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on Central and Western Asia |
| By: | Sarkar, Prabirjit |
| Abstract: | Stock market development has been an important part of financial liberalisation in the less developed countries (LDCs). In the pro-liberalisation circle, stock market is assigned to play an important role in the capitalist development of the LDCs. This is also true for the liberalisation regime of India. With the recognition of the importance of stock market in economic development there is a call for a better protection of the interests of the shareholders. In this perspective we shall examine whether share market developments have any long-term relationship with capital accumulation and whether legal changes promoting the interest of the shareholders exerted any long-term effect on Indian share market developments. |
| Keywords: | corporate governance; shareholder protection; capital accumulation; development; India |
| JEL: | K22 O16 O53 |
| Date: | 2007–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5052&r=cwa |
| By: | Sarkar, Prabirjit |
| Abstract: | This study examines whether there exists a long-term relationship between Indian share price movements and growth through capital accumulation over more than half a century period since 1951. Using the Autoregressive Distributive Lag (ARDL) approach to cointegration developed by Pesaran and Shin, our study shows that no long-term relationship exists between the gross-fixed capital formation (total as well as private) as percentage of GDP and nominal or real share price. There is also no relationship between the growth rate and share prices (both nominal and real). There is also no relationship if we consider the growth rates in share price. |
| Keywords: | Globalisation; Liberalisation; Stock Market; India and Development |
| JEL: | E43 O16 G11 O53 |
| Date: | 2006–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5050&r=cwa |
| By: | Sarkar, Prabirjit |
| Abstract: | The paper analyses a new leximetric dataset for India relating to the protection of shareholders of the limited liability corporate sector and examines the impact of the changes in the shareholder protection law on economic development through stock market development. It finds no long-term relationship between corporate governance relating to shareholder protection and stock market developments and no relevance of stock market for economic development through capital accumulation. |
| Keywords: | Stock Market; Corporate Governance; Development; India. |
| JEL: | K22 O16 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:4996&r=cwa |
| By: | Mishra, SK |
| Abstract: | This essay draws attention to the fundamental axioms of human nature which the socio-economic policies of India bank upon and analyses why in spite of elaborate planning for development well over a span of fifty years the core economy of the country remains unchanged with wide spread poverty, poor wage rates, child labour and hunger. |
| Keywords: | Conceited socialism; covert individualism; uncritical idealism; politics as a profession; criminalization of politics; politicization of crime; modernized attitudes. |
| JEL: | O53 A13 A1 O2 |
| Date: | 2007–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5035&r=cwa |
| By: | Olarreaga, Marcelo; Lederman, Daniel; Cravino, Javier |
| Abstract: | In spite of the growing concerns about foreign direct investment being diverted from Latin America to China and India, the best available data show that Latin America has performed relatively well since 1997. Foreign capital stocks from OECD countries and the United States in particular in China and India are still far from those in the largest Latin American economies. The evidence shows that foreign capital stocks in China increased more than in Latin America during 1990-1997, but not as much since 1997. In fact, Latin America has actually performed better than China since 1997 given its lack of relative growth. The growth of foreign capital stocks in India was more stable than in China. Nonetheless, after controlling for shocks emanating from the source countries and bilateral distance between source and host countries, this paper finds a significant change in foreign capital stocks relative to China between 1990 and 1997, but no change relative to India. |
| Keywords: | Debt Markets,Transport and Trade Logistics,Common Carriers Industry,,Corporate Law |
| Date: | 2007–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4360&r=cwa |
| By: | Olarreaga, Marcelo; Lederman, Daniel; Cravino, Javier |
| Abstract: | This paper explores the impact of the emergence of China and India on foreign capital stocks in other economies. Using bilateral data from 1990-2003 and drawing from the knowledge-capital model of the multinational enterprises to control for fundamental determinants of foreign capital stocks across countries, the evidence suggests that the impact of foreign capital in China and India on other countries ' foreign capital stocks has been positive. This finding is robust to the use of ordinary least squares, Poisson, and negative binomial estimators; to the inclusion of time and country-pair fixed effects; to the inclusion of natural-resource endowments; and to the use of the sum of foreign capital stocks in Hong Kong (China) and mainland China instead of using only the latter ' s foreign capital stocks. There is surprisingly weak evidence of substitution in manufacturing foreign capital stocks away from Central America and Mexico in favor of China, and from the Southern Cone countries to India, but these findings are not robust to the use of alternative estimation techniques. |
