Resource abundance and regional development in China:

"Over the past several decades, China has made tremendous progress in market integration and infrastructure development. Demand for natural resources has increased from the booming coastal economies, causing the terms of trade to favor the resource sector, which is predominantly based in the interior regions of the country. However, the gap in economic development level between the coastal and inland regions has widened significantly. In this paper, using a panel data set at the provincial level, we show that Chinese provinces with abundant resources perform worse than their resource-poor counterparts in terms of per capita consumption growth. This trend that resource-poor areas are better off than resource-rich areas is particularly prominent in rural areas. Because of the institutional arrangements regarding property rights of natural resources, most gains from the resource boom have been captured either by the government or state owned enterprises. Thus, the windfall of natural resources has more to do with government consumption than household consumption. Moreover, in resource-rich areas, greater revenues accrued from natural resources bid up the price of non-tradable goods and hurt the competitiveness of the local economy." from Authors' AbstractRegional inequality, Resource curse, Dutch disease, Property rights, Rural-urban linkages,

Food as the basis for development and security: A strategy for Yemen

Yemen has been facing severe development challenges in recent years, but rapidly depleting oil and water resources combined with large population increases and a lack of job-creating growth are making a difficult situation even more complicated. In order to provide opportunities for Yemenis to escape the current situation of widespread poverty and food insecurity, the Government of the Republic of Yemen, under the leadership of the Ministry of Planning and International Cooperation, has developed a strategy to help all Yemeni people gain access to sufficient and nutritious foods in order to live active, productive, and healthy lives. The main objectives of the National Food Security Strategy, developed with the support of the International Food Policy Research Institute, are to (1) cut food insecurity by one-third by 2015, (2) reach moderate food security levels—meaning 90 percent of people have enough to eat year-round—by 2020, and (3) reduce child malnutrition by at least one percentage point per year. As a contribution to this process, the authors of this paper identify seven priority actions to help achieve these goals. 1. Leverage the fuel-subsidy reform process to promote food security. 2. Improve the business climate to foster pro-food-secure private investments in promising sectors. 3. Use qat reduction policies to enhance agricultural development. 4. Strengthen food security risk-management practices. 5. Implement the water-sector strategy decisively. 6. Target public investment to the food insecure more accurately and improve service provision, especially in rural areas. 7. Launch high-level awareness campaigns for family planning, healthy nutrition, and women's empowerment. The government, civil society groups, and international partners need to quickly, decisively, and jointly implement these seven actions in order to fulfill the strategic goals. The implementation process is likely to be most effective if conducted in a transparent and inclusive manner with effective follow-up and appropriate monitoring and evaluation mechanisms.food security, Poverty, Economic development,

Outsourcing CO2 within China

Recent studies have shown that the high standard of living enjoyed by people in the richest countries often comes at the expense of CO2 emissions produced with technologies of low efficiency in less affluent, developing countries. Less apparent is that this relationship between developed and developing can exist within a single country’s borders, with rich regions consuming and exporting high-value goods and services that depend upon production of low-cost and emission-intensive goods and services from poorer regions in the same country. As the world’s largest emitter of CO2, China is a prominent and important example, struggling to balance rapid economic growth and environmental sustainability across provinces that are in very different stages of development. In this study, we track CO2 emissions embodied in products traded among Chinese provinces and internationally. We find that 57% of China’s emissions are related to goods that are consumed outside of the province where they are produced. For instance, up to 80% of the emissions related to goods consumed in the highly developed coastal provinces are imported from less developed provinces in central and western China where many low–value-added but high–carbon-intensive goods are produced. Without policy attention to this sort of interprovincial carbon leakage, the less developed provinces will struggle to meet their emissions intensity targets, whereas the more developed provinces might achieve their own targets by further outsourcing. Consumption-based accounting of emissions can thus inform effective and equitable climate policy within China

TRADE-OFFS BETWEEN SEVERANCE TAX REVENUES AND COAL MINING EMPLOYMENT

A severance tax can provide local jurisdictions with additional revenues to finance economic development, yet the imposition of a tax may create coal industry employment losses. This research analyzes this issue by examining the demand for Pennsylvania steam coal, providing estimates of the unconditional own-price elasticities of demand for coal in each of two demand regions. These estimates in conjunction with labor/output coefficient estimates are used to determine the extent to which coal employment in a region already witnessing slow mining industry growth will be negatively affected.Labor and Human Capital, Public Economics,

"Institutions and the Impact of Government Spending on Growth"

This paper reports the results of a study of the impact of government expenditures on economic growth, emphasizing how government effectiveness in developing nations influences the productivity of government spending. The effects of categories of government spending on growth are also examined. No significant positive effects are found for defense, education and health variables. Consumption expenditures have negative growth effects in developed and developing nations, with a more detrimental impact in developing nations with ineffective governments. Developing nations with ineffective governments benefit from capital expenditures. To stimulate growth, developing nations should limit their governments’ consumption spending and invest in infrastructure.Government spending, Institutional Quality, Economic Growth

Analysis of Energy Supply and Usage in the Iowa Economy

This report addresses the needs of state policymakers to understand the implications to the state’s economy from current levels of energy supply imports. Historical energy consumption patterns for the state and the role of energy in the performance of the Iowa economy are reviewed using current data. Economic modeling techniques are then used to analyze the linkages of these energy sectors, forward and backwards, with the rest of the economy. Information on the importance of energy to various economic activities and the share of energy expenditure that goes to in-state vs. out-of-state sources, including the energy distribution functions, is also provided. The objective of this report is to review the information on the quantities of energy consumed and dollars spent in Iowa and evaluate the share of these energy dollars that are leaving the state.

Testing for Market Power under the Two-Price System in the U.S. Copper Industry

Before 1978, most of the U.S. domestic copper production and an important fraction of the imports were traded at a price set by the major U.S. producers. Simultaneously, the rest of the world was trading copper at prices determined in auction markets. This two-price system ended in 1978, when the largest U.S. producers began using the Comex price of refined copper as a benchmark for setting their prices. Using this regime shift I test empirically the competitive behavior of the US copper industry before 1978. The results show that copper prices were close to the ones predicted by a competitive model of the industry.Copper Industry, Market Power

Sectorial Border Effects in the European Single Market: an Explanation through Industrial Concentration

The purpose of this paper is to explain the relation between the Border Effect and industrial concentration. This is achieved by founding this relation on the Home Market Effect and testing the robustness of this foundation through an application to the European Single Market. A sectorial Gravity Equation is estimated using different econometric estimators, in particular we discuss a recently suggested technique for the estimation of log-linear CES models. Overall, our findings suggest a steady relation between the Border Effect and industrial concentration. Besides, the analysis of industrial concentration through a synthetic index provides us with valuable insights into the structure of the European industry. JEL Classification: F10, F12, F15.Border Effect, European Single Market, Home Market Effect, Industrial Concentration, Trade