The present study estimates impact of agglomeration on growth for 22 Indian states for the period... more The present study estimates impact of agglomeration on growth for 22 Indian states for the period 2008-2019. The result shows that industrial agglomeration has a positive impact on convergence is not confirmed an increment in agglomeration is contributing to growth across states in terms of income over the period under study, but after a certain point of time agglomeration will hamper growth. Higher growth due to agglomeration benefits can result in interspatial inequality Also the study estimates impact of agglomeration on wages of the organized (2019) and unorganized sector for the period 2017 only. The Impact of wages on industrial agglomeration for organized sector is positive confirming the intra wage theory. In case of unorganized sector, on the other hand, the impacts of agglomeration on wages are negative which indicates that when the industries expand in the regions, the diseconomies exceed economies.
Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics, Mar 1, 2014
The paper examines the trends and patterns of import intensity in the Indian economy and manufact... more The paper examines the trends and patterns of import intensity in the Indian economy and manufacturing sector during 1990s and beyond. It reviews past studies on import intensity based on different data bases and alternative methodologies. Import intensity of India's exports increased steadily from 10.54 per cent in 1993-1994 to 15.9 per cent a decade later in 2003-2004. In 2006-2007, import intensity of exports rose sharply to 28.4 per cent before dropping off to 18.72 per cent in 2007-2008. The steep rise in import intensity between 2003-2004 and 2006-2007 mirrored an 89 per cent jump in import intensity of manufacturing exports which fell to 29.63 per cent in 2007-2008. Fall in industrial production led to decline in the demand for intermediate inputs. This reduced the import intensity effectively. Changing levels of import intensity have implications for the growth of output, employment and exports. Therefore, import liberalization measures need to be implemented and sequenced with caution to get the desired result.
The present study estimates impact of agglomeration on growth for 15 Indian states for the period... more The present study estimates impact of agglomeration on growth for 15 Indian states for the period 2008-2017. The result shows that industrial agglomeration has a positive impact on convergence is not confirmed an increment in agglomeration is contributing to growth across states in terms of income over the period under study, but after a certain point of time agglomeration will hamper growth. Higher growth due to agglomeration benefits can result in interspatial inequality Also the study estimates impact of agglomeration on wages of the organized and unorganized sector for the period 2017 only. The Impact of wages on industrial agglomeration for organized sector is positive confirming the intra wage theory. In case of unorganized sector, on the other hand, the impacts of agglomeration on wages are negative which indicates that when the industries expand in the regions, the diseconomies exceed economies.
India opened up her domestic market to global competition in early 1990s, however, it was in the ... more India opened up her domestic market to global competition in early 1990s, however, it was in the early 2000s that the trade dynamics gained momentum with India actively entering into free-trade agreements, both regionally and bilaterally. The period between 2000–2001 and 2017–2018 witnessed a surge in imports from $50 billion to $384 billion, respectively. One of the fallouts of import liberalisation policy was internationalization of the production process. Import intensity of exports based on input–output tables for various years till 2013–2014 reveals that rise in imported inputs in the export sector did not have a positive impact on exports. Second, the impact of these imported inputs led to a rise in the demand for skilled labour than the abundant less skilled labour that India possesses. In future trade negotiations, the heterogeneity of Indian industry should be an important consideration while negotiating trade deals to enable greater imports of intermediate inputs necessary to boost the productivity of exporting firms.
The renewed resurgence of capital flows into developing economies in the 1990s has sparked off co... more The renewed resurgence of capital flows into developing economies in the 1990s has sparked off concern whether such a flow crowds out domestic savings. In this paper, we have attempted to test for the relationship between foreign savings and domestic savings. Harnessing time-series data for 50 years, culled out from various sources, the series is put to stationarity test. The series became stationary at first difference and subsequently we carried out Johansen's Maximum likelihood Tests for cointegration of variables. Results emerging from error correction model suggest that foreign capital is negatively related to domestic savings and found to be significant.
