Post-liberalization Period Research Articles

Development of financial sector and implications on monetary transmission mechanism: evidences from Indian economy

Monetary policy is often viewed as the tool for stabilising the economy (in particular ensuring price stability). It is generally held that the stimuli of monetary policy are transmitted to the rest of the economy through the development of financial sector. The study attempts to provide empirical evidences on the implications of financial development on the effectiveness of monetary policy in the context of Indian economy over the period 1970-2016. Empirical evidences suggest that Indian economy experiences a significant expansion in the size of financial markets and institutions and it is reflected in the increasing contribution of the financial sector in gross domestic product (GDP) (i.e., depth of the financial development). A disaggregated analysis suggests that development of financial sector impedes in the process of monetary transmission mechanism in the pre-liberalisation period. However, interest rate transmission mechanism remains relatively weak in post-liberalisation period. Thus, development of financial sector does not facilitate the effectiveness of monetary policy in the context of Indian Economy.

Analysis of Market Liberalization and the Groundnut Sector in Senegal

In sub-Saharan Africa, agricultural reforms such as market liberalization and loan schemes greatly affect the agricultural and industrial sectors. The withdrawal of government institutions and adoption of structural adjustment programmes (SAP) have not always been a win-win situation for the different stakeholders of the agricultural sector. This paper assesses the influence of market liberalization on the groundnut sector in Senegal. Using market variables including production, marketing and trade, it analyzes the market performance of groundnuts before and after market liberalization in 2010. The coefficient of variation and the corrected coefficient of variation for producer prices were applied and the results show that the values for both coefficient of variation and corrected coefficient of variation were higher in the pre-liberalization period. There was less volatility after market liberalization and prices were much higher in the post-liberalization period. Market liberalization has generally favoured farmers whereas it has been bad for local processing industries. It is necessary for the government to provide alternative policy interventions to achieve inclusive welfare from market liberalization.

Does Price Competition Damage Healthcare Quality?

textabstractOne of the reasons why regulators are hesitant about permitting price competition in healthcare markets is that it may damage quality when information is poor. Evidence on whether this fear is well-founded is scarce. We provide evidence using a reform that permitted Dutch health insurers and hospitals to freely negotiate prices for elective procedures. Unlike previous research that has relied on indicators of the quality of urgent treatments, we take advantage of the plausible absence of selection bias in our setting to identify the effect on quality of non-acute hip replacements. Using administrative data on all admissions to Dutch hospitals, we find no evidence that increased exposure to price competition reduces quality measured by readmission rates, despite the lack of publicly available information on this outcome. In fact, there is evidence of a temporary, positive impact on quality. Our estimated null effect over the full post-liberalization period is robust.

Regional income inequalities and public investments in rural India

Regional inequalities in income levels in the agricultural sector have increased over time, but not as sharply as in the non-agricultural sectors. This article examines the effect of public investments on agricultural income inequalities across 17 major Indian states for the period 1981/82 to 2013/14 and for the pre-and post-liberalisation periods. The impact of conventional inputs and various types of public investments on income inequality is found to be significant but spending on education and health have larger adverse effects compared with spending on roads, energy, and irrigation over time. Land, labour, and private investment in irrigation also have only a modest impact. Among various categories of public investments contributing to regional income inequality, the contribution of education is estimated to be 32.2% nationally, and 50.8%, 38.5%, and 29.7%, respectively, in the low, middle, and high per capita income states. Results suggest that public investments should target roads, energy, irrigation, and agricultural research and development in the less-developed, more agriculture-dependent states to improve regional income equality, increase agricultural productivity, and alleviate rural poverty. The marginal returns to each of these investments, in terms of reducing income inequality, are generally higher in the low-income, agriculture-dominant states, implying the potential benefit of a location-specific expenditure policy.

남북 통합의 이념적 토대로서 민주주의 : 해방정국의 민주주의 담론 분석과 그 재구성을 중심으로

남북 통합의 이념적 토대로서 민주주의 : 해방정국의 민주주의 담론 분석과 그 재구성을 중심으로

한국 최초 장로교 여목사 최덕지의 해방 직후 교회재건 운동에 나타난 교회론 연구 : 도나투스파 교회론에 비추어

한국 최초 장로교 여목사 최덕지의 해방 직후 교회재건 운동에 나타난 교회론 연구 : 도나투스파 교회론에 비추어

Exploring Performance of Monetary Condition Index (MCI) In Post-Liberalization Period of Indian Economy

Exploring Performance of Monetary Condition Index (MCI) In Post-Liberalization Period of Indian Economy

The Effectiveness of Investment Incentives in the Turkish Manufacturing Industry

This study investigates the impact of investment incentives on sectoral labour productivity, capital intensity, employment and total factor productivity using data on sixteen manufacturing industry sectors in Turkey during the post-liberalization period. To deal with potential endogeneity of the investment incentives, we apply the system GMM estimation technique to the panel dataset for six five-year periods between 1981 and 2009. Our overall GMM estimations indicate that we fail to find any evidence that investment incentives positively affect anyone of our macroeconomic variables. While investment incentives do not increase the employment growth and total factor productivity growth significantly, they significantly reduce the growth rate of value added per work hour and capital stock per work hour. Given that since the early years of the Turkish Republic, investment incentive systems have always been an important part of the industrialization policies; our results have essential implications for the design and effectiveness of investment incentives.

