Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Entitlement Fetching Or Snatching Effects Of Arbitrage On Indias Public Distribution System
Download Entitlement Fetching Or Snatching Effects Of Arbitrage On Indias Public Distribution System full books in PDF, epub, and Kindle. Read online Entitlement Fetching Or Snatching Effects Of Arbitrage On Indias Public Distribution System ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Entitlement fetching or snatching? Effects of arbitrage on India’s public distribution system by : Chakrabarti, Suman
Download or read book Entitlement fetching or snatching? Effects of arbitrage on India’s public distribution system written by Chakrabarti, Suman and published by Intl Food Policy Res Inst. This book was released on 2016-12-22 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Would households be able to buy more subsidized grains from a food-based safety-net program if the difference between prices in the program and in the open market were to increase? This is an important question for safety-net programs anywhere in the world, but particularly so for the public distribution system (PDS) of grains in India—the largest food-based safety-net program in the world. The standard economic intuition suggests that price controls distort signals and create incentives for unintended transactions. Price difference between the PDS and the open market compromise entitlements and divert grains to open markets—an entitlement-snatching effect. Drèze and Sen (2013), however, posit the opposite—an entitlement-fetching effect, where an increase in arbitrage increases the value of PDS entitlement. This raises the stakes in the PDS for eligible beneficiaries, resulting in a rise in accountability and ultimately an increase in household purchases of grains from the PDS. We test these two competing hypotheses using multiple datasets: consumer expenditure surveys conducted by the National Sample Survey Organization, and panel datasets from the India Human Development Survey and the Village Dynamics in South Asia. Depending on the context, we find both entitlement-snatching and entitlement-fetching effects. In states where welfare programs are better governed, the Drèze and Sen (2013) conjecture holds. Conversely, in states like Bihar and Jharkhand—where welfare programs are poorly run—the opposite pattern holds; that is, households’ purchase of subsidized grains recedes with greater arbitrage.
Book Synopsis Regulation in India: Design, Capacity, Performance by : Devesh Kapur
Download or read book Regulation in India: Design, Capacity, Performance written by Devesh Kapur and published by Bloomsbury Publishing. This book was released on 2019-04-04 with total page 475 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rise of the regulatory state has been a major feature of modern constitutional democracies. India, the world's largest democracy, is no exception to this trend. This book is the first major study of regulation in India. It considers how the development of regulation in India has altered the nature and functions of the state; how it is reshaping the relationship between business and the state; how it has called for the refashioning of established legal principles; and how it has raised new questions about the relationship between technical expertise and the rule of law. The chapters cover topics ranging from the foundations of the Indian regulatory state to the form of regulation across different sectors to regulation in practice. Together, the chapters reveal the challenges, promise, and limitations offered by contemporary regulatory practices, and they capture the close if sometimes fraught relationship that regulation must inevitably share with the political economy and constitutional schema within which it operates.
Book Synopsis Strengthening and harmonizing food policy systems to achieve food security by : Babu, Suresh Chandra
Download or read book Strengthening and harmonizing food policy systems to achieve food security written by Babu, Suresh Chandra and published by Intl Food Policy Res Inst. This book was released on 2017-02-15 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Understanding how various entities in a policy system at the national level can contribute to improved use of evidence in policy making. Yet little research has focused in developing countries on how various actors and players in a policy system work together to achieve a set of policy goals. In this paper, we study the factors contributing to the effectiveness of a policy system. The process of policy design, adoption, implementation, and refinement requires an effective policy system as well as a capacitated and supportive institutional structure. External actors both through technical and financial assistance often support policy systems in developing countries. Poor coordination and harmonization of such assistance among various actors and players within the country can often result in undermining the very policy systems they try to strengthen. This is typical in the African agricultural development process. In this paper, we develop a conceptual framework for understanding the policy and institutional architecture of food and agriculture policy system and for improving the coordination and harmonization of the roles of policy actors and players. Applying the framework to Ghana, we map and analyze the organizational contributions of various actors and their functional characteristics. We show how such analysis can aid various policy actors in setting priorities and strategies for increasing their capacity and the effectiveness of their roles. Finally, we draw lessons for strengthening the food policy systems in developing countries through effective coordination among local and external actors.