This paper addresses an important development issue in the literature of international production... more This paper addresses an important development issue in the literature of international production, namely, what motivates market-seeking foreign direct investment (FDI) to undertake export activities. It is well recognized in the concerned literature that export-oriented FDI is more beneficial for the host country than purely domestic market-seeking FDI. However, the existing literature has not examined those factors that could motivate existing market-seeking FDI into export activities. The present study addresses this issue and identifies factors encouraging market-seeking FDI to take up export activities. The empirical analysis of exportorientation of foreign firms in Indian manufacturing across 17 Indian industries during 1991-2005 has brought out several policy issues important for increasing export-orientation of foreign firms in a developing country like India.
Impact of port infrastructure development and efficiency in port operations on export performance... more Impact of port infrastructure development and efficiency in port operations on export performance is analysed econometrically using port-wise data on India’s exports of six major categories of manufactured products for the period 2001-02 to 2014-15. Data for 11 major ports are used for the analysis, which together account of about 84 percent of total cargo handled by Indian ports. Four port efficiency indicators are considered for the econometric analysis, namely turn-around time, berth occupancy rate, pre-berthing waiting time, and percentage of idle time at berth to time at working berth, with greater reliance placed on and attention paid to the first two. The results of the econometric analysis indicate that efficiency in port operations has a positive effect on India’s export performance in manufactured products. Another empirical finding is that addition to port capacity contributes to growth in exports of manufactured products in India, but the impact of port capacity expansio...
Based on input-output tables, the paper examines the trends and patterns of import intensity in t... more Based on input-output tables, the paper examines the trends and patterns of import intensity in the whole economy and manufacturing sector in India during 1990s and beyond. The paper also reviews past studies on import intensity based on Input output table. It finds an overall increase in import intensity for most of the broad sectors of the economy as well as many branches of the manufacturing sector in 2003–04 as compared to 1998–99. The changing levels of import intensity have an important implications for the growth of output, employment and exports. Therefore, the import liberalization measures need to be implemented and sequenced with much caution to get the desired results]
The present study estimates impact of agglomeration on growth for 15 Indian states for the period... more The present study estimates impact of agglomeration on growth for 15 Indian states for the period 2008-2017. The result shows that industrial agglomeration has a positive impact on convergence is not confirmed an increment in agglomeration is contributing to growth across states in terms of income over the period under study, but after a certain point of time agglomeration will hamper growth. Higher growth due to agglomeration benefits can result in interspatial inequality Also the study estimates impact of agglomeration on wages of the organized and unorganized sector for the period 2017 only. The Impact of wages on industrial agglomeration for organized sector is positive confirming the intra wage theory. In case of unorganized sector, on the other hand, the impacts of agglomeration on wages are negative which indicates that when the industries expand in the regions, the diseconomies exceed economies.
The present study decomposes the actual change in the incidence of poverty over two sub-periods-1... more The present study decomposes the actual change in the incidence of poverty over two sub-periods-1993-94 to 2004–05 and 2004–05 to 2011-12-in terms of growth effect and inequality effect. Second, based on the pooled cross-sectional rsults of growth effect and inequality effect on poverty change, regressions have been carried out to identify the major determinants. Findings suggest that during the second sub-period, the decline in poverty has been more pronounced compared to the first. Though the beneficial effect of growth on poverty sharpened in the second phase, the adverse effect of inequality rise on poverty also went up to neutralize it. A wide range of supportive measures can be implemented to help poor households escape poverty as growth alone may not be able to do so. Further, industry-led growth can be an effective intervention as direct and indirect employment generation can be faster.
India opened up her domestic market to global competition in early 1990s, however, it was in the ... more India opened up her domestic market to global competition in early 1990s, however, it was in the early 2000s that the trade dynamics gained momentum with India actively entering into free-trade agreements, both regionally and bilaterally. The period between 2000–2001 and 2017–2018 witnessed a surge in imports from $50 billion to $384 billion, respectively. One of the fallouts of import liberalisation policy was internationalization of the production process. Import intensity of exports based on input–output tables for various years till 2013–2014 reveals that rise in imported inputs in the export sector did not have a positive impact on exports. Second, the impact of these imported inputs led to a rise in the demand for skilled labour than the abundant less skilled labour that India possesses. In future trade negotiations, the heterogeneity of Indian industry should be an important consideration while negotiating trade deals to enable greater imports of intermediate inputs necessary to boost the productivity of exporting firms.
