Showing papers by "Almas Heshmati published in 2017"

A review of the circular economy and its implementation

Abstract: Circular economy (CE) is a sustainable development strategy that is being proposed to tackle urgent problems of environmental degradation and resource scarcity. CE's 3R principles are to reduce, reuse and recycle materials. This study is a review of the rapidly growing literature on CE covering its concept and current practices and assessing its implementation. The review also serves as an assessment of the design, implementation and effectiveness of CE-related policies. It first presents the concept of CE and compares it with the current linear economy. The paper then introduces current practices that have been introduced and discusses standards for the assessment of CE's development and performance. Third, based on an analysis of literature, the paper identifies the underlying problems and challenges to CE in an entrepreneurial perspective. Finally, the review provides a conclusion on CE's current development and gives policy suggestions for its future development.

Measuring women’s empowerment in Rwanda

Abstract: This study examines the determinants of women’s empowerment in Rwanda using the data obtained from the Demographic and Heath Survey (DHS) (2010). It uses a regression analysis to investigate the association between women’s empowerment and its covariates. The study also uses a multinomial logistic regression to assess what determines households’ decision-making and attitudes toward physical abuse of spouses. It finds variables of sources of empowerment such as education and media exposure to have a net positive association with women’s empowerment, while other variables such as residence and the age at first marriage to be negatively associated with women’s empowerment. A further analysis shows that the effects of education, age of the respondent, wealth and the number of children ever born remain strong conditions which effect households’ decision-making and attitudes about physical abuse. In general, it seems that for women to fully realize their potential and rights, specific emphasis should be put on variables that increase their access to resources and knowledge such as education, employment for cash, and media exposure, but variables that are negatively associated with their empowerment such as higher age at first marriage should also be taken into account.

Tackling the challenge of the aging society : Detecting and preventing cognitive and physical decline through games and consumer technologies

Abstract: Objectives: This study seeks to review some of the approaches employed to address health and well-being issues in the elderly population.Methods: This article reviews and analyses a range of projec ...

Analysis of Gender Wage Differential in China's Urban Labor Market

Abstract: This paper estimates the gender wage gap and its composition in China's urban labor market. The traditional Blinder–Oaxaca (1973) decomposition method with different weighing systems is employed. To correct for potential selection bias caused by women's labor force participation, we employ the Heckman's two-step procedure to estimate the female wage function. A large proportion of the gender wage gap is unexplained by differences of productive characteristics of individuals. Even though women have higher level of education attainments on average, they receive lower wages than men. Both facts suggest a potential discrimination against women in China.

Impact of Financial Crises on Dynamics of Capital Structure: Evidence from Korean Listed Companies

Abstract: This study examines the impact of 1997 Asian and 2008 Global financial crises on the capital structure of Korean listed companies. Using a data set covering 1,159 Korean listed non-financial firms from 10 industrial sectors over period 1985-2015, the pattern of firms' capital structure before and after the crises is investigated and the speed of adjustment toward the optimal leverage identified. Different effects of the two crises on both capital structure and its adjustment speed is found. The average debt ratio fell significantly, the distance between optimal and observed debt ratios shrank, while the speed of adjustment increased twofold after the Asian crisis. Unlike the Asian crisis, the Global crisis of 2008 had a positive effect on companies' debt ratio and the speed of their adjustment toward optimal leverage. The empirical analysis revealed that Korean non-financial listed companies on average decreased their debt ratios over the entire study period, with leverage being highest before the Asian crisis and lowest after the Global financial crisis. The results also show that the debt ratio of Korean chaebols is higher than that of non-chaebols. Moreover, the high level of leverage is associated with tangible assets, income variability, size and age of the firm, non-debt tax shield, and uniqueness.

Studies on economic development and growth in selected African countries

Abstract: This book is a collection of studies on economic development and growth in selected African countries. It consists of an introduction/summary and 15 inter-related empirical studies grouped into 5 r ...

Energy security and competition over energy resources in Iran and Caucasus region

Abstract: Energy security as a dominant factor in international stability is of great importance for major economies. The global energy market with its current level of supply and demand relies on energy sources in the Middle East, Caucasus, Central Asia and Russia. After the Fukushima disaster nuclear powers in Europe view renewable energy sources as a serious alternative. Europe’s energy vulnerability has deteriorated due to the Russia-Ukraine conflict. However, renewable energy sources are not large enough to replace nuclear power completely. This trend will continue with climbing demand especially in the natural gas sector as clean energy. In this research, Caucasus and Iran are considered the main sources and routes for energy transmission to the global market, including Europe. Caucasus plays a key role in bridging Europe and Asia. Also, Iran is an alternative for energy transmission to Europe after lifted sanctions. As part of the European active supply diversification policy Iran has capacity to reduce Europe’s energy dependency on Russia. However, changes in US new administration America First Policy is harmful for the EUs energy security. Caucasus aims to catch a large share of the European energy market since the Baku-Tbilisi-Ceyhan pipeline has started operations and Iran is also trying to expand its market to become a sustainable source of energy for major consumers. Therefore, Iran and Caucasus are considered reliable energy suppliers for Europe. In this regard, we analyze the best motivation for changing the direction new suppliers’ energy policies towards Europe and suggest alternative solutions to compete with rival countries in order to enhance energy security.

