The Developing Economies

Volume 41, Number 4 (December 2003)

■ The Developing Economies Volume 41, Number 4 (December 2003)
■ B5
■ 105pp
■ December 2003

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PDF files can be viewed for articles that were published by 2005.


Book Reviews


Hakan Berument and Mehmet Pasaogullari, "Effects of the Real Exchange Rate on Output and Inflation: Evidence from Turkey," pp. 401-35.

This paper assesses the effects of real depreciation on the economic performance of Turkey by considering quarterly data from 1987:I to 2001:III. The empirical evidence suggests that, contrary to classical wisdom, the real depreciations are contractionary, even when external factors like world interest rates, international trade, and capital flows are controlled. Moreover, the results obtained from the analyses indicate that real exchange rate depreciations are inflationary.

Bishwanath Goldar and Anita Kumari, "Import Liberalization and Productivity Growth in Indian Manufacturing Industries in the 1990s," pp. 436-60.

Total factor productivity growth in Indian manufacturing decelerated in the 1990s, a decade of major economic reforms in India. Econometric analysis presented in the paper indicates that the lowering of effective protection to industries favorably affected productivity growth. The results suggest that gestation lags in investment projects and slower agricultural growth in the 1990s had an adverse effect on productivity growth. The analysis reveals that underutilization of industrial capacity was an important cause of the productivity slowdown. With corrections for capacity utilization, the estimated productivity growth in the 1990s is found to be about the same as in the 1980s.

Hong-kyun Kim and Ilsoon Shin, "Effect of IT Job Training on Employment and Wage Premium: Evidence from Korea Panel Data," pp. 461-83.

In this paper, we examine whether IT job training raises the probability of getting employed and enables the trainee to obtain a high wage. In this paper, it is reported that, in the Republic of Korea, IT job training as a whole affects not only employment but also wage premium, even though the effect on wage premium is somewhat less conspicuous. In particular, the intensity of IT job training is more instrumental in the opportunity of getting employed than simply whether receiving IT job training or not. This effect is intensified in the low-education group. In this group, the probability for the persons who undergo IT job training for more than six months of getting employed is higher than that for a person without any job training. Additionally, provision of IT job training by a private institute and cost sharing with the government enhances the opportunity of employment.

Sung Jin Kang and Yasuyuki Sawada, "Are Private Transfers Altruistically Motivated? The Case of the Republic of Korea before and during the Financial Crisis," pp. 484-501.

Using household panel data from Korea for 1995-98, this paper shows that private transfers of Korean households were altruistically motivated. Although the altruistic motive of households seemed to be reinforced during the financial crisis, the amount of private transfers was still not sufficient to support households living in urban areas. Also, there had been a strong crowding-out relation between private and public transfers. This suggests that the Korean government should have designed its public transfer scheme carefully in order to improve the effectiveness and efficiency of its social safety net programs.