Crop Diversification in West Bengal:A District Level Analysis for the Period 1980-81 to 2011-12

This paper examines the dynamics of crop diversification in the pre and postliberalisation period addressing questions on the nature and scope of crop diversification in a small farm dominated economy like West Bengal and the factors influencing it. The analysis reflects the positive impact of operational area and cropping intensity on the degree of crop diversification. In contrast, factors like availability of irrigational facilities, degree of electrification, usage of fertilisers and price of output have a negative influence on the same in a particular region. Besides, a significant inter-district variation in the degree of crop diversification is noticed during the period under consideration. The study points out that a high level of diversification in an area does not essentially correspond to the district having a traditional resource base or a high endowment of modern inputs.

TEACHING DEMOCRACY: THE DISCOURSE OF DEMOCRACY AND EDUCATION REFORMS UNDER THE AMERICAN MILITARY OCCUPATION OF KOREA, 1945–1948

After Liberation in 1945, the concept of democracy was introduced to southern Korea through discursively contested representations formulated by the American occupation authorities and Koreans on the political left and right. One of the main fields of contestation was in education as the Americans and Koreans advanced their own interpretations of democratic education that addressed the relationship between the individual and the state. The American perspective on democratic education was grounded in the progressive ideals sweeping the United States. However, progressivism contained an inherent contradiction as it attempted the depoliticization of education while protecting colonial-era collaborators and enforcing anti-communism. The leftwing liberal Korean perspective challenged the social and economic contradictions inherited from the colonial period by critiquing bourgeois individualism in favor of a socially-oriented democratic education. The right-wing conservative Korean position was divided between the New Education movement and democratic nationalist education, but the latter emerged as the dominant education philosophy of the Republic of Korea. Democratic nationalist education under An Ho-sang pushed an ultranationalist agenda that submerged individualism in favor of the state but ultimately dismayed the American occupation officials who had previously overseen education reform. The discourse of democracy in the post-Liberation period initiated an evolutionary process of democratic development that has continued through modern Korean history up to the present day.

Inter-sector GDP Substitutability in Macro-Money Demand: Novel Evidence for India

The gross domestic product (GDP) as a scale variable in the macro-money demand function is justified only on the simplifying but verifiable assumption that the individual-sector GDPs have the same marginal money demand propensities. This assumption is easily verifiable by replacing the aggregate GDP with the services sector and commodity sector GDPs as two scale variables. The money demand propensities differ between these two sectors. To empirically verify this, a variable elasticity of substitution model is posited with these two sector GDPs as scale variables. This novel model permits us to estimate the parameter of elasticity of substitution between the two-sector GDPs .We expect the elasticity estimate to be greater than unity first and decrease towards unity later in the post-liberalization period 1992-2012 and this ensures a unitary income elasticity of demand for money for the aggregate GDP. For the pre-liberalization period (1971 to 1991) we expect the substitutability between the two sectors to be either less than unity or even negative. The policy implication of disparate sector-GDP growth rates for money demand should not be ignored in an emerging economy of India, where the GDP structure evolves towards invariance as in a developing economy.

TECHNOLOGY SHOCKS AND BUSINESS CYCLES IN INDIA

In this paper, we develop a small open economy New Keynesian dynamic stochastic general equilibrium (DSGE) model to understand the relative importance of two key technology shocks, Hicks neutral total factor productivity (TFP) shock and investment specific technology (IST) shock for an emerging market economy like India. In addition to these two shocks, our model includes three demand side shocks such as fiscal spending, home interest rate, and foreign interest rate. Using a Bayesian approach, we estimate our DSGE model with Indian annual data for key macroeconomic variables over the period of 1971–2010, and for subsamples of pre-liberalization (1971–1990) and post-liberalization (1991–2010) periods. Our study reveals three main results. First, output correlates positively with TFP, but negatively with IST. Second, TFP and IST shocks are the first and the second most important contributors to aggregate fluctuations in India. In contrast, the demand side disturbances play a limited role. Third, although TFP plays a major role in determining aggregate fluctuations, its importance vis-à-vis IST has declined during the post liberalization era. We find that structural shifts of nominal friction and relative home bias for consumption to investment in the post-liberalization period can account for the rising importance of the IST shocks in India.