Book Synopsis The effect of land inheritance on youth employment and migration decisions: Evidence from rural Ethiopia by : Kosec, Katrina
Download or read book The effect of land inheritance on youth employment and migration decisions: Evidence from rural Ethiopia written by Kosec, Katrina and published by Intl Food Policy Res Inst. This book was released on 2016-12-29 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: How does the amount of land youth expect to inherit affect their migration and employment decisions? This paper explores this question in the context of rural Ethiopia using panel data from 2010 and 2014. We estimate a household fixed-effects model and exploit exogenous variation in the timing of land redistributions to overcome endogenous household decisions about how much land to bequeath to descendants. We find that larger expected land inheritances significantly lower the likelihood of long-distance permanent migration and of permanent migration to urban areas during this time. Inheriting more land is also associated with a significantly higher likelihood of employment in agriculture and a lower likelihood of employment in the nonagricultural sector. Conversely, the decision to attend school is unaffected. These results appear to be most heavily driven by males and by the older half of our youth sample. We also find several mediating factors matter. Land inheritance plays a much more pronounced role in predicting rural-to-urban permanent migration and nonagricultural-sector employment in areas with less vibrant land markets and in relatively remote areas (those far from major urban centers). Overall, the results suggest that inheritance strongly influences the spatial location and strategic employment decisions of youth.
Book Synopsis The impact of Ethiopia’s Productive Safety Net Programme on the nutritional status of children: 2008–2012 by : Berhane, Guush
Download or read book The impact of Ethiopia’s Productive Safety Net Programme on the nutritional status of children: 2008–2012 written by Berhane, Guush and published by Intl Food Policy Res Inst. This book was released on 2017-02-03 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ethiopia’s Productive Safety Net Programme (PSNP) is a large-scale social protection intervention aimed at improving food security and stabilizing asset levels. The PSNP contains a mix of public works employment and unconditional transfers. It is a well-targeted program; however, several years passed before payment levels reached the intended amounts. The PSNP has been successful in improving household food security. However, children’s nutritional status in the localities where the PSNP operates is poor, with 48 percent of children stunted in 2012. This leads to the question of whether the PSNP could improve child nutrition. In this paper, we examine the impact of the PSNP on children’s nutritional status over the period 2008–2012. Doing so requires paying particular attention to the targeting of the PSNP and how payment levels have evolved over time. Using inverse-probability-weighted regression-adjustment estimators, we find no evidence that the PSNP reduces either chronic undernutrition (height-for-age z-scores, stunting) or acute undernutrition (weight-for-height z-scores, wasting). While we cannot definitively identify the reason for this nonresult, we note that child diet quality is poor. We find no evidence that the PSNP improves child consumption of pulses, oils, fruits, vegetables, dairy products, or animal-source proteins. Most mothers have not had contact with health extension workers nor have they received information on good feeding practices. Water practices, as captured by the likelihood that mothers boil drinking water, are poor. These findings, along with work by other researchers, have informed revisions to the PSNP. Future research will assess whether these revisions have led to improvements in the diets and anthropometric status of preschool children in Ethiopia.
Book Synopsis Trade and economic impacts of destination-based corporate taxes by : Martin, Will
Download or read book Trade and economic impacts of destination-based corporate taxes written by Martin, Will and published by Intl Food Policy Res Inst. This book was released on 2017-02-09 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Current US proposals for destination-based corporate taxes that effectively combine a value-added tax (VAT) and a wage subsidy raise important policy questions for countries considering them, and for their trading partners. This tax/subsidy package would not create trade barriers or export subsidies, and any changes in trade would result from the measures’ distributional consequences or short-run impacts on output. The package would leave business profits and rents untaxed, placing the burden of the tax entirely on consumers, with no offset from exchange rate appreciation. If anything, its introduction could cause a short-run real exchange rate depreciation. A key concern regarding this package is its small, volatile, and vulnerable revenue yield. At current US consumption and labor shares of gross domestic product (GDP), a 20 percent corporate cash-flow tax with a wage subsidy would generate only around 2 percent of GDP in revenues, a result that could be obtained with much less volatility from a 2.8 percent tax without the wage subsidy. Under the tax/subsidy regime, revenues would become negative if consumption and labor shares returned to their historical norms, requiring increases in other taxes. A 20 percent tax would raise consumer prices by up to 27 percent, taking into account state sales taxes, sharply cutting the living standards of people on fixed incomes. The average combined consumption tax rate of 33 percent would be the highest in the world and more than double the world-average VAT rate, creating incentives for avoidance and evasion.
