Indira Gandhi Institute of Development Research

About: Indira Gandhi Institute of Development Research is a facility organization based out in Mumbai, Maharashtra, India. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 307 authors who have published 1021 publications receiving 18848 citations.

Where Have All the Factories Gone? Growth and Concentration of Sub-National Manufacturing Activity in India

Abstract: The spatial distribution of manufacturing across the states of India is analyzed covering the period 2004-05 to 2015-16. We found that the spatial concentration of manufacturing activity has increased since 2004-05. More industrialized states (Maharashtra, Gujarat and Tamil Nadu) are found to have continued their dominance measured in terms of their share of output, factories and workers in manufacturing. They are observed to have captured a greater share of incremental growth of factories and workers. This outcome may be attributed to their comparative advantage due to agglomeration economies. Differences in the net entry of factories (and workers) in registered and unregistered segments of manufacturing are observed between different states of India. The estimates of net entry of factories in five selected industry groups in registered manufacturing are found to be consistent with agglomeration at the sectoral level.

The Impact of Speculation Upon Volatility and Market Efficiency: The Badla Experience on the Bse

Abstract: On 12 March 1994, SEBI imposed new norms on trading on the Bombay Stock Exchange, and the effective consequence of this has been an elimination of badla, a form of forward trading. Without badla, the role of speculative traders on the BSE is diminished. This paper sets out to measure the impact of this elimination of speculative trading upon volatility on the BSE. We explore, and criticise, a variety of different methods of arriving at a conclusion on this question, and present an estimation strategy which exploits the unique opportunity to view this episode as a natural experiment. Our examination of daily unsystematic risk, which takes the value of 3% in our sample on average, reveals that badla diminishes it by roughly 0.25 percentage points. Working with weekly returns data, badla seems to have no impact upon unsystematic risk. On the subject of market efficiency, we find that badla is slightly beneficial for short--horizon market efficiency: the non-forecastability of daily returns of A companies has worsened in the year following 12 March 1994. This effect is most pronounced in a short horizon; the degree of forecastability of weekly returns is essentially unchanged in the year after 12 March 1994. Obtaining from mail server: send email to mserver@cmie.ernet.in with these two lines in the body: get sigfi badla1.uue get sigfi badla2.uue The file badla1.uue uudecodes into piece.aa The file badla2.uue uudecodes into piece.ab Concatenate these two to get the file paper.ps.gz

Choosing private schools: Examining primary school enrollment decisions in rural North India

Abstract: This study examines primary school choice in seven states in rural north India, using data from a survey of schools and 1586 households in 274 villages. The analysis emphasizes the role of choice sets faced by rural households, given uneven provision of primary education, and of the relative importance of voice versus exit in household decisions on school choice. The overarching findings suggest that parents value the facilities and functionality of the chosen school and are sensitive to the characteristics of the alternatives available, with possible differences based on the gender of the child. Significantly, the odds that the chosen school is privately managed are lower when variables denoting quality of the government schools in the village are higher. However, the presence of vehicles for parental representation denoting voice does not matter in expected ways. Overall, parents might be discerning with respect to individual school characteristics rather than merely sorting over school management type.

Competition for foreign capital: Endogenous objective, public investment and tax

Abstract: In this paper we endogenize the objective functions of the regions as well as their decision to provide public investment in a model of competition for foreign owned mobile capital. We demonstrate that the competing regions can `restrict race-to-the-bottom' in tax rates by deviating away from social welfare to net tax revenue. It is optimal for a region to be fully revenue oriented even if that region's ultimate goal is to maximize social welfare, irrespective of whether the rival region is concerned about social welfare or net tax revenue. Moreover, we demonstrate that the regions have unilateral incentive to spend on public investment, except in case of perfect spillover. In equilibrium, both the regions spend on public investment and end up with Pareto inferior outcomes.

Assessing Changes in the Global Financial Architecture from an Emerging Market Perspective

Abstract: The article assesses changes in the global financial architecture and related global governance. Despite useful reforms lacunae remain. Analysis of financial regulations and measures to address global imbalances show serious weaknesses in addressing risks from shadow banking and large banks that are responsible for volatile capital flows to emerging markets (EMs). The underlying philosophy that intervention and controls distort markets and manipulate currencies weakens the toolbox available to EMs to deal with volatile capital flows. The use of quantitative easing and deficits are regarded as a valid response to domestic conditions in advanced economies, and their effect on commodity price inflation hitting EMs not acknowledged. Despite greater representation of EMs in the G-20 adjustment continues to be asymmetric. This harms global stability and recovery. Universal adoption of some basic minimal measures can close arbitrage gaps and resolve many problems.