Foreign Direct Investment, Clean Development Mechanism, and Environmental Management: A case of Sub-Saharan Africa

This doctoral dissertation explores the contribution of environmental management practices, the so-called clean development mechanism (CDM) projects, and foreign direct investment (FDI) in achieving sustainable development in developing countries, particularly in Sub- Saharan Africa. Because the climate change caused by greenhouse gas emissions is one of the most serious global environmental challenges, the main focus is on the causal links between carbon dioxide (CO2) emissions, energy consumption, and economic development in Sub-Saharan Africa. In addition, the dissertation investigates the factors that have affected the distribution of CDM projects in developing countries and the relationships between FDI and other macroeconomic variables of interest. The main contribution of the dissertation is empirical. One of the publications uses crosssectional data and Tobit and Poisson regressions. Three of the studies use time-series data and vector autoregressive and vector error correction models, while two publications use panel data and panel data estimation methods. One of the publications uses thus both timeseries and panel data. The concept of Granger causality is utilized in four of the publications. The results indicate that there are significant differences in the Granger causality relationships between CO2 emissions, energy consumption, economic growth, and FDI in different countries. It appears also that the causality relationships change over time. Furthermore, the results support the environmental Kuznets curve hypothesis but only for some of the countries. As to CDM activities, past emission levels, institutional quality, and the size of the host country appear to be among the significant determinants of the distribution of CDM projects. FDI and exports are also found to be significant determinants of economic growth.

Cooperation, social capital and economic performance

The objective of this paper is to define social capital as social infrastructure and to try to include this variable in an economic growth model. Considering social capital in such a way could have an impact on the productivity of production factors. Firstly, I will discuss how institutional variables can affect growth. Secondly, after analyzing several definitions of social capital, I will point out the benefits and problems of each one and will define social capital as social infrastructure, aiming to introduce this variable into an economic growth model. Finally, I will try to open the way for subsequent empirical studies, both in the area of measuring the stock of social infrastructure as well as those comparing economies, with the idea of showing the impact of social infrastructure on economic growth.

EU Strategy for the Baltic Sea Region: its added value in environmental social and economic dimensions

The European Council has invited the European Commission to present the first macro-regional strategy – the EU Strategy for the Baltic Sea Region (EUSBSR) on the 14th of December 2007, primarily to address collective challenges and opportunities of the Region and also to engender cohesion in support of an European integration policy. However, macro-regional strategies conceived to aid European integration and territorial cohesion were viewed by academics with skepticism, obscuring the strategies’ potential impact. This thesis intends to investigate and measure the added value of the EUSBSR in order to analyze its impact on regional development and its feasibility as a guide for future programs intending to strengthen European cohesion and integration. To determine the added value of the EUSBSR the thesis is organized into three sections, so as to address environmental, social, and economic concerns, respectively. The first case examines EU-Russia cooperation in an environmental context to investigate how environmental cooperation with an external neighbor could forge increased cohesion in a macro-regional setting. To figure the added cooperation that academic cooperation among universities would contribute to social dimension, the work has chosen several study results. Lastly, to measure out the added value for the economic strategy objective, the study employs the project for Improved Global Competitiveness in an example of ‘A Baltic Sea Region Program for Innovation, Cluster and SME-Networks’ as an economic plan.

Effects of overvaluation and exchange rate volatility over industrial investment: empirical evidence and economic policy proposals for Brazil

The present article aims to analyze the recent behavior of real exchange rate in Brazil and its effects over investment per worker in Brazilian manufacturing and extractive industry. Preliminary estimates presented in the article shows an over-valuation of 48% of real exchange rate in Brazil. The reaction between the level (and volatility) of real exchange rate and investment (per worker) in Brazil is analyzed by means of a panel data econometric model for 30 sectors of Brazilian manufacturing and extractive industry. The empirical results show that the level and volatility of real exchange rate has a strong effect over investment per worker in Brazilian industry. Finally, we conclude the article presenting a proposal for a new macroeconomic regime that aims to produce an acceleration of economic growth of Brazilian economy and, by that, a catching-up process with developed countries.

Religion and Economic Growth: Was Weber Right?

Evidence of falling wages in Catholic cities and rising wages in Protestant cities between 1500 and 1750, during the spread of literacy in the vernacular, is inconsistent with most theoretical models of economic growth. In The Protestant Ethic, Weber suggested an alternative explanation based on culture. Here, a theoretical model confirms that a small change in the subjective cost of cooperating with strangers can generate a profound transformation in trading networks. In explaining urban growth in early-modern Europe, specifications compatible with human-capital versions of the neoclassical model and endogenous-growth theory are rejected in favor of a “small-world” formulation based on the Weber thesis.