Linkages between financial development, financial instability, financial liberalisation and economic growth in Africa

In the aftermath of the 2008 global financial crisis, the implications of financial liberalisation for stability and economic growth have come under increased scrutiny. One strand of literature posits a positive relationship between financial liberalisation and economic growth and development. However, others emphasise the link between financial liberalisation is intrinsically associated with financial instability which may be harmful to economic growth and development. This study assesses linkages between financial instability, financial liberalisation, financial development and economic growth in 41 African countries for the period 1985–2010. The results suggest that financial development and financial liberalisation have positive effects on financial instability. The findings also reveal that economic growth reduces financial instability and the magnitude of reduction is higher in the pre-liberalisation period compared to post-liberalisation period.

Does the J-curve hypothesis hold for a small open economy? Evidence from time-varying coefficients of a distributed-lag model for Tunisia

This paper determines how the Tunisian trade balance reacts to exchange rate changes during the post liberalization period, 1993:01 to 2014:03. To achieve this, a state space specification technique is employed to estimate a trade balance model for Tunisia. Our findings suggest that the real effective exchange rate has a significant impact on the trade balance of Tunisia, showing oscillating effects that can be best described by a “W-curve.”

‘Qui sont ces pédants qui se permettent ainsi de trancher ?’

Contemporary French fictional accounts of the Spanish Civil War are scarce and, besides the dominant case of Malraux’s L’Espoir, largely restricted to the far right and warnings against Republican ‘disorder’. Drieu la Rochelle and Robert Brasillach use the war as an epilogue to their novels, in which the uprooted French intellectual finds commitment and sacrifice. In the post-Liberation period, Sartre’s Les Chemins de la liberté explores a similar role for Spain in his protagonist’s development. Louis Guilloux’s depiction of Spanish refugees in Le Jeu de patience constitutes a rare record of the Spanish Republican diaspora in France. His particular focus on the militant Pablo underpins not merely the historical panorama in all its complexity, but also the frailty of memory and the difficulties and ambiguities of narration – all contained in the many meanings of the novel’s title.

Exploring the Twin Tracks of Economic and Governance Reforms in the Two States of Madhya Pradesh and Andhra Pradesh

Second-generation economic reforms in India, a feature of the mid-1990s, have also included subnational level reforms and restructuring. These reforms have also run the course of about 15 years with there being many temporal and spatial variations with regard to experiences of individual states. However, common to this reform experience are three features. First, that funding for these reforms has largely come from international financial institutions (IFIs), in particular, the World Bank and the Asian Development Bank (ADB). Second, and drawing from the first, is the feature that the framework for reforms, development sectors covered as well as pace, prospects and outcome of reforms are determined by the same lending agencies. Third, reforms so initiated have invariably incorporated ‘good governance’ strategies. What is paradoxical then is that reform programmes which have been tailor-made to suit the economic specificities of a given state actually prescribe similar remedies for all. Increased economic autonomy of state governments in the post-liberalisation period has been limited to courting the IFIs for reform-linked loans. These loans come with concomitant conditionalities albeit made politically palatable by the terminology of good governance. The neoliberal model of development has found a pan-India appeal with there being little or no state-level variations in its adoption and implementation.

Land Acquisition in Contemporary India: The Growth Agenda, Legislation and Resistance

Land acquisition legislation in India has been a subject of public debate since Independence. Guided by the socialist pattern of economy, the government initiated land reforms in India but could only partially achieve this objective due to political stronghold of landed class in rural areas. Land was, however, acquired for building dams, mines and infrastructure. Such developmental initiatives were justified as steps being taken to achieve rapid economic development necessary for public welfare in the longer run. Also, there was little resistance to land acquisition as the level of political consciousness was low and there were few unorganised political organisations to channel the voices. In the post-liberalisation period, land acquisition legislations resulted from the thrust for commercialisation and fast track industrial investments. The new model of growth based on relentless competition implicit in a market economy created immense opportunities for the expansion of private business. Pro-business governments found it imperative to make prominent changes in the existing laws to smoothen the process of land acquisition. But, such measures have faced challenges on public platforms. Resistance to land acquisition is far more organised and powerful than what it was in the past. The article studies the politics of land acquisition in the light of recent steps taken by the pro-business governments to amend land laws and the resistance faced at both institutional and societal levels.

