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on Central and Western Asia |
| By: | M. Govinda Rao; Richard.M. Bird |
| Abstract: | Over 330 million people live in India’s cities; 35 cities have a population of over a million and three (Mumbai, Delhi, and Kolkata) of the 10 largest metropolises in the world are in India. India’s cities are large, economically important, and growing. However, neither urban infrastructure nor the level of urban public services is adequate for current needs, let alone to meet growing demands. This paper attempts to point the way towards some possible solutions by analysing urban governance and finance in India in the context of lessons drawn from fiscal federalism theory and experiences of governance institutions and financing systems both in India and around the world. [NIPFP WP No. 68]. |
| Keywords: | cities, India, urban public finance, urban governance, intergovernmental fiscal, relations, property tax, Economic Dynamism, finance, public services, housing, city, metropolitan areas, infrastructure finance, demands, economically, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2495&r=cwa |
| By: | Kalirajan, Kaliappa; Miankhel, Adil; Thangavelu, Shandre |
| Abstract: | The paper adopts a time series framework of the Vector Error Correction Models (VECM) to study the dynamic relationship between export, FDI and GDP for six emerging countries of Chile, India, Mexico, Malaysia, Pakistan and Thailand. Stationarity of the series with structural breaks is also examined in the model. Given that these countries are at different stages of growth, we will be able to identify the impact of FDI and export on economic growth at different stages of growth. The results suggest that in South Asia, there is evidence of an export led growth hypothesis. However, in the long run, we identify GDP growth as the common factor that drives growth in other variables such as exports in the case of Pakistan and FDI in the case of India. The Latin American countries of Mexico and Chile show a different relationship in the short run but in the long run, exports affect the growth of FDI and output. In the case of East Asian countries, we find bi-directional long run relationship among exports, FDI and GDP in Malaysia, while we find a long run uni-directional relationship from GDP to export in case of Thailand. |
| Keywords: | FDI; Exports; Multivariate VAR; Pakistan; India; Malaysia; Thailand; Chile; Mexico. |
| JEL: | C22 F43 B41 |
| Date: | 2009–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22763&r=cwa |
| By: | Mansour Farahani (Harvard School of Public Health); S. V. Subramanian (Harvard School of Public Health); David Canning (Harvard School of Public Health) |
| Abstract: | This study uses the second National Family Health Survey (NFHS-2) of India to estimate the effect of state public health spending on mortality across all age groups, controlling for individual, household, and state-level covariates. We use a state’s gross fiscal deficit as an instrument for its health spending. Our study shows a 10 % increase in public spending on health in India decreases the average probability of death by about 2%, with effects mainly on the young, the elderly, and women. Other major factors affecting mortality are rural residence, household poverty, and access to toilet facilities. |
| Keywords: | Public spending, health, mortality probability, India |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:gdm:wpaper:5009&r=cwa |
| By: | Das, Rituparna |
| Abstract: | As per the researchers on monetary economics, a detailed account of the changing role of money from Walrasian and Non-Walrasian settings to the more recent theories on the dynamics of the relationships between money, inflation and growth with reference to their historical evolution are available in Friedman et al. ed. (1998) and such type of theoretical work did not happen in India. There is a tendency among the Indian researchers to apply the theories developed abroad to up to date empirical data in econometrics models and then, with the help of econometric techniques and compare the results. For example Dash and Goal (2001) applied the theory of Foster (1992) and Chona (1976) applied the theory of Ahrensdorf and Thasan (1960). This paper dealt with such applications, their lacunae and attempts to resolve the issues unaddressed till 2005. |
| Keywords: | monetary policy; money; interest rate; Keynes; monetarist; neo Keynesian; Quantity Theory; LM curve; Nachane; Brahmananda; Tobin; post Keynesian; endogenous; money supply; financial markets; bank; credit; loan |
| JEL: | E0 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22825&r=cwa |
| By: | Barua, Alokesh; Chakraborty, Debashis; Hariprasad , C. G. |
| Abstract: | The industry and trade policy regimes in India have witnessed drastic changes since 1991. The dismantling of the industrial licensing system and thereby allowing free entry to and exit from the industry of firms in 1991 followed by the WTO induced trade liberalization leading to substantial reduction in tariffs and gradual softening of foreign investment regulations, particularly in the context of foreign direct investment since 1995, may have had significant impact on the state of competitiveness in India industries. In this paper an attempt has been made to evaluate the effects of trade and industrial policy changes on domestic competitiveness for select Indian industries during post-liberalization period. Though there exists a pool of empirical literature focusing on the state of competitiveness in India, the link between theoretical models underlying the empirical analysis is not often strong. Moreover, a section of the literature focuses on a combination of firm and industry data for drawing conclusions on firm behavior, which may not reflect the actual