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International Comparisons of Efficiency in Agricultural Production
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Year: 1990 Publisher: Paris : OECD Publishing,

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This paper deals with the problem of definition and measurement of the efficiency of agricultural production. Using an agronomical simulation model, it makes comparisons of wheat, maize, sunflower and soybean production in different regions of France, Argentina and the United States. The ability of a country to defend its position as an exporter of a specific agricultural product or to maintain local production of a product in deficit, facing the competition of imports, is shown to depend on three factors: 1) the efficiency of agricultural production; 2) the efficiency of an internal transportation, stockage and trading system; and 3) the level of protection for agriculture introduced by different national policies. The first two factors are usually considered as defining the comparative advantage of a country on the considered product. In the international context of today, it is important for many developing countries to know their relative position in terms of ...

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Development


Article
Debt Overhang, Liquidity Constraints and Adjustment Incentives
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Year: 1990 Publisher: Paris : OECD Publishing,

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Investment in most heavily indebted countries has been weak since 1982. The widely accepted debt overhang proposition interprets the investment drop as a moral hazard problem: a heavy debt burden raises the incentive to consume, because the marginal benefit of investment would go to the creditor. This paper develops several hypotheses on optimal reactions of a credit-constrained debtor country on an increase in debt, on variations in the credit constraint, on changes in interest rates, and contrasts these with the predictions stemming from the debt overhang proposition. Empirical specifications of conventional investment functions and consumption functions (along the Permanent Income Hypothesis) lead to reject the debt overhang proposition, but find that the switch from positive to negative external transfers to the debtor countries is an important explanation for their investment drop. The major policy conclusion is that the 1989 shift in international debt management (the Brady ...

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Development


Article
The Legal Protection of Software : Implications for Latecomer Strategies in Newly Industrialising Economies (NIEs) and Middle-Income Economies (MIEs)
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Year: 1990 Publisher: Paris : OECD Publishing,

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The issue of the nature and extent of legal protection of software arises in the context of a global software industry in which: a) suppliers and users are both heavily concentrated in the OECD countries; b) US firms dominate the global market, especially for packaged software; c) software Research and Development (R&D) is performed mostly in the developed countries. As yet, very few developing country firms have emerged as internationally competitive software suppliers. The leading software producing and exporting country, the United States, has instituted a system of copyright protection for software which it has sought to export to other countries, even though there remains considerable uncertainty within the United States about the appropriateness of this approach. Indeed, the issue of what sort of regime is best suited to software protection remains an unresolved one. Most developing country software firms are involved in custom software development, for which copyright ...

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Development


Article
Optimal Currency Composition of Foreign Debt : The Case of Five Developing Countries
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Year: 1990 Publisher: Paris : OECD Publishing,

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Many developing countries lack access to future and option markets to hedge the enormous risks arising from the currency exposure of their foreign debt. And even if these markets are accessible, their maturities are often too short compared to the maturities of long-term debt. The important hedging instrument available for any country, however, is the currency mix of foreign debt itself. This paper provides a theory for the optimal currency composition of foreign debt for market constrained developing countries. It also develops the empirical methodology to determine the optimal currency mix which is then applied. Applying the method to Brazil, Indonesia, Mexico, the Philippines and South Korea, the optimal mix is compared to alternative currency compositions, both in terms of foreign exchange gains and losses as well as variability of balance of payments flows ...

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Development


Article
Unemployment in Developing Countries : New Light on an Old Problem
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Year: 1990 Publisher: Paris : OECD Publishing,

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In the 1960s and 1970s a number of views were formed about unemployment in developing countries, which have remained largely accepted since then. The views can be summarized as three propositions: a) the poor cannot afford to become unemployed; b) labour markets in developing countries are always sufficiently open and flexible for work to be found, so that c) unemployment is a reflection of the search for jobs with high earnings on the part of those able to finance search costs. In contrast, the conclusions of this review are that the poor can be and are increasingly to be found in large numbers among the unemployed; many young people have great difficulty in finding any sort of work, especially regular work; unemployment is high and appears to have been rising over the past 20 years. In sum, in the light of this review of evidence, the conventional wisdom described in the so-called luxury unemployment hypothesis is seriously flawed and should be set aside.

