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Bridging the Gender Gap: Empowering India’s Female Entrepreneurs

Mabruk Kabir's picture

A quiet revolution has been sweeping the Indian political landscape. Last year, the reservation (quota) for women in panchayats — rural local self-government — was increased to at least 50 percent, bringing women into the political fold in vast numbers.

However, economic empowerment may not have kept pace with political empowerment. When it comes to female labor force participation, gender disparities remain deeply entrenched. The 2012 World Economic Forum's Gender Gap Index ranked India 123rd out of 135 countries on economic participation and opportunity.

Voices of Youth: Toward a Green South Asia from India

Shruti Lakhtakia's picture

At the 9th South Asia Economics Students' Meet on Green Growth, participants shared their vision about South Asian cities of the future. These are their innovative ideas.

The creation and expansion of urban centers has been a hallmark of the development process. As per capita incomes in South Asia have increased, urbanization has expanded from 18% in the early 1970’s to 30% in 2010. This will continue to expand as people are drawn to cities for the opportunities to realize their aspirations.

These large urban communities, however, provide significant challenges, such as a high density, pollution and traffic congestion, all of which reduces the quality of life for its residents. By designing cities with the environment in mind, we will be able to reduce energy use and limit waste. Green growth in the cities of the future will minimize the ecological footprint and improve living standards

What will it take to make this dream a reality?

Get the Conditions Right for Remittances to Matter

Zahid Hussain's picture

Recent evidence suggests that remittances have a positive impact on economic growth. This post will examine evidence based on an international panel data set that captures the surge in migration and remittances observed during 2006-09. The dataset includes 70 countries spanning from 1990 to 2009. This to our knowledge is the most recent data set that has been used in empirical remittance work. The recent effort of countries to decrease money laundering, use of improved technology and decrease in transaction costs is leading to a decrease in the unofficial portion of remittances. There has also been a surge in migration and remittances in the last half of the past decade. Thus this dataset should more comprehensively capture the growth impact of remittances compared to previous studies. Different models used to calculate the impact of remittances on growth are detailed in the report titled Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth—Opportunities and Challenges, Volume II, Main Report, published in June 2012.

The impact of remittances on per capita GDP growth is economically significant

Like the Kumbh, Every Day

Onno Ruhl's picture

Kumbh Mela at the banks of Ganga,( photo by: Martje van der Heide)

When we got closer I saw that the bridge at the confluence was not a bridge:  It was a line stitched together from hundreds of little boats full of people.  Our own little boat went straight for it and docked at what looked like a slightly more important boat.  I then realized this was the place to take a dip…

How Remittances Grease the Wheels of Bangladesh’s Economy

Zahid Hussain's picture

What impact do remittances have on stimulating overall economic growth? Remittances can be used for consumption and investment which further stimulates demand for goods and services, as well as contribute to financial development. On the other hand, they can create dependence in recipients and cause real exchange-rate appreciation which adversely affects domestic production.

The answer is an empirical one which we can answer using available data. Our findings echo recent economic research which shows that remittances, even when not invested directly, can have an important multiplier effect.

In our study, we focused only on the magnitude of the impact of remittances on aggregate demand in Bangladesh and calculated the traditional Keynesian multiplier effect, that is how much income is generated from every remittance dollar, following the approach adopted by Nicholas Glytsos by estimating a consumption function, an investment function, and an imports function. To estimate the parameters we used data from the Bangladesh Bureau of Statistics national accounts covering the period 1981-2010. We ran simple Ordinary Least Squares regressions to estimate the structural parameters. Here is a summary of our results:

Global Supply Chain Barriers: The Lowest-Hanging Fruit?

Mabruk Kabir's picture

"Semiconductor Co." is a global microprocessor and chipset manufacturer, with production facilities, suppliers, and customers around the world. However, all markets are not created equal. Some customers are easier to reach than others. When it comes to exporting to India, for instance, its products are frequently held at customs for weeks, and sometimes even pilfered from warehouses monitored by customs.

