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Towards Market Integration in an Enlarged EU: The Choice of Regional Policy in the Accession Countries
-- Rolf Bergs
This paper addresses the specific relationship between EU market integration and the choice of regional policy in the Accession Countries. The necessary process of stabilizing and adjusting industrial structures in order to withstand increasing competitive pressure within an enlarged European Monetary Union raises the question whether regional policy ought to support backward regions in the CEECs or to primarily support the national growth poles. The findings suggest a more growth oriented regional policy, in contrast to the traditional policies of supporting interregional convergence.
© 2004 The IUP . This Paper was presented at the international conference on "Regional Transitions: European Regions and the Challenges of Development, Integration and Enlargement", convened by the Regional Studies Association at the Faculty of Economics, University of Gdansk, 15-18 September 2001. All Rights Reserved.
FDI and Technology - Intensive Exports in India
-- Pravakar Sahoo
Foreign Direct Investment (FDI) has contributed in a big way in improving export competitiveness and volume of exports particularly technology intensive manufacturing exports in China and Singapore. India has also made earnest efforts in recent years to sell itself as an attractive destination for FDI not only to acquire advanced technology but also to enhance its export potential and export competitiveness with emphasis on technology intensive exports. The note highlights the fact that by emulating the policies followed by China and Singapore and also with the right mix of domestic policies for FDI by the government, India can substantially enhance its export competitiveness in the international market. Further, the cointegration and causality analysis with an Error Correction Model (ECM) reveals that there exists a bi-directional causality indicating a positive relationship between FDI and manufacturing exports, in both long- run as well as in short-run, in India.
© 2004 IUP. All Rights Reserved.
Decentralization and Economic Development: Cross-country Experience with Special Reference to Sri Lanka
-- Nimal Herath
Economists argue that decentralization is desirable to enhance growth and development. There is a big demand for decentralization in developing countries and economies in transition. In response to the civil crises aroused in 1983 and afterwards, Sri Lanka introduced a decentralized system of government in 1987 with one objective of achieving balanced regional development. Thus, the relationship between the degree of decentralization and economic development needs to be analyzed. Some empirical studies in respect of developing countries based on quantitative data show that there is no positive relationship between economic growth and the degree of decentralization. This finding is consistent with the views of some other researchers and the theory of clubs. However, these findings are of little importance for the countries where there is a demand for the decentralized systems and such a situation ought to be analyzed in the light of cost benefit analysis. In Sri Lanka, the degree of decentralization is very low compared to other countries. There is a huge imbalance among regions in Sri Lanka. This may be a cause for rejecting Provincial Councils by minorities as a decentralized system. Policy makers should correct the imbalances in regional development to restore peace and order in the country.
© 2004 IUP. All Rights Reserved.
Digital Economy - Prospects for Developing Countries
-- Rukhsana Kalim and Suleman Aziz Lodhi
Globally Networked businesses are prominent features of Globalization; the new era is redefining trade routes based on "digital integration" of trading partners. A map that is not based on traditional factor like physical proximity of the trading countries but one that is dependent on business process synchronization and digital integration of the trading partners. The paper discusses the transformations that are taking place in business model and its subsequent influence on employment and job nature. Particularly in context with increased usage of Information and Communication Technology (ICT) across the globe. The primary objective is to comprehend the prospects of new job environment/opportunities that could be created in the developing countries by Globalization. The study suggests that new category of jobs potential does exist for developing countries in the era of digital economy. There are benefits from ICT development and prospective jobs can be gained only if developing countries facilitate the pre-requisite of the digital economy such as the development of ICT skills, improved quality of services, and promotion of knowledge conducive environment in the economy.
© 2004 IUP. All Rights Reserved.
What Determines Current Account Deficits? - An Empirical Exercise for India
-- G Ramakrishna
The main objective of this paper is to verify the determinants of India's current account deficits using an econometric model with globalization as one of the variables. An effort is also made to present the Current Account experience of India during the period, 1950-51 to 2000-01. The evidence suggests that along with real effective exchange rate and fiscal consolidation, globalization has significant impact in reducing current account deficits in India.
© 2004 IUP. All Rights Reserved.
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