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on Central and Western Asia |
| By: | Mukherjee, Dr. Kedar nath; Mishra, Dr. R. K. |
| Abstract: | Return and volatility spillover among Indian stock market with that of 12 other developed and emerging Asian countries over a period from November 1997 to April 2008 is studied. Daily opening and closing prices of all major equity indices from the sample countries are examined by applying the GARCH model [Engle (1982) and Bollerslev (1986)] to explore the possibility of stock market integration and volatility spillover among India and its major Asian counterparties. Apart from different degrees of correlations, both in terms of return and squared return series, among Indian stock market with that of other Asian countries, the contemporaneous intraday return spillover among India and almost all the sample countries are found to be positively significant and bi-directional. More specifically, Hong Kong, Korea, Singapore and Thailand are found to be the four Asian markets from where there is a significant flow of information in India. Similarly, among others, stock markets in Pakistan and Sri Lanka are found to be strongly influenced by movements in Indian market. Though most of the information gets transmitted among the markets without much delay, some amount of information still remains and can successfully transmit as soon as the market opens in the next day. |
| Keywords: | Asian stock markets; Integration; Information spillover; GARCH model |
| JEL: | G14 G15 G10 |
| Date: | 2008–12–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12788&r=cwa |
| By: | Majumder, Rajarshi |
| Abstract: | Adequate and efficient infrastructure is required for sustainable economic growth and improved quality of life. In this paper we examine the problems faced by infrastructural sectors in India in the new millennium, both at sectoral and aggregate levels. Policies for improvement are also suggested. |
| Keywords: | Infrastructure; Planning; Financing; |
| JEL: | H54 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12813&r=cwa |
| By: | Ramprasad Sengupta |
| Abstract: | An analysis of the economic implication of judicial activism of the apex court of India in the regulation of automotive air pollution is analysed. It estimates the health damage cost of urban air pollution for 35 major urban agglomerations of India arising from automotive emissions and the savings that can be achieved by the regulation of fuel quality so as to conform to the Euro norms. It has used the results of some US based study and has applied the transfer of benefit method from the US to the Indian situation for the purpose. The paper finally makes a benefit cost analysis of refinery upgradation for such improvement of fuel quality. |
| Keywords: | fuel quality, health, urban pollution, air, cost benefit analysis, US, Indian, ecoomic implication, automotive, Euro, , |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1841&r=cwa |
| By: | Prasad, Eswar (Cornell University) |
| Abstract: | In this paper, I analyze India's approach to capital account liberalization through the lens of the new literature on financial globalization. India's authorities have taken a cautious and calibrated path to capital account opening, which has served the economy well in terms of reducing its vulnerability to crises. By now, the capital account has become quite open and reversing this is not a viable option. Moreover, the remaining capital controls are rapidly becoming ineffective, making the debate about capital controls rather moot. Managing de facto financial integration into international capital markets and aligning domestic macroeconomic policies in a manner that maximizes the indirect benefits and reduces the risks is the key challenge now facing India's policymakers on this front. |
| Keywords: | India, international financial integration, capital flows, capital controls |
| JEL: | F3 F4 O2 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3927&r=cwa |
| By: | Mukherjee, Dipa; Majumder, Rajarshi |
| Abstract: | Tertiarisation of labour market has globally been associated with economic progress. But in developing countries, labour market deformities may push people into service economy out of distress also. This paper examines the tertiarisation process in Indian labour market to bring out the reasons behind such trends and the likely impact of such movements. It is observed that the employment growth in the tertiary sector had been dynamic and growth-induced during the eighties, but in the recent times has turned distress-driven. Sub-sectors within the tertiary sector are behaving differently indicating the heterogeneity of this sector. Policymakers should note these issues and take appropriate steps not only to boost high-end jobs but also to improve productivity and returns in low-end jobs. Then only tertiary sector revolution in India will be beneficial to the workers en masse and be sustainable. |
| Keywords: | Tertiary sector; labour; sectoral transformation; inequality; India |
| JEL: | J62 E24 J21 J24 O14 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12755&r=cwa |
| By: | Codrina Rada |
| Abstract: | This paper discusses the estimation of a social accounting matrix that distinguishes between formal and informal activities for China and India for 2000 and 1998-99 respectively. Wage shares for the formal/informal employment for China and net domestic product shares for the formal/informal sectors for India are being applied as weights to the input-output tables and flow of funds tables provided by official statistics. While some estimation techniques used in this paper remain vulnerable to criticism, the proposed methodology is a first step towards an integrated approach to account for the dualism of many economies in the developing world. The results are important data input for any policy-driven CGE model for developing countries. |
