nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2010‒08‒28
thirteen papers chosen by
Nurdilek Hacialioglu
Open University

  1. Determinants of Employment in India's National Rural Employment Guarantee Scheme By Raghbendra Jha; Raghav Gaiha; Manoj K. Pandey
  2. What Can Be Learned About the Economies of China and India from Purchasing Power Comparisons? By Alan Heston
  3. The Dynamics and Status of India’s Economic Reforms By Singh, Nirvikar
  4. ICT Sector, Globalization and Urban Economic Growth: Evidence from Bangalore (India) By Narayana, M. R.
  5. Addressing New Service Sectors in WTO/FTAs: Express Delivery and India By Arpita Mukherjee; Parthapratim Pal; Ramneet Goswami
  6. Natural Resources and Chronic Poverty in India: A Review of Issues and Evidence By Amita Shah
  7. Is trade deficit sustainable in India? An inquiry By Tiwari, Aviral
  8. Commercial Microfinance and Social Responsibility: A Critique By Nair, Tara
  9. Less Smoke, More Mirrors: Where India Really Stands on Solar Power and Other Renewables By David Wheeler and Saurabh Shome
  10. Union Imperatives from Unionized White Collar Employees’ Perspective: The Case of Tata Employees Union By Anita Sarkar; Biju Varkkey
  11. Small But Effective: India's Targeted Unconditional Cash Transfers By Puja Dutta; Stephen Howes; Rinku Murgai1
  12. Indian Software Industry: Distortions and Consolidations of Gains By Pradosh Nath
  13. A Distributional Analysis of the Public-Private Wage Differential in India By Azam, Mehtabul; Prakash, Nishith