scenario. Given this background, the present paper attempts to provide a unified approach to examine the inter-relationships between entry and competitiveness within a consistent oligopolistic market framework. The empirical analysis of the present study, carried out on the basis of firm data for 14 sectors over 1990-2008, indicates that Indian industry have shown considerable changes over the last decade in terms of entry and competitiveness. An overall decline in concentration is witnessed between the two end points, which signify the importance of newer entry in the markets. The Price-Cost Margin however behaves differently for different sectors, which could be explained by the differing level of spillover of technical changes as a result of increased pressure of competition due to liberalization. Demand curve is generally found to be inelastic and declines over the period. The relationship between the size of the firms and their export volume turns out to be significantly positive. |
| Keywords: | Competitiveness; entry; industrial liberalization; trade liberalization |
| JEL: | F12 L50 |
| Date: | 2010–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22738&r=cwa |
| By: | Chakraborty, Debashis; Mukherjee, Jaydeep; Sinha, Tanaya |
| Abstract: | The long run relationship between current account balance (CAB) and capital account balance (KAB) and the repercussions of capital account convertibility (KAC) on growth process of a country is a much debated issue. In particular, in the aftermath of the Southeast Asian crisis, the limitation of the liberal capital regime for a developing country like India is often highlighted in the literature. However, the probable impact of introducing KAC on CAB in India generally is discussed theoretically. Though some of the existing studies in India have earlier focused on this research question, they have done so by exogenously assuming the existence of a single structural break in the interrelationship between CAB and KAB. The present study intends to bridge the gap in the literature by raising two empirical questions: first, how far KAC is likely to destabilize the CAB and second, measuring the strength of the interrelationship between CAB and KAB. The current paper also contributes to the literature by incorporating multiple endogenous structural breaks in the empirical analysis. The empirical findings do not support any long term relationship between capital and current account balance and reveals that two significant structural breaks are observed in 1993-94 and 2003-04. |
| Keywords: | International Capital Movements; Foreign Exchange; Current Account Adjustment |
| JEL: | F32 F21 F31 |
| Date: | 2010–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22806&r=cwa |
| By: | Abraham, Vinoj; Sasikumar, S.K. |
| Abstract: | The implementation of the Agreement on Textile and Clothing (ATC) of the World Trade Organization (WTO) renders both threats and opportunities to India’s Textile and Clothing (T&C) industry in the wake of liberal international trade in the sector. Firms acquire greater international competitiveness through various cost cutting and efficiency enhancing strategies. The question we try to ponder on is, what route does Indian firms take to join the international export market in T&C. Empirical analysis, using Tobit estimation techniques, supported the view that increasing the share of low cost labour was an important route through which export performance of the Indian firms in T&C was enhanced. Further, the use of this means to perform better in the international market aggravated in the period after the implementation of the ATC. On the other hand, capital and technology based factors did not have any perceptive effect on the export performance of Indian firms in the international market. This endorses the view that the Indian T&C firms by and large utilized the low road to competitiveness, rather than the other. Also the importance of the import intensity in export performance suggests that Indian T&C is increasingly getting integrated within the global value chain. |
| Keywords: | Export performance; Textile and clothing industry; Labour cost; Tobit Model; Agreement on Textile and Clothing |
| JEL: | F16 J3 F14 |
| Date: | 2010–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22784&r=cwa |
| By: | Goyal, Aparajita |
| Abstract: | This paper estimates the impact of a change in procurement strategy of a private buyer in the central Indian state of Madhya Pradesh. Beginning in October 2000, internet kiosks and warehouses were established that provide wholesale price information and an alternative marketing channel to soy farmers in the state. Using a new market-level dataset, the estimates suggest a significant increase in soy price after the introduction of kiosks, supporting the predictions of the theoretical model. Moreover, there is a robust increase in area under soy cultivation. The results point towards an improvement in the functioning of rural agricultural markets. |
| Keywords: | Markets and Market Access,E-Business,Agribusiness,Crops&Crop Management Systems,Access to Markets |
| Date: | 2010–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5315&r=cwa |
| By: | David Wheeler; Saurabh Shome |
| Abstract: | Until recently, India’s intransigent negotiating posture has conveyed the impression that it will not accept any carbon emissions limits without full compensation and more stringent carbon limitation from rich countries. However, our assessment of India’s proposed renewable energy standard (RES) indicates that this impression is simply wrong. India is seriously considering a goal of 15 percent renewable energy in its power mix by 2020, despite the absence of any meaningful international pressure to cut emissions, no guarantees of compensatory financing, and a continuing American failure to adopt stringent emissions limits. If India moves ahead with this plan, it will promote a massive shift of new power capacity toward renewables within a decade. The estimated cost of this change from coal-fired to renewable power to be about $50 billion—an enormous sum for a society that must still cope with widespread extreme poverty. If India moves ahead with its current plan, it should give serious pause to those who have resisted U.S. carbon regulation on the grounds on that it will confer a cost advantage on “intransigent†countries such as India. |