| Keywords: | informal sector, social accounting matrix, comparative economic systems, China, India |
| JEL: | E01 E26 P44 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:uta:papers:2009_02&r=cwa |
| By: | Nayak, Purusottam; Mahanta, Bidisha |
| Abstract: | The present paper is an attempt to analyze the status of women empowerment in India using various indicators like women’s household decision making power, financial autonomy, freedom of movement, political participation, acceptance of unequal gender role, exposure to media, access to education, experience of domestic violence etc based on data from different sources. The study reveals that women of India are relatively disempowered and they enjoy somewhat lower status than that of men in spite of many efforts undertaken by government. Gender gap exists regarding access to education and employment. Household decision making power and freedom of movement of women vary considerably with their age, education and employment status. It is found that acceptance of unequal gender norms by women are still prevailing in the society. More than half of the women believe wife beating to be justified for one reason or the other. Fewer women have final say on how to spend their earnings. Control over cash earnings increases with age, education and with place of residence. Women’s exposure to media is also less relative to men. Rural women are more prone to domestic violence than that of urban women. A large gender gap exists in political participation too. The study concludes by an observation that access to education and employment are only the enabling factors to empowerment, achievement towards the goal, however, depends largely on the attitude of the people towards gender equality. |
| Keywords: | Women Empowerment; Gender |
| JEL: | O15 |
| Date: | 2009–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12685&r=cwa |
| By: | Majumder, Rajarshi; Mukherjee, Dipa |
| Abstract: | State interventions into Labour policies in India are directed towards ensuring both job security and income security. In this paper we look at likely impact of such policies. The laws are found to serve the organised workers primarily while large masses of unorganised workers are without any security. To escape legislations, employers have substituted labour by capital, hired casual workers, and set up ancillary units. Consequently, output elasticity of employment has consistently declined and there is marked casualisation of workforce. Legislations have thus institutionalised and perpetuated labour market dualism. Reforms herein are necessary but should be implemented in a careful and phased manner to avoid deteriorating conditions in both the sectors in the name of uniformity. Linking retrenchment with Area Regeneration Programmes; upgrading employability quotient through training; allowing employers to transfer workers between units; providing easy credit and technical consultancy; and cooperative formation would help the workers. |
| Keywords: | Labour; State; Globalisation; Unorganised Sector; |
| JEL: | E24 J21 J38 I38 K31 J30 J23 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12409&r=cwa |
| By: | Nayak, Purusottam; Mahanta, Bidisha |
| Abstract: | The present paper is an attempt to analyze the status of women and their empowerment in terms of various indicators such as access to education, employment, household decision making power, financial autonomy, freedom of movement, exposure to media, political participation, experience of domestic violence etc in the state of Assam using secondary data obtained from various sources. The study reveals that development process in the state is not gender neutral; women enjoy quite inferior status as compared to the average women in India. Percentage of women in the government services and their political participation is quite low and does not show any sign of significant improvement. Sex ratio though not in favor of women is improving over time. Women enjoy better status in the state as compared to women in India in terms of decision making power at the household level while the situation is reverse in case of their financial autonomy and sexual violence. Inter district disparity is rampant in the state. Districts like Kamrup and Tinisukia in spite of having high per capita DDP have not been able to transform the development effort to bridge the gender gap. Districts with high literacy rates are having high proportion of female main and marginal workers and low proportion of non-workers. Higher the literacy higher is the female workforce participation rate. Female enrolment rate is below fifty per cent in spite of universalisation of primary education and provision of mid day meal schemes. Although Government has undertaken a number of steps the situation has remained gloomy mainly because the educated women are not forward looking and cherish the baseless age old customs. There is a need to create awareness towards achieving the desired goal of women empowerment in the state. |
| Keywords: | Women Empowerment; Gender |
| JEL: | O15 |
| Date: | 2009–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12684&r=cwa |
| By: | Majumder, Rajarshi |
