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Showing papers in "The Indian Economic Journal in 2022"


Journal ArticleDOI
TL;DR: In this article , the authors investigated the relationship between sectoral government expenditure with economic growth in Ethiopia and found a unidirectional causality running from health, transportation and communication and road government expenditure to growth at the one lag length.
Abstract: This article investigates the relationship between sectoral government expenditure with economic growth in Ethiopia. In this study, the time series data from the period 1979–2018 is used. Autoregressive Distributed Lag approach to co-integration and error correction model are applied to investigate the short- and long-run impacts of government expenditure on economic growth. Using bound test approach to cointegration, the study revealed that agriculture, health and road expenditure has positive and significant in the long run, while expenditure on health and road has also a positive and statistically significant in short run. Applying the Granger causality test, we found a unidirectional causality running from health, transportation and communication and road government expenditure to growth at the one lag length. Therefore, it is important that the government better to spend on agriculture, health and road sectors of government expenditure for better development on these sectors and also should increase the efficiency of financial resources.

4 citations


Journal ArticleDOI
TL;DR: In this article , the authors study the relationship between corruption, political stability and economic growth in BRICS economies, where gross fixed capital formation and final consumption expenditure are considered additional variables and employ panel non-linear autoregressive distributed lag model from 1996-2018.
Abstract: There are studies available that study the influence of corruption on economic growth, but no existing literature studies the asymmetric relationship in context to BRICS countries. In this study, we try to fill the gap in the literature by studying the symmetric and asymmetric association between corruption, political stability and economic growth in BRICS economies where gross fixed capital formation and final consumption expenditure are considered additional variables. Further, we employ panel non-linear autoregressive distributed lag model from 1996–2018. In the long run, the non-linear estimation results confirm an asymmetric relationship while all variables show the asymmetric relationship in the short run. Additionally, the study has employed Dumitrescu–Hurlin (2012) test to find the direction of causality among the variables. The test confirms the causality in particular variables taking economic growth as dependent variable and the decomposed explanatory variables. The article’s findings provide new insight into the relationship between corruption, political stability and economic growth. JEL Codes: D73, F35

3 citations


Journal ArticleDOI
TL;DR: In this article , the authors focus on the two pillars of energy policy (efficiency-demand and supply), Ordinary Least Square (OLS) technique and Granger causality have been employed to model the energy efficiency and consumption nexus and other determinants of energy consumption across sectors.
Abstract: Modernisation theorists reiterate endogenous growth models by acknowledging technological production for a rise in the efficiency of energy-use. Yet, world system analysts blame economic production for causing environmental degradation. As economic and demographic modernisation continue to raise the magnitude of extraction despite their declining economic intensity, the dichotomy draws attention to Jevons’ paradox. Debates ingeminating ‘The End of Cheap Oil’ raise arguments about India’s energy deficit despite measures to raise its energy self-sufficiency. Do policies aiming at reducing energy consumption through efficiency enhancement fulfil their targets or does the reality reverse the objectives of the policy? Focusing on the two pillars of energy policy (efficiency-demand and supply), Ordinary Least Square (OLS) technique and Granger causality have been employed to model the energy efficiency–consumption nexus and other determinants of energy consumption, across sectors. The magnitude of energy intensity effect is stronger in the agricultural sector than the other sectors. This analysis records evidence of Sectoral Rebound effects confirming Jevons’ paradox, whereby the economy’s energy mix which is strongly inclined towards non-renewable resources combined with the demand for green energy and efficiency, clearly supports the government’s recent policy moves in the direction of renewable energy generation and electricity substitution. JEL Codes: O13, Q42, Q43, Q48

2 citations


Journal ArticleDOI
TL;DR: In this paper , the authors investigate the association between GDP growth and steel consumption in India from 2004-2005 to 2019-2020 and conclude that over the period there is a unidirectional movement from economic development to steel consumption.
Abstract: The article analytically investigates the association between GDP growth and steel consumption in India from 2004–2005 to 2019–2020. We investigate the association of both long-term and short-term by employing the Granger causality test in the vector error correction model. The results showed one-way causality between economic growth to steel consumption both in the long and short run and concludes that over the period there is a unidirectional movement from economic development to steel consumption. So, as the economy progresses it has a direct impact on the steel industry. Finally, the study forecast the steel demand for the next decade and highlights the readiness of the steel industry to meet its demand and focus on better utilisation of its capacity. JEL Codes: C51, E2, E27

