Suchergebnisse

Capital flight from Pakistan has remained one of the major
concerns of policy makers, mainly because of the nature of private
capital outflows; that is, whereas private citizens hold a large amount
of foreign assets, the country's burden of foreign debt continues to
grow. Capital flight over and above normal levels raises serious
concerns. Capital flight induces foreign donors to demand repatriation
of private capital held abroad in return for their support. Previous
studies have largely ignored the fact that illegal capital flow is a two
way phenomenon. Private citizens' foreign capital is brought into the
country when time is opportune. Using the measure of trade misinvoicing,
this paper finds that between 1972 and 2013 the (net) reverse capital
flight in Pakistan was of the order of about $30 billion. To explain
this phenomenon, the paper examines the evolution of Pakistan's exchange
and trade control regimes in four phases. It is found that reversed
capital flight increased during liberal regimes when both current and
capital accounts were liberalised, meaning that in the absence of strong
regulatory bodies, private citizens could manipulate trade and exchange
laws. The paper offers some specific policy recommendations to restrict
cross-border movement of capital through illegal channels. JEL
Classification: F21, F32, H26

From its inception the GATT had guided international trade
most successfully until the early 1970s. However, afterwards the
developed countries (DCs) increasingly recurred to new forms of trade
restrictions not covered by the GATT rules. Ironically, these "grey
measures" were mostly against the less developed countries (LDCs). These
measures constrained international trade exactly at the time when the
LDCs started penetrating developed markets. One of the main objectives
of the Uruguay Round (UR) accord was to restrict the surge of
protectionism. The accord was the most ambitious and detailed trade
accord of all the GATT rounds. It established the World Trade
Organisation (WTO). Before the UR accord the discrimination in textiles,
clothing and agriculture was severe because tariffs and non-tariff
barriers (NTBs) were employed in such a way that the overall effect of
protection accumulated. The Round had agreed upon the harmonisation and
reduction of tariffs, and elimination of NTBs (in stages) and thus it is
expected that the effective protection will diminish in the DCs. The new
accord has ensured multilateral rules for these sectors. All members
expected that protection would be eventually lower with full
implementation of the accord. In order to protect the interest of
different groups the WTO has now lay down nondiscriminatory trading
rules for services and trade-related aspects of intellectual property
rights (TRIPs), thus covering all major fields of international trade
policy.

Trade is a field of economics that is useful for investigating
the issue of economic competitiveness. A nation's advantages in
competing against other nations are reflected in its performance in
international economic transactions. Earlier theories on trade
(Ricardian and Heckscher-Ohlin) analysed a nation's inter-sectoral
comparative advantage. Due to the intuitive appeal of these theories,
governments have implemented various policies designed to improve
comparative advantage in factor costs by reducing interest rates and
resorting to devaluation, special depreciation allowances, export
financing, etc. There is now a growing awareness that these theories are
unrealistic as to many industries, although they can be useful in
explaining broad tendencies apparent in the patterns of
trade.

The Korean development experience presents a successful
transition from 'learning-by-doing' to 'learning-by-research'. In his
book, Professor Kim explores the dynamics of the Korean companies'
technological learning acquisition for technological capability. His
main conclusion is that in spite of the favourable impact of public
policy and cultural environment, private industry made Korea's ambitious
development goals a reality.

This book contains interesting studies on an important topic,
i.e., effective management, which is a prerequisite to increase the
productivity of enterprises. It is divided into three parts: 'Chinese
Culture and Chinese Management', 'Work Values and Work Organisations',
and 'Leadership, Management Style, and Organisational Change'. All
essays, except three, have been selected from the 'International
Symposium on Social Values and Effective Organisations', held at the
National University, Chung-Li, Taiwan, on November 26–30, 1988. The book
examines the impact of cultural and social values on organisational
structure and work habits.

