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.

Growth and the Role of Sales-Tax Systems: A Study of Indian States

Abstract: This paper attempts to model the role of productive expenditure on growth using a panel data from fourteen major Indian states covering the time-period 1974-75 to 1996-97. It focuses on the role of indirect taxes as a source of financing of productive expenditure by the government, which acts as a complement to the private capital and labor in production of goods. Such an expenditure itself enhances growth, a phenomenon known as productivity effect. Indirect tax can be of several types. It can be imposed either on consumption or on intermediate goods or on capital goods. This study has assumed away the presence of the intermediate goods. Taxes imposed on consumption have no effect on growth in the absence of labor-leisure choice. However, taxing the manufacturer for the purchase of capital goods is likely to have a negative effect on growth. The same can be said about taxing the sales of capital goods. This is in line with the result obtained in Barro (1990), where the tax is imposed on interest income. This empirical exercise, in terms of a simultaneous equation panel data model of growth that takes into account the possible endogeneity of the fiscal policy variables reveals that productive expenditure has a positive significant impact on growth. This indicates the possible domination of productivity effect of the expenditure over the distortionary effect of indirect capital taxation. The impact of productive expenditure on growth rises by 3.6%, when we allow for the presence of last point taxation regime versus first or multiple point taxation systems. This indicates the importance of VAT as an instrument in furthering the Indian states' growth objectives.

Barriers for the Implementation of NMT and Other Cleaner Modes of Transport

Abstract: Implementation of any new technology or futuristic alternatives experience some sort of resistance from the system. This chapter presents various barriers that influence the implementation of non-motorized and other cleaner modes of transportation. Such barriers discussed in this chapter include social barriers, financial barriers, infrastructure-related barriers including availability of alternative technologies, institutional barriers, administrative barriers, and natural barriers such as unfavorable climatic conditions. The present chapter attempts to develop a framework for the prioritization of barriers based on multi-criteria approach involving multi-stakeholder participation. It introduces the decision-making tool, analytic hierarchy process (AHP), to prioritize the set of pre-identified barriers. A case study is presented to demonstrate the application of AHP for such prioritization of alternatives/barriers.

How Market Infrastructure Improves Market Efficiency? Case of Cotton Market in India

Abstract: Agricultural marketing in India is an inevitable issue before the policy makers these days as an efficient and adequate marketing system is a precondition for the agricultural growth and its diversification of crop production by providing better prices to producers and availability of food or non food agricultural produce at competitively determined prices to the consumers Physical improvement in marketing system can be brought by providing improved market infrastructure both in rural and urban areas Due to presence of improved infrastructure the transaction cost and hence overall costs (of maintenance, wages, services, transportation etc) fall down It also allows the easy and less costly adoption of new operating procedures and equipments Demands and necessity of marketing infrastructure like roads is rapidly rising also because of large migration of people from rural (which is supposed to be the production centre) to the urban areas (which is supposed as net consumer of the agricultural produce) One more important aspect of market ie market information network need to be given due emphasis because sometimes farmers deprived of a reasonable or remunerative price for their produce in absence of or in presence of weak dissemination of marketing information among producers And the presence of infrastructural facilities lead to market integration and facilitate the flow of information across different markets So, for having an efficient market we must have a optimal blend of hard infrastructure (like transportation) on the one hand and soft infrastructure like information network on the other Without the creation of such infrastructure, the formation of a sustainable farming sector in agriculture and hence agrarian development would not be possible

Total Factor Productivity Growth of Jowar and Bajra in India: A Comparative Analysis Using Different Methods of TFP Computation§

Abstract: Jowar and bajra are the two main coarse cereals in India and are cultivated in regions with permanent geographical and climatic impediments. In this study, the total factor productivity (TFP) growth of jowar and bajra has been estimated using three different methods, viz. Solow index method, Tornqvist-Theil index method and the Malmquist index method. The first two methods impose certain theoretical restrictions while calculating TFP growth. These restrictions can be addressed by using the third method, viz. the Malmquist index method. Jowar and bajra being rainfed crops, rainfall has been considered as one of the inputs in the production of these coarse cereals in the Malmquist index method. Hence, it is argued that on a number of counts, the contemporaneous Malmquist index method of TFP measurement could be more preferable as it gives reliable TFP estimates.

Universalization of the US Financial Crisis

Abstract: The crisis which originated in the USA rapidly spreads to other countries. Almost no region of the world escaped from the consequences of the crisis, though the scale of the damage varied considerably across countries, as did the time taken for economies to recover. The transmission of a crisis from one country to others can occur via several channels, and this chapter begins with a brief overview of these channels. Later, we see how the crisis was transmitted to the EU, Latin America, the African continent, China, India and the rest of Asia. For each region, we evaluate the firefighting measures deployed to fight the crisis.