The Developing Economies
Volume 42, Number 1 (March 2004)
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CONTENTS
Genuine Savings Measurement and Its Application to the United Kingdom and Taiwan (753KB) / Grace T. R. Lin and Chris Hope
Method of Analyzing Business Cycles in a Transition Economy: The Case of Slovenia (1.5MB) / Timotej Jagric and Rasto Ovin
The Potato Marketing System and Its Changes in Bangladesh: From the Perspective of a Village Study in Comilla District (922KB) / Khondaker Golam Moazzem and Koichi Fujita
Determinants of Demand for Fiji's Exports: An Empirical Investigation (562KB) / Seema Narayan and Paresh Kumar Narayan
Book Reviews
Competition Policy for Small Market Economies by Michal S. Gal (113KB) / Hiroki Nogami
Abstract
Grace
T.
R.
Lin
and
Chris
Hope,
"Genuine
Savings
Measurement
and
Its
Application
to
the
United
Kingdom
and
Taiwan,"
pp.
3-41.
The
genuine
savings
index
(GSI)
is
a
simple
indicator
that
can
be
used
to
assess
an
economy's
sustainability.
It
defines
wealth
more
broadly
than
orthodox
national
accounts,
and
recalculates
national
savings
figures
based
on
this
new
definition.
Genuine
savings
aim
to
represent
the
value
of
the
net
change
in
the
whole
range
of
assets
that
are
important
for
development:
produced
assets,
natural
resources,
environmental
quality,
and
human
resources.
This
paper
takes
the
broad
framework
developed
in
previous
studies
and
tests
its
application
with
respect
to
the
United
Kingdom
and
Taiwan
between
1970
and
1998,
with
the
goal
of
assessing
the
feasibility
of
using
such
measures
quite
broadly
as
indices
of
sustainable
development.
The
paper
shows
that
both
the
United
Kingdom
and
Taiwan
have
positive
genuine
savings
rates
over
the
period
in
question,
with
the
United
Kingdom
registering
lower
ones
than
Taiwan.
Timotej
Jagric
and
Rasto
Ovin,
"Method
of
Analyzing
Business
Cycles
in
a
Transition
Economy:
The
Case
of
Slovenia,
"
pp.
42-62.
In
this
paper,
we
studied
cyclical
patterns
in
a
transition
economy.
We
introduced
a
dynamic
perspective
into
the
analysis
by
applying
multivariate
wavelet
analysis.
The
wavelet
covariance
and
wavelet
correlation
were
defined
and
applied
to
the
analysis
of
business
cycles
as
an
alternative
to
the
traditional
cross-spectrum
analysis.
The
main
findings
indicated
that
there
is
a
significant
business
cycle
component
in
aggregate
economic
activity
and
that
business
cycles
are
asymmetric
and
highly
synchronized
with
the
EU
cycle.
Additionally,
it
was
found
that
three
distinctive
periods
of
business
cycle
synchronization
exert
an
important
impact
on
the
properties
of
a
business
cycle.
Khondaker
Golam
Moazzem
and
Koichi
Fujita,
"The
Potato
Marketing
System
and
Its
Changes
in
Bangladesh:
From
the
Perspective
of
a
Village
Study
in
Comilla
District,"
pp.
63-94.
This
paper
analyzes
the
marketing
system
of
potato
in
Bangladesh,
especially
the
economic
relations
among
farmers,
traders,
and
cold
storage
owners
and
elucidates
the
structural
changes
in
the
rural
economy
through
a
village
study.
Investment
in
the
potato
market
is
capital-intensive
and
risky,
and
is
often
considered
to
be
vertically
linked.
The
present
study
shows
that
farmers
and
cold
storage
owners
do
not
invest
in
trading
because
of
lack
of
time
and
"skill"
to
deal
with
urban
traders.
Besides,
farmers
face
capital
constraints
and
the
amount
of
potatoes
produced
is
too
small
to
meet
the
demand
of
urban
areas.
Cold
storage
owners
are
confronted
with
increasing
competition,
which
forces
them
to
attempt
to
reach
the
storage
capacity.
Traders
invest
in
the
risky
potato-storage
business.
The
return
from
it
is
declining
but
still
high
due
to
the
"cheap"
credit
supply
from
the
cold
storage
owners.
There
is
no
tied
relation
among
the
market
agents
any
more.
Seema
Narayan
and
Paresh
Kumar
Narayan,
"Determinants
of
Demand
for
Fiji's
Exports:
An
Empirical
Investigation,"
pp.
95-112.
Fiji
is
no
exception
to
the
rule
that
exports
are
an
important
source
of
growth
and
development.
In
this
light,
it
is
important
to
know
the
determinants
of
exports.
However,
there
is
no
empirical
study
on
Fiji's
export
demand.
This
paper
uses
the
modern
econometric
techniques---in
particular,
the
autoregressive
distributed
lag
approach
to
cointegration---to
investigate
whether
the
standard
export
demand
variables,
viz.,
trading
partner
income,
export
price,
and
competitor
price,
have
a
long-run
cointegration
relationship
with
Fiji's
real
exports
for
the
period
1970
to
1999.
In
addition,
the
long-run
results
are
also
estimated
by
using
the
dynamic
ordinary
least
squares
and
the
fully
modified
ordinary
least
squares.
The
empirical
results
indicate
the
existence
of
a
cointegration
relationship
among
the
variables.
The
long-run
foreign
income,
own-price,
and
cross-price
elasticities
are
found
to
be
0.7
to
0.8,
-1.3
to
-1.5,
and
2.1
to
2.2,
respectively.