Research Papers - Dept of Information of Management
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Publication Open Access Identification of the Poor in Sri Lanka: Development of Composite Indicator and Regional Poverty Lines(researchgate.net, 2006-03) Siddhisena, p; Jayathilaka, RThe identification of the poor and the definition of poverty is rather complex since poverty dimensions are multifaceted. Poverty is not just an inadequacy of income to meet basic needs or the inability to spend. It is largely associated with numerous demographic, socio-economic, cultural, environmental, health and psychological factors. The aim of this study is therefore to compute a composite indicator of multidimensional poverty and regional poverty lines to identify the severity of poverty and regional disparities of poverty. The study was based on the two data sets and the main objectives of the study are: Identification of the poor by using a broader definition of poverty; Measurement of regional differences on poverty using the poverty indices and constructed poverty lines; and Development of a Composite Indicator of Multidimensional Poverty to identify poverty by severity and also to examine regional disparities of poverty.Publication Open Access FTA Negotiations in Asia-Pacific Region: An Empirical Study on the Determinants FTA among the Bilateral Trading Partners(researchgate.net, 2009-11) Jayathilaka, R; Keembiyahetti, NHistorically, Free Trade Agreements (FTAs) have been, and will continue to be, an important gateway for improving world trade, given that the world trading system is substantially hampered by man-made barriers. This paper examines into the deterministic key factors and their relative importance for FTA negotiations among the bilateral trading partners using a Probit Model based on 9,178 nonzero trading pairs having 705 active and operational bilateral FTAs. Based on the estimated model, the study projects the future potentiality of FTA negotiations in the Asia-Pacific region. The study works on eleven hypotheses regarding the dependency of FTA on the economic and non-economic characteristics of the bilateral trading partners and the findings support 9 out of the 11 hypotheses. The likelihood of forming an FTA between a pair of countries is higher: (1) the closer in distance the two trading partners are; (2) less remote a natural pair is relative to other countries; (3) economically larger the trading partners are; (4) more similar the trading partners are in economic size; (5) larger the differences in relative factor intensity are; (6) greater is the political stability; (7) more discontinued than connected by a common border; (8) for countries having higher import tariffs in the past; and (9) larger the number of FTAs the neighborhood countries have already signed up. These factors have economically important and statistically significant effects on the probability to form an FTA. However, this study rejected the null favouring alternative that (10) sharing a common language or having colonial relationships has no influence on negotiating for an FTA. Furthermore, our findings rejected (11) the null that countries having a higher degree of export/import intensity tend to form FTAs leading to the conclusion that the past trade or existing level of trade is not a good motivation to form FTAs. Based on the estimated model the study shows that the Asia-Pacific region is well beyond the South Asian region in terms of FTA potentiality, but the European region shows more potentiality than Asia-Pacific and any other region in the world.Publication Embargo Adverse Selection Effect for South Asian Countries in FTA Formation: An Empirical Study on the Determinants of FTA among the Bilateral Trading Partners(SAGE Publications, 2009-01) Jayathilaka, R; Keembiyahetti, NThis study examines the economic and non-economic factors governing the decision of forming Free Trade Agreements (FTAs) between two non-zero trading partners by estimating a Probit model using 9,178 country pairs having 705 active and operational bilateral FTAs. This study works on the implied hypothesis that FTA is an endogenously determined variable dependent on a number of economic and non-economic factors which are usually omitted from gravity type trade models. The study finds economically important and statistically significant evidences that the likelihood of forming an FTA by a pair of countries is positively related to the economic mass of the partners, similarity in economic size, differences of relative factor intensity, political stability, past import tariffs and the existence of FTAs in the close neighbourhood, whereas it is negatively related to the distance, economic remoteness and geographic continuity. Based on these findings, this study provides a good explanation as to why South Asian Association for Regional Cooperation (SAARC) countries are still far behind the FTA negotiation process and how SAARC countries are subject to adverse selection effect by rest of the world.Publication Open Access Economic Demographic Characteristics of Poor Female Headed Households in Sri Lanka(Population Association of Sri Lanka, 2007) Jayathilaka, REconomic demographic characteristics of poor female headed households in Sri Lanka are an important area to study to formulate better policies to alleviate poverty in Sri Lanka. The study uses the Household Income and Expenditure Survey of 2001/02 that covered 16,924 households (71,293 population) in the seven provinces in Sri Lanka. This study uses the method of Cost of Basic