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Journal Articles
Publisher: Journals Gateway
Asian Development Review (2018) 35 (1): 133–154.
Published: 01 March 2018
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Computer and information technology is considered one of the most powerful engines of modern growth, but more empirical evidence is needed to quantify its impacts. This paper studies the role of computer and information technology in industrial restructuring by observing structural change in the manufacturing sector in the People's Republic of China using a large firm-level data set. Computer and information technology is found to boost changes in industrial structure substantially. This paper also identifies faster and higher-quality growth of firms as the underlying channel through which computer use can improve industrial structure. Firms using computers grow faster, spend more on research and development, and enjoy greater productivity.
Journal Articles
Publisher: Journals Gateway
Asian Development Review (2018) 35 (1): 155–174.
Published: 01 March 2018
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There is a significant amount of literature on the role of parental gender preferences in determining the level of education expenditure for children. In this study, I examine the effects of such preferences on parents’ education expenditure in Nepal. Using longitudinal data from three Nepal Living Standards Surveys, I apply several decomposition methods to determine the level of bias that parents display in spending on their children's education. I find that parents indeed spend more on boys than girls in both rural and urban areas in Nepal. I also find that this bias is reflected in the higher enrollment levels of boys than girls in private schools.
Journal Articles
Publisher: Journals Gateway
Asian Development Review (2018) 35 (1): 175–195.
Published: 01 March 2018
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This paper utilizes a countrywide process of county-to-city upgrading in the 1990s to identify whether extending the powers of urban local governments leads to better firm outcomes. The paper hypothesizes that since local leaders in newly promoted cities have an incentive to utilize their new administrative remit to maximize gross domestic product and employment, there should be improvements in economic outcomes. In fact, aggregate firm-level outcomes do not necessarily improve after county-to-city graduation. However, state-owned enterprises perform better after graduation, with increased access to credit through state-owned banks as a possible explanation. Importantly, newly promoted cities with high capacity generally produce better aggregate firm outcomes compared with newly promoted cities with low capacity. The conclusions are twofold. First, relaxing credit constraints for firms could lead to large increases in their operations and employment. Second, increasing local government's administrative remit is not enough to lead to better firm and economic outcomes; local capacity is of paramount importance.
Journal Articles
Publisher: Journals Gateway
Asian Development Review (2018) 35 (1): 196–222.
Published: 01 March 2018
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This paper identifies, quantifies, and assesses fiscal risks in Bangladesh. By performing sensitivity analysis and using stochastic simulations, it measures risks arising from shocks to gross domestic product growth, the exchange rate, commodity prices, and interest rates. It also analyzes specific fiscal and institutional risks, including those related to the pension system, issuance of guarantees, state-owned commercial banks, and external borrowing and debt management strategies. The paper finds that fiscal aggregates are particularly sensitive to shocks to commodity prices and the exchange rate. Other factors that could affect fiscal aggregates are the unfunded pension system and limited institutional capacity.