| Keywords: | India, American, climate change, carbon emissions, poverty, US, regulation, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2492&r=cwa |
| By: | Uma Kambhampati (School of Economics, University of Reading) |
| Abstract: | This paper will look at the patterns of child work, schooling and ‘idleness’ across the major states of India and over two years - 1993 and 2004. We analyse two rounds of the NSS dataset to see whether the patterns of schooling and child work have changed over this period or not. The analysis concentrates on the rural sector and finds that the proportion of children in work has increased between 1993 and 2004. While current attendance at school has increased, the proportion of children whose primary activity is schooling has decreased. We hypothesise that this may be because, in a growing economy, there are more opportunities for employment and therefore a larger number of children are likely to combine work and schooling. |
| Date: | 2010–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2009-06&r=cwa |
| By: | Muhammad Farooq Arby; Muhammad Jahanzeb Malik; Muhammad Nadim Hanif |
| Abstract: | This paper estimates the size of informal economy in Pakistan by using monetary approach with some modifications, electricity consumption approach and MIMIC model. Under monetary approach, we take care of the issue of the stationarity of variables and use autoregressive distributed lag (ARDL) model instead of simple OLS and add education as an additional factor affecting the size of informal economy along with some other technical improvements in the standard monetary models. The electricity consumption approach and MIMIC models are used for the first time in case of Pakistan. The results show that the informal economy in Pakistan has been about 30 percent of the total economy which declined considerably in 2000s. Currently, about 20 percent of the economic transactions are taking place in the informal sector. Key Words: Informal Economy, ARDL, MIMIC Acknowledgment We appreciate the comments and feedback given by Ali Choudhary, Moinuddin, Amin Lodhi and participants of a seminar in which this paper was presented. |
| Keywords: | informal economy, Pakistan, South Asia, ARDL, MIMIC |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2493&r=cwa |
| By: | Francesco Grigoli; Dalia Hakura |
| Abstract: | This paper identifies and documents the properties of output gap recessions and recoveries in the Middle East, North Africa, and Pakistan (MENAP) during the 1980 to 2008 period. It goes on to investigate the key determinants of the recoveries. The duration of MENAP countries’ recessions and recoveries has increased from the 1990s to the 2000s. MENAP hydrocarbon exporting countries’ recessions were on average more pronounced in the 2000s, and hydrocarbon importing countries’ recessions milder. Fiscal policy is found to have played a key role during the recoveries to potential output, although with weaker effects for MENAP countries that are more open to trade. Monetary policy is found to have been less effective. This is likely to be related to the fact that many of the MENAP countries have fixed exchange rate regimes and hence have limited room for active monetary policy. |
| Keywords: | Economic models , Economic recession , Economic recovery , Fiscal policy , Hydrocarbons , Investment , Middle East , Monetary policy , North Africa , Oil exporting countries , Pakistan , Production growth , Trade liberalization , |
| Date: | 2010–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:10/122&r=cwa |
| By: | Driouchi, Ahmed; Kadiri, Molk |
| Abstract: | Abstract This is a contribution to the new economics of skilled labor emigration that focuses on the mobility of medical doctors from sending Middle East and North African countries. Economic models under risk neutrality and aversion are used. The findings show that the relative expected benefits and the emigration rate have major effects on the net relative human medical capital that remains in the source country. The effects of relative wages in the destination and sending countries besides the yield of education are likely to change the emigration patterns. Comparisons of theoretical and observed relative human capital per country averages are conducted and ensured the statistical validity of the model. The empirical results based on the available data by Docquier and Marfouk (2006 and 2008) and Bhargava, Docquier and Moullan (2010) allowed further use of the model to understand the current trends in the emigration of medical doctors. These trends confirm the magnitude of relative wages besides the level of education and the attitude toward risk as determinants of the emigration of skilled labor. The countries included in the study are all exhibiting brain gain under 1991-2004 emigration data but two distinct groups of countries are identified. Each country is encouraged to anticipate the likely effects of this emigration on the economy with the increase of health demand, the domestic wages and the increase in education capacity for medical doctors. |
| Keywords: | Medical skilled emigration; wages; human capital; risks. |
| JEL: | F22 A20 J24 I1 |
| Date: | 2010–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22810&r=cwa |