| Abstract: | Critical precondition for attaining growth and sustainable development is availability of a host of infrastructural facilities in adequate quantity and of reliable quality. The association between the latter and growth is well documented and a large number of theoretical propositions conclude that the association is quite strong and runs from the former to the latter. India, on attaining independence, accorded highest importance to the development of infrastructural facilities and lion’s share of the plan outlays were on this sector. This resulted in a remarkable growth in such facilities. But the recent spurt in actual and target growth rates has been associated with substantial shortages in the physical availability of infrastructural facilities. To achieve and sustain the growth targets such shortages must be removed. This should start with determining the likely demand for these facilities both at current levels of economic intensity and at levels corresponding to desired growth rates. In this paper we seek to forecast the demand for selected infrastructural facilities for India over the next decade and a half so that we have an idea regarding the magnitude of the task facing the economy. In addition to projecting physical quantum of demand for those facilities, we also attempt at indicating the financial implications of realising those levels. The projected demand is substantially larger than the present availability and the task becomes harder as not only population will rise in future but the per capita demand would also increase. The Capacity Addition required would call in for huge investment amounting to a Capital outlay of 6-6.2 per cent of GDP for the five selected sectors only. One possible way to dent into this awesome job is to use a dual strategy. Along with heavy investment in creation of new physical stock of infrastructural facilities, one must also aim at improving the utilization rate and operational efficiency of existing stock. |
| Keywords: | Infrastructure; Demand Projection; Sustainable Growth; |
| JEL: | H54 C53 C33 C21 O21 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12812&r=cwa |
| By: | Mukherjee, Dipa |
| Abstract: | Employment creation and wage security have been primary goals of developing countries. The present paper analyses the wage-employment scenario in India in the post-reform period. The workforce structure is exhibiting upward mobility across wage classes, moving towards regular employment, and shifting in favour of tertiary sector jobs – the pace decelerating in the second half of the study period. Thus expansion of employment has not been as distress a phenomenon as often apprehended. There is a shift of middle wage level jobs from regular to casual employment, leading to declining inequality among casual workers and increased inequality among regulars. However, availability of mandays is decreasing, especially among casual workers. Perhaps jobs are continuously and decisively getting transformed from regular to casual employment and then being outsourced to the self-employeds. Increasing disparity between workers of High and Low Income States, and between White collar and Blue Collar occupations are concerns that need to be addressed. Creating more mandays of work and facilitating capacity building through education and skill formation should be the policy focus. |
| Keywords: | Employment; Wages; Reforms; Inequality |
| JEL: | J31 J21 J23 |
| Date: | 2007–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12753&r=cwa |
| By: | Haider, Adnan; Khan, Safdar Ullah |
| Abstract: | This paper estimates a small open economy Dynamic Stochastic General Equilibrium (DSGE) model for Pakistan using Bayesian simulation approach. Model setup is based on new Keynesian framework, characterized by nominal rigidity in prices with habit formation in household’s consumption. The core objective is to study whether an estimated small open economy DSGE model provides a realistic behavior about the structure Pakistan economy with fully articulated description of the monetary policy transmission mechanism vis-à-vis domestic firm’s price setting behavior. To do so, we analyze the impulse responses of key macro variables; domestic inflation, imported inflation, output, consumption, interest rate, exchange rate, term of trade to different structural/exogenous shocks. From several interesting results, few are; (a) high inflation in Pakistan do not hit domestic consumption significantly; (b) Central bank of Pakistan responds to high inflation by increasing the policy rate by 100 to 200 bps; (c) exchange rate appreciates in both the cases of high domestic and imported inflation; (d) tight monetary policy stance helps to curb domestic inflation as well as imported inflation but appreciates exchange rate significantly (f) pass through of exchange rate to domestic inflation is very low; finally parameter value of domestic price stickiness shows that around 24 percent domestic firms do not re-optimize their prices which implies averaged price contract is about two quarters. |
| Keywords: | New-Keynesian economics; open economy DSGE models; nominal rigidities; monetary policy transmission mechanism; Bayesian Approach |
| JEL: | F37 E32 E52 F47 E47 |
| Date: | 2008–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12854&r=cwa |
| By: | Benson, David A. (Duke University); Lies, Aaron (University of Memphis); Okunade, Albert A. (University of Memphis); Wunnava, Phanindra V. (Middlebury College) |
