Jonathan Mirsky
Publication Date:
05-2003
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
Could Taiwan's voters elect a pro-unification candidate in 2004? Can the challenger, Kuomintang chairman Lien Chan, put together an electoral consensus of ethnic mainlanders, Hakkas and ethnic Taiwanese investors in China that will begin the process of moving Taiwan into the embrace of the People's Republic of China? The polls indicate it could be a fifty-fifty proposition, especially if the campaign's focus is the economy—not national identity. Washington should begin to consider its substantial strategic stake in Taiwan, and rethink the message that its diplomats in Taipei are sending Taiwan's public.
Topic:
International Relations, Government, and Political Economy
Willy Lam, Harvey Stockwin, Gordon G. Chang, and Richard D. Fisher
Publication Date:
04-2003
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
An epidemic, spread by official deception and indifference, is afflicting the Chinese people. What does this disease mean for the People's Republic of China?
Topic:
International Relations, Government, and Political Economy