Book Synopsis Stimulating agricultural technology adoption: Lessons from fertilizer use among Ugandan potato farmers by : Nazziwa-Nviiri, Lydia
Download or read book Stimulating agricultural technology adoption: Lessons from fertilizer use among Ugandan potato farmers written by Nazziwa-Nviiri, Lydia and published by Intl Food Policy Res Inst. This book was released on 2017-02-17 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the context of a growing population in an already densely populated area, agricultural yields will need to increase without putting additional stress on the environment. The adoption of modern inputs by smallholders is an important ingredient of agricultural transformation. In this study we explore plot-level, household-level, and institutional-level characteristics associated with agricultural technology adoption behavior among smallholder farmers. The aim is to uncover correlations that can guide the design of policies and incentives that are likely to increase adoption. We explicitly differentiate between fixed costs that are likely to affect the decision to use the technology and variable costs that are more relevant for the decision regarding use intensity. In addition, we examine how the importance of each of these characteristics differs with asset status. To do so, we use data from about 1,880 potato plots cultivated by 500 randomly selected potato growers in southwestern Uganda. We first categorize households into poorly endowed and well-endowed asset classes based on their access to productive assets. We then estimate double-hurdle models for take-up and use intensity of fertilizer for each group. The results show that the factors associated with the decision to use fertilizer are often different from those associated with the decision about how much fertilizer to use and that the characteristics correlated with fertilizer adoption differ between asset-poor and asset-rich farmers. For instance, asset-poor female-headed households are less likely to use fertilizer, but if they do, they use more of it than male-headed households. Our results also suggest fertilizer packaging and distribution are important factors in fertilizer adoption decisions due to their impact on costs related to both indivisibilities and uncertainty about the quality. We derive a range of policy recommendations.
Book Synopsis Nepal’s 2072 federal constitution: Implications for the governance of the agricultural sector by : Kyle, Jordan
Download or read book Nepal’s 2072 federal constitution: Implications for the governance of the agricultural sector written by Kyle, Jordan and published by Intl Food Policy Res Inst. This book was released on 2016-12-22 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we explore the implications of Nepal’s new federal Constitution—passed in September 2015—for governance of the agricultural sector. Agriculture is the backbone of the Nepali economy, providing a livelihood for approximately two-thirds of the population, contributing one-third of the country’s GDP, and constituting more than half of the country’s exports. In transitioning from a unitary to a federal republic—with greater authority and autonomy granted to subnational units of government—it is of paramount importance to ensure that the agricultural sector is guided by coordinated planning, retains sufficient human capacity, and receives adequate fiscal resources. These considerations are particularly important given that the governance of Nepal’s agricultural sector already suffers from poor coordination, low human resources capacity, and inadequate financial resources. Addressing these issues may become more difficult under a federal structure. This paper begins by laying out the main challenges for agricultural governance in Nepal under the current structure. To do so, it relies on an original survey of 100 district agricultural and livestock officers in charge of local agricultural service delivery in Nepal as well as perspectives collected through more than two dozen semi-structured interviews with officials from the Ministry of Agricultural Development, the Ministry of Livestock Development, civil society, the private sector, and donors. Because Nepal is embarking on a pathway to more decentralized governance, which has been well-trodden by a number of other countries, the paper proceeds by examining five case studies, drawing lessons from India, Indonesia, Kenya, Malaysia, and South Africa. Based on these analyses, the paper offers policy recommendations on how the sector can be restructured to meet the constitutional provisions, while simultaneously ensuring that the government can deliver on its long-term objectives to develop the agricultural sector.
