M. Suresh Babu
Bio: M. Suresh Babu is an academic researcher. The author has contributed to research in topics: Industrialisation. The author has an hindex of 1, co-authored 1 publications receiving 2 citations.
TL;DR: In this paper, a profile of regional industrial growth in wake of the competition among Indian states to accelerate the pace of industrialization is provided, which indicates a tendency towards concentration of manufacturing activities even in the reform era.
Abstract: Purpose – The purpose of this paper is to provide a profile of regional industrial growth in wake of the competition among Indian states to accelerate the pace of industrialization. The results indicate tendency towards concentration of manufacturing activities even in the reform era.Design/methodology/approach – The attempt is to compare trends since 1991 to the earlier decade and decipher the extent of the effectiveness of policy changes in disbursing industrial activity regionally.Findings – The paper finds that organized manufacturing activity is concentrated in few states. The early movers continue to dominate cornering substantial share of the national industrial investments and production. Even in an era of market reforms the trend continues. This indicates a degree of “path dependence” in industrialization in the economy. There seems to be slight dispersal of activities in the unorganized segment. New forms of organization of production have fostered industrial growth in the unorganized segment. H...
TL;DR: In this paper, the authors have empirically established the relationship between financial sector developments and economic growth and highlighted the importance of a healthy and stable banking system in deciding the pace of development of an economy as it boosts mobilization of funds and acts as a catalyst in the country's growth process.
Abstract: Within the broad realm of financial system, the banking system is one of the pivotal integrants as banks form the major part of financial institutions in India as well as worldwide (Gerschenkron, 1962; Jadhav & Ajit, 1996). Through its intermediary activities, it facilitates the exchange of goods and services, stimulates savings and channelizes these to productive investment. A healthy and stable banking system plays a crucial role in deciding the pace of development of an economy as it boosts the mobilization of funds and acts as a catalyst in the country’s growth process. Various researchers have empirically established the relationship between financial sector developments and economic growth (Bhattacharya & Sivasubramanian, 2003; King & Levine, 1993; Levine, 2004; Rajan & Zingales, 1998; C. Singh, 2005). Strengthening of banking system and its regulation has always been one of the central issues for the policymakers in an economy on account of its direct link with the overall economic performance. India is not an exception to it. Financial soundness of banking depends upon its asset quality and in the process of providing financial assistance to the investment projects, banking institutions face inherent risk known as default risk which creates non-performing assets (NPAs). Asset quality revealed in the form of NPAs of a bank is the actual expression of its credit risk management system. The timely information relating to NPAs works as a useful tool in examining the asset quality of banks (Meeker & Gray, 1987). NPAs affect the operative capability of the banks and successively affect the profitability, liquidity and solvency of those banks (Michael, Vasanthi, & Selvaraju, 2006). No doubt, to some extent, deterioration of assets is inevitable, but it is always appreciable if these distressed assets remain at its minimum with the vital contribution of the credit risk management system. Rising NPAs generally lead Management and Labour Studies 44(3) 263–284, 2019 © 2019 XLRI Jamshedpur, School of Business Management & Human Resources Reprints and permissions: in.sagepub.com/journals-permissions-india DOI: 10.1177/0258042X19848238 journals.sagepub.com/home/mls
TL;DR: In this paper, the authors investigated the relationship between structural change and regional economic growth in Indonesia and showed that structural change is a significant determinant of economic growth, but only if there is an increase in productivity, not only a movement of labor across sectors.
Abstract: This paper investigates the relationship between structural change and regional economic growth in Indonesia. We utilize several measures of structural change, i.e. structural change index, norm absolute value index, shift-share method, and effective structural change index, for 30 provinces over the period 2005-2018. We show that the structural change has occurred across provinces, even though it is slowing, towards an agricultural-services transition. By employing dynamic panel data models, this study shows that structural change is a significant determinant of growth. However, structural change matters for growth only if there is an increase in productivity, not only a movement of labor across sectors. An improvement in productivity within sectors and a movement of labors to other sectors with better productivity lead to a better economic development.