1 citations


Journal ArticleDOI
TL;DR: In this article , the effect of technology exports on enhancing growth of Asian economies during the period 2001 to 2018 is investigated. And the results indicate the need for Government of each nation to enhance its effort on the development of policies which focus on attracting investments and further promoting exports of technology intensive sectors.
Abstract: The emphasis on enhancing and specialising in technology exports and altering policy environment in Asian economies has been dominant since 2000. The present study is an attempt to empirically investigate the effect of technology exports on enhancing growth of Asian economies during the period 2001 to 2018. To assess the linkages between growth, investments, labour productivity and technology exports, panel least squares with cross section weights is applied for the economies. To assess the relationship between the variables for each individual country ARDL technique is applied. The results indicate long run relationship between low, medium low and medium high technology exports and growth as well as domestic investment and growth. For individual nations, the results indicate varying intensity of technology exports have a different relationship with growth. The results also suggest the need for Government of each nation to enhance its effort on the development of policies which focus on attracting investments and further promoting exports of technology intensive sectors. JEL Codes: F14, F60, O19

1 citations


Journal ArticleDOI
TL;DR: An overview of the key achievements and the gaps in India's socio-economic development is presented, in the context of Azadi ka Amrit Mahotsav, celebrating India's 75th year of Independence as mentioned in this paper .
Abstract: One of the largest and richest economies of the world in much of the human history, India emerged from the colonial rule in 1947, as one of the poorest countries. Much has been achieved over the past 75 years in both economic and social terms. However, many challenges remain that need to be addressed over the next quarter century. In this essay, an overview of the key achievements and the gaps in India’s socio-economic development is presented, in the context ‘Azadi ka Amrit Mahotsav’, celebrating India’s 75th year of Independence. It also summarises aspirations for the Indian Centenary that will be celebrated in 2047 and a vision of India’s global leadership, not only in economic terms but also in terms of prosperity that is more inclusive, more sustainable and more resilient to enable her to celebrate the Centenary with a greater sense of national pride, achievement and fulfilment, becoming a role model for the developing world! JEL Codes: O53, O14, O11, O12

1 citations


Journal ArticleDOI
TL;DR: In this paper , the impact of institutional quality and sustainability on FDI was analyzed using data from 189 countries for 19 years, from 1996 to 2017, using several approaches such as pooled panel least squares with fixed and random effect models, generalised method of moments and panel quantile regression.
Abstract: This article analyses the impact of institutional quality and sustainability on FDI. To achieve the objective, the study utilises data from 189 countries for 19 years, from 1996 to 2017. For estimation, the study uses several approaches such as pooled panel least squares with fixed and random effect models, generalised method of moments and panel quantile regression. The study finds that FDI and institutional quality steers the sustainability of the participating countries, primarily by creating and maintaining a conducive environment for investment and trade. We also confirmed that institutional quality variables can predict the FDI inflow across the countries. This is the first study in our knowledge that adopts different estimations and thereby ensures the robustness of the research findings. Moreover, our study is unique by including a new variable, i.e., the environmental performance index, to understand the sustainability aspects of FDI and the institutional quality. JEL Codes: Q56, C33, G28, E02, E22, F21

1 citations


Journal ArticleDOI
TL;DR: In this article , the impact of family background on cognitive skills of the children has been studied and the findings reveal that there exists a significant positive association between family background and cognitive skills, indicating the existence of poor intergenerational mobility in education.
Abstract: This study desires to look at the impact of family background on cognitive skills of the children. On the basis of primary survey of two districts of West Bengal—namely Bankura and Nadia—and using the fathers’ education, occupation and per capita household income as the proxies for family background we have employed multinomial probit and ordered logit regression model for this analysis. The findings reveal that there exists a significant positive association between family background and cognitive skills of the child indicating the existence of poor intergenerational mobility in education in the surveyed region. JEL Codes: I20, I24, I28

1 citations


Journal ArticleDOI
TL;DR: In this article , the authors empirically explore the determinants of start-up investments in India's subnational economies, to identify the conditioning variables that possibly drive such investments, and identify the conditions that possibly influence such investments.
Abstract: India has rapidly evolved into a fast-growing emerging market with one of the largest start-up ecosystems in the world. Despite the rapid strides, the nature of investment distribution of start-ups remain heavily concentrated in specific regions within India, fuelling concerns of regional disparities. In this research note, I empirically explore the determinants of start-up investments in India’s subnational economies, to identify the conditioning variables that possibly drive such investments. JEL Codes: L26, O53, R11, R12