Do Environmental Regulations Effect FDI Decisions? The Pollution Haven Hypothesis Revisited

Abstract: In an attempt to verify the pollution haven hypothesis, this study investigates the impact of environmental regulations on foreign direct investment (FDI). We use Korean outward FDI data covering the manufacturing sector for 2009-15. The study not only considers the stringency but also the enforcement of environmental regulations when measuring the degree of the host country’s environmental regulations. Since the pollution haven’s effects indicate moving the polluting production stages from the home country to other (host) countries, we distinguish between investments in the ‘production’ part from that in the non-production part using location information about the host country. The main results of the estimation of a FDI model show that the stricter the regulations in host countries in Asia the lower the FDI both intensively and extensively to those countries. This supports the prevalence of the effects of pollution havens. However, before we separate the FDI into the production part, the effect of environmental regulations on FDI is hindered by the FDI in the non-production part. The results indicate that environmental regulations are determinants of FDI in the production part, while environmental regulations do not have a significant effect on FDI decisions when the entire FDI is considered.

Does Official Development Assistance Affect Donor's Export? Case of Korea

Abstract: This paper aims to estimate the impact of bilateral Official Development Assistance (ODA) provided by Korea on its bilateral export to recipient countries. The empirical analysis is based on data from 1996 to 2014 with 121 recipient countries. Although the two models of determinants of ODA and its export effectiveness are highly interrelated, this kind of simultaneous model specification with two-ways causal relationship has not been conducted in the past. Employing a three-stage least squares estimation method leads to accounting for two-ways causal relationships between ODA and export while the endogeneity and sample selection bias are accounted for. Through using the gravity model in analysis of Korea's aggregated export data, the positive effect of bilateral ODA is confirmed when fixed unobserved effects are controlled. The model is further generalized by disaggregation of ODA into its underlying types. The results show that, humanitarian aid and loan-type aid turn out to be effective types of ODA to influence export positively. In terms of Korea's ODA allocation, the finding suggests that there is a two-stage decision making process in aid provision. In the first stage, a humanitarian purpose of aid dominates responding to lower income and disaster experienced countries' needs, even when lower bilateral trade prevails. The second stage is to make a decision regarding the size of ODA to selected recipient countries, and this presents a mixed purposes of giving ODA aiming at higher importer countries.

The Effects of Lifetime Work Experience on Incidence and Severity of Elderly Poverty in Korea

Abstract: This study investigates the characteristics that contribute to elderly poverty, mainly focusing on individuals' lifetime work experience. It adopts the heterogeneous relative poverty line which differs by gender, province of residence and over time. It calculates the work experience and obtains demographic variables using the Korean Labor and Income Panel Study's survey data for 2006, 2009, 2012 and 2015. The objective is to estimate poverty amongst elderly and explain its variations in relation to individual characteristics and lifetime work experience. Poverty is measured as the head count, poverty gap and the poverty severity indices. The poverty measures are based on the monetary dimensions of well-being namely income and consumption. The methodology used in this study is the logit model to explain incidence of poverty and the sample selection model to analyze the depth and severity of poverty. The results show evidence of a significant selection bias in all the poverty models based on income, but not on the consumption. In both income and consumption models increase in the total work years lessens the incidence of poverty and a decrease in the gap years downsizes the probability of being poor. High-income occupation and labor market participation greatly decrease the incidence of poverty. Most of the work relevant variables become insignificant in the poverty gap and severity models of consumption while both work years and gap years are significant in the income model. The number of jobs representing turnover rate significantly increases the probability of being impoverished only in the consumption model.

Hiring and Separation Rates Before and after the Arab Spring in the Tunisian Labour Market

Abstract: We seek to explore the hiring and separation rates in Tunisia before and after the Arab Spring based on quarterly business level data for 503 firms over the span of January 2007 to December 2012 Furthermore, we examine whether employers are willing to dismiss older workers to trigger an effective increase in mobility that will open new opportunities for the youth community We build our analysis upon six main empirical models to study employment decisions reflected by major indicators such as the number of hiring, number of separations, total employment effects, male-female ratio, age cohorts, labour mobility and net employment The results show that the Arab Spring has created structural unemployment trends In addition, we note that the 2008 global turmoil has fostered the firing level of employment Our conclusions also indicate that the response of Tunisia's government to high unemployment rates caused by the financial meltdown in 2008 and the events in 2011 was not sufficient to remove the attached lingering effects that still distress the country's labour market In addition, our findings emphasize the significant challenges faced by Tunisian youth that could be mitigated by efficient policy actions to incentivize training and development geared towards the private sector

Introduction to Studies on Economic Development and Growth in Selected African Countries

Abstract: A major policy challenge facing Africa is how to sustain a high rate of economic growth that is both socially inclusive and environmentally sustainable. Growth and its sustainability influence many other challenges facing the continent. This volume is a collection of selected empirical studies on economic development and growth in Africa. The papers were presented at the second conference on Recent Trends in Economic Development, Finance and Management Research in Eastern Africa, Kigali, Rwanda, June 20-22, 2016. The studies are grouped into domains influencing economic development and growth in Africa.

