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on Central and Western Asia |
| By: | Singh, Nirvikar; Cortuk, Orcan |
| Abstract: | This paper examines the link between structural change and growth in India. It constructs indices of structural change, and performs a time series analysis of the data. It finds that 1988 marks a break in the time series of growth and structural change. There is one-way causality from structural change to growth in the period 1988-2007, whereas there is no evidence for this linkage before 1988. |
| Keywords: | Indian economy, structural change, growth, causality |
| Date: | 2010–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucscec:1166389&r=cwa |
| By: | Kevin Ummel |
| Abstract: | This study provides an in-depth assessment of Concentrating solar power (CSP) potential in China and India using high-resolution spatial data for site selection and modeling of plant performance, assessment of alternative land-use scenarios, estimation of generating costs, and simulation of transmission requirements. The results are used to estimate the costs and Green House Gas (GHG) abatement of an illustrative CSP expansion program that provides 20 per cent of Chinese and Indian electricity by midcentury. [Working Paper No. 219]. |
| Keywords: | solar thermal power, greenhouse gas mitigation, abatement cost, electricity generation, technological, learning, energy economics, developing countries, India, technical potential, china, coal |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2807&r=cwa |
| By: | Avih Rastogi |
| Abstract: | The export of textiles from India accounts for about one-third of India’s total exports. What is more significant is that textiles as a group, is also the largest net foreign exchange earner in as much as the import content in textile goods is quite low compared with other major export items. [Working Paper No. 18] |
| Keywords: | export, textiles, India, foreign exchange, garment |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2803&r=cwa |
| By: | Ghosh, Saibal |
| Abstract: | The article examines the evidence for credit channel on the composition of corporate finance during tight and loose periods of monetary policy, using micro-level data on Indian firms for 1995-2007. The findings provide evidence in favor of the relationship lending view, although the magnitude and extent of the response varies according to firm characteristics. |
| Keywords: | monetary policy; corporate finance; leverage; Altman-Z; relationship lending; India |
| JEL: | E52 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24717&r=cwa |
| By: | Abhijit Banerjee; Lakshmi Iyer |
| Abstract: | This paper analyze the colonial institutions set up by the British to collect land revenue in India, and show that differences in historical property rights institutions lead to sustained differences in economic outcomes. Areas in which proprietary rights in land were historically given to landlords have significantly lower agricultural investments, agricultural productivity and investments in public goods in the post-Independence period than areas in which these rights were given to the cultivators. It has been verified that these differences are not driven by omitted variables or endogeneity of the historical institutions, and argue that they probably arise because differences in institutions lead to very different policy choices. [Working Paper No. 003] |
| Keywords: | British, India, historical, landlords, agricultural, investments, independence, policy choices, history, land tenure, development |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2811&r=cwa |
| By: | M. Govinda Rao; Richard M. Bird (National Institute of Public Finance and Policy) |
| 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. Dealing with this problem is a formidable challenge. Not only must adequate finance for the provision of services be found but it is critical to ensure that the money spent results in desired outputs and outcomes. To do so, local governance structures also need to be reformed and strengthened. 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. No one system of urban governance is likely to work equally well for all urban local bodies. However, the paper identifies some key reforms required to realise both the constitutional intent to encourage citizen participation in urban governance and the economic and politically desirable goal of ensuring greater accountability of urban governments. For example, the paper draws attention to existing ambiguities in the assignment system and underlines the need to undertake activity mapping to ensure clarity as well as to make independent agencies significantly accountable to elected governments in urban areas. The paper also discusses a variety of ways of augmenting the resources of the municipal bodies in the country including essential reforms in the property tax system and adequate exploitation of user charges and fees for various services delivered as well as ways of strengthening and improving Central and State transfers to urban local governments. With respect to financing urban infrastructure, development charges should be used more effectively. More should also be done to utilise public lands more effectively. In addition, to a considerable extent capital expenditure requirements will have to be financed through borrowing so further development of the municipal bond market is important, as is more and more effective use of public private partnerships in some areas. |