1 citations


Journal ArticleDOI
TL;DR: In this article , the effects of free trade agreements (FTAs) signed by India on the changes in the trade volumes of member states were analyzed and the benefits of the economic integration of export earnings to meet the import demands.
Abstract: The study analyses the effects of free trade agreements (FTAs) signed by India on the changes in the trade volumes of member states. The article analyses the benefits of the economic integration of export earnings to meet the import demands. It is found that FTAs improve economic activities among the signing countries. This article highlights the role of FTAs in the economic activities of countries signing the trade agreement. Post FTAs, the compound annual growth rate (CAGR) of exports increased and imports reduced. This research will help researchers identify the areas and countries where FTAs are desirable and help improve economic activities. JEL Codes: F15

1 citations


Journal ArticleDOI
TL;DR: In this article , the authors used two distinct estimation methods to examine earning gaps between forward castes and backward castes in the Indian labour market and found that within-group inequalities are larger than between groups across variables.
Abstract: Caste-based wage discrimination can counteract the development process. This article uses two distinct estimation methods to examine earning gaps between forward castes also referred to as ‘general category’ workers and traditionally disadvantaged or ‘backward caste’ workers in the Indian labour market. First, we interpret the inequality indicator of the Theil index and decompose Theil to show within and between-group inequalities. Second, a Threefold Oaxaca Decomposition is employed to break earnings differentials into components of endowment, coefficient and interaction. Earning gaps are examined separately in urban and rural divisions. Within-group inequalities are found larger than between groups across variables, with a higher overall inequality for forward castes. Wage differentials are substantially greater for urban areas and favour FC. A high endowment implies pre-market discrimination in human capital investments such as nutrition and education. Policymakers should first invest in basic quality education and simultaneously expand postgraduate diploma opportunities, subsequently increasing participation in the labour force for traditionally disadvantaged in disciplines and occupations where forward castes have long dominated. JEL Codes: J01, J08, J15, J30, J31, J71

Journal ArticleDOI
TL;DR: In this article , the authors examined the potency of fiscal factors relative to the money growth in inflation in Sri Lanka for an extended period 1965-2018, and also for the post-reform period 1977-2018.
Abstract: Although the monetary policy impact on inflation is deliberated intensively in economic literature, the fiscal policy impact has not gained much interest, particularly in the developing countries. The later issue is theorised as the fiscal theory of price level. This article examines the potency of fiscal factors relative to the money growth in inflation in Sri Lanka for an extended period 1965–2018, and also for the post-reform period 1977–2018. The inflationary impacts of public debt, budget deficit and public expenditure, in association with money growth and a few control variables are assessed rigorously. The results of the vector autoregression model estimations involving different combinations of these variables reveal that fiscal policy instruments are, in general, inflationary while no significant impact of money growth on inflation is found. Besides, the analyses of impulse response functions and variance decomposition of inflation corroborate that the external debt, budget deficit and public expenditure are potent factors amplifying inflation. The impacts of money and control variables are trivial. These findings are invariant over the samples and justify that an active fiscal and a passive monetary policy are operative. Managing the budget deficit and growing dependence on public debt is a critical policy issue in Sri Lanka. JEL Codes: E31, H63, C32

Journal ArticleDOI
TL;DR: In this article , a composite rural development index (RDI) encompassing four dimensions, namely rural economy, rural social transformation, rural health and education and rural infrastructure, is proposed.
Abstract: Rural development is widely acclaimed as a tool for economic development of any region by the policy makers. Being a multi-level and multi-faceted process, the actual status of rural development is insuperable to assess through the individual scrutiny of either one or a few development indicators. Therefore, the present study endeavours to reckon district level rural development and its disparities in Punjab through the formulation of a composite rural development index (RDI) encompassing four dimensions, namely rural economy, rural social transformation, rural health and education and rural infrastructure at five points in time, that is, 1981, 1991, 2001, 2011 and 2018 based on 29 development indicators. The findings of the study revealed a lopsided picture of rural development with a concentration of frontrunner districts mainly in the Doaba belt, while mediocre and laggard categories are dominated by the districts of the Malwa belt. Further, reduction in the level of inter-district disparities in rural development has also been observed over the study period. It is suggested that mediocre as well as laggard districts should be prioritised in resource allocation to curtail the extent of rural development disparities in the state. JEL Codes: C38, H54, O10, R10