Economic Development under Alternative Trade Regimes

How does openness affect economic development? This question is answered in the context of a dynamic general equilibrium model of the world economy, where countries have technological differences that are both sector-neutral and specific to the investment goods sector. Relative to a benchmark case of trade in credit markets only, consider (i) a complete restriction of trade, and (ii) a full liberalization of trade. The first change decreases the cross-sectional dispersion of incomes only slightly, and produces a relatively small welfare loss. The second change, instead, decreases dispersion by a significant amount, and produces a very large welfare gain.

Communication and Economic Growth.

Overs the past millennium, each of the three centuries of most rapid demographic growth in the West Coincided with the diffusion of a new communications technology. This paper examines the hypothesis of Harold Innis (1894-1952) that there is two-way feeback between such innovations and economic growth.

Migration and Spatial Development

This is an empirical study with theoretical interpretation and elaboration simultaneously on the migration process and the related spatial development in contemporary China. In so doing, there is always a combination of series of studies of the modernization of the migrants themselves with accumulation of forms of capital and changes of lebenswelt (life world) as well as the regions of their origins by the effective use of the gained resources from outgoing migration and remigration. With great efforts made to put the issues together for analysis, the author has taken three approaches to the study based on the political and economic institutional arrangements, the field work data and the elaboration of respective findings. First, as the analytical parts of the institutional changes, which have gone through the whole research, many of the policies from state level to townships involved in the migration, remigration and spatial development have been interpreted with Chinese political and cultural insight. The making of these, as the means of understanding the contexts of macro level and micro level cases is served as key linkages between scholarly imagination and social reality. Indeed most of the discussions made to explain the phenomena such as the sudden upsurge of migration flows, the emergence of three generations, the strong and weak trends of remigration as well as the related spatial development planning, etc are mainly due to the domination, at least the impact of governments decision-making in spite of growing market functioning in often operative manners. Secondly, case studies of the effects of migration and remigration are carried out between the years of 1995 and 2005 in the costal urban regions as designations and the interior rural regions as origins. Conducted mainly by the author, the cases drawn in the research focus on the process of migration with an accumulation of forms of capital away from home and the effective use of the resources flowing back to home areas. As a result, ways of accumulation and utilization of the economic, social and cultural capital are described and interpreted in terms of the development and modernization of both the migrants themselves and the regions where they come out from or move to in the future. Thirdly, in accordance with the findings generated from the cases, the author proposes in the final chapter an important argumentation as conclusion that the duel social-economic structure will inevitably be broken up and reformulated with flows of migrants and forms of capital they possess as types of future spatial development that will be put into practice. With scenarios and all the other conclusions worked out in the end, the research concludes that the pluralistic spatial development in the condition of constant space flows between regions can be a decisive line of thinking in the process of urbanization, industrialization and modernization in the long run in the future. Since this is an exploratory study of the past and present, the author has left some space open for academic debates and put forward suggestions on the inclusion of future research before implementing policies necessary for migration associated spatial practice and development.

Spatial and harvesting influence on growth, yield, quality and economic potential of Kalmegh (Andrographis paniculata Wall Ex. Nees)

Andrographis paniculata, commonly known as Kalmegh, is used both in Ayurvedic and Unani system of medicines because of its immunological, antibacterial and hepatoprotective properties. This study was carried out to investigate the influence of four harvesting times (120,135,150 days after planting and at seed maturity) and four planting distances (30×15, 30×10, 20×15 and 20×10 cm) on growth, dry herbage biomass, seed yield and quality traits of Andrographis paniculata at CCS Haryana Agricultural University, Hisar, India in the two years 2005 and 2006. The treatments were laid out in a split plot design with three replications. The maximum values for dry herbage biomass yield (5.14 t ha^(-1)), net returns (760.00 EUR ha^(-1)), B:C ratio (2.59), andrographolide content (2.63%) and total yield (135.00 kg ha^(-1)) were detected 135 days after planting with an optimum planting distance of 30×15 cm. However, the maximum iron content was estimated 120 days after planting. The highest dry herbage (4.58 t ha^(-1)) and maximum seed yield (19.7 kg ha^(-1)) were registered at plants that were lined out with a distance of 20×10 cm.

Work and economic security in the 21st century

In recent decades there has been a transformation of two central concepts of modernity – labour and the household. Ela Bhatt – the founder of the Self-Employed Women’s Association of India (SEWA), has made an important contribution to this transformation. Through the emergence of unions such as SEWA, the notion of who represents labour is being broadened; the marginalised are finding an institutional voice. Increasingly, the household is being recognised as a site of both production and reproduction. SEWA is not a traditional trade union that aims, through collective bargaining with an employer, to improve its members’ wages and working conditions as sellers of their labour power. Instead, it aims to empower women economically in the informal economy by bringing them into the mainstream economy as owners of their labour. The union dimension of SEWA builds their collective power through struggle; the cooperative dimension translates their bargaining power into the economic and social development of its members and their community. Besides, Bhatt’s approach to the self-employed was a direct challenge to the ILO’s tripartism when it was established in the early seventies. The first part of the paper provides a short biography of Ela Bhatt, describes the origins of SEWA, analyses a ‘classification struggle’ over how and who is to define what a worker is. In the second part the author considers SEWAs innovative organizing strategy and is rethinking modernity in the labour context. In the conclusion the paper discusses the lessons that can be learnt from Ela Bhatt.