| Abstract: | Poverty rates on Native American Indian reservations are triple the US average. Small business incubation programs, available elsewhere in the US, are sparse on the reservations. Small businesses are potent drivers of US economic growth. Some 25.5 million entrepreneurs generate more than 50% of the GDP, are 26% of the exporters, and create 80% of the total net new job formation. The Small Business Administration (SBA), an independent agency of the federal government created in 1953, maintains and strengthens the nation's economy by aiding, counseling, assisting, and protecting the interests of small businesses and by assisting families and businesses to recover from national disasters. SBA services hardly exist on the Native American Indian Reservations (NAIRs), however. Studies have linked micro entrepreneurial activities to economic growth and poverty reduction. Our study tests the effects of the Lakota Fund (LF), a small business development initiative, on the NAIRs to determine whether SBA-like programs (loans, training, and consulting) can improve economic conditions on the NAIRs. The LF, a private micro loan and business training initiative on the Pine Ridge Reservation in South Dakota, is tested for its effectiveness in generating income. The 1980-2006 annual county-level data (Shannon Co. is 'treatment', Todd Co. is 'control') are a natural experiment; the counties are similar otherwise. Using the real per capita income (RPCI) dependent variable, and controlling for other factors, our regression results indicate that the LF initiative and its duration (intensity) raised RPCI significantly − suggesting the success of a privately funded small business incubation initiative targeted at isolated impoverished groups within the highly developed US economy. Suggestions for future research and program replication ideas are explored. |
| Keywords: | poverty rates, Small Business Administration, Lakota Fund, life expectancy, public sector |
| JEL: | L26 M21 O16 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3933&r=cwa |
| By: | Herrmann, Michael; Svarin, David |
| Abstract: | Bangladesh, like other least developed countries (LDC), has a large rural population and agricultural labor force. At the turn of the Millennium 75 percent of the LDCs’ population still lived in rural areas and 71 percent of the LDCs’ labor force was involved in agriculture. Yet, even the least developed countries are affected by rapidly accelerating rural-to-urban migration. This decade, 2001-2010, is the first ever in which the urban population grows faster than the rural population in the LDCs. And this change is also associated with a historic employment transition, where the agricultural sector gradually loses importance. Both the population and the employment transition that can be observed for the group of least develops countries, are largely attributable to LDC's in Asia, and in particular Bangladesh. The very large rural-urban migration in Bangladesh, in comparison with other least developed countries, is attributable to relatively strong push factors on the one hand, and strong pull factors on the other. The principle factor that encourages people to leave their homes in the country side is the frequent recurrence of natural disasters, which undermine agricultural development and cause food crisis. By contrast, the principle factor that attracts people to urban centers is the expansion of the non-agricultural sectors, industry and services, which promises jobs and higher household incomes. |
| Keywords: | Bangladesh; climate change; rural-urban migration; agricultural development; urban planning; dual-dual model; employment; poverty |
| JEL: | O18 J31 R0 J21 J61 Q54 I32 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12879&r=cwa |
| By: | Axel Mittelstädt; Fabienne Cerri |
| Abstract: | Entrepreneurship and firm creation have long been recognised as a vital force driving innovation. With globalization and the co-incident shift towards a knowledge-based economy, the link between entrepreneurship policy and innovation has received renewed attention. By underpinning firm creation and firm expansion entrepreneurship policies strengthen innovation, increasing productivity in the enterprise sector. In return, policies fostering innovation will tend to spur firm creation as the results of R&D are commercialized. Many countries have taken initiatives since early 2000 to test the potential of entrepreneurship and SME policies, articulating these with an innovation-oriented policy approach. This report consists of a synthesis report based on four country case studies on the role of entrepreneurship policies in supporting innovation in Korea, Mexico, Norway and Turkey. These country case studies are appended to the synthesis report.<P>Promouvoir l'entrepreunariat pour soutenir l'innovation<BR>L’entrepreneuriat et les créations d’entreprises sont traditionnellement considérés comme l’un des principaux moteurs de l’innovation. Avec la mondialisation et la transition concomitante vers une économie du savoir, le lien entre les politiques de l’innovation et celles en faveur de l’entrepreneuriat revient sur le devant de la scène. En soutenant la création d’entreprises et leur expansion les politiques en faveur de l’entrepreneuriat renforcent l’innovation et la croissance de la productivité. Réciproquement, les politiques de soutien à l’innovation favorisent généralement la création d’entreprises, car les résultats des activités de R-D sont commercialisés. De nombreux pays ont engagé, dès le début des années 2000, un examen systématique des politiques en faveur de l’entrepreneuriat et des PME, en optant pour une approche axée sur l’innovation. Ce rapport consiste d’un rapport de synthèse basé sur quatre études de cas portant sur le rôle joué par les politiques en faveur de l’entrepreneuriat dans la promotion de l’innovation en Corée, au Mexique, en Norvège et en Turquie. Chacune de ces études de cas est annexée au rapport de synthèse. |
| Date: | 2008–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2008/5-en&r=cwa |