Needs approach to derive poverty line and it use to identify the poor households. The study used the cross sectional approaches with special techniques of radar diagrams to highlight the economic demographic characteristics of poor female headed households. The characteristics compared are age, sex, dependents, marital status, level of education, usual activities, occupations and the level of income and expenditures. The findings reflect some facts which merit careful attention in the task of Sri Lankan poverty alleviation policiesPublication Open Access Alcohol and Poverty: Are they Related? Empirical Study from Sri Lanka(Sri Lanka Economic Association (SLEA), 2007-06) Jayathilaka, RThe relationship between alcohol and poverty in Sri Lanka is an important area to study to formulate better policies to eliminate poverty in Sri Lanka. The study used the Household Income and Expenditure Survey (HIES) of 2001/02 that covered 16,924 households (71,293 individuals) in seven provinces in Sri Lanka. This study identified the poor by the Sri Lankan official poverty line base which is calculated by the Department of Census and Statistics, Sri Lanka. The probit model was applied to measure the impact on alcohol and poverty. The findings reflect some facts which merit careful attention in the task of Sri Lankan poverty alleviation policies. Illegal alcohol consumption is prevalent in the rural and estate sector poor households. Developing the Sri Lankan alcohol policy would have positive impact towards the society, particularly in addressing poverty reduction issuesPublication Open Access Effectiveness of Foreign Aid: A Critical Assessment(Sri Lanka Economic Association (SLEA), 2009-06) Jayathilaka, R; Bandara, RThe studies on effectiveness of foreign aid have come through three generations and contain many arguments. Some experts charge that aid has enlarged government bureaucracies, perpetuated bad governments, enriched the elite in poor countries, or just been wasted. Others argue that although aid has sometimes failed, it has supported poverty reduction and growth in some countries and prevented worse performance in others. This paper explores the main arguments of the effectiveness of foreign aid and expounds the relationship between aid, growth and development. The findings of this paper reveal that the aid and growth during the last decade has found a positive relationship, in contrast to popular perceptions, particularly studies that have allowed for diminishing returns and have controlled for other factors that affect growth. However, it should be noted some studies have found that the aidgrowth relationship is conditional on the policy or institutional environment, but many of those results have been fragilePublication Open Access Status of Poverty in Sri Lanka: In a Perspective of Headship(Population Association of Sri Lanka, 2009-12) Jayathilaka, RThe gender aspect of poverty in Sri Lanka is an important area to formulate better policies to empower the status of women and to alleviate poverty status by household level in Sri Lanka. This study examines the impact of poverty levels in relation to change in headship from male to female to understand whether female headed households contribute disproportionately to overall poverty in Sri Lanka. The study used the Household Income and Expenditure Survey of 2001/02 that covered 16,924 households (71,293 individuals) in seven provinces in Sri Lanka. This study identified the poor by the Sri Lankan official poverty line which is calculated by the Department of Census and Statistics, Sri Lanka. The logit model was applied to measure the effect of poverty on changing the age, family size, income, level of education and the headship. The findings reflect some facts which merit careful attention in the task of Sri Lankan poverty alleviation policies. The results suggest that poverty and female headship are strongly linked in the estate sector. Finally, predicted logit values suggest that Monaragala and Ratnapura are the districts which are relatively deprived by having a high probability of poverty for female headed households.Publication Open Access Partners Empirical Study on the Determinants of FTA among the Bilateral Trading Adverse Selection Effect for South Asian Countries in FTA Formation: An(SAGE Publications, 2009-10-01) Jayathilaka, R; Keembiyahetti, NThis study examines the economic and non-economic factors governing the decision of forming Free Trade Agreements (FTAs) between two non-zero trading partners by estimating a Probit model using 9,178 country pairs having 705 active and operational bilateral FTAs. This study works on the implied hypothesis that FTA is an endogenously determined variable dependent on a number of economic and non-economic factors which are usually omitted from gravity type trade models. The study finds economically important and statistically significant evidences that the likelihood of forming an FTA by a pair of countries is positively related to the economic mass of the partners, similarity in economic size, differences of relative factor intensity, political stability, past import tariffs and the existence of FTAs in the close neighbourhood, whereas it is negatively related to the distance, economic remoteness and geographic continuity. Based on these findings, this study provides a good explanation as to why South Asian Association for Regional Cooperation (SAARC) countries are still far behind the FTA negotiation process and how SAARC countries are subject to adverse selection effect by rest of the world.