Journal ArticleDOI
TL;DR: In this paper , the authors analyse the determinants of the gender gap in financial inclusion in BRICS countries using the World Bank's 2017 Global Financial Inclusion Index Database, and examine the underlying causes of gender differences in financial services.
Abstract: This study aims to analyse the determinants of the gender gap in financial inclusion in the BRICS countries. Using the World Bank’s 2017 Global Financial Inclusion Index Database, the study examines the underlying causes of gender differences in financial services. Using the Fairlie (1999) decomposition method, the study finds a significant portion of the disparity among genders in financial inclusion. The lower-income quintiles contribute positively to the gender gap when compared to upper-income quintiles. A considerable proportion of disparities is attributed to secondary education. However, tertiary education acts to reduce the gap. JEL Codes: C250, G21, J16, 0530

Journal ArticleDOI
TL;DR: In this article , the authors compared India's revealed comparative advantage vis-à-vis China in disaggregated services sectors between 2005 and 2018 and found that India has a comparative advantage in sectors such as telecommunication, computer, and information services, and other business services.
Abstract: In recent years, India has become one of the select few emerging economies to feature in the list of the world’s top services exporters. However, given similarities in demography, resource endowments and comparable shares in world services exports, India faces potential competition from China in this sector. Using a theoretically founded, regression-based measure of revealed comparative advantage, we contrast India’s revealed comparative advantage vis-à-vis China in disaggregated services sectors between 2005 and 2018. India, we find, has a comparative advantage in sectors, such as ‘telecommunications, computer, and information services’ and ‘other business services’. However, China’s advantage lies in ‘manufacturing services’ and ‘transport’. Notably, the sectors of India’s comparative advantage are also the sunrise sectors within services, displaying high growth rates and an increasing share in world services trade. A related measure—the trade elasticity index—reveals that, due to sectoral differences in comparative advantage, China does not pose a major threat to India in most of the latter’s major export destinations. Our finding implies that even if China were to enter free trade agreements with India’s major services export partners, the trade diversion losses for India would be small. JEL Codes: F11, F14

Journal ArticleDOI
TL;DR: In this paper , the authors investigated the relationship between infrastructure and manufacturing value added at the overall as well as segregated levels to study the spatial differences and found that infrastructure index exerts positive and significant impact on the manufacturing performance with estimate of 0.20 for all states in India and 0.49 for high-income states.
Abstract: Taking the data for 17 Indian states for the period running 1991–2017, the study investigates relationship between infrastructure and manufacturing value added at the overall as well as segregated levels to study the spatial differences. Preliminary tests of cross-section dependence point to the existence of dependence among the cross sections after which second-generation testing procedures are applied. Spatial differential impact of infrastructure on the performance of manufacturing activity is estimated using fixed/random effect modelling. The empirical results show that infrastructure index exerts positive and significant impact on the manufacturing performance with estimate of 0.20 for all states in India and 0.49 for high-income states. Similarly, individual components of infrastructure influence manufacturing activity differently. Road infrastructure is influencing manufacturing performance negatively in high-income states while it is positive for other states; teledensity exerts positive influence in case of middle-income states while the impact is negative in case of low-income states. Dumitrescu and Hurlin’s causality test shows bidirectional causality from infrastructure to manufacturing output. JEL Codes: D02, E62, H54, L94, L96

Journal ArticleDOI

Journal ArticleDOI
TL;DR: In this paper , the authors examined the relationship between the Indian stock market and the domestic and global economic policy uncertainty (EPU) during the period: January 2003 to June 2020, and found that there is bidirectional causality between DEPU and stock market.
Abstract: The aim of this article is to examine the relationship between the Indian stock market and the domestic and global economic policy uncertainty (EPU) during the period: January 2003–June 2020. The study employed unit root tests, Johansen cointegration test, vector error correction model (VECM), Granger causality test and impulse response function (IRF) for the analysis. This study finds the evidence for the presence of long-run equilibrium relationship between the stock market, domestic economic policy uncertainty (DEPU) and global economic policy uncertainty (GEPU) in India. The findings suggest that there is bidirectional causality between DEPU and stock market; however, no causality is found between GEPU and stock market in either direction. Also, it is found that there is bidirectional causality between DEPU and GEPU. The findings of the study may help policymakers to formulate decisive monetary and fiscal policies to achieve financial stability and are important for the financial investors and hedgers for portfolio allocations in India. JEL Codes: C32, D80, G12

