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Ebook Bank failure: Evidence from the Colombian financial crisis
Submitted by puput on Fri, 12/25/2009 - 03:33During the late 1990s and early 2000s, Colombia’s financial system experienced a period of financial stress, characterized by the failure of many banks and other financial institutions, as well as by the severe deterioration of the whole system’s financial health. The capitalization ratio of the system fell dramatically, as did profitability and liquidity. As a consequence of the crisis, the number of institutions, 110 in June 1998, dropped to only 57 in December 2001, after failures, mergers and acquisitions. Total assets of the financial system experienced a real contraction of more than 20 percent during the same period, making that episode of financial stress the deepest financial crisis experienced by the country in the last century.
The literature on the financial crisis of Colombia has concentrated in explaining its causes and consequences. See Arias et al (1999), Arbeláez et al. (2003), Carrasquilla and Zárate (2002), Parra and Salazar (2000), Uribe and Vargas (2002), Urrutia (1999) and Villar et al (2005). There have been no micro-level studies of the role of specific financial variables in determining failure and time to failure of banks. This paper uses duration models to characterize the failure rates of financial institutions in Colombia and to identify key financial variables associated with these failure rates. Duration models use hazard functions rather than densities to specify the distribution of observables (and thus the likelihood function). For the method, see Kiefer (1988) and Lancaster (1990). Although early economic applications of hazard functions or duration analysis were in labor economics, they have been applied to bank failures. Lane et al (1986), Weelock and Wilson (1995), and Whalen (1991), use duration models to explain bank failure in the United States. Other studies have used duration models to explain time to failure after particular episodes of financial stress in under-developed countries. For example, Gonzalez- Hermosillo et al (1996) use them to explain bank failure after the Mexican crisis of 1994, and Carree (2003) does a hazard rate analysis of Russian commercial banks in the period 1994-1997.
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Ebook A Global Value Chain Approach to: Food, Healthy Diets, and Childhood Obesity
Submitted by puput on Fri, 12/04/2009 - 03:51Today childhood obesity is widely recognized as a major global health problem in both developed and developing countries. The slow build-up of childhood obesity awareness over the last twenty-plus years reached an accelerated pace beginning in the early 2000s as witnessed through the confluence of increased conferences, NGO initiatives, and public awareness. This awareness is coupled with the alarming data that shows the drastic rise of childhood obesity rates in developed countries since the 1960s and the growing childhood obesity rates in developing countries since the 1980s. Along with this build-up, a consensus is emerging that the study of childhood obesity should cease focusing on a sole medical interventionist model or single levels of analysis. Building upon Glass and McAtee’s call for an integration of the natural, behavioral, and social sciences to study childhood obesity, we address how a global value chains (GVC) approach is a useful analytic framework to conduct multilevel research. Researchers who use a GVC paradigm to study childhood obesity would identify how some of the main international and corporate factors related to changing food production, technology, and development strategies are linked to consumption patterns around the world. These consumption patterns may allude to unhealthy diets and the risk factors associated with the increased prevalence of childhood obesity.
We outline in this paper our case for using a GVC approach to study childhood obesity. First, we review the evidence regarding the increased prevalence of childhood obesity in developed and developing countries. Second, we use Glass and McAtee’s article as a foundation to conceptualize the multiple determinants of childhood obesity that are positioned on varying levels of analysis (global, macro, meso, micro, and ‘underwater’). With their framework, we begin to piece together how a GVC analysis can be an effective model to capture specific interactions and linkages that connect the levels. Particular attention is given to the United States to demonstrate how a multilevel analysis may be visualized. The United States case highlights a variety of determinants linked to two broad variables: a deleterious change in food consumption patterns (e.g., an increase in fast foods, processed foods, soft drinks, and snacks), driven by powerful corporate marketing campaigns oriented to youth; and a shift to a more sedentary lifestyle. Breaking down the determinants and levels of the U.S. provides a case example to compare developing countries to. Moreover, it highlights the strength of lead firms (e.g., food and beverage manufacturers and fast-food chains) in shaping local consumption patterns. These lead firms then become a key factor in connecting local food production and technological changes in the United States to an overall global shift. Third, we diagram the key analytic terms and segments of a GVC framework. A series of global processes, such as international trade, foreign direct investment, and the diffusion of Western cultural norms, are examined in terms of their impact on changing consumption patterns in developing societies and their connection to a GVC approach.
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Ebook Social Impact of the Korean Economic Crisis
Submitted by puput on Fri, 08/07/2009 - 07:05Following the outbreak of the economic crisis, both Korean economy and society have gone through many transitions. On December 3, 1997, the Korean government and the International Monetary Fund (IMF) reached an agreement on a financial aid package, which totalled US$ 58.35 billion. Since then, the Korean government has succeeded in rescheduling US$ 21.8 billion of its outstanding external short-term debt to medium term debt.
Furthermore, the government implemented a wide range of restructuring measures. Korea’s prompt and decisive response to the call for reform was aimed at restoring stability to its financial market, and allowing the economy to enter a transitional period in 1999, and pursue normal economic growth in 2000 and thereafter.
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