The Developing Economies

Volume 43, Number 4 (December 2005)

■ The Developing Economies Volume 43, Number 4 (December 2005)
■ B5
■ 105pp
■ December 2005

For further information and to subscribe, visit WILEY-BLACKWELL
PDF files can be viewed for articles that were published by 2005.


Union Effect on the Use of Non-regular Labor in the Republic of Korea / Byoung-Hoon Lee, Dong-Bae Kim, and Joonmo Cho

Export-Led Growth Hypothesis: Further Econometric Evidence from South Asia / Nasim Shah Shirazi and Turkhan Ali Abdul Manap

Book Reviews


Byoung-Hoon Lee, Dong-Bae Kim, and Joonmo Cho, "Union Effect on the Use of Non-regular Labor in the Republic of Korea," pp. 425-49. (Abstract)

Our paper aims at analyzing the union effect on the externalization of employment relations, focusing on how labor unions affect management's strategic use of non-regular labor within the Korean context of industrial relations. Our study presents several interesting implications. Firstly, the unions' motivator role for managerial use of non-regular labor is more evident than its constrainer role. Secondly, union power exerts a "U-type" impact on the use of indirect non-regular labor, while affecting directly employed non-regular labor in a positive linear way. Thirdly, labor unions in large establishments are more active and influential in representing their members' interests than their counterparts in small establishments with limited financial resources. In particular, the interactive function of the union's power and union leaders' attitudinal inclinations is found to be significant in the negative direction among large establishments.

Keywords: non-regular labor, management's strategic use, union power, union leaders' attitudinal inclinations

JEL classification: J5


Karine Chapelle and Patrick Plane, "Productive Efficiency in the Ivorian Manufacturing Sector: An Exploratory Study Using a Data Envelopment Analysis Approach," pp. 450-71.

The African industrial structure is characterized by firm-size heterogeneity with the coexistence of small, if not micro, enterprises in the informal sector and large formal organizations operating with modern technology. In this paper, using the Data Envelopment Analysis production frontier methodology, we investigate the technical efficiency of Ivorian manufacturing firms in four sectors of economic activity: textiles and garments, metal products, food processing, and wood and furniture. Efficiency scores are adjusted to take into account the impact of the external operating environment. These scores are then broken down into three elements: the purely managerial effect, the impact of the scale of production, and a technological effect capturing the potential gain that could result from the adoption of modern technology by small informal organizations. Not only formal activities prove to be more efficient in scaling their production but also, they greatly benefit from their modern technology.

Keywords: productivity, manufacturing sector, Cote d'Ivoire, technical efficiency, nonparametric frontier

JEL classification: D21, D24, L23, L25, O12


Nasim Shah Shirazi and Turkhan Ali Abdul Manap, "Export-Led Growth Hypothesis: Further Econometric Evidence from South Asia," pp. 472-88.

This paper examines the export-led growth (ELG) hypothesis for five South Asian countries through cointegration and multivariate Granger causality tests. Strong support for a long-run relationship among exports, imports, and real output for all the countries except Sri Lanka were found. Feedback effects between exports and GDP for Bangladesh and Nepal and unidirectional causality from exports to output in the case of Pakistan were found. No causality between these variables was found for Sri Lanka and India, although for India GDP and exports did induce imports. A feedback effect between imports and GDP was also documented for Pakistan, Bangladesh, and Nepal, as well as unidirectional causality from imports to output growth for Sri Lanka. These and other findings are discussed from the standpoint of the export-led growth hypothesis.

Keywords: Export-led growth hypothesis, multivariate Granger causality test, VAR model, economic growth in South Asian countries

JEL classification: F43, O41, O57


Fujio Hara, "The North Kalimantan Communist Party and the People's Republic of China," pp. 489-513.

In this article, the author offers a detailed analysis of the history of the North Kalimantan Communist Party (NKCP), a political organization whose foundation date itself has been thus far ambiguous, relying mainly on the party's own documents. The relationships between the Brunei Uprising and the armed struggle in Sarawak are also referred to. Though the Brunei Uprising of 1962 waged by the Partai Rakyat Brunei (People's Party of Brunei) was soon followed by armed struggle in Sarawak, their relations have so far not been adequately analyzed. The author also examines the decisive roles played by Wen Ming Chyuan, Chairman of the NKCP, and the People's Republic of China, which supported the NKCP for the entire period following its inauguration.