| Keywords: | India, urban public finance, urban governance, intergovernmental fiscal relations, property tax, metropolitan areas, infrastructure finance |
| JEL: | R51 H70 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:govern:2226&r=cwa |
| By: | Dilek Demirbas; Ila Patnaik; Ajay Shah (National Institute of Public Finance and Policy) |
| Abstract: | FDI by firms in developing countries is a recent phenomenon and demands a study of relationship between firm productivity and different modes of globalisation activities. This paper attempts to understand this relationship through ordered probit models, examining two key hypotheses using firm level panel data from India. First, we test whether there are characteristic differences between domestic firms, exporting firms and firms engaging with FDI. Second, we test if FDI is an integral part of the evolution of firms in developing countries. Our results suggest that there are strong differences between domestic firms, exporting firms, and firms that invest abroad, especially in their knowledge investment, indicating the presence of a ladder of quality in graduating to globalisation. |
| Keywords: | Outbound FDI, Panel data, India, Ordered Probit models |
| JEL: | F12 F14 F23 L1 D20 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:financ:2223&r=cwa |
| By: | Ghosh, Saibal |
| Abstract: | The paper examines the response of banks to privatization. Using data on all state-owned banks for the period 1990-2006, the findings indicate that fully state-owned banks are significantly less profitable than partially privatized ones. The improvements in performance by partially privatized banks are, in fact, sustained after privatization. In addition, the analysis indicates that privatization improves profitability, efficiency and improves bank soundness, while lowering bank risk. While the improvement in bank risk is typically spread out over a much longer period, the progress in terms of profitability and economic efficiency typically occurs in the post-privatization period. |
| Keywords: | Banking; Partial privatization; Non-performing loans; Capital adequacy ratio; India |
| JEL: | G21 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24716&r=cwa |
| By: | Vijay Paul Sharma; Hrima Thaker |
| Abstract: | Agricultural subsidies that encourage production and productivity have been widely criticized because of the cost of subsidies and they are perceived to be far from uniformly distributed. There is a general view in academic, policy and political circles that agricultural subsidies are concentrated geographically, they are concentrated on relatively few crops and few producers and in many cases do not reach the targeted group(s). This paper examines trends in fertilizer subsidy and the issue of distribution of fertilizer subsidies between farmers and fertilizer industry, across regions/states, crops and different farm sizes. [W.P. No. 2009-07-01] |
| Keywords: | Fertilizer, Subsidies, Beneficiaries, Import Parity Price, Direct Transfer, Farm Size |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2794&r=cwa |
| By: | Nicoletta Batini; Vasco Gabriel; Paul Levine; Joseph Pearlman (National Institute of Public Finance and Policy) |
| Abstract: | We first develop a two-bloc model of an emerging open economy interacting with the rest of the world calibrated using Indian and US data. The model features a financial accelerator and is suitable for examining the effects of financial stress on the real economy. Three variants of the model are highlighted with increasing degrees of financial frictions. The model is used to compare two monetary interest rate regimes: domestic Inflation targeting with a floating exchange rate (FLEX(D)) and a managed exchange rate (MEX). Both rules are characterized as a Taylor-type interest rate rules. MEX involves a nominal exchange rate target in the rule and a constraint on its volatility. We find that the imposition of a low exchange rate volatility is only achieved at a significant welfare loss if the policymaker is restricted to a simple domestic inflation plus exchange rate targeting rule. If on the other hand the policymaker can implement a complex optimal rule then an almost fixed exchange rate can be achieved at a relatively small welfare cost. This finding suggests that future research should examine alternative simple rules that mimic the fully optimal rule more closely. |
| Keywords: | DSGE model, Indian economy, monetary interest rate rules, floating versus managed exchange rate, financial frictions |
| JEL: | E52 E37 E58 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:macroe:2222&r=cwa |