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341. Participatory Approaches and the Measurement of Human Well-being

Author:
Sarah White and Jethro Pettit
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper considers the use of participatory methods in international development research, and asks what contribution these can make to the definition and measurement of well-being. It draws on general lessons arising from the project level, two larger-scale policy research processes sponsored by the World Bank, and the experience of quality of life studies. It also considers emerging experiments with using participatory methods to generate quantitative data. The paper closes by assessing the future trajectory of participatory approaches in well-being research, and reflects on some dilemmas regarding the use of participatory data on well-being in the policymaking process.
Topic:
Development, Economics, Human Welfare, and International Cooperation

342. Output and Price Fluctuations in China's Reform Years: What Role did Money Play?

Author:
Guanghua Wan and Yin Zhang
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The Chinese economy underwent cyclical fluctuations in growth and inflation in the reform period. Contrasting views exist on the role of money in such fluctuations. This paper assesses these views employing structural VEC models based on the exchange equation. It is found that in the long run money accommodates, rather than causes, changes in output and prices. In the short run, price fluctuations are mostly attributable to shocks that have permanent effects on prices and money but not on real output. These shocks also account for a large proportion of fluctuations in money, and strongly influence the movements of output.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
China and Asia

343. What Accounts for China's Trade Balance Dynamics?

Author:
Guanghua Wan and Yin Zhang
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper proposes a structural VAR model which extends the frameworks of Hoffmaister and Roldós (2001) and Prasad (1999). The model is then used to analyse the sources of China's trade balance fluctuations in the period of 1985–2000. Efforts are made to distinguish the forces which underlie the long-run trend in trade balance from those with transitory impacts. The effects of four types of shock are examined—the foreign supply shock, the domestic supply shock, the relative demand shock, and the nominal shock. Among other findings, two emerge as important. First, the movements in China's trade are largely the result of real shocks. Second, the Renminbi is undervalued, yet changes in the exchange rate bear little on the trade balance. Therefore, monetary measures would not suffice to redress China's trade 'imbalance'.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
China and Asia

344. China's Business Cycles: Perspectives from an AD–AS Model

Author:
Guanghua Wan and Yin Zhang
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper represents a first attempt to study China's business cycles using a formal analytical framework, namely, a structural VAR model. It is found that: (a) demand shocks were the dominant source of macroeconomic fluctuations, but supply shocks had gained more importance over time; (b) the driving forces of demand shocks were consumption and fixed investment in the first cycle of 1985–90, but shifted to fixed investment and world demand in the second cycle of 1991–96 and the post-1997 deflation period; and (c) macroeconomic policies did not play an important part either in initiating or counteracting cyclical fluctuations.
Topic:
Demographics, Economics, and Emerging Markets
Political Geography:
China

345. Decomposing Spatial Differences in Poverty in India

Author:
Shatakshee Dhongde
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Over the last decade, India has been one of the fastest growing economies, and has experienced considerable decline in overall income poverty. However, in a vast country like India, poverty levels vary significantly across the different states. In this paper, we analyze the differences between poverty at the state and national level, separately for the rural and urban sector, in the year 1999-2000. Instead of following the usual practice of decomposing the changes in poverty over time, we decompose the changes in poverty across regions. Such decomposition reveals that differences in state and national poverty levels were largely explained by differences in the state and national mean income levels. Differences in the state and national distributions of income were less important in explaining spatial differences in poverty. An important policy implication of our results is that states with extremely high levels of poverty would have reduced poverty significantly by raising their mean income levels to the national mean income, instead of changing their distribution of income to match the national income distribution.
Topic:
Demographics, Economics, and Poverty
Political Geography:
India and Asia

346. Divergent Means and Convergent Inequality of Incomes among the Provinces and Cities of Urban China

Author:
John Knight, Li Shi, and Zhao Renwei
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Two precisely comparable national household surveys relating to 1988 and 1995 are used to analyse changes in the inequality of income in urban China. Over those seven years province mean income per capita grew rapidly but diverged across provinces, whereas intra-province income inequality grew rapidly but converged across provinces. The reasons for these trends are explored by means of various forms of decomposition analysis. Comparisons are also made between the coastal provinces and the inland provinces. The decompositions show the central role of wages, and within wages profitrelated bonuses, together with the immobility of labour across provinces, in explaining mean income divergence. The timing of economic reforms helps to explain the convergence of intra-province income inequality. Policy conclusions are drawn.
Topic:
Demographics, Development, and Economics
Political Geography:
China and Asia

347. Income Inequality in Rural China: Regression-based Decomposition Using Household Data

Author:
Guanghua Wan and Zhangyue Zhou
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
A considerable literature exists on the measurement of income inequality in China and its increasing trend. Much less is known, however, about the driving forces of this trend and their quantitative contributions. Conventional decompositions, by factor components or by population subgroups, only provide limited information on the determinants of income inequality. This paper represents an early attempt to apply the regression-based decomposition framework to the study of inequality accounting in rural China, using household level data. It is found that geography has been the dominant factor but is becoming less important in explaining total inequality. Capital input emerges as a most significant determinant of income inequality. Farming structure is more important than labour and other inputs in contributing to income inequality across households.
Topic:
Demographics, Development, and Economics
Political Geography:
China and Asia

348. Fifty Years of Regional Inequality in China: A Journey through Central Planning, Reform, and Openness

Author:
Ravi Kanbur and Xiaobo Zhang
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
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
Political Geography:
China and Asia

349. Industrial Location and Spatial Inequality: Theory and Evidence from India

Author:
Somik V. Lall and Sanjoy Chakravorty
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
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
Political Geography:
South Asia and India

350. Commune-Level Estimation of Poverty Measures and its Application in Cambodia

Author:
Tomoki Fujii
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this study, we combined the Cambodian socioeconomic survey for 1997 and the country's population census of 1998 to produce poverty measures at the commune-level in Cambodia using the small-area estimation technique developed by Elbers, Lanjouw and Lanjouw. While there are a number of communes for which the standard errors associated with the estimates are too high, we found that they are on average small enough to be useful. We illustrate the application of poverty maps with reference to education programmes.
Topic:
Economics, Education, and Poverty
Political Geography:
Cambodia and Southeast Asia