Emerald | International Journal of Development Issues

The Effectiveness of Government Expenditure on Education and Health Care in the Caribbean

Roland Craigwell, Danielle Bynoe, Shane Rommel Lowe — 2012-04-06 00:00:00.0

Abstract

Purpose - Investment in human development is considered a means of improving the quality of life and sustaining economic growth in the Caribbean. This paper seeks to assess the efficacy of public spending on health care and education by evaluating the life expectancy and school enrollment rates of these countries. Design/methodology/approach - Using a data set containing 19 Caribbean countries over the period 1995 to 2007 for health care and 1980 to 2009 for education, a Panel Ordinary Least Squares model was employed. Findings - The results revealed that health expenditure has a significant positive effect on health status while spending on education have no appreciable influence on either primary or secondary school enrollment.Originality/value - Unlike previous Caribbean research it explores a variable for quality in the education system, that is, the pupil-teacher ratio (Mehrotra, 1998). It also seeks to update the existing Caribbean literature by employing data from 1980 to 2009.

The Role of Human and Social Capital on the Development of Wooden Furniture Clusters in Sri Lanka

Nihal Padmasiri Hennayake Mudiyanselage — 2012-04-06 00:00:00.0

Abstract

Purpose - This paper investigates how human and social capital assists for the development of clustered and non - clustered firms in wooden furniture industry in Sri Lanka. The study resulted three major findings; the most experienced and educated entrepreneurs played an important role to secure their market introducing brand name for the product; human capital acquired through formal education and experience is highly significant on performance of clustered firms than that of non - clustered firms; and irrespective of clustered or non - clustered, performance of the firms in wooden furniture industry in Sri Lanka are significantly relying on social capital.Design/methodology/approach - Both cross sectional and time series data of 96 active firms related to the wooden furniture industry in Sri Lanka is used in this study.The data was collected through questionnaires distributed by visiting wooden furniture firms in Sri Lanka in the year 2010.To test the hypotheses, two dependent variables, namely, brand name dummy and the size of the firm (in value added revenue) were used.Findings - The number of years of schooling of the managers and their operational experience within their own business have a positive and highly significant effect on the introduction of a brand name for the products in both type of wooden furniture firms(clustered and non-clustered). Formal education and prior work experience as managers are more significant in the case of clustered wooden furniture firms than non clustered firms. Originality/value - The author visited these firms personaly and interviewed the managers. From this, author tried to see how both human and social capital contribute on the firms performance. According to the author's knowledge this type of study has never done before in Sri Lanka.

DEVELOPING E-SKILLS FOR COMPETITIVENESS, GROWTH AND EMPLOYMENT IN 21ST CENTURY: THE EUROPEAN PERSPECTIVE

Sumanjeet Singh — 2012-04-06 00:00:00.0

Abstract

Purpose - This paper is an attempt to identify e-skills shortages, gap and mismatches in Europe, and the reasons behind these. In this light, the paper explores some key issues/aspects related to development of e-Skills, while attempting to provide some benchmarking tools by which European countries may be able to access their current and future challenges regarding e-Skills. Design/methodology/approach - The paper begins with an overview of the problem highlighted in the literature and then moves on to what has already been done to solve the problem in European countries. We propose several policy options which could be implemented to deal with the problems of shortages, gap and mismatches of e-Skills. Findings - The paper presents recent developments in the field of e-Skills and highlights the various dimensions/aspects and issues of e-Skills in the European perspective and prescribes innovative policy options to solve the problems of e-Skills shortage/gap/mismatch in Europe. Practical implications - Paper presents a discussion and provides some policy options to solve the problems of e-Skills shortage/gap/mismatch in Europe, which will be helpful for policy related discussions and in suitable policy formulations.Originality/value - Provides a detail analysis of the issues related to e-Skill by a comprehensive survey of literature and the existing framework. It also prescribes some alternative ways to resolve the problems of e-Skills shortage/gap/mismatch in Europe.

Efficiency of Rice Farming Households in Vietnam

Linh Hoang Vu — 2012-04-06 00:00:00.0

Abstract

Purpose - This study estimates technical efficiency obtained from both Data Envelopment Analysis (DEA) and stochastic frontier approaches using household survey data for rice farming households in Vietnam. Design/methodology/approach - A bootstrap method is used to provide statistical precision of the DEA estimator. Technical efficiency is modeled as a function of household and production factors. Findings - The results from the deterministic, semi-parametric and parametric approaches indicate that among other things, technical efficiency is significantly influenced by primary education and regional factors. In addition, scale efficiency analysis shows that many farms in Vietnam are operating with less than optimal scale of operation.Originality/value - The study is among the first that employ bootstrap method and compare estimates from both Data Envelopment Analysis (DEA) and stochastic frontier approaches.

"Dynamics of Foreign Earnings, Assistance and Debt Servicing in Bangladesh"

M. Wasiqur Rahman Khan, Haydory Akbar Ahmed — 2012-04-06 00:00:00.0

Abstract

Purpose - To examine the dynamics between real GDP, foreign earnings, development assistance and debt servicing in Bangladesh, 1973 – 2008, with the incorporation of a structural break after 1990.Design/methodology/approach - A Vector Autoregression (VAR) framework using annual data from 1973 – 2008 was used to examine the dynamics among the above mentioned variables with the incorporation of a structural break after 1990. This was followed by innovation accounting and testing for Granger causality.Findings - We find that the structural break is significant and all the macro-variables exhibit trend stationarity. Innovation accounting suggests that the debt servicing capacity of Bangladesh is enhanced by an improvement in foreign earnings, an outcome which is reinforced by Granger causality tests. Research limitations/implications - A bigger sample size, consisting of quarterly observations is desirable.Practical implications - Our results suggest that an increase in foreign earnings imply an improvement in the capacity to service overseas debt. Thus, from a policy perspective, we may recommend steps be taken to diversify the sources of foreign earnings. The analysis affirms that there is a causal link between injections, represented by foreign earnings and overseas development assistance and leakages, represented by debt servicing. Such affirmation is certain to be an important input in macroeconomic policy formulation.Originality/value - The dynamics between real GDP, foreign earnings, development assistance and debt servicing in Bangladesh has been empirically examined using recent developments in time-series econometrics.