Labor supply, biased technological change and economic growth

Se utiliza un modelo de innovaciones sesgadas para estudiar los efectos de cambios exógenos en la oferta laboral. En un contexto de innovaciones sesgadas, a medida que las economías acumulan capital, el trabajo se hace relativamente más escaso y más caro, por este motivo, hay incentivos para adoptar tecnologías ahorradoras de trabajo. Del mismo modo un cambio en la oferta laboral afecta la abundancia de factores y sus precios relativos. En general, una reducción de la oferta laboral, hace que el trabajo sea más caro y genera incentivos para cambio tecnológico ahorrador de trabajo. Así, el efecto inicial que tiene el cambio en la oferta laboral sobre los precios de los factores es mitigado por el cambio tecnológico. Finalmente, los movimientos en la remuneración a los factores afectan las decisiones de ahorro y, por lo tanto, la dinámica del crecimiento. En este trabajo se exploran las consecuencias de una reducción de la oferta laboral en dos contextos teóricos diferentes: un modelo de agentes homogéneos y horizonte infinito y un modelo de generaciones traslapadas.

Land Reform, Latifundia and Social Development at Local Level in Colombia, 1961-2010

The paper analyzes the effects of land reform on social development – poverty and land distribution-at the local level. Land reform in Colombia, understood as the allocation of public land to peasant, has granted 23 million hectares which comprises around 20% of Colombian territory and about 50% of usable productive land. Theoretically, the net impact of land reform on development is the combination of a poverty effect and a land distribution effect. Our findings suggest that land reform from 1961 onwards has slightly reduced poverty and mildly improved land distribution. Nonetheless,municipalities with strong presence of latifundia prior to1961 have experienced both a slower drop in poverty and a weaker improvement of land distribution .This paper finds that prevalence of latifundia partially offset the positive effect of land reform in promoting social development.

Revisiting the Relationship between Income Distribution and Economic Growth

La mayoría de los modelos que exploran la relación entre la desigualdad en la distribución del ingreso y el crecimiento económico, postulan la existencia de una correlación negativa entre las dos que es generada a través de diferentes mecanismos. Paralelamente a los modelos teóricos, un número importante de estudios empíricos han tratado de evaluar esta relación. De este esfuerzo ha surgido un consenso amplio que valida la existencia de dicha relación negativa. No obstante, estudios recientes basados en el uso de datos de panel han producido el resultado contrario, documentando la presencia de una relación positiva entre desigualdad y crecimiento. El examen del debate generado a partir de estos resultados, así como el trabajo empírico adelantado en este estudio, indican que las estimaciones obtenidas en diversos trabajos pueden no ser tan robustas como se creía En consecuencia, se sugiere que la realización de estudios de caso por país puede ser una mejor vía para explorar este tema.

Making development simple. The genetic deterministic hypothesis for economic development

This paper discusses the dangers inherent in allempting to simplify something as complex as development. It does this by exploring the Lynn and Vanhanen theory of deterministic development which asserts that varying levels of economic development seen between countries can be explained by differences in 'national intelligence' (national IQ). Assuming that intelligence is genetically determined, and as different races have been shown to have different IQ, then they argue that economic development (measured as GDP/capita) is largely a function of race and interventions to address imbalances can only have a limited impact. The paper presents the Lynne and Vanhanen case and critically discusses the data and analyses (linear regression) upon which it is based. It also extends the cause-effect basis of Lynne and Vanhanen's theory for economic development into human development by using the Human Development Index (HDI). It is argued that while there is nothing mathematically incorrect with their calculations, there are concerns over the data they employ. Even more fundamentally it is argued that statistically significant correlations between the various components of the HDI and national IQ can occur via a host of cause-effect pathways, and hence the genetic determinism theory is far from proven. The paper ends by discussing the dangers involved in the use of over-simplistic measures of development as a means of exploring cause-effect relationships. While the creators of development indices such as the HDI have good intentions, simplistic indices can encourage simplistic explanations of under-development. (c) 2005 Elsevier B.V. All rights reserved.

The private sector, poverty reduction and international development

The private sector, after shifting fortunes in development theory and practice over the years, is now widely recognised as the key to economic growth, which itself is indispensable for poverty reduction. The Development Studies Association (DSA) Annual Conference in 2006 brought together academics, private sector actors, NGOs and policy makers to share insights and experiences on how this vital contribution to growth, development and poverty reduction can be realised. This paper summarises the main themes and discussions of the conference and introduces the papers selected for inclusion in this conference issue.