Pub Date : 2024-03-01DOI: 10.1177/13915614241233888
Sukhdeep Singh
The economic literature suggests that there is an inverted-U type of relationship between innovation and product market competition. Existing empirical studies assume a quadratic functional form while estimating the relationship between the two variables. Using data on the Indian manufacturing industry, this article contributes by using a semi-parametric approach to test the ‘Inverted-U’ hypothesis without assuming a priori functional form. The estimation results suggest that the functional form of the relationship is contingent upon the choice of product market competition indicator in the model. When product market competition is defined as overall price competition, the empirical evidence confirms the inverted-U hypothesis. This implies that both escape competition and the Schumpeterian effect are observed as price competition increases. However, when product market competition is defined as domestic competition, only the escape competition effect is observed. JEL Codes: L10, L60, O30, O33, F10
经济文献表明，创新与产品市场竞争之间存在倒 U 型关系。现有的实证研究在估算这两个变量之间的关系时假设了二次函数形式。本文利用印度制造业的数据，采用半参数方法检验了 "倒 U 型 "假设，而无需先验地假设函数形式。估计结果表明，这种关系的函数形式取决于模型中产品市场竞争指标的选择。当产品市场竞争被定义为总体价格竞争时，经验证据证实了倒 U 型假说。这意味着随着价格竞争的加剧，逃避竞争和熊彼得效应都会出现。然而，当产品市场竞争被定义为国内竞争时，只观察到逃避竞争效应。JEL Codes：L10, L60, O30, O33, F10
{"title":"Investments in Innovations and Market Structure: A Semi-parametric Approach","authors":"Sukhdeep Singh","doi":"10.1177/13915614241233888","DOIUrl":"https://doi.org/10.1177/13915614241233888","url":null,"abstract":"The economic literature suggests that there is an inverted-U type of relationship between innovation and product market competition. Existing empirical studies assume a quadratic functional form while estimating the relationship between the two variables. Using data on the Indian manufacturing industry, this article contributes by using a semi-parametric approach to test the ‘Inverted-U’ hypothesis without assuming a priori functional form. The estimation results suggest that the functional form of the relationship is contingent upon the choice of product market competition indicator in the model. When product market competition is defined as overall price competition, the empirical evidence confirms the inverted-U hypothesis. This implies that both escape competition and the Schumpeterian effect are observed as price competition increases. However, when product market competition is defined as domestic competition, only the escape competition effect is observed. JEL Codes: L10, L60, O30, O33, F10","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140398548","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-27DOI: 10.1177/13915614231221649
Dr Shiba Shankar Pattayat, J. Parida
Using the national-level employment and unemployment surveys (NSS and PLFS) and the macro-level data for the period 2005–2019, this article explores the trends and recent growth patterns of rural non-farm sector employment in India. It also examines the micro-level factors determining individuals’ preference towards non-farm sector jobs and the macro-level factors responsible for the growth of non-farm sector employment in rural India. The main findings of the study suggest that although rural non-farm sector employment is rising in absolute terms, its growth rate has slackened in recent years. While the level of education and skill training, market wage rates and socio-cultural setups are among the key micro-level factors determining farm–non-farm employment choices of rural folks, at the macro-level, the growth of investment in capital goods, the number of factories, investment in infrastructure development and the growth of the manufacturing sector are crucial for the growth of non-farm sector jobs in India. Based on these findings, it is argued that the improvement of human capabilities through increased investment in education and skill, and the growth of non-farm sector employment through the development of rural infrastructure and industrialization measures, are necessary to sustain the structural transformation and to harness the demographic dividend in India. JEL Codes: J01, J21, J43, J64
{"title":"Drivers of Rural Non-farm Sector Employment in India, 1983–2019","authors":"Dr Shiba Shankar