scholarly journals Per-capita Income as a Determinant of International Trade and Environmental Policies

2013 ◽  
Author(s):  
James Markusen
Author(s):  
Tuğçe Uğur ◽  
Mehmet Sedat Uğur

Linder Theory which is a considerable theory about international manufactured goods trade suggests that international trade in manufactured goods will be more intense between countries with similar per capita income levels than between countries with dissimilar per capita income levels. But in practice, cultural differences between countries may also restrain the density of trade. This literature survey will aim to explain the relationship between income level and culture which may be different for one to another group. G. Hofstede who is an influential cultural anthropologist suggests five different cultural dimension to explain cultural differences between countries. Later, Hofstede calculates the values of different countries in these dimensions. So, in this study, initially, international trade in manufactured goods between similar per capital income levels will be examined. This will be done by comparing per capital income levels of selected countries. OECD data in trade and TÜİK's data (for Turkey) will be used in comparison. Later Hofstede's data will be used. In conclusion, the survey will try to explain how large are the effects of cultural differences between countries with similar income levels in international trade in manufactured goods. Previous studies generally find statistically significant results, but the main framework of these studies suggests controversial results. The study has aimed to commit a literature survey and in this study, comparisons of trade flow between countries are also controversial.


Author(s):  
Nguyen Minh Duc

The present paper examines the links between international trade, capital and economic growth in Thailand from 1950 to 2000 in an applied growth model including exchange rate as a control variable. Prior to 1980 the elasticity of per capita income with respect to trade was -0.2% switching to 0.07% in 1980 in line with the change from resource exports and import substitution to manufactured exports. The exchange rateelasticity of per capita income prior to 1980 was 0.4% switching to -0.2% consistent with the move to a floating exchange rate. Results confirm the overriding theoretical importance of investment to economic growth


1973 ◽  
Vol 12 (4) ◽  
pp. 433-437
Author(s):  
Sarfaraz Khan Qureshi

In the Summer 1973 issue of the Pakistan Development Review, Mr. Mohammad Ghaffar Chaudhry [1] has dealt with two very important issues relating to the intersectoral tax equity and the intrasectoral tax equity within the agricultural sector in Pakistan. Using a simple criterion for vertical tax equity that implies that the tax rate rises with per capita income such that the ratio of revenue to income rises at the same percentage rate as per capita income, Mr. Chaudhry found that the agricultural sector is overtaxed in Pakistan. Mr. Chaudhry further found that the land tax is a regressive levy with respect to the farm size. Both findings, if valid, have important policy implications. In this note we argue that the validity of the findings on intersectoral tax equity depends on the treatment of water rate as tax rather than the price of a service provided by the Government and on the shifting assumptions regard¬ing the indirect taxes on imports and domestic production levied by the Central Government. The relevance of the findings on the intrasectoral tax burden would have been more obvious if the tax liability was related to income from land per capita.


1993 ◽  
Vol 32 (4I) ◽  
pp. 411-431
Author(s):  
Hans-Rimbert Hemmer

The current rapid population growth in many developing countries is the result of an historical process in the course of which mortality rates have fallen significantly but birthrates have remained constant or fallen only slightly. Whereas, in industrial countries, the drop in mortality rates, triggered by improvements in nutrition and progress in medicine and hygiene, was a reaction to economic development, which ensured that despite the concomitant growth in population no economic difficulties arose (the gross national product (GNP) grew faster than the population so that per capita income (PCI) continued to rise), the drop in mortality rates to be observed in developing countries over the last 60 years has been the result of exogenous influences: to a large degree the developing countries have imported the advances made in industrial countries in the fields of medicine and hygiene. Thus, the drop in mortality rates has not been the product of economic development; rather, it has occurred in isolation from it, thereby leading to a rise in population unaccompanied by economic growth. Growth in GNP has not kept pace with population growth: as a result, per capita income in many developing countries has stagnated or fallen. Mortality rates in developing countries are still higher than those in industrial countries, but the gap is closing appreciably. Ultimately, this gap is not due to differences in medical or hygienic know-how but to economic bottlenecks (e.g. malnutrition, access to health services)


This paper focuses upon the magnitude of income-based poverty among non-farm households in rural Punjab. Based on the primary survey, a sample of 440 rural non-farm households were taken from 44 sampled villages located in all 22 districts of Punjab.The poverty was estimated on the basis of income level. For measuring poverty, various methods/criteria (Expert Group Criteria, World Bank Method and State Per Capita Income Criterion) were used. On the basis of Expert Group Income criterion, overall, less than one-third of the persons of rural non-farm household categories are observed to be poor. On the basis, 40 percent State Per Capita Income Criteria, around three-fourth of the persons of all rural non-farm household categories are falling underneath poverty line. Similarly, the occurrence of the poverty, on the basis of 50 percent State Per Capita Income Criteria, showed that nearly four-fifths of the persons are considered to be poor. As per World Bank’s $ 1.90 per day, overall, less than one-fifth of rural non-farm household persons are poor. Slightly, less than one-fourth of the persons are belonging to self-employment category, while, slightly, less than one-tenth falling in-service category. On the basis of $ 3.10 per day criteria, overall, less than two-fifth persons of all rural non-farm household categories were living below the poverty line.


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