According to the World Bank’s Doing Business report, it takes 32 days on average to complete trade-related procedures in South Asia, among the highest in the world. Nearly 70% of the time is spent on assembling and processing an odious number of documents.

Voices of Youth: Towards a Green South Asia from Pakistan

Kanza Azeemi's picture

At the 9th South Asia Economics Students' Meet on Green Growth, participants shared their vision about South Asian cities of the future. These are their innovative ideas.

South Asia, home to 1.3 billion people, houses some of the world's largest cities: Delhi, Dhaka, Kolkata, Karachi and Mumbai. As urbanization increases, the region will experience a hike in demand, consumption and production. Today, in Bhutan, 34% of the population still lives without electricity. With urbanization and development, carbon emissions from electricity generation and usage are bound to rise. Historically, it can be seen that the more developed a country, the greater its carbon emissions; USA's and Canada's drastic emission rates corroborate this. Although South Asia currently contributes much less to the carbon footprint than the more developed nations of the world, it is imperative to plan development so as to reduce its impact on environment.

What Drives Remittances of Bangladeshi Migrants?

Zahid Hussain's picture

Why do migrants send money back home? Distinguishing the different motives helps us understand the role these transfers play in influencing the behavior of households, and the policy implications of alternative motives can be very different.

I tried answering this question using micro survey data from Bangladesh on possible motivations, using a multivariate regression model.

The results were a little unexpected. Overall, the evidence contradicts the argument that remittance-receiving countries have little scope for policy intervention. The analysis shows that remittances are not driven exclusively by the need for family support but also by the migrants’ skill and education level and motivation to transfer their savings as investment in their home country. Thus, contrary to conventional wisdom, remittances play a vital role in not only supporting consumption but also in serving as an important source of investment funding. The extent to which remittances contribute to investment depends on the supportiveness of government policies and whether the economic environment is conducive to investment activity.

Surprisingly, none of the demand side variables—the existence of a surviving parent or spouse—seem to matter. Among the supply side variables, education and skill matter most.

Afghanistan’s First Open Data Dialogue Delivers

Gazbiah Rahaman's picture

When you think of Afghanistan, what thoughts come to mind—suicide attacks, insurgency, women wearing burkas, the Taliban, or probably, dusty dirt roads? These images, while still relevant in much of the country, often miss exciting development happening in another side of Afghanistan, the side where Afghans are beginning to engage in dialogues and exchanging ideas about data and development. Opening up data provides access and availability, universal participation and further enables the reuse of data in a transparent and innovative manner in the search for development solutions. Sounds nice, but what does this mean in the context of Afghanistan?

For Bangladesh, More Migrants Mean More Money

Zahid Hussain's picture

Remittances sent by migrant workers have emerged as a key driver of poverty reduction in many developing countries. Bangladesh has caught up with growing migration trends since the mid-70s when only 6,000 Bangladeshis were working abroad. Today, there are about 8 million. Migration has now become a major source of gainful employment for Bangladesh’s growing number of unemployed and under-employed labor force. The sharpest increase in the level of manpower exports occurred during 2006--2009. Remittances have grown at a rapid pace, particularly since 2004.

So, what are the key correlates of aggregate remittance inflows in Bangladesh? What does the data tell us about Bangladesh? Many researchers have used aggregate data to analyze the macro-economic factors affecting the behavior of remitters. For example, Barua et al (2007) show that income differentials between host and home country and devaluation of home country currency positively and high inflation rate in home country negatively affect workers’ remittances1. Hasan (2008) finds remittances respond positively to home interest rate and incomes in host countries2. Ordinary Least Squares estimation is frequently used to characterize the statistical relationships between aggregate remittance inflows and their proximate macro correlates.

The key finding is that a limited number of macroeconomic factors are important in predicting the behavior of aggregate remittances.

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