A Race to the Bottom in Labour Standards? An Empirical Investigation

Among the many concerns over globalization is that as nations compete for mobile firms, they will relax labour standards as a method of lowering costs and attracting investment. Using spatial estimation on panel data for 148 developing countries over 18 years, we find that the labour standards in one country are positively correlated with the labour standards elsewhere (i.e. a cut in labour standards in other countries reduces labour standards in the country in question). This interdependence is more evident in labour practices (i.e. enforcement) than in labour laws. Further, competition is most fierce in those countries with already low standards.FLabour Standards, Competition for FDI, Spatial Econometrics

Estimates of the level and growth effects of human capital in India

In the extended Solow growth model of Mankiw, Romer and Weil (1992) human capital has only permanent level and no growth effects. In the endogenous growth models human capital is a growth improving variable. Human capital may have both a permanent level and a permanent growth effect. We show, with data from India, that both the level and growth effects of human capital can be estimated with an extension to the Solow model.Solow model, Level and growth effects of human capital and India

Globalization and growth in the low Income African countries with the extreme bounds analysis

The relationship between globalization and economic growth, especially in the poorer developing countries, is controversial. Many previous studies have used single globalization indicators such as the ratio of exports plus imports to GDP. This paper uses a comprehensive measure of a globalization of Dreher (2006), which is based on measures of globalization of the economic, social and political sectors. Panel data estimates with data of 21 low income African countries show a small but significant positive permanent growth effects. The sensitivity of this growth effect is examined with the extreme bounds analysis (EBA). Contrary to the findings by Levine and Renelt (1992) that cross country growth relationships are fragile, the effects of globalization and some other determinants of the long run growth rate are found to be robust by EBA.Globalization, Economic growth, Solow model, Africa and Extreme bounds analysis.

A Race to the Bottom in Labour Standards? An Empirical Investigation

Among the many concerns over globalization is that as nations compete for mobile firms, they will relax labour standards as a method of lowering costs and attracting investment. Using spatial estimation on panel data for 148 developing countries over 18 years, we find that the labour standards in one country are positively correlated with the labour standards elsewhere (i.e. a cut in labour standards in other countries reduces labour standards in the country in question). This interdependence is more evident in labour practices (i.e. enforcement) than in labour laws. Further, competition is most fierce in those countries with already low standards.Labour Standards, Competition for FDI, Spatial Econometrics

Growth Effects of Globalization in the Low Income African Countries: A Systems GMM Panel Data Approach

The relationship between globalization and economic growth in the developing countries remains controversial. Liberals argue that globalization will lead to higher economic growth and prosperity. Skeptics contend the opposite, where globalization processes might lead to increased inequality and lower economic growth. Previous studies have examined this issue with single indicators such as trade openness or foreign direct investment (FDI) or aid etc. In this study we make use of a comprehensive measure of globalization developed by Dreher (2006), which measures globalization along three important dimensions viz., economic, political, and social fields to assess the pros and cons of globalization. Our panel data results with a systems based GMM (SGMM) method show a small but significant positive association between globalization and economic growth for a panel of 21 low income African countries for the period 1970 – 2005.: Globalization, Economic growth, Solow model, Africa

Growth Effects of a Comprehensive Measure of Globalization with Country Specific Time Series Data

Many studies have estimated the growth effects of globalization where globalization was measured with a few economic variables, ignoring its social and political dimensions. Recently Dreher (2006) has developed a comprehensive measure of globalization with several variables from the economic, political and social sectors. He showed, with the panel data methods, that globalization has positive growth effect implying that countries with higher globalization grow faster. We argue that five year average growth rates, used in many panel data studies, are inadequate proxies for the unobservable steady state growth rate (SSGR). Using the Dreher indices we extend the Solow (1956) model to derive country specific estimates of SSGRs for Singapore, Malaysia, Thailand, India and the Philippines. Our results show that countries with higher levels of globalization have higher SSGRs but the growth effects on SSGRs are smaller than in many studies.Globalization, Solow Model, Country Specific Steady State Growth Rates

Financial developments and the rate of growth of output: An alternative approach

This paper uses a new specification and approach to estimate the effects of financial developments on the steady state rate of growth of output in India, Malaysia, Korea, Thailand and the Philippines for the period 1970 to 2006. These growth effects, though small, are found to be significant except for the Philippines. The trend rate of growth of total factor productivity (TFP), which is due to the omitted but trended variables, is the highest for Malaysia and moderate for India and Thailand. However, TFP is insignificant or negative in the Philippines and Korea.Growth Rates. Financial developments, Solow Model, Country Specific Steady State

Analytical Study of an IOT-based Accident Detection and Information Management System

Accidents wreak havoc on victims, costing them valuable time and money. After thorough investigation, it has been shown that the majority of accidents result in fatalities as a result of poor communication with the relevant medical authorities and the ensuing dearth of prompt medical attention. Several sensor nodes are combined in a single system to forecast likely accident combinations. Lab view-based simulation was used to handlepossible conditions for an accident to happen. With the IoT Interface, theproposed design would enable a novel model in the vehicular communication system to recognize various accident situations and provide associated information to the needy. The proposed model would handle all potential combinations and comparative analyses from low to high end cars, as well as provide a strategy framework for future IoT enabled v2v communication networks

Estimates of the level and growth effects of human capital in India

In the extended Solow growth model of Mankiw, Romer and Weil (1992) human capital has only permanent level and no growth effects. In the endogenous growth models human capital is a growth improving variable. Human capital may have both a permanent level and a permanent growth effect. We show, with data from India, that both the level and growth effects of human capital can be estimated with an extension to the Solow model