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Development


Article
Comparative Advantage : Theory and Application to Developing Country Agriculture
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Year: 1990 Publisher: Paris : OECD Publishing,

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This paper investigates the application of the principle of comparative advantage to policy analysis and policy formulation. It is concerned with both the theory and the measurement of comparative advantage. Despite its central role in economics, the theory is found to be at an impasse, with its usefulness confined mainly to the illustration of economic principles which in practice are not borne out by the evidence. The considerable methodological problems associated with the measurement of comparative advantage are highlighted in the paper. Attempts to derive indicators of comparative advantage, such as those associated with "revealed comparative advantage", "direct resource cost", "production cost" and "trade liberalisation" studies are reviewed. These methods are enlightening, but are unable to provide general perspectives which allow an analysis of dynamic comparative advantage. Comparative advantage, despite its centrality to economics, remains remote from policy ...

Keywords

Development


Article
Macroeconomic Aspects, Foreign Flows and Domestic Savings Performance in Developing Countries : A "State of the Art" Report
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Year: 1990 Publisher: Paris : OECD Publishing,

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This paper is a state-of-the-art report on the scope and efficacy of macroeconomic policies, both demand-management and supply-side, in relation to the level and composition of aggregate domestic savings (household, corporate, and government) performance in developing countries. Its central focus is on the extent to which macroeconomic policies help or hinder the optimal mobilisation and allocation of voluntary and contractual savings. It analyses: the impact of fiscal policies (fiscal balance, taxation, tax incentives); fiscal reforms and savings; and the interaction between Government and private savings; the financial repression and inflationary finance as contributory factors to low domestic savings; implications of financial liberalisation for savings and investment; the linkages between formal and informal finance; the regulatory, prudential, and developmental role of central banks; exchange rate and external finance policies and their bearing on capital flight and inflows of ...

Keywords

Development


Article
Macroeconomic Aspects, Foreign Flows and Domestic Savings Performance in Developing Countries : A "State of the Art" Report
Author:
Year: 1990 Publisher: Paris : OECD Publishing,

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Abstract

This paper is a state-of-the-art report on the scope and efficacy of macroeconomic policies, both demand-management and supply-side, in relation to the level and composition of aggregate domestic savings (household, corporate, and government) performance in developing countries. Its central focus is on the extent to which macroeconomic policies help or hinder the optimal mobilisation and allocation of voluntary and contractual savings. It analyses: the impact of fiscal policies (fiscal balance, taxation, tax incentives); fiscal reforms and savings; and the interaction between Government and private savings; the financial repression and inflationary finance as contributory factors to low domestic savings; implications of financial liberalisation for savings and investment; the linkages between formal and informal finance; the regulatory, prudential, and developmental role of central banks; exchange rate and external finance policies and their bearing on capital flight and inflows of ...

Keywords

Development


Article
International Comparisons of Efficiency in Agricultural Production
Author:
Year: 1990 Publisher: Paris : OECD Publishing,

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Abstract

This paper deals with the problem of definition and measurement of the efficiency of agricultural production. Using an agronomical simulation model, it makes comparisons of wheat, maize, sunflower and soybean production in different regions of France, Argentina and the United States. The ability of a country to defend its position as an exporter of a specific agricultural product or to maintain local production of a product in deficit, facing the competition of imports, is shown to depend on three factors: 1) the efficiency of agricultural production; 2) the efficiency of an internal transportation, stockage and trading system; and 3) the level of protection for agriculture introduced by different national policies. The first two factors are usually considered as defining the comparative advantage of a country on the considered product. In the international context of today, it is important for many developing countries to know their relative position in terms of ...

Keywords

Development


Article
Comparative Advantage : Theory and Application to Developing Country Agriculture
Author:
Year: 1990 Publisher: Paris : OECD Publishing,

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Export citation

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Bookmark

Abstract

This paper investigates the application of the principle of comparative advantage to policy analysis and policy formulation. It is concerned with both the theory and the measurement of comparative advantage. Despite its central role in economics, the theory is found to be at an impasse, with its usefulness confined mainly to the illustration of economic principles which in practice are not borne out by the evidence. The considerable methodological problems associated with the measurement of comparative advantage are highlighted in the paper. Attempts to derive indicators of comparative advantage, such as those associated with "revealed comparative advantage", "direct resource cost", "production cost" and "trade liberalisation" studies are reviewed. These methods are enlightening, but are unable to provide general perspectives which allow an analysis of dynamic comparative advantage. Comparative advantage, despite its centrality to economics, remains remote from policy ...

Keywords

Development

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