Purpose This study aims to estimate total factor productivity (TFP) growth for the post-2008 peri... more Purpose This study aims to estimate total factor productivity (TFP) growth for the post-2008 period for selected industries in the manufacturing sector at NIC 3-digit. Total factor productivity growth (TFPG) estimates are based on the theoretical framework provided by studies such Hall (1988), Abraham et al. (2009) and Crepon et al. (2005) that incorporate market imperfection in labour and product market, thereby modifying the traditional TFP estimation as Solow Residual. Design/methodology/approach Based on the theoretical model that incorporates market imperfections in labour as well as product market in modifying the TFP estimates using the Levinsohn–Petrin framework of empirical estimation, the authors have calculated industry wise TFPG for 62 industries at NIC 3-digit level. Findings The study finds three distinct trends: first, there are considerable industrial disparities in productivity growth in terms of TFP. The estimates have been found to be higher than the conventional ...
This paper examines the inflation rates for the period 2005–06 and 2011–12 and concludes that inf... more This paper examines the inflation rates for the period 2005–06 and 2011–12 and concludes that inflation in 2005–06 hurts the poor more since the rise in food prices was substantial in this period and food constitutes a substantial proportion of their total expenditure. The paper observes that there was a substantial rise in Inflation which was experienced in the food grains like egg, fish, and meat, while the growth of inflation rate was observed minimal in case of beverages, footwear, and edible oil. Further, the impact of inflation on poor varied not only across both rural and urban areas but also the impact was different for different time periods. The paper also depicts shifts in the pattern of inflation rate across the expenditure classes between 2005–06 and 2011–12 and establishes inverse association between inflation rate and expenditure in the year 2005-06 for both rural and urban areas while the relationship was completely distinct in case of 2011–12 for both rural and urban areas. The study clearly reveals that bottom thirty percent of the population in rural areas observes same inflation rate as their urban counterparts for the year 2005–06. Finally, the paper concludes that the impact of inflation is not only commodity specific but also decile class specific. Further, the impact of inflation is observed to be different for rural and urban areas. This establishes the role of policy and government intervention through the public distribution scheme favoring the poor section with the aim of minimizing the gap of the impact of inflation experienced by poor and rich.
The present study estimates impact of agglomeration on growth for 22 Indian states for the period... more The present study estimates impact of agglomeration on growth for 22 Indian states for the period 2008-2019. The result shows that industrial agglomeration has a positive impact on convergence is not confirmed an increment in agglomeration is contributing to growth across states in terms of income over the period under study, but after a certain point of time agglomeration will hamper growth. Higher growth due to agglomeration benefits can result in interspatial inequality Also the study estimates impact of agglomeration on wages of the organized (2019) and unorganized sector for the period 2017 only. The Impact of wages on industrial agglomeration for organized sector is positive confirming the intra wage theory. In case of unorganized sector, on the other hand, the impacts of agglomeration on wages are negative which indicates that when the industries expand in the regions, the diseconomies exceed economies.
Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics, Mar 1, 2014
The paper examines the trends and patterns of import intensity in the Indian economy and manufact... more The paper examines the trends and patterns of import intensity in the Indian economy and manufacturing sector during 1990s and beyond. It reviews past studies on import intensity based on different data bases and alternative methodologies. Import intensity of India's exports increased steadily from 10.54 per cent in 1993-1994 to 15.9 per cent a decade later in 2003-2004. In 2006-2007, import intensity of exports rose sharply to 28.4 per cent before dropping off to 18.72 per cent in 2007-2008. The steep rise in import intensity between 2003-2004 and 2006-2007 mirrored an 89 per cent jump in import intensity of manufacturing exports which fell to 29.63 per cent in 2007-2008. Fall in industrial production led to decline in the demand for intermediate inputs. This reduced the import intensity effectively. Changing levels of import intensity have implications for the growth of output, employment and exports. Therefore, import liberalization measures need to be implemented and sequenced with caution to get the desired result.
