The Inverse Relation between Saving and Aid: An Alternative Explanation

A persuasive theoretical justification for extending foreign assistance to developing countries was provided by the now famous ¡®two gap¡¯ theory. It proclaimed that these countries might not in general be able to achieve a target rate of growth because of persistent balance of payments problems and a paucity of investable funds. Both these problems could be dealt with simultaneously by an injection of resources from overseas in the form of foreign aid. An implication of the two gap theory was that foreign aid would be complementary to domestic saving effort: it will raise investment by providing additional resources, and also increase saving by raising the level of income through the multiplier process. However, a number of studies have found that instead of supplementing domestic saving, foreign aid has actually supplanted it in many countries. One explanation, which has attracted some attention, is that by making resources easily available, foreign aid permitted a relaxation in saving effort and encouraged an increase in consumption. This paper takes the view that the observed inverse relationship between foreign aid and domestic resource mobilization could be also explained in terms of an entrepreneurial constraint. Many developing countries like Bangladesh suffer from an acute shortage of entrepreneurial skill. Given the existing stock of entrepreneurial skill, these nations are unable to invest any more than a small proportion of their income. Injection of foreign material and technical aid is, therefore, unlikely to be fully reflected in an increase in investment; part of it will actually replace domestic private investment. This paper develops a theoretical framework to explain this interaction and applies cointegration analysis to test it with time series data of Bangladesh.

COMPETITIVE BEHAVIOR IN THE FOOD RETAILING INDUSTRY

We develop a flexible model to examine competitive conditions in the food retailing industry based on the Box-Cox transformation of the demand and industry equilibrium conditions. The impact of key technological and market developments on shifts in the competitive index is examined. Adoption of optical scanning technology was positively related to the market power index but the index was stable and consistent with competitive conditions over the 1982-1992 period.market power, food retailing, Box-Cox model, technological innovations, Agribusiness, Industrial Organization,

Skew-varicose instability in two-dimensional generalized Swift-Hohenberg equations

We apply analytical and numerical methods to study the linear stability of stripe patterns in two generalizations of the two-dimensional Swift-Hohenberg equation that include coupling to a mean flow. A projection operator is included in our models to allow exact stripe solutions. In the generalized models, stripes become unstable to the skew-varicose, oscillatory skew-varicose, and cross-roll instabilities, in addition to the usual Eckhaus and zigzag instabilities. We analytically derive stability boundaries for the skew-varicose instability in various cases, including several asymptotic limits. We also use numerical techniques to determine eigenvalues and hence stability boundaries of other instabilities. We extend our analysis to both stress-free and no-slip boundary conditions and we note a crossover from the behavior characteristic of no-slip to that of stress-free boundaries as the coupling to the mean flow increases or as the Prandtl number decreases. Close to the critical value of the bifurcation parameter, the skew-varicose instability has the same curvature as the Eckhaus instability provided the coupling to the mean flow is greater than a critical value. The region of stable stripes is completely eliminated by the cross-roll instability for large coupling to the mean flow

COMPETITIVE BEHAVIOR IN THE FOOD RETAILING INDUSTRY

We develop a flexible model to examine competitive conditions in the food retailing industry based on the Box-Cox transformation of the demand and industry equilibrium conditions. The impact of key technological and market developments on shifts in the competitive index is examined. Adoption of optical scanning technology was positively related to the market power index but the index was stable and consistent with competitive conditions over the 1982-1992 period

Exchange rate depreciation and exports: the case of Singapore revisited

This article revisits the weak relationship between exchange rate depreciation and exports for Singapore, using a bivariate generalized autoregressive conditional heteroscedasticity in mean model that simultaneously estimates time-varying risk. The evidence shows that depreciation does not significantly improve exports, but that exchange rate risk significantly impedes exports. In sum, Singaporean policy makers can better promote export growth by stabilizing the exchange rate rather than generating its depreciation.

Das PC-Einstiegspaket - DAISY (Datenverarbeitungs- und Informationssystem) Benutzerhandbuch

With disquette. Mit DisketteCopy held by FIZ Karlsruhe / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekSIGLEDEGerman

Estimating money demand functions for South Asian countries

Money demand function, Cash-in-advance model, Panel cointegration, Panel Granger causality, C22, C23, E41, E52, P52,