Export structure and growth : a detailed analysis for Argentina

This paper examines recent changes in the structure of Argentine exports and the implications for future growth. The authors find that the current export structure of Argentina is not conducive to future growth because it is dominated by low-productivity goods that tend to be exported by low-income countries. The productivity content of Argentine exports has increased recently although, as of 2004, these changes have been relatively minor. The authors identify products with characteristics similar to those currently exported by Argentina and which are morelikely to foster growth because they would shift the structure of exports more the efficiency frontier. Those products include chemicals and primary products with some degree of value added, including partly processed meat, fish and grains. If economic growth is to be fostered by developing new export products and by increasing the value added of existing exports, there will be a need for sector-specific analysis to address possible market failures. The analysis should focus on issues such as the provision of public goods needed for production (including infrastructure, but also complex intangibles such as sector-specific legislation), possible impediments to effective coordination, sector-specific and economy wide externalities, or barriers to information. This last source of potential market failure is critical to a successful policy framework for exports and growth.Economic Theory&Research,Transport Economics Policy&Planning,Tax Law,Water and Industry,Agribusiness&Markets

Innovation, Research and Development Investment and Productivity in Colombian Firms

This paper attempts to establish a formal relationship between innovation and productivity using Colombian firm-level data. It is found that the production of goods and services new to the firm and to the domestic market enhances firms` sales per worker, and innovation that results in introducing new goods and services to the international market boosts both sales and Total Factor Productivity (TFP). Innovation in processes likewise improves firms` productivity and sales. Finally, innovation in marketing and management increases sales per worker and enhances TFP when investment is made in Research and Development. The paper also studies the factors behind firms` decision to invest in innovation, the intensity of such investment and the returns to investment in innovation.

Impact of Reservations of Panchayat Pradhans on Targeting in West Bengal

The effect of randomized reservations of Pradhan (chief executive) positions in West Bengal local governments (panchayats) for women and members of Scheduled Caste/Scheduled Tribes (SC/ST) following the 73rd and 74th Constitutional Amendments of 1993 are examined. Sample consists of 89 villages spread throughout 15 rural districts of West Bengal, in which we examine effects on targeting to poor and SC/ST households of IRDP credit, agricultural extension programs, employment programs, and budgetary policies. The reservations were associated with improved targeting of the IRDP program, but poorer targeting of employment programs, and lower local revenues raised by the panchayats. Aggregating pecuniary effects of the IRDP and employment programs, the net effect of the reservations appears to have worsened targeting to SC/ST and landless households. The effects of reservations on targeting often became more adverse in villages with greater land inequality and poverty among SC/ST groups. [BREAD Working Paper No. 104, November 2005]IRDP, credit, villages, employmeny programs, land inequality, SC/ST, panchayat, landless, poverty, revenues, reservations, affirmative action, women, targeting, local governments, AGRICULTURAL,

Impact of Political Reservations in West Bengal Local Governments on Anti-Poverty Targeting

Political reservation for disadvantaged groups is believed to be a way of improving targeting of publicly provided goods to those groups. This paper examines the impact of political reservations for women and scheduled castes and tribe (SC/ST) candidates in local governments in West Bengal, India between 1998-2004 on targeting to landless, low caste and female-headed households. It differs from existing literature by differences in geographic coverage, time span, and use of self-reported household benefits across a broad range of programs. Reservation of chief executive (pradhan) positions in local government for women was associated with a significant worsening of within-village targeting to SC/ST households, and no improvement on any other dimension of targeting. Reservation of pradhan posts for SC/ST members was associated with a significant increase in benefits received by the village as a whole, improvement in intra-village targeting to female-headed households, and to the group (SC or ST) of the pradhan. The effects of women's reservations are not consistent with simple citizen-candidate or elite capture models of electoral politics. They are consistent with a more complex hypothesis of capture-cum-clientelism which is weakened by election of politically inexperienced women to reserved pradhan posts.