This paper examines the impact of labour emigration on the
wages of both the skilled and unskilled workers. The paper is based on a
3 X 3 trade-theoretic model, where a subset of the goods produced are
traded at internationally fIXed prices. The results of the model hinge
cruci~y on the intensities of the factors used 'within' the traded goods
sectors of the economy. Using the Pakistani data, it is found that
unskilled labour is used extremely intensively in the agriculture sector
(exportable), skilled labour is used extremely intensively in the
manufacturing sector (importable), and capital is used as the middle
factor in both the traded goods sectors. Moreover, capital is used
significantly less intensively in the construction (non-traded) sector
relative to both the traded sectors. Based on the estimated relative
factor intensities, the model predicts that emigration of either skilled
or unskilled workers from Pakistan, in the long run, would benefit (in
nominal as well as real terms) both the skilled and unskilled workers
and hurt the owners of capital. The results suggest that the higher
wages to both the skilled and unskilled workers must be compensated by a
reduction in the rate of returns to capital if export-orientcd and
import-competing sectors in Pakistan are to remain internationally
competitive.

To predict the impact of emigration on labour displacement and
factor rewards, a trasloogarithmic production function has been used.
The estimation determined that unskilled emigrants and skilled and
unskilled non-migrants have a complementarity with capital. While
skilled emigrants and capital are substitutes, they are complementary
with unskilled non-migrants. Based on these results, the model predicts
displacement of unskilled non-migrants in the short run. Long-run
predictions include an increase in wages of all kinds of workers and the
adoption of capital-intensive techniques.

To study the consequences of an economic change on income
distribution we rank distributions of income at different points in time
and quantify the degree of income inequalities. Changes in income
distribution can be ascertained either through drawing the Lorenz curves
or through estimating different inequality indices, such as Gini
Coefficient, coefficient of variation, standard deviation of logs of in•
comes, Theil's Index and Atkinson's Index. Ranking the distributions of
income through Lorenz curves is, of course, possible only as long as
they do not intersect. Moreover, when Lorenz curves do not intersect
each other, all inequality measures rank income distributions uniformly.
However, if the Lorenz curves do intersect each other. different
inequality measures may rank income distributions differently and thus
the direction of change cannot be determined unambiguously. For this
reason , the use of a single measure would be misleading. Accordingly ,
the use of a 'package' of inequality measures becomes essential.

The world in its politico-economic aspects is run by
policy-makers who have an academic background in law or public
administration or other related social disciplines including economics.
Only rarely would a majority of the policy-makers be trained in
economics. In the making of economic policy, the basic choices before
the policy-makers are political and they transcend the narrow concerns
of economists regarding optimal use of resources. These considerations
in no way downgrade the relevance of economic analysis in economic
policy-making and for the training of policy-maker in economics.
Policy-makers need economic council to understand fully the implications
of alternative policy options. In this book, Wolfson attempts to educate
policy-makers in the areas of public finance and development strategy.
The analysis avoids technicalities and is kept to a simple level to make
it understandable to civil servants, law-makers and members of the
executive branch whom Wolfson refers to as policy-makers. Simplicity of
analysis is not the only distinguishing mark of this book. Most other
books on public finance are usually addressed to traditional public
finance issues relating to both the revenue and expenditure sides of the
budget and neglect an overall mix of issues dealing with the interaction
of fiscal policy with economic development. Wolfson in this book
explicitly deals with these issues.

The constant- market- Share technique provides useful
information for analyzing export performance by allowing realised export
growth to be separated into commodity composition, market
diversification, world trade and export promotion effects. Furthermore,
the analysis of export promotion effect provides information about the
control variables which can be instrumental in formulating future export
policies. The study providC5 Information concerning the extent to which
Pakistan is exporting to markets with relatively unfavorable growth
rates.

This paper analyses country-specific and industry-specific
determinants of intra-industry trade (IIT) between Pakistan and other
SAARC countries using panel data techniques. This paper also
disentangles total IIT into horizontal and vertical IIT. The Vertical
IIT is further divided into high-quality and low quality IIT. This paper
finds that country-specific variables are more important in explaining
the IIT relative to industry-specific variables. The decomposition of
IIT shows that in the SAARC region Pakistan's IIT is mostly comprised of
the vertical IIT. The share of horizontal IIT is comparatively less. The
paper offers specific policy recommendations for the promotion of IIT in
the SAARC region. JEL classification: F12, F14, F15 Keywords: IIT,
Horizontal IIT, Vertical IIT