The present study estimates impact of agglomeration on growth for 15 Indian states for the period... more The present study estimates impact of agglomeration on growth for 15 Indian states for the period 2008-2017. The result shows that industrial agglomeration has a positive impact on convergence is not confirmed an increment in agglomeration is contributing to growth across states in terms of income over the period under study, but after a certain point of time agglomeration will hamper growth. Higher growth due to agglomeration benefits can result in interspatial inequality Also the study estimates impact of agglomeration on wages of the organized and unorganized sector for the period 2017 only. The Impact of wages on industrial agglomeration for organized sector is positive confirming the intra wage theory. In case of unorganized sector, on the other hand, the impacts of agglomeration on wages are negative which indicates that when the industries expand in the regions, the diseconomies exceed economies.
India opened up her domestic market to global competition in early 1990s, however, it was in the ... more India opened up her domestic market to global competition in early 1990s, however, it was in the early 2000s that the trade dynamics gained momentum with India actively entering into free-trade agreements, both regionally and bilaterally. The period between 2000–2001 and 2017–2018 witnessed a surge in imports from $50 billion to $384 billion, respectively. One of the fallouts of import liberalisation policy was internationalization of the production process. Import intensity of exports based on input–output tables for various years till 2013–2014 reveals that rise in imported inputs in the export sector did not have a positive impact on exports. Second, the impact of these imported inputs led to a rise in the demand for skilled labour than the abundant less skilled labour that India possesses. In future trade negotiations, the heterogeneity of Indian industry should be an important consideration while negotiating trade deals to enable greater imports of intermediate inputs necessary to boost the productivity of exporting firms.
The renewed resurgence of capital flows into developing economies in the 1990s has sparked off co... more The renewed resurgence of capital flows into developing economies in the 1990s has sparked off concern whether such a flow crowds out domestic savings. In this paper, we have attempted to test for the relationship between foreign savings and domestic savings. Harnessing time-series data for 50 years, culled out from various sources, the series is put to stationarity test. The series became stationary at first difference and subsequently we carried out Johansen's Maximum likelihood Tests for cointegration of variables. Results emerging from error correction model suggest that foreign capital is negatively related to domestic savings and found to be significant.
This paper addresses an important development issue in the literature of international production... more This paper addresses an important development issue in the literature of international production, namely, what motivates market-seeking foreign direct investment (FDI) to undertake export activities. It is well recognized in the concerned literature that export-oriented FDI is more beneficial for the host country than purely domestic market-seeking FDI. However, the existing literature has not examined those factors that could motivate existing market-seeking FDI into export activities. The present study addresses this issue and identifies factors encouraging market-seeking FDI to take up export activities. The empirical analysis of exportorientation of foreign firms in Indian manufacturing across 17 Indian industries during 1991-2005 has brought out several policy issues important for increasing export-orientation of foreign firms in a developing country like India.
Impact of port infrastructure development and efficiency in port operations on export performance... more Impact of port infrastructure development and efficiency in port operations on export performance is analysed econometrically using port-wise data on India’s exports of six major categories of manufactured products for the period 2001-02 to 2014-15. Data for 11 major ports are used for the analysis, which together account of about 84 percent of total cargo handled by Indian ports. Four port efficiency indicators are considered for the econometric analysis, namely turn-around time, berth occupancy rate, pre-berthing waiting time, and percentage of idle time at berth to time at working berth, with greater reliance placed on and attention paid to the first two. The results of the econometric analysis indicate that efficiency in port operations has a positive effect on India’s export performance in manufactured products. Another empirical finding is that addition to port capacity contributes to growth in exports of manufactured products in India, but the impact of port capacity expansio...
Based on input-output tables, the paper examines the trends and patterns of import intensity in t... more Based on input-output tables, the paper examines the trends and patterns of import intensity in the whole economy and manufacturing sector in India during 1990s and beyond. The paper also reviews past studies on import intensity based on Input output table. It finds an overall increase in import intensity for most of the broad sectors of the economy as well as many branches of the manufacturing sector in 2003–04 as compared to 1998–99. The changing levels of import intensity have an important implications for the growth of output, employment and exports. Therefore, the import liberalization measures need to be implemented and sequenced with much caution to get the desired results]
The present study estimates impact of agglomeration on growth for 15 Indian states for the period... more The present study estimates impact of agglomeration on growth for 15 Indian states for the period 2008-2017. The result shows that industrial agglomeration has a positive impact on convergence is not confirmed an increment in agglomeration is contributing to growth across states in terms of income over the period under study, but after a certain point of time agglomeration will hamper growth. Higher growth due to agglomeration benefits can result in interspatial inequality Also the study estimates impact of agglomeration on wages of the organized and unorganized sector for the period 2017 only. The Impact of wages on industrial agglomeration for organized sector is positive confirming the intra wage theory. In case of unorganized sector, on the other hand, the impacts of agglomeration on wages are negative which indicates that when the industries expand in the regions, the diseconomies exceed economies.