Journal ArticleDOI
TL;DR: In this article , the authors have proposed a tax amnesty scheme and tax charter to address the tax disputes in Indian direct tax collections. But, the tax collection has remained sluggish over the period coupled with the lesser tax buoyancy have compelled the government to collect revenues from the untapped or under-tapped sources to finance the galloping expenditure such as the health and defence.
Abstract: Indian direct tax collections have remained sluggish over the period coupled with the lesser tax buoyancy have compelled the government to collect revenues from the untapped or under-tapped sources to finance the galloping expenditure such as the health and defence. To achieve the fixed money value targets the taxmen have been putting excessive pressures on the taxpayers who have created a panic, likely to tantamount to infamous tax terrorism and tax disputes have arisen blocking substantial tax revenues in litigations. Taking this in to cognisance the government has attempted to rationalise the tax system by introducing tax amnesty scheme such as the Vivad-se-Viswas and by launching a Faceless Assessment Scheme (FAS) and tax charter, which is likely to address the tax disputes significantly. To increase the revenue, the best approach for the government is to broadening the tax base, reducing the tax rates, rationalising the tax system, formalising the unorganised sectors and by enhancing the lower household incomes substantially in lieu of serving notices to the non-filers is the need of the hour. JEL Codes: E62, H25

Journal ArticleDOI
TL;DR: In this article , the authors investigated the long-run and short-run cointegrating relationship between stock market returns, fear index (VIX), brent crude oil prices and growth in deaths due to the COVID-19 pandemic for BRIC countries using daily data from 23 January 2020 to 24 August 2020 using Autoregressive Distributed Lag (ARDL) model.
Abstract: The study investigates long-run and short-run cointegrating relationship between stock market returns, fear index (VIX), brent crude oil prices and growth in deaths due to the COVID-19 pandemic for BRIC countries using daily data from 23 January 2020 to 24 August 2020 using Autoregressive Distributed Lag (ARDL) model. CUSUM test and serial correlation test estimates point towards the robustness of the model used. The evidence reveals that for India and Brazil, with the outbreak of COVID-19, decrease in crude oil prices and increase in volatility index, the stock returns started declining in the short run, but the impact has declined and the stock returns have regained in the long run. For China, due to the outbreak of COVID-19 and increase in fear index, stock returns declined in the short run, but the Chinese economy has recovered well due to a strong industrial and services sector. For Russia, increase in deaths due to COVID and decline in oil prices has impacted the stock returns in the long- and short run. Due to a decline of 53% for crude oil prices from January 2020 to May 2020, the Russian economy would face the consequences in the long run as well. The results suggest that though BRIC countries were impacted by growth in COVID-19 deaths, but the recovery trajectory and stability has resumed for all countries except Russia. Results of Granger Causality indicate a bidirectional causality between VIX and stock returns for the Indian market.

Journal ArticleDOI
TL;DR: In this article , a micro-level comparative study of West Bengal, dominated mainly by small and marginal farmers, serves as an interesting case for highlighting on the pattern of cropping changes over time.
Abstract: In order to revive the agricultural sector under the neoliberal regime, contract farming has been emerging as a new agricultural technology in India and in the state of West Bengal, in particular. The present paper is a micro-level comparative study of West Bengal, dominated mainly by small and marginal farmers, which serves as an interesting case for highlighting on the pattern of cropping changes over time. The study highlights on the contract farming models prevailing in the study area, the specific implications of the nature of contracts followed by a detailed discussion on the characteristics of the crop under contract and the structure of contract farming in the study area. The article also attempts to investigate the factors inducing contract farming by different size classes of farmers as well as contract farming through individual agents vis-a-vis cooperatives using a logistic regression model. The study reflects that the success of contract farming as an emerging alternative institution that may alter the existing farm practices as suggested by the recent Farm Bill, 2020, depends much on the nature of the product as well as the contract. JEL Codes: Q12; Q13; Q15; Y10.

