Derivatives are financial instruments whose payoffs derive from other, more primitive financial variables such as a stock price, a commodity price, an index level, an interest rate, or an exchange rate. The world market for derivatives is an immense one. The notion amount outstanding in the over-the-counter (OTC) derivatives market worldwide exceeds $640 trillion, with a collective gross market value of over $27 trillion. The exchange-traded market has another $60 trillion in outstanding notional.
This report presents a background study of the state of Technical and Vocational Education and Training (TVET) in Ethiopia. Krishnan and Shaorshadze discuss the state of TVET in Ethiopia, as well as the contextual information on education system and economic indicators in Ethiopia as they relate to the TVET implementation and policy.
This paper studies the interaction of incentive pay and social distance in the dissemination of information about a public health insurance programme. The researchers analyse theoretically as well as empirically the eﬀect of incentive pay when agents have pro-social objectives, but also preferences over dealing with one social group relative to another. They also analyse data from a randomised ﬁeld experiment undertaken across 151 villages in South India, in which local agents were hired to spread information about the programme.
In the first decade of the new millennium, Tanzania's gross domestic product doubled in real terms, making it one of the handful of sub-Saharan economies that have shown strong and sustained growth in recent years. This growth was, moreover, broad based, with manufacturing output growing slightly faster than the economy as a whole. To maintain this rate of growth over the next decade, Tanzania's industrial capabilities will need to advance in a quite substantial way. The foundations for this advance lie in the current capabilities of Tanzania's industrial companies.
A new way of helping the world’s poorest people is proving to be a staggering success and is spreading throughout the developing world. Recent research co-authored by Robin Burgess of the LSE and Director of the IGC finds that the scheme led to an increase in people’s incomes of around 35% after two years. For anyone this would be a big jump, but these are women who had previously struggled to feed themselves and their families.
Amid historically high food prices agriculture has made a comeback to the centre stage supported by donor resources in the backdrop of national governments’ renewed emphasis on achieving food security for their populations. While this reinvigorated approach to agricultural development is attractive as a majority of poor people still rely on farm activities for their livelihoods with poverty reduction remaining the most important policy objective, there are concerns about low productivity of the sector along with its role in the process of development.
This paper aims to understand the effects of exchange rate changes on economic growth in Bangladesh. It makes use of a Keynesian analytical framework to derive an empirical specification, carefully constructs a real exchange rate series, and employs cointegration techniques to determine the output response to taka depreciations. The results show that in the long run a 10 per cent depreciation of the real exchange rate is associated with a 3.2 per cent rise in aggregate output.
Mobilizing private resources for agricultural modernization may reduce the need for scarce government resources to be used for financing this modernization (for example, to be invested in fertilizer subsidy programmes).