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.

Sustainable debt and deficits in emerging markets

Abstract: Rising deficits and high debt ratios characterised currency crises in countries with low private savings rates and low population densities. But in emerging markets with large population transferring to more productive employment, sustainable debts and deficits may be higher. Debt ratios fall with growth rates. Higher private savings can compensate for government dissaving. An optimising model of such an economy with dualistic labour markets and two types of consumers demonstrates these features but also shows debt ratios tend to rise in high growth phases. Policy conclusions for fiscal consolidation and coordination with monetary policy are derived in the Indian context.

The political determinants of central governments' economic policies in India: an empirical investigation

Abstract: Using annual data from India, we investigate whether central governments' economic policies are affected by two political considerations—the proximity of an election to the national legislative assembly, and the nature of the central government (single-party versus coalition). We find that economic policies are responsive to election timing. On the other hand, economic policies are largely insensitive to government type. Copyright © 2005 John Wiley & Sons, Ltd.

Trend and cyclical decoupling: new estimates based on spectral causality tests and wavelet correlations

Abstract: The issue of decoupling of emerging market economies (EMEs) (especially in the Asian region) from the developments in advanced economies has become a subject of lively debate in recent years. Basically, decoupling seems to comprise three sub-hypotheses: (i) growth spillovers from advanced countries to EMEs decreasing progressively in importance, (ii) business cycles in EMEs becoming less synchronized with those of the advanced world and (iii) strengthening of growth spillovers and cyclical synchronization among the EMEs as a group. The received literature fails to distinguish adequately between the trend and cyclical aspects of the decoupling relationship. We resort to two frequency domain methods (nonstationary spectral causality testing and wavelet correlations), which seem to offer a neat separation of trend and cyclical decoupling. Based on a sample of seven EMEs from the Asian region (including the two large EMEs – China and India), we uncover strong evidence favouring both trend and cyclical decoupling.

Environmental and economic policy analysis of waste paper trade and recycling in India

Abstract: A comprehensive case study of Mumbai (Bombay), India was undertaken to investigate the economic, social and environmental impact of international trade of waste paper for recycling purposes between industrialised and developing countries. Analysis of a Western approach vis-a-vis informal policy for waste paper recovery concludes that employment is maximum under informal policy measure and public response plays an important role in maintaining environmental quality. The study further shows that income inequality is more under informal policy, and without policy public cost will increase continuously in the future. The net present value of the informal policy is found to be higher than that for the formal policy. Econometric study on input substitution in the Indian paper industry suggests limited substitution possibilities between domestic and imported waste paper. Results from a static material balance flow model indicate that environmental impacts are less with increased trade and economically the paper sector in India benefits from free trade. Based upon the results of the study, some policy recommendations have been made that may enhance the efficiency of waste paper recycling in India.

The relative impacts of banking, infrastructure and labour on industrial growth: evidence from Indian states

Abstract: This article analyses the impacts of outreach of banking services, infrastructure penetration, and labour market rigidity on the growth of manufacturing industries across 14 major states in India in the post-liberalization period (from 1991–92 to 2002–3). It documents that the outreach of the banking sector as well as infrastructure penetration has a significant positive impact on the growth of industries. Interestingly, the counteracting effect of labour market rigidity does not appear to be significant, if the effects of infrastructure and banking services are controlled for. This article also assesses the relative magnitudes of the impacts of these three institutional factors on industrial growth.