| Keywords: | E-Business,Foreign Direct Investment,Economic Theory & Research,Debt Markets,Currencies and Exchange Rates |
| Date: | 2007–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4361&r=cwa |
| By: | Altug, Sumru G.; Filiztekin, Alpay; Pamuk, Sevket |
| Abstract: | This paper considers the sources of long-term economic growth for Turkey over the period 1880-2005. The period in question covers the decline and eventual dissolution of the former Ottoman Empire and the emergence of the new Turkish Republic in 1923. Hence, the paper provides a unique look at the growth experience of these two different political and economic regimes. The paper examines in detail the evolution of factors that led to growth in output across broad periods, including the post WWII period and the era or globalization beginning in the 1980's. It also considers output growth in the agricultural and non-agricultural sectors separately and allows for the effects of sectoral re-allocation. The lessons from this exercise have important implications for Turkey's future economic performance, for its ability to converge to per capita income levels of developed countries, and for the viability of its current bid for European Union membership. |
| Keywords: | determinants of growth; growth accounting; sectoral re-allocation |
| JEL: | E60 N15 O40 O50 O57 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6463&r=cwa |
| By: | Siddhartha G. Dastidar; Raymond Fisman; Tarun Khanna |
| Abstract: | We examine the effect of regime change on privatization using the 2004 election surprise in India. The pro-reform BJP was unexpectedly defeated by a less reformist coalition. Stock prices of government-controlled companies that had been slated for definite privatization by the BJP dropped by 3.5 percent relative to private firms. Surprisingly, government-controlled companies that were only under study for possible privatization fell by 7.5 percent relative to private firms. We interpret this as evidence of investor belief of policy irreversibility, where reforms may reach a stage beyond which future regimes have difficulty reversing those policies. Further analysis suggests that layoffs, combined with the privatization announcement, served as a credible commitment to the government's privatization agenda. |
| JEL: | G15 G38 H11 L33 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:13427&r=cwa |
| By: | Mengistae, Taye; Honorati, Maddalena |
| Abstract: | This paper estimates a structural dynamic business investment equation and an error correction model of fixed assets growth on a sample of predominantly small and mid-size manufacturers in India. The results suggest that excessive labor regulation, power shortages, and problems of access to finance are all significant factors in industrial growth in the country. The estimated effects of labor regulation, power shortages and access to finance on the rate of busines s investment all vary by states ' levels of industrial development and. Perhaps more importantly, they also depend on a fourth institutional factor, namely, corruption. The rate of fixed investment is significantly lower where power shortages are more severe and labor regulation is stronger over the full sample, but each of these impacts is also greater for businesses self-reportedly affected by corruption. Although access to finance does not seem to influence the rate of investment for most firms, there is evidence that investment decisions are constrained by cash flow in enterprises that are unaffected by corruption or power shortages. There are nuances to this story as we take into account regional specificity, but the key result always holds that labor regulation, power shortages and access to finance influence the rate of fixed investment in ways that depend on the incidence of corruption. In interpreting this finding, we would like to think of corruption as a proxy for the quality of property rights institutions in the sense of Acemoglu and Johnson (2005). On the other hand, we regard labor regulation and the financial environment of small businesses in India as instances of what Acemoglu and Johnson (2005) call ' contracting institutions ' . The analysis finds that the interaction between corruption and other aspects of the institutional environment of fixed investment decisions could be seen consistent with the Acemoglu-Johnson view that the quality of property rights institutions exerts more abiding influence on economic outcomes than the quality of contracting institutions. |
| Keywords: | Access to Finance,Economic Theory & Research,Labor Policies,Emerging Markets,Labor Markets |
| Date: | 2007–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4356&r=cwa |
| By: | Sarkar, Prabirjit |
| Abstract: | The present study examines the relationship between openness (trade-GDP ratio) and growth. Our cross-country panel data analysis of a sample 51 countries of the South during 1981-2002 shows that for only 11 rich and highly trade-dependent countries a higher real growth is associated with a higher trade share. Time series study of individual country experiences shows that the majority of the countries covered in the sample including the East Asian countries experienced no positive long-term relationship between openness and growth during 1961-2002. Our study of the experience of various regions and groups shows that only the Middle Income group exhibited a positive long-term relationship. |
| Keywords: | growth; opening up; liberalization; less developed countries and globalization. |
| JEL: | F02 F43 O50 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:4997&r=cwa |