Journal ArticleDOI
TL;DR: In this paper , the authors investigated the spot market's short-term price reaction on derivatives listing and delisting in India and found that stocks showed positive price reactions on the inclusion, whereas, on the exclusion, stocks showed adverse price reactions.
Abstract: This article investigates the spot market’s short-term price reaction on derivatives listing and delisting in India. We comprehensively examine the derivatives listing and delisting with extended time-series data from 2001-2020. We employ event study methodology and find that stocks show positive price reactions on the inclusion, whereas, on the exclusion, stocks show adverse price reactions. In addition, we validate our findings by considering the announcement date and actual date as our event date. We also examine the cross-sectional drivers of cumulative abnormal returns. We find that the underlying liquidity and volatility are critical drivers of cumulative abnormal returns. We produce evidence that derivatives listing (delisting) around the event window significantly increases (decreases) the prices of its underlying. The study attempt to contribute to option listing literature by analyzing the firm-specific cross-sectional drivers of cumulative abnormal returns. JEL Codes: G11,G12,G14

Journal ArticleDOI
TL;DR: In this paper , the authors investigate the stock market linkages in Asian region by employing Johansen cointegration and vector error correction model (VECM) based causality tests.
Abstract: This research reinvestigates stock market linkages in Asian region by employing Johansen cointegration and vector error correction model (VECM) based causality tests. The stock price indexes of Japan, Singapore, South Korea, India and China are used, with monthly data over 1999:09–2019:10. The empirical results find weak price convergence among Asian markets, hence are almost segmented by national borders. The asymmetrical stock price relations in Asia have important implications for the pricing efficiency of national markets and suggest several opportunities for global investors to optimise returns through portfolio diversifications across leading stock markets of the region. JEL Codes: C58; G11; G15

Journal ArticleDOI
TL;DR: In this paper , the authors investigated the relationship between remittance inflows and financial development in India from 1980 to 2018 and employed Autoregressive Distributed Lag (ARDL) and Vector Error Correction (VEC) models to capture the short and long-run dynamics.
Abstract: This article investigates the relationship between remittance inflows and financial development in India from 1980 to 2018. The study employed Autoregressive Distributed Lag (ARDL) and Vector Error Correction (VEC) models to capture the short and long-run dynamics. In addition, the impulse response function (IRF) and forecast error variance decomposition (FEVD) analysis were utilised to understand the dynamic reaction of financial development to a given shock to remittance inflows and other variables. The results of the ARDL model reveal that remittances negatively influence financial development in the short run, while they positively influence it in the long run. The IRF analysis shows that financial development responds positively to one standard positive shock to remittance inflows. The FEVD analysis further reveals that shocks to remittance inflows explain around 30% to 32% of the total variation in financial development. From a policy standpoint, the findings suggest that well-framed policies should be formulated and implemented to encourage more remittance flows through formal channels. It will boost financial development, economic growth and also increase the other developmental effects of remittances on the economy. JEL Codes: C32, F22, F37

Journal ArticleDOI
TL;DR: In this paper , a positive and statistically significant relation between skin diseases and drinking water from arsenic contaminated tube well was found for still birth in arsenic affected areas, even after controlling for state and district-level factors.
Abstract: It is well established that consuming groundwater contaminated with arsenic can lead to diseases of the heart, blood vessels, peripheral nervous systems and skin diseases such as pigmentation change. In this article, I focus on two health outcomes—skin diseases and still births—using district-level data from India, a country with widespread arsenic contamination. Arsenic may come into human contact via direct and/or indirect channel. I intend to examine these two channels of arsenic transmission. To analyse the two-fold objectives of this study, I have used repeated cross-section data from the two health rounds of National Sample Survey Organization (60th and 71st round survey). I find a positive and statistically significant relation between skin diseases and drinking water from arsenic contaminated tube well. Similar results are found for still birth in arsenic affected areas, even after controlling for state- and district-level factors. Using odds ratio, I also find positive effect of rice consumption on skin manifestations, robust to state-fixed effects, but not district-fixed effects. Individuals are more adversely affected in terms of skin lesions and adverse pregnancy outcomes. Drinking arsenic contaminated water is a more dominant pathway than consumption of food containing arsenic, particularly rice and wheat. JEL Codes: I10, I12, Q25, Q53, Q54

