FIAS Scientific Report 2011

In the year 2010 the Frankfurt Institute for Advanced Studies has successfully continued to follow its agenda to pursue theoretical research in the natural sciences. As stipulated in its charter, FIAS closely collaborates with extramural research institutions, like the Max Planck Institute for Brain Research in Frankfurt and the GSI Helmholtz Center for Heavy Ion Research, Darmstadt and with research groups at the science departments of Goethe University. The institute also engages in the training of young researchers and the education of doctoral students. This Annual Report documents how these goals have been pursued in the year 2010. Notable events in the scientific life of the Institute will be presented, e.g., teaching activities in the framework of the Frankfurt International Graduate School for Science (FIGSS), colloquium schedules, conferences organized by FIAS, and a full bibliography of publications by authors affiliated with FIAS. The main part of the Report consists of short one-page summaries describing the scientific progress reached in individual research projects in the year 2010..

Indian retailing entrepreneurs. An analysis of migrant entrepreneurship in the Spanish market for retail payment service

Indian migrants have become one of the leading groups of retail entrepreneurs in Spain in payment services. We have found that 310 Indian entrepreneurs are agents of payment institutions in Spain, and that they have a strong preference for Spain’s Mediterranean regions: 256, or 82% of them are b..

Local and Personal Networks in Employment and the Development of Labor Markets: Evidence from the Cut Flower Industry in Ethiopia

経済学 / EconomicsWe examine the roles of local and personal networks in the employment process and the emergence and development of the labor market in Ethiopia’s growing cut flower industry. Using primary survey data of 320 workers randomly sampled from all 64 farms, we find that workers who were recruited informally using the social ties were paid less than the formally-recruited workers at hiring. However, these workers quickly increased their productivity, and the effect of social ties on wages disappeared over time. Further, we find that the development of labor market for this newly-emerged industry took place particularly within the industrial clusters.JEL Classification Codes: O15, Q12, J33http://www.grips.ac.jp/list/jp/facultyinfo/matsumoto_tomoya

The Maize Farm-Market Price Spread in Kenya and Uganda

経済学 / EconomicsIn this chapter, we analyze the farm-market price spreads of maize in Kenya and Uganda to examine how agricultural sectors are integrated with local markets. The farm-market price spread is calculated by subtracting the farm-gate price from the market price at the nearest maize market. We find that the farm-market price spread of maize is about 15 and 33 percent of the market price in Kenya and Uganda, respectively. In both countries, the price spread increases by 2 percentage points for each additional driving hour away from the nearest maize market. While the former finding suggests that the overall marketing costs are lower in Kenya than in Uganda, the latter finding indicates that reductions in transportation costs will increase the farmer prices of maize in both countries

Fertilizer Policies, Price, and Application in East Africa

経済学 / EconomicsIn this chapter, we investigate the determinants of inorganic fertilizer use on major cereal crops in Kenya, Ethiopia, and Uganda. By using panel data in the three countries, we estimate the determinants of the fertilizer price and application at the household level and evaluate the fertilizer policies in each country. The determinants of the DAP price and application in Kenya can be mostly explained by market forces and agro-ecological factors, suggesting that market-based policies would be effective. In Ethiopia, on the other hand, the estimation results indicate that policy related factors determine the fertilizer price and application. Although the subsidy program in Ethiopia may contribute to poverty alleviation, technical returns from such programs could be low. Uganda should learn from the experience from these two neighboring countries

The Impacts of Fertilizer Credit on Crop Production and Income in Ethiopia

経済学 / EconomicsIn this chapter, we evaluate the impact of fertilizer credit on crop choice, crop yield, and income using two-year panel data of 420 households in rural Ethiopia. The fertilizer credit is found to increase input application for crop production. As a consequence, it has a substantial impact on the yield of teff. We also find that the impact on net crop income per cultivated area and also on per capita income is marginal because of the low profitability due to the low output price and high input cost of agricultural production.http://www.grips.ac.jp/list/jp/facultyinfo/matsumoto_tomoya

An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh

経済学 / EconomicsThe export-oriented garment industry in Bangladesh has grown rapidly for the last three decades and now ranks among the largest garment exporters in the world. While its　early success is attributed to the initial technology transfer from South Korea, such a one-time infusion of knowledge alone is insufficient to explain the sustained growth for three decades. This paper uses primary data collected from knitwear manufacturers and garment traders to explore the process of the continuous learning of advanced skills and know-how. It finds, among other things, that the high profitability of garment manufacturing due to the initial infusion of specific human capital attracted a number of highly educated entrepreneurs to the industry, that the division of labor between manufacturers and traders has facilitated the expansion of the industry, and that enterprise growth has lasted long because of the continuous learning from abroad by the highly educated entrepreneurs.http://www.grips.ac.jp/list/jp/facultyinfo/sonobe_tetsushi