The present study decomposes the actual change in the incidence of poverty over two sub-periods-1... more The present study decomposes the actual change in the incidence of poverty over two sub-periods-1993-94 to 2004–05 and 2004–05 to 2011-12-in terms of growth effect and inequality effect. Second, based on the pooled cross-sectional rsults of growth effect and inequality effect on poverty change, regressions have been carried out to identify the major determinants. Findings suggest that during the second sub-period, the decline in poverty has been more pronounced compared to the first. Though the beneficial effect of growth on poverty sharpened in the second phase, the adverse effect of inequality rise on poverty also went up to neutralize it. A wide range of supportive measures can be implemented to help poor households escape poverty as growth alone may not be able to do so. Further, industry-led growth can be an effective intervention as direct and indirect employment generation can be faster.
India opened up her domestic market to global competition in early 1990s, however, it was in the ... more India opened up her domestic market to global competition in early 1990s, however, it was in the early 2000s that the trade dynamics gained momentum with India actively entering into free-trade agreements, both regionally and bilaterally. The period between 2000–2001 and 2017–2018 witnessed a surge in imports from $50 billion to $384 billion, respectively. One of the fallouts of import liberalisation policy was internationalization of the production process. Import intensity of exports based on input–output tables for various years till 2013–2014 reveals that rise in imported inputs in the export sector did not have a positive impact on exports. Second, the impact of these imported inputs led to a rise in the demand for skilled labour than the abundant less skilled labour that India possesses. In future trade negotiations, the heterogeneity of Indian industry should be an important consideration while negotiating trade deals to enable greater imports of intermediate inputs necessary to boost the productivity of exporting firms.
Purpose This study aims to estimate total factor productivity (TFP) growth for the post-2008 peri... more Purpose This study aims to estimate total factor productivity (TFP) growth for the post-2008 period for selected industries in the manufacturing sector at NIC 3-digit. Total factor productivity growth (TFPG) estimates are based on the theoretical framework provided by studies such Hall (1988), Abraham et al. (2009) and Crepon et al. (2005) that incorporate market imperfection in labour and product market, thereby modifying the traditional TFP estimation as Solow Residual. Design/methodology/approach Based on the theoretical model that incorporates market imperfections in labour as well as product market in modifying the TFP estimates using the Levinsohn–Petrin framework of empirical estimation, the authors have calculated industry wise TFPG for 62 industries at NIC 3-digit level. Findings The study finds three distinct trends: first, there are considerable industrial disparities in productivity growth in terms of TFP. The estimates have been found to be higher than the conventional ...
This paper examines the inflation rates for the period 2005–06 and 2011–12 and concludes that inf... more This paper examines the inflation rates for the period 2005–06 and 2011–12 and concludes that inflation in 2005–06 hurts the poor more since the rise in food prices was substantial in this period and food constitutes a substantial proportion of their total expenditure. The paper observes that there was a substantial rise in Inflation which was experienced in the food grains like egg, fish, and meat, while the growth of inflation rate was observed minimal in case of beverages, footwear, and edible oil. Further, the impact of inflation on poor varied not only across both rural and urban areas but also the impact was different for different time periods. The paper also depicts shifts in the pattern of inflation rate across the expenditure classes between 2005–06 and 2011–12 and establishes inverse association between inflation rate and expenditure in the year 2005-06 for both rural and urban areas while the relationship was completely distinct in case of 2011–12 for both rural and urban areas. The study clearly reveals that bottom thirty percent of the population in rural areas observes same inflation rate as their urban counterparts for the year 2005–06. Finally, the paper concludes that the impact of inflation is not only commodity specific but also decile class specific. Further, the impact of inflation is observed to be different for rural and urban areas. This establishes the role of policy and government intervention through the public distribution scheme favoring the poor section with the aim of minimizing the gap of the impact of inflation experienced by poor and rich.
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