FDI, wage inequality and employment in emerging economies: recent evidence from Indian manufacturing

The increased integration of developing countries with the global economy has seen a remarkable increase in foreign capital over the years. While the increasing momentum of FDI capital in the manufacturing of the emerging economies has left several questions unanswered, we focus our discussion on the trends in employment and wage inequality in context of developing economies. The empirical evidence in this regard is drawn from the Indian manufacturing by using the recent firm level panel data. It draws attention to the determinants of wage rate and employment in Indian manufacturing vis-à-vis the foreign and the domestic affiliates during the period 2001-02 to 2007-08. While empirical evidence in regard to developing countries provides a mixture of results, our analysis broadly concludes that for the entire manufacturing and the domestic affiliates, capital intensity was the most dominant factor in determining the wage rate. On the other hand the high output per worker and foreign ownership played the most prominent role in determining the wage rate of the foreign affiliates during our study period. Similarly, it is observed that the employment performance of the firm is less in high capital intensive firms, whereas the size and the rate of profit of the entire manufacturing and its subgroups are observed positive and significant in determining the employment.; Employment; Wage; Panel data; Domestic Affiliates; Foreign Affiliates

Study of Approaches to Remove Show-Through and Bleed-Through in Document Images

The wok implemented describes a study of approaches to restore the nonlinear life mixture of images, which occurs when we scan or photograph and the back page shows through. We generally see this to occur mainly with old documents and low quality paper. With the presence of increased bleed-through,reading and deciphering the text becomes tedious. This project executes algorithms to reduce bleed-through distortion using techniques in digital image processing. We study the algorithm knowing the fact that in images the high frequency components are sparse and stronger on one side of the paper than on the other one. Bleed-through effect and show-through effect was removed in one time processing, with no iteration. Here the sources need not require to be independent or the mixture to be invariant.Hence it is suitable for separating mixtures such as those produced by bleed-through

TARIFF ELIMINATION UNDER THE TRANS-PACIFIC PARTNERSHIP AND ITS IMPACT ON INDONESIA’S TRADE BALANCE

Introduction: Indonesia has signed, and is in the process of signing, many bilateral and regional Free Trade Agreements (FTAs). Whether these trade agreements will benefit Indonesia on the economic front or not is still a matter for discussion. Background Problem: Signing TPP, raises many questions as to how this would affect the countries in Asian regions, including Indonesia. Novelty: Considering the criticism of CGE (Computer General Equilibrium) model, this paper uses the SMART simulation model, based on a partial equilibrium approach, to estimate the aggregate and commodity-level gains and losses for Indonesia with its partner countries during the post-tariff elimination period. Research Method: This study uses the World Bank’s World Integrated Trade Solution (WITS) Database. This database contains trade data for all the countries under a different nomenclature viz. at the two-digit, four-digit, and six-digit level. We use the HS-classified nomenclature at the six-digit level in order to estimate the impact of the removal of tariffs on Indonesia’s trade, i.e. both exports and imports. Findings: The finding reveals that if Indonesia does not take part in the Trans-Pacific Partnership Agreement, it will still have a trade surplus of $1.6 billion with the Trans-Pacific countries but joining the bloc would result in a trade deficit of$19 million. Joining the bloc would increase the imports from Japan, followed by the United States and Australia as against an increase in exports to the United States, followed by Malaysia and Vietnam. The post Trans-Pacific Partnership period will have many implications for Indonesia, it may face difficulties exporting to the member countries, even with an existing trade agreement, while in the long run the Trans-Pacific Partnership bloc could limit Indonesia’s trade prospects with these Pacific Rim countries and it may limit Indonesia influencing WTO outcomes. Conclusion: Trade agreements seem to have benefited Indonesia’s economy and its people in many ways over the years, even though it has an important cost for some people

FDI, wage inequality and employment in emerging economies: recent evidence from Indian manufacturing

The increased integration of developing countries with the global economy has seen a remarkable increase in foreign capital over the years. While the increasing momentum of FDI capital in the manufacturing of the emerging economies has left several questions unanswered, we focus our discussion on the trends in employment and wage inequality in context of developing economies. The empirical evidence in this regard is drawn from the Indian manufacturing by using the recent firm level panel data. It draws attention to the determinants of wage rate and employment in Indian manufacturing vis-à-vis the foreign and the domestic affiliates during the period 2001-02 to 2007-08. While empirical evidence in regard to developing countries provides a mixture of results, our analysis broadly concludes that for the entire manufacturing and the domestic affiliates, capital intensity was the most dominant factor in determining the wage rate. On the other hand the high output per worker and foreign ownership played the most prominent role in determining the wage rate of the foreign affiliates during our study period. Similarly, it is observed that the employment performance of the firm is less in high capital intensive firms, whereas the size and the rate of profit of the entire manufacturing and its subgroups are observed positive and significant in determining the employment

FDI, wage inequality and employment in emerging economies: recent evidence from Indian manufacturing

The increased integration of developing countries with the global economy has seen a remarkable increase in foreign capital over the years. While the increasing momentum of FDI capital in the manufacturing of the emerging economies has left several questions unanswered, we focus our discussion on the trends in employment and wage inequality in context of developing economies. The empirical evidence in this regard is drawn from the Indian manufacturing by using the recent firm level panel data. It draws attention to the determinants of wage rate and employment in Indian manufacturing vis-à-vis the foreign and the domestic affiliates during the period 2001-02 to 2007-08. While empirical evidence in regard to developing countries provides a mixture of results, our analysis broadly concludes that for the entire manufacturing and the domestic affiliates, capital intensity was the most dominant factor in determining the wage rate. On the other hand the high output per worker and foreign ownership played the most prominent role in determining the wage rate of the foreign affiliates during our study period. Similarly, it is observed that the employment performance of the firm is less in high capital intensive firms, whereas the size and the rate of profit of the entire manufacturing and its subgroups are observed positive and significant in determining the employment