A cross country analysis of dynamics in comparative advantage and trade patterns in textiles and clothing

This paper examines pattern of comparative advantage in textiles and clothing trade as revealed by export shares of selected developed and developing economies. The estimated revealed comparative advantage (RCA) indices provided strong evidence of comparative advantage enjoyed by the developing economies. However, a few developed high income economies have enjoyed sustainable comparative advantage, especially in textiles trade. Significant negative correlations are observed between country specific income levels and the estimated absolute and relative RCA indices. While most of the developing economies achieved significant improvement of comparative advantage over time in clothing trade, the evidence is mixed for textiles. Additional evidence from Grubel-Lloyd (G-L) index of intra industry trade (IIT) suggest that global textiles trade could be mainly explained on the basis of product differentiation and economies of scale while clothing trade is more based on comparative advantage. Results of the study also suggest that the trading nations should engage in exploitation of forms of competition such as product differentiation in textiles trade, whereas for clothing, cost minimising remains a valid strategy.

Unions and innovation : new insights from the cross-country evidence

We apply meta-regression analysis to the extant econometric studies and find that unions depress investment in innovation at the firm and industry level in all countries considered. However, this adverse effect has been declining over time and is moderated by country differences in industrial relations and regulations: The adverse effect appears to increase with labor market flexibility.

The role of the middle class in economic development: What do Cross-Country data show?

This paper investigates the channels through which the middle class may matter for consumption growth and development. Determinants of the size and the growth of the middle class are also examined. Using several different middle class measures and a panel of 72 developing countries spanning the period 1985-2006, we find that a larger middle class influences growth primarily through higher levels of human capital investment. We also find that large governments, higher levels of urbanization, greater democracy, ethnic concentration, and sea access are all associated with a larger middle class. © 2011 by Asian Development Bank.

Auditor industry specialization, political economy and earnings quality: some cross-country evidence

Using cross-country data, we evaluate the impact of investor protection on the association between earnings quality and audits by industry specialists. Our findings show that the positive association between industry specialist auditors and earnings quality as documented in the literature is affected by the political electoral system, which reflects investor protection rights in a country. We document that audits by industry specialists are associated with higher earnings quality in countries with the proportional electoral system, reflecting weak investor protection. Our results also confirm Kwon et al.'s findings that overall there is a positive association between earnings quality and audits by industry specialists in countries with weak legal enforcement. Our findings, however, indicate that Kwon et al.'s results are valid only for countries with weak investor protection reflected by the proportional electoral system and not for countries with strong investor protection reflected by the majoritarian electoral system. These findings thus suggest that higher earnings quality of firms audited by industry specialists across countries can especially be expected when investor protection is low and legal enforcement is also weak. In addition, our research suggests that future cross-country studies could explicitly consider the role of the political electoral system of a country in evaluating corporate governance, management and accounting issues.

The role of middle class in economic development: what do cross-country data show?

This paper investigates the channels through which the middle class may matter for consumption growth. Using several different middle-class measures and a panel of 105 developing countries spanning the period 1985-2013, we find that a larger middle class influences consumption growth primarily through higher levels of human capital accumulation. There is also a significant direct effect of middle-class size on consumption growth, which is more pronounced in the latter half of the sample, the 2000-2013 period.

Older women crafting ethical subjectivities in rural places

Over the last two years my colleagues and I conducted research conversations with older women living in rural Victoria about the meaning of craft in their lives. These conversations are the basis for our speculations on how women constitute ethical subjectivities through specific craft activities and through their engagement with Country Women Association (CWA) craft groups. The CWA is recognised as a ‘community of practice’ with local, regional, state, national and global networks, aiming to improve the lives of rural people. The focus of this paper, however, is on how ethical subjectivities by rural women are fashioned through specific involvements in craft activities and craft groups. I aim to elaborate on how Foucault’s later work on the ‘Care of the Self’ may open possibilities, even if limited, for understanding the complex ways women take up subject positions in interaction with historical, political, economic and social arrangements, and through engagement with specific institutions. For Foucault, ‘care of the self’ is an inherently social practice. Currently, modern power relations incite us to relate to our selves through self confessional and self-disciplining technologies. Could a differently constituted mode of self-care be drawn from the Ancient Greeks to offer us ideas for enacting personal and social transformations today?

State-Owned Enterprises, Inequality, and Political Ideology

State-owned enterprises continue to play a considerable role in many economies. In this study we empirically investigate the connections between these enterprises and inequality as mediated through political ideology. Using cross-country data on the relative size of the state-owned enterprise sector, we find strong empirical support for an inverted U-shaped relationship between its size and income inequality. We also find strong evidence that left-wing (vis-a-vis right-wing) governments are associated with a larger state-owned enterprise sector in countries with higher inequality. This result is robust to using cross-sectional vs. panel data, different identification strategies, and various controls.

Aid effectiveness on accumulation: a meta study

The AEL (aid effectiveness literature) studies the macroeconomic effects of development aid using cross-country or panel data econometrics. It contains 97 papers of which 43 study whether development aid leads to increasing accumulation. The aggregate results of the 43 studies are that aid increases investment with about 25% of the aid, while most of the remaining 75% of the effect is crowded out by a fall in savings. However, these aggregate results are so variable that it is dubious if accumulation rises.

Mill specific prediction of worsted yarn performance

Different spinning mills use different raw materials, processing methodologies, and equipment, all of which influence the quality of the yarns produced. Because of many variables, there is a difficulty in developing a universal empirical/theoretical model. This work presents a multilayer perceptron algorithm (MLP) model for the purpose of building a mill specific worsted spinning performance prediction tool. Sixteen inputs are used to predict key yarn properties and spinning performance, including number of fibers in cross-section, unevenness (U%), thin places, neps, yarn tenacity, elongation at break, thick places, and spinning ends-down. Validation of the model on mill specific commercial data set shows that the general fit to the target values is good. Importantly, the performance of the MLP shows a certain degree of stability to different, random selections of independent test data. Subsequent comparison against the predicted outputs of Sirolan Yarnspec™ confirms the overall performance of the artificial neural network (ANN) method to be more accuratefor mill specific predictions.

Labour market institutions and the gender wage gap in Britain and Australia, 1973-90

The importance of wage structure is frequently interpreted as indirect evidence of the role played by labour market institutions. The current paper follows in this tradition, examining the role of wage structure in explaining the trend in the gender wage gap over the period 1973–91 for both Australia and the UK. The focus is upon whether changes in wage structure (and associated gender wage gap) both across country and over time are compatible with institutional explanations. Combining comparisons both cross‐country and over time yields a more stringent, albeit indirect, test of the role of institutions.

International comparisons of rural-urban educational attainment : data and determinants

We study cross-country differences in rural and urban educational attainment by using a data set comprising 56 countries. We focus on the determinants of rural–urban educational inequality, which is measured by the ratio of rural to urban average years of schooling within each country. We find that riskier human capital investment, less credit availability, a colonial heritage, a legal system of French origin and landlockedness of nations are all associated with relatively lower rural educational levels and greater rural–urban educational inequality. Conversely, larger formal labor markets, better infrastructure and a legal system of British origin are associated with relatively higher rural educational levels and lower rural–urban educational inequality. We also identify an interaction effect between economic development level and some of these factors. In particular, we find that as development level increases, the negative (positive) relationship between French (British) legal systems and rural–urban educational inequality is reversed and becomes positive (negative).