Arusha Cooray

Gender‐Specific Human Capital, Openness and Growth: Exploring the Linkages for South Asia

Using data covering 1970–2008 for South Asia, this study investigates the influence of human capital disaggregated by gender, on economic growth. We use an extended version of the Solow growth model with per capita gross domestic product (GDP) a function of the key variables, viz. physical capital accumulation, human capital accumulation, trade openness and capital flows, fiscal policy and financial development. The key contribution of this study is to show that openness when interacted with the human capital stock disaggregated by gender, has differential impacts on economic growth. While the positive impact of male secondary schooling captures the direct skill effect relative to primary schooling, the marginal influence of female primary/secondary schooling fails to show a positive impact on growth at higher levels of openness. An implication stemming from this study is that educational opportunities for females at the secondary level should be increased for South Asia.

Globalization and Female Labor Force Participation in Developing Countries: An Empirical (Re-)Assessment

We investigate the impact of foreign direct investment (FDI) and trade, as two measures of globalization, on female labor force participation rate in a sample of 80 developing countries over the time period 1980–2005. Contrary to the mainstream view in the literature, which is mainly based on country-case studies or simple cross-country variation, we find that both, FDI and trade have a generally negative impact on female labor force participation. While the impact is of negligible economic size, it is stronger for younger cohorts, possibly reflecting a higher return to education in open economies. We further find a large degree of cross-regional heterogeneity and that the effect of globalization on female labor force participation depends on the industrial structure, with more positive effects in economies with a higher share of industry in value added. We can thereby explain why country studies find other effects and question the generalization of their results into an overarching globalization tale concerning female labor force participation.

Transparency Pays? Evaluating the Effects of the Freedom of Information Laws on Perceived Government Corruption

Abstract About 90 countries have adopted Freedom of Information (FOI) laws with the objective of facilitating citizens’ right to access information on government activities expeditiously. It is argued that FOI laws increase transparency and fix accountability of the government. We provide quantitative evidence on the impact of FOI laws on perceived government corruption. Using panel data for 132 countries over the 1990–2011 period, we find that adopting FOI laws after controlling for self-section bias, is associated with an increase in perceived government corruption driven by an increase in detection of corrupt acts. In fact, FOI laws appear to increase the perception of government corruption if combined with a higher degree of media freedom, presence of NGO activism and political competition. However, the perception of government corruption tends to decline with the duration of FOI law adoption. These findings are robust to controlling for endogeneity using instrumental variables, alternative samples and estimation methods.

Who Remits? An Examination of Emigration by Education Level and Gender

type=main xml:id=twec12154-abs-0001> Employing data on emigration rates by education level, this study finds that primary and secondary qualified emigrants contribute positively and significantly to remittances. Tertiary qualified emigrants, however, do not contribute significantly to remittances. Remittances in turn contribute significantly to home country income. There is some evidence of both an altruistic and self-interested motive to remit. Gender-disaggregated results suggest that females remit more than males and are more altruistic.

Do Low-Skilled Migrants Contribute More to Home Country Income? Evidence from South Asia

Abstract A recursive system is employed to investigate the indirect effect of out-migration on gross domestic product (GDP) through remittances in South Asia, namely Bangladesh, India, Nepal, Pakistan, and Sri Lanka. Out-migration is further disaggregated by skill level and country of destination (Middle East and other), and their effects on GDP through remittances are examined. The results suggest that migration and remittances have an important significant effect on the GDP of the countries under study. Of the skill categories, the unskilled category has the largest robust indirect effect on GDP. The effects of migration on GDP by country of destination suggest that migration to the Middle East has a robust and significant impact on GDP. There is some evidence of a combination between the altruistic and self-interested motives of migrants’ to remit.

Convergence in sovereign debt ratios across heavily indebted EU countries: evidence from club convergence

We study the convergence of sovereign debt accumulation in five European Monetary Union (EMU) countries using quarterly data from June 2009 to June 2013, with a focus on debt ratio convergence following the 2009 sovereign debt crisis and the adoption of fiscal consolidation programmes. We test the Phillips and Sul (2007) club convergence hypothesis. We find the evidence of a lack of debt convergence for Greece and Portugal. Our results support the view that there is not a uniform austerity prescription for all, especially, without emphasizing friendly growth policies, which makes these countries more prone to investors’ sentiments.

Does a gender disparity exist in academic rank? Evidence from an Australian university

Employing a unique administrative data set on academics from the University of Wollongong (UOW), we investigate if women are under-represented in academic rank, taking into account information on personal characteristics, job characteristics, education and productivity. The results suggest that males have a significant advantage in rank attainment. The possession of a PhD, the number of years of experience and the number of journal articles, books, book chapters, competitive grants and ERA A* ranked articles appear to be important for academic rank attainment. A Blinder–Oaxaca decomposition test indicates that both supply side and demand side factors play a role; however, there is greater support for the endowments argument. Interviews were conducted in an attempt to explain the results. Interviews showed that men were more career-driven compared to women.

Does the Size and Quality of the Government Explain the Size and Efficiency of the Financial Sector

This study examines the impact of two dimensions of the government, namely, size and quality, on two dimensions of the financial sector, size and efficiency, in a cross section of 71 economies. The study finds that while increased quality of the government as measured by governance and legal origin positively influence both financial sector size and efficiency, that the size of the government proxied by government expenditure and government ownership of banks, has a negative effect on financial sector efficiency, however, a positive impact on financial sector size, particularly in the low income economies.

Export performance of developing countries: Does landlockedness matter?

Landlockedness imposes additional costs on trade and reduces international competitiveness. This paper examines the determinants of export performance in developing countries, within a comparative perspective of landlocked developing countries (LLDCs) and non‐landlocked developing countries, by using a standard gravity modeling framework. The study covers data from 1995 to 2015. The results suggest that despite recent trade policy reforms, the overall export performance of LLDCs is lower than that of non‐landlocked developing countries due to the inherent additional trade costs associated with landlockedness. The conventional wisdom that export performance is aided by economic openness also applies to LLDCs, but distance‐related trade costs have a greater negative impact on exports from LLDCs than on other developing countries. The immediate trade policy challenge for LLDCs is therefore to create a more trade‐friendly environment by lowering tariffs, reforming exchange rates and entering into regional trade agreements.

Do Energy Prices Affect U.S. Investor Sentiment

ABSTRACT The current literature has examined the effect of investor sentiment on energy prices, but no study ever has explored the validity of the reverse question. Therefore, this article explore whether energy prices (i.e., crude oil and natural gas prices) affect U.S. investor sentiment, using the methodology of quantile regression. The empirical results document that controlling for a number of U.S. macroeconomic and financial factors, there exists a statistically significant association between oil and natural gas prices and investor sentiment. However, only natural gas prices appear to retain their statistical significance over the majority of quantiles. These findings received robust support under alternative measures of the investor sentiment index.