Identifying the Relationships between Budget Deficit and Selected Macroeconomic Variables: A Study of Sri Lanka During the Postliberalization Era

A sustained sizeable deficit budget is problematic for Sri Lanka. Since 1980 to 2014, the Sri Lankan government budget deficit averaged 8.75% of GDP, and recorded the highest ratio of 19.2% of GDP in 1980 (Central Bank Annual reports, 1980-2014). This study examines the association with budget deficit and selected macroeconomic variables in Sri Lanka, using annual time series data for post-liberalization period; 1980-2014. The selected explanatory macroeconomic variables are inflation, interest rate, exchange rate, debt, and real GDP growth rate. Specifically, the study seeks to ascertain the relation-ship between selected macroeconomic variables and the budget deficit with a view to making appropriate recommendations to curb its negative effect to economy. The study carried 210 samples, and for examination of long-run relationship ARDL bounds test technique is applied, and short-run dynamic was examined using the ARDL Granger-Causality test. Further, Granger Causality test was carried out to determine the causality between selected variables and budget deficit, whether the impact were uni or bi-directional. The results revealed that there is a long-run relationship between budget deficit, inflation, interest rate, exchange rate, debts and real GDP growth rate in Sri Lanka. Further, in this study uni-directional relationship was confirmed between budget deficit and debts. The budget deficit cause debt. Additionally, a unidirectional relationship was also identified between budget deficit and inflation. The budget deficit cause inflation. Moreover, this study confirmed there were no uni or bi-direction causality between other selected variables; Interest rate, Exchange, Real GDP growth rate and Budget deficit. Furthermore, the findings show that budget deficit has a meaningful effect on inflation, and debts. The paper recommended that the Sri Lankan government should take actions to control inflation to maintain price stability and to minimize the debts because the government is maintaining a sizable deficit budget since 1957. This research contributes to the idea that there are dimensional and dynamic factors involved between budget deficit and macroeconomic variables that require comprehensive knowledge to increase productivity, improve living standards, and ensure stability of the economic system.

Determinants of Foreign Direct Investment in India: An Empirical Analysis

During the post liberalisation period from 1991–92 to 2014–15 an increase in FDI inflows has been observed except for the years 1998–99 to 1999–00, 2002–03 to 2003–04, 2009–10 to 2010–11 and 2012–13. The major chunk of FDI is contributed by six countries viz., Mauritius, Singapore, UK, Japan, Netherlands and US with highest proportion of FDI inflows being in service sector. In spite of tremendous rise in FDI inflows in the post liberalisation period, the magnitude of FDI inflows in India is very low in comparison with other emerging market economies due to its weak infrastructure and stringent laws. Empirical analysis based on various pull factors for FDI inflows to India exhibited that real wages and unemployment of host country has significant and favourable impact on FDI inflows. However, external debt as an indicator of efficiency of host country has adverse impact on FDI inflows.

A study on foreign direct investment, economic stabilityand economic development-An empirical analysis

International Economic Integration plays an integrative role in Economic Development of any country. Foreign Direct Investment (FDI) is one and only major instrument of attracting International Economic Integration in an economy. It serves as a liaison between investment and saving. Many developing countries like India are facing the deficit of savings. This problem can be solved with the help of Foreign Direct Investment. Foreign investment helps in reducing the defect of BOP. The flow of foreign investment is a profit making industry like insurance, real estate and business services and serving as a catalyst for the growth of economy in India. With the journey of borderless economy and open competition on 24th July, 1991, the Indian production economy witnessed an unprecedented threats and challenges in the form of inward and outward capital infusion. Capital infusion have been realised with the influx of inward foreign direct investment. The FDI can affect directly the growth process and economic output of a nation. The most popular measure of economic output is GDP (Gross Domestic Product). The objective of this paper is to investigate and made an in-depth study the interactions and economic agglomeration between the economic growth, Capital infusion and economic stability of Indian economy in the period following the first generation financial sector reforms. Furthermore, the research study tries to estimates the relative roles of FDI, Exports and social well-being in the economic growth intermediation process. The study tries to tests for characteristics of movement of FDI and whether they have any assignable cause or bears any random shocks. The investigation also observes a relative responsibility and interactive long run relationship between a GDP, FDI, Economic stability and cultural agglomeration. The results indicate the importance of FDI on general, social, and economic growth and the relative roles of the internal economic environment in augmenting the growth process during this study period of 1980--2013. After analyzing all the facts it may be concluded that maximum global foreign investment's flows were went to developed countries rather than developing and under developing countries. Foreign investment flows are supplementing the scare domestic investments in developing countries particularly in India. Further this paper recommends that we should welcome the inflow of foreign investment because it enable us to achieve our cherished goal like making favourable the balance of payment, rapid economic development, removal of poverty, and internal personal disparity in developmental process and also it is very much convenient and favourable for Indian economy. During pre liberalization period of 1980–91 Inward FDI increased at CAGR of 10.39% while during first generation post liberalization period 1991–2000 it has grown 53.57% and second phase of post-liberalization period 2001–13 recorded a CAGR of 18.01%. This indicates that liberalization has had a positive impact on FDI inflows in India. Since 1991 FDI inflows in India has increased approximately by more than 191.85 times.