Book Synopsis Can better targeting improve the effectiveness of Ghana's Fertilizer Subsidy Program? by : Houssou, Nazaire
Download or read book Can better targeting improve the effectiveness of Ghana's Fertilizer Subsidy Program? written by Houssou, Nazaire and published by Intl Food Policy Res Inst. This book was released on 2017-02-10 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite improvements to the implementation regime of Ghana’s fertilizer subsidy program, this paper shows that considerable challenges remain in ensuring that the subsidy is targeted to farmers who need fertilizer the most. Currently, larger-scale and wealthier farmers are the main beneficiaries of subsidized fertilizer even though the stated goal is to target smallholder farmers with fertilizer subsidies. The experience of other African countries suggests that the effectiveness of fertilizer subsidies can improve with effective targeting of resource-poor smallholders. However, targeting smallholder farmers entails significant transaction costs and may even be infeasible in some cases. Faced with such challenges, Ghanaian policy makers must ponder the question of how to improve the targeting of input subsidy programs in the country. Further research is needed to identify more cost-effective approaches for achieving the goal of targeting.
Book Synopsis Economic transformation in Africa from the bottom up: Evidence from Tanzania by : Diao, Xinshen
Download or read book Economic transformation in Africa from the bottom up: Evidence from Tanzania written by Diao, Xinshen and published by Intl Food Policy Res Inst. This book was released on 2017-02-03 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: At roughly 4 percent per year, labor productivity in Tanzania has grown more rapidly over the past 14 years than at any other time in recent history. Employment growth has also been strong, keeping up with population growth at roughly 2.5 percent per year; the bulk of employment growth (90 percent) has been in the nonagricultural sector. However, the vast majority of this nonagricultural employment growth has occurred in informal sector. Using Tanzania’s first nationally representative survey of micro-, small-, and medium-sized enterprises, this paper shows that firms in the informal sector contributed roughly half a percentage point to economywide labor productivity growth in Tanzania between 2002 and 2012. However, virtually all of the labor productivity growth contributed by informal firms came from a small subset of firms called the “in-between firms.” This paper considers attributes of the in-between firms that could be used for targeting financial and business services to firms with the potential to grow. This paper finds two salient characteristics of in-between firms that might lend themselves to targeting—their owners are more likely to keep written accounts and more likely to keep their savings in formal bank accounts.
Book Synopsis A chicken and maize situation: The poultry feed sector in Ghana by : Andam, Kwaw S.
Download or read book A chicken and maize situation: The poultry feed sector in Ghana written by Andam, Kwaw S. and published by Intl Food Policy Res Inst. This book was released on 2017-01-27 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study focuses on the feed milling industry, which serves as the link between maize and poultry, through a field assessment of feed millers in Ghana. The findings establish the importance of feed in the poultry value chain. In addition, they show how the sector has become more integrated with poultry production, especially on larger-scale poultry farms. Because maize accounts for 60 percent of poultry feed, its availability and price have important implications for the profitability and growth potential of feed and, therefore, for poultry production as well. We illustrate these linkages by means of a simple spatial market equilibrium model that ties together the three sectors of the poultry value chain: the primary inputs (maize and soybeans), intermediate inputs (feed), and final products (meat and eggs). This model also enables us to assess the future growth potential of the poultry industry given alternative policy-driven changes in productivity and the production capacities of all three sectors. The results show that for poultry meat, replacing imports with domestic production in the short term would be nearly impossible. For the egg industry, however, there is potential for Ghana to export to neighboring countries by reducing production costs through improvements in yellow maize production.