  1. By: Raghbendra Jha; Raghav Gaiha; Manoj K. Pandey
    Abstract: Using household level data this paper provides systematic evidence on the employment impact of the National Rural Employment Guarantee Scheme in three Indian states: Rajasthan, Andhra Pradesh and Maharashtra. We model this as a two stage Heckman procedure where we model selection for NREGS in the first phase and the determinants of hours worked in the second. A number of significant insights into the employment impact of the National Rural Employment Guarantee Scheme are obtained.
    Keywords: National Rural Employment Guarantee Scheme, Heckman Models, Asia: India
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:pas:asarcc:2010-17&r=cwa
  2. By: Alan Heston
    Abstract: Comparisons of India and China have been made for over 50 years. This paper focuses on purchasing power estimates in China and India in the 2005 round of the UN International Comparison Programme (ICP) that was coordinated by the World Bank, the Regional Banks and Economic Commissions. The 2005 ICP round provides estimates of purchasing power parities (PPPs) of currencies and real product per capita for 146 countries, and the results for China and India are discussed in the context of the size of these economies. It also provides insights into the prospects of future economic growth in China and India as also policy recommendations for China and the likely scenarios in the future. [Working Paper No. 229]
    Keywords: purchasing power, China, India, economic growth, tertiary sector, capital stock
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2777&r=cwa
  3. By: Singh, Nirvikar
    Abstract: This paper considers the status of economic reform in India, to understand which further reforms might be desirable, and why they have not been successfully introduced or implemented. Rather than provide a list of reforms that “should” be undertaken, the paper attempts to understand the political economy of the process of economic reform in India, and how that process plays out with respect to different sectors of the economy, or different areas of potential economic reform. The discussion includes the roles of institutions, interest groups and ideas in driving reform.
    Keywords: India; economic reform; political economy; interest groups; rent-seeking; institutions
    JEL: O53 P26
    Date: 2010–08
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:24479&r=cwa
  4. By: Narayana, M. R.
    Abstract: This paper aims at economic analysis of economic globalization and urban growth of Bangalore, the Silicon Valley of India, as they are related to ICT sector. Overall analyses offer new insights and evidences for ICT sector as a major contributor for degree of economic globalization and urban economic growth, mainly driven by ICT services. Bangalore’s performance is remarkable compared to all-India level and OECD averages. These results offer empirical justification for continuing with and strengthening of public policies for promotion of globalizing and growth-oriented ICT sector in Bangalore with implications for comparable Indian and Asian cities.
    Keywords: globalization, ICT sector, urbanization, urban economic growth, Bangalore
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-80&r=cwa
  5. By: Arpita Mukherjee; Parthapratim Pal; Ramneet Goswami
    Abstract: The service sector is evolving. New services and new modes of delivering existing services have increased the complexities of services negotiations in the WTO and in FTAs. The WTO negotiations focus on market access but FTAs tend to go beyond market access to seeking regulatory commitments from trading partners. India is a proponent of services liberalisation both in the WTO and through bilateral/regional agreements. In this context, this paper examines how new service sectors like express delivery services (EDS) are addressed in WTO/FTAs and its implications for India. [Working Paper 251]
    Keywords: Services, Express Delivery, Postal and Courier, India, WTO, FTA
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2776&r=cwa
  6. By: Amita Shah
    Abstract: Natural resources perform multiple functions as a driver, maintainer, potential exit route, and also an effective escape mechanism in the context of poverty dynamics, especially in a predominantly agrarian economy such as India. The discourse on poverty reduction however, has often overlooked some of the major concerns of natural resource management, despite recognizing the criticality of agricultural growth for reducing rural poverty in the country. This paper presents an overview of the interface between natural resources and poverty in India and pleads for better equity and sustainability in resource management by ensuring sustained investment in support institutions at various levels. [Working Paper No. 43]
    Keywords: Natural resources, Poverty, India, Dry land, Forest, Tribal
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2773&r=cwa
  7. By: Tiwari, Aviral
    Abstract: This study examines the sustainability of trade deficit with allowance of structural breaks and seasonal adjustments as both variables have been subject to structural changes and affected by seasons. We find that, in all the cases, there is long run relationship between export and import. This implies that foreign trade deficit is sustainable in the Indian context.
    Keywords: export, import, unit root, structural breaks, seasonal adjustment, cointegration.
    JEL: C13 C12 F14 C22
    Date: 2010–08–16
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:24451&r=cwa
  8. By: Nair, Tara
    Abstract: Working within the logic of maximising investor returns, the strategic focus of Indian microfinance institutions seems to have shifted from serving the poor borrowers to chasing profits. The commercial transformation of MFIs has been accompanied by changes in the structure of ownership, management and nature of their stakeholder commitment. This essay discusses some of the critical inadequacies in the approaches advocated and currently practised by the commercial MFIs in order to restore the sector’s focus on poor borrowers.
    Keywords: commercial microfinance; social responsibility; India
    JEL: M14 A13 G21
    Date: 2010–07–31
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:24412&r=cwa
  9. By: David Wheeler and 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. We estimate the incremental 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, Solar Power, carbon emissions, renewable energy
    Date: 2010–03
    URL: http://d.repec.org/n?u=RePEc:cgd:wpaper:204&r=cwa
  10. By: Anita Sarkar; Biju Varkkey
    Abstract: The paper examines the attitude of white collar unionized employees’ towards their union and management under three key themes – work related dimensions, union related dimensions and staff members’ loyalty towards union and management. The investigation is based on survey and informal interviews of white collar employees of Tata Centre, the corporate head-office of Tata Steel, India. [W.P. No.2008-03-07]
    Keywords: white collar, union, loyalty, India
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2780&r=cwa
  11. By: Puja Dutta; Stephen Howes; Rinku Murgai1
    Abstract: India’s approach to social security stresses the provision of subsidized food and public works. Targeted, unconditional cash transfers are little used, and have been little evaluated. An evaluation of cash transfers for the elderly and widows based on national household survey data and surveys on social pension utilization in two of India’s states, Karnataka and Rajasthan, reveal that these social pension schemes work reasonably well. Levels of leakage (corruption) are low, funds flow disproportionately to poorer rather than richer households, and there is strong evidence that the funds reach vulnerable individuals. A comparison to the public distribution system reveals that the main strength of the social pensions scheme is its relatively low level of leakage. We hypothesize that social pensions suffer less from corruption than India’s other safety net programs either because of the low levels of discretion involved in their delivery, or the small size of the transfers involved. Since we cannot choose between these two hypotheses, the scaling-up of the social pension schemes, currently underway, while warranted, should be closely monitored.
    Keywords: social security, pensions, unconditional cash transfers, India, widows
    JEL: H55 I38 J14 J16
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:pas:asarcc:2010-18&r=cwa
  12. By: Pradosh Nath
    Abstract: The Indian software industry is at the bottom of knowledge hierarchy, where the bottom is highly segmented. The political process that successfully thwarted the automation of Indian manufacturing sector has caused an irreparable damage to the global competitiveness and has to be reversed to capitalise on the gains of the software industry across the whole economy. [WP No. 04/2008].
    Keywords: market, NASSCOM, Indian, manufacturing sector, economy, knowledge, global competitiveness, political process, automation, capitalise, industry, software,
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2779&r=cwa
  13. By: Azam, Mehtabul (World Bank); Prakash, Nishith (Cornell University)
    Abstract: We investigate the public-private wage differential in India using nationally representative micro data. While the existing literature focuses on average wage differential, we study the differences in the wage distributions. The raw wage differential between public and private sector is positive across the entire distribution for both genders irrespective of area of residence. A quantile regression based decomposition analysis reveals that the differences in observed characteristics (covariate effect) account for only a small part of the wage differential at lower quantiles, but a larger part at higher quantiles. At the very top of the distribution, covariate effect account for a majority of the observed wage differential.
    Keywords: quantile regression, public-private wage differential, India
    JEL: J3 J45
    Date: 2010–08
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5132&r=cwa

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