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TL;DR: In this paper , the authors investigated the linkage of capital infusion in the public sector banks (PSBs) in India with the capital adequacy, asset quality, profitability, operational efficiency and the market position of the banks.
Abstract: This article empirically investigates the linkage of capital infusion in the Public Sector Banks (PSBs) in India with the capital adequacy, asset quality, profitability, operational efficiency and the market position of the banks. Utilising a balanced panel data of total 21 PSBs over 9 years (2009 to 2017), we analyse the key determinants of the Indian PSBs’ profitability, net interest margin (NIM), solvency and market efficiency. The study applies a two-step dynamic panel generalised methods of moments. We find empirical evidence that the Capital Infusion programme of the Government during 2008–2009 to 2016–2017 has significant impact on the performance of PSBs in India. We have observed that with frequent infusion of capital by the government, banks were able to meet the regulatory Basel II/III capital adequacy requirements and it has positive influence on their market capitalisation as well as NIM. However, capital infusion has an insignificant impact on improving return on assets (ROA) of banks. Our study suggests that a higher common equity tier 1 capital ratio leads to better market reputation and solvency position of the banks. The results of the study provides insight for bank management, regulators and policymakers for improving bank performance and better utilisation of scarce capital and public money. JEL Code: G21, G32, G34

Journal ArticleDOI
TL;DR: In this article , the authors have analyzed public finance management of the union as well as 16 major Indian states during the time of COVID-19 pandemic and highlighted measures adopted by states to deal with the unprecedented fiscal crisis.
Abstract: Due to the COVID-19 pandemic, public finance management (PFM) in the FY 2020–2021 and 2021–2022 have become extremely challenging. The economic contraction has created pressures on PFM in India in terms of lower revenue mobilisation and higher expenditure needs. Both the union and state governments are facing dual problem of arresting economic contraction and managing public finance with limited resources. The present article analyses public finance management of the union as well as 16 major Indian states during the time of COVID-19 pandemic. For comparison, we have also analysed pre-COVID public finance monthly data of state governments. The shock to PFM came from both the revenue as well as expenditure side. Apart from aggregate analysis of state finances of 16 major states, we present state-wise analysis to highlight measures adopted by states to deal with the unprecedented fiscal crisis. JEL Codes: H20, H61, H62, H63

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TL;DR: In this paper , the authors examined the nexus between geopolitical risk and foreign tourist arrivals in India and other variables which impact tourist arrival in other parts of the world have also been included.
Abstract: The present study aims to examine the nexus between geopolitical risk and foreign tourist arrivals in India. In addition, other variables which impact tourist arrival in other parts of the world have also been included. To achieve the objectives of the study, the auto-regressive distributed lag (ARDL) model propounded by Pesaran et al. has been applied using quarterly data from 2001: Q1 to 2019: Q4. The findings of the study reveal that geopolitical risk negatively affects foreign tourist arrival in India. Besides, the study also captures the income and price determinants as propounded by classical economists. JEL Codes: C500; P0; Z30

Journal ArticleDOI
TL;DR: In this paper , the authors used the National Sample Survey Organisation (NSSO) data for the years 2004-2005 and 2011-2012 and Periodic Labour Force Survey data (PLS) for the year 2017-2018 to find a widespread decline in rural women's work participation rates (WPR) across their different social groups, income strata and states in the country albeit at a significantly varying rate.
Abstract: One of the major policy concerns in recent years has been decline in the number of women workers in the Indian labour market. The ‘education’ and ‘income’ effect hypotheses for such decline are generally advocated. Such analyses, however, are limited in their focus. This study attempts to fill up this gap by exclusively focusing on rural women. Using the National Sample Survey Organisation (NSSO) data for the years 2004–2005 and 2011–2012 and Periodic Labour Force Survey data for the year 2017–2018, it observes a widespread decline in rural women’s work participation rates (WPRs) across their different social groups, income strata and states in the country albeit at a significantly varying rate. While the major decline in women WPRs in the age-group, 15–24 years has been in favour of education, it has been largely in favour of ‘domestic works’ in the other age-groups. The major decline in women workforce is observed in case of those as not-literates, ‘unpaid family labour’ in agriculture and ‘casual wage labour’ both in farm and non-farm sectors. This is largely due to contraction in self-employment and casual wage works both in farm and non-farm sectors, more so during recent period. This study finds a positive impact of rising household income on women’s WPRs. While education emerges as a significant predictor of women joining workforce, its iteration with their social groups shows differing impact of similar level of education on different caste groups. It offers inputs for policy measures to be aimed at providing decent livelihoods in rural areas in a big scale, with strong focus on reducing caste and gender disparities. JEL Codes: E24, J16, J21, J18