Book Synopsis The changing structure of Africa’s economies by : Diao, Xinshen
Download or read book The changing structure of Africa’s economies written by Diao, Xinshen and published by Intl Food Policy Res Inst. This book was released on 2017-01-13 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, some counties in Africa south of the Sahara (SSA) have experienced growth in their economies and improvements in living standards. Although there is some debate, it is clear that the share of the population living below the poverty line fell significantly over the past decade and a half; there has been a general decline in infant mortality rates and increased access to education; in some of the fastest-growing economies, average growth rates have been positive for the first time in decades; and since the early 1990s, real consumption in SSA has grown between 3.4 and 3.7 percent per year. The reasons behind this so-called “African growth miracle” are not well understood, and to our knowledge, this paper is the first to connect these improvements in living standards to important occupational changes. Using data from the Groningen Growth and Development Center’s Africa Sector Database and the Demographic and Health Surveys, we show that much of SSA’s recent growth and poverty reduction has been associated with a substantive decline in the share of the labor force engaged in agriculture. This decline is most pronounced for rural females over the age of 25 who have a primary education. This has been accompanied by a systematic increase in the productivity of the labor force, as it has moved from low productivity agriculture to higher productivity services and manufacturing. We also show that although the employment share in manufacturing is not expanding rapidly, in most of the low-income SSA countries, the employment share in manufacturing has not peaked and is still expanding, albeit from very low levels. Although these patterns are encouraging, more work is needed to understand the implications of these shifts in employment shares for future growth and development in SSA.
Book Synopsis Perspectives on the role of the state in economic development: Taking stock of the “Developmental State” after 35 years by : Kyle, Jordan
Download or read book Perspectives on the role of the state in economic development: Taking stock of the “Developmental State” after 35 years written by Kyle, Jordan and published by Intl Food Policy Res Inst. This book was released on 2017-01-13 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review evaluates the role of the state in development, offering a new framework for understanding what capabilities states need to overcome different types of market failures. This framework is employed to understand the successes and failures of state-led development in Malaysia. The review addresses three key questions. First, what do we know about developmental states and why they emerged? Second, what have developmental states achieved? In answering this question, I look not only at growth but also at structural transformation, economic “upgrading,” equity, and human capability enhancement. In contrast to the idea of a single “East Asian model” of development, I find five distinct development trajectories. Third, how did developmental states utilize state structures to pursue development? To answer this final question, I examine in depth the history of state-led development in Malaysia—including agricultural, industrial, and social policies. This case study sheds light on what specific institutional and political capacities helped Malaysia to improve productivity in agriculture, expand the manufacturing sector, and reduce inequality. It also explores why Malaysia has been less successful in developing linkages with the export-based manufacturing sector.
Book Synopsis Imputing nutrient intake from foods prepared and consumed away from home and other composite foods by :
Download or read book Imputing nutrient intake from foods prepared and consumed away from home and other composite foods written by and published by Intl Food Policy Res Inst. This book was released on 2017-01-06 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the Subramanian and Deaton (S–D) approach for imputing the caloric intake of households from food prepared away from home (FAFH) and composite foods (CF) by juxtaposing it with the imputations of alternative approaches, and extends these approaches to four additional nutrients—vitamin A, iron, zinc, and calcium. The apparent relative nutritional insignificance of FAFH and CF in Bangladesh obfuscates our efforts to assess alternatives to the S–D approach to imputation, and we remain uncertain about the relative value of the alternative imputation approaches examined. FAFH and CF—although widely consumed in Bangladesh—constitute a relatively unimportant source of nutrients, regardless of how the nutrient content of FAFH and CF is imputed.
Book Synopsis Estimating spatial basis risk in rainfall index insurance by : Ceballos, Francisco
Download or read book Estimating spatial basis risk in rainfall index insurance written by Ceballos, Francisco and published by Intl Food Policy Res Inst. This book was released on 2016-12-29 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a novel methodology to estimate the degree of spatial basis risk for an arbitrary rainfall index insurance instrument. It relies on a widelyused stochastic rainfall generator, extendedto accommodate nontraditional dependence patterns—in particular spatial upper-tail dependence in rainfall—through a copula function. The methodology is applied to a recentlylaunched index product insuring against excess rainfall in Uruguay. The model is first calibrated using historical daily rainfall data from the national network of weather stations, complemented with a unique,high-resolution dataset from a dense network of 34 automatic weather stations around the study area. The degree of downside spatial basis risk is then estimated by Monte Carlo simulations and the results are linked to both a theoretical model of the demand for index insurance and to farmers’ perceptions about the product.