Determinants of Service Sector Firms’ Growth in Rwanda

Abstract: The service sector is an avenue for economic transformation as not all countries have a competitive edge in manufacturing. Findings from a micro-level research on the service sector confirm that ICT integration, firm’s age, the education of the owner, the boss’ attitude, family business, networks, new processes, major improvements, market share, on the job training and know-how significantly, and positively increase the probability of a firm’s growth. Even though the growth rate of services is currently impressive in the Rwandan economy, no investigations have been done on the determinants of the growth of the firms in the service sector. This paper studies the development of services over the years in Rwanda’s economy in detail and empirically estimates its determinants by using an econometric methodology. The empirical results are based on micro-data collected by the Rwanda Enterprise Survey (2011) and the 2014 Establishment Census. The survey has data on 241 firms and establishments. Linear and limited dependent variable techniques are employed to investigate the factors behind the development of service firms. Models are specified and estimated to assess the factors contributing to sales growth, innovations, and turnovers of service firms. The results show that the key factors driving the development of service firms in Rwanda include access to credit, application of ICT, availability of skilled labor, employee development and acquisition of fixed assets. The results suggest that the government should uphold the use of ICT in all service firms, promote access to finance to new service firms and promote on-work training in service firms to speed up Rwanda’s shift from a low income to a middle-income state.

Introduction to economic transformation for poverty reduction in Africa

Abstract: This book is an edited volume which contains empirical studies on determinants of poverty and its reduction in Africa. It looks at multidimensional measures of poverty, production and productivity- ...

Impact of Financial Crises on Dynamics of Capital Structure: Evidence from Korean Listed Companies

Abstract: This study examines the impact of 1997 Asian and 2008 Global financial crises on the capital structure of Korean listed companies. Using a data set covering 1,159 Korean listed non-financial firms from 10 industrial sectors over period 1985-2015, the pattern of firms' capital structure before and after the crises is investigated and the speed of adjustment toward the optimal leverage identified. Different effects of the two crises on both capital structure and its adjustment speed is found. The average debt ratio fell significantly, the distance between optimal and observed debt ratios shrank, while the speed of adjustment increased twofold after the Asian crisis. Unlike the Asian crisis, the Global crisis of 2008 had a positive effect on companies' debt ratio and the speed of their adjustment toward optimal leverage. The empirical analysis revealed that Korean non-financial listed companies on average decreased their debt ratios over the entire study period, with leverage being highest before the Asian crisis and lowest after the Global financial crisis. The results also show that the debt ratio of Korean chaebols is higher than that of non-chaebols. Moreover, the high level of leverage is associated with tangible assets, income variability, size and age of the firm, non-debt tax shield, and uniqueness.

Evaluation of E-Infrastructure Deployment in OECD and MENA Countries

Abstract: This paper introduces new indices quantifying country’s level of e-infrastructure deployment. These indices comprise six components, which include several indicators, and are based on parametric or nonparametric methods. They improve existing indices. Based on index calculations, variations between countries, regions, and over time are analyzed. The data used covers MENA and OECD countries, 2000–2007. Analysis results identified areas, in which countries need improvements, and showed that some MENA countries outperformed some OECD countries. The rankings based on the indices differ only slightly. Additionally, the parametric method-based index produces equally distributed value ranges and shows an overall e-infrastructure improvement over time.

Testing Turkey’s Place Within the Maps of Global Economic, Political and Social Values

Abstract: Abstract Following the attempt by Alesina and Guiliano (2013) to measure global culture and to project these measurements onto real choropleth geographical world maps, we utilize the data from the World Values Survey (WVS) to arrive at robust measurement scales of global economic, political and social values and to assess Turkey’s place within them. Our study, which is based on 92,289 representative individuals with complete data in 68 countries, representing 56.89% of the global population, looks at hard-core economic values in these countries. From our new nine dimensions for the determination of the geography of human values, based on a promax factor analysis of the available data, we use six factor analytical scores to calculate a new Global Value Development Index, which combines: avoiding economic permissiveness; avoiding racism; avoiding distrust of the army and the press; avoiding the authoritarian character; tolerance and respect; and avoiding the rejection of the market economy and democracy. Turkey is ranked 25, ahead of several EU member countries. But there are still considerable deficits concerning the liberal values components, which are very important for effective democracy, and there are very large regional differences, confirming the dictum by Huntington (1996) about Turkey as a torn country.

A new weighting approach to Non-Parametric composite indices compared with principal components analysis

Abstract: Introduction of Human Development Index (HDI) by UNDP in early 1990 followed a surge in use of non-parametric and parametric indices for measurement and comparison of countries performance in devel ...