Book Synopsis Cities and rural transformation: A spatial analysis of rural youth livelihoods in Ghana by : Diao, Xinshen
Download or read book Cities and rural transformation: A spatial analysis of rural youth livelihoods in Ghana written by Diao, Xinshen and published by Intl Food Policy Res Inst. This book was released on 2017-01-27 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Urbanization has had a major impact on livelihoods in Ghana and throughout Africa as a whole. However, much research on urbanization has focused on effects occurring within cities, while there is insufficient understanding of its effects on rural areas. This paper examines the impact of urbanization—through a typology of districts—on rural livelihoods in Ghana. The country’s districts are classified into seven spatial groups according to the size of the largest city in each district in southern and northern Ghana. The paper does not address rural–urban migration but instead focuses on the livelihoods of rural households. In contrast to the extensive literature focusing on the effects of urbanization on individuals, we assess its impacts on individual rural households as a whole, with a particular focus on youth-headed households. Many rural households have shifted their primary employment from agriculture to nonagriculture, especially in the more urbanized South. In contrast, change in livelihood diversification within rural households with family members’ primary employment in both agriculture and nonagriculture appears much less rapid. Rural youth-headed households are significantly more associated with the transition away from agriculture than households headed by other adults, and such trends are stronger in locations closer to larger cities, particularly in the South. Although the nonagricultural economy is becoming increasingly important for rural households, contrary to expectations, the probit model analysis in this paper shows that agricultural production does not appear to be more intensified—in terms of modern input use—in the more urbanized South, and youth do not show greater agricultural technology adoption than other adults, indicating that the constraints against modern input adoption may be binding for all farmers, including youth and farmers in more urbanized locations. We also find that rural poverty rates are consistently lower among nonagricultural households, and the share of middle-class population is also disproportionally higher among rural nonagricultural households than agricultural households. While the probit analysis confirms the positive relationship between being a nonagricultural household and being nonpoor or becoming middle class after controlling for all other factors, education seems to play the biggest role. As rural youth become more educated and more households shift from agriculture to the rural nonfarm economy, a different range of technologies for agricultural intensification is necessary for agriculture to be attractive for youth. A territorial approach and related policies that integrate secondary cities and small towns with the rural economy deserve more attention such that the diversification of rural livelihoods can become a viable alternative or complement to rural–urban migration for youth.
Book Synopsis How headquarters relocation is affected by rising wages and ownership: Evidence from China's annual survey of industrial enterprises, 1999–2008 by : Wang, Qingtao
Download or read book How headquarters relocation is affected by rising wages and ownership: Evidence from China's annual survey of industrial enterprises, 1999–2008 written by Wang, Qingtao and published by Intl Food Policy Res Inst. This book was released on 2016-12-23 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Industrial wages have increased significantly in China in recent years. At the same time, there have been widening gaps in wages across provinces. These trends are likely to prompt company headquarters to relocate. The relocation choices of headquarters are likely to change under different ownership, as a result of variations in their internal capabilities as well as the distinctive nature of their businesses. This paper is the first attempt to examine the effects of rising wages on headquarters’ relocation by ownership. Data were obtained from the China Statistical Yearbook and the Annual Survey of Industrial Enterprises for the period 1998 through 2008. These data allow for differentiation among companies with regard to five types of enterprises: foreign owned, Sino-foreign owned, state owned, domestically joint owned, and privately owned. We use a conditional logit model to identify factors to determine which province headquarters chose to relocate. In addition, we consider the impact of these choices on the “minimum wage standard” introduced in 2004. Results indicate that wages insignificantly affected the relocation choice of all types of headquarters before 2004. After 2004, on average, headquarters were more likely to relocate to low-wage provinces, as predicted by “overall cost leadership.” However, we also find that relocation choices are significantly affected by ownership type. While privately owned and state-owned enterprises are likely to relocate to areas with lower wages, foreign-owned headquarters tend to relocate to high-wage areas, as predicted by the “efficiency wage theory.” Wages did not affect the relocation choices of Sino-foreign-owned companies, but had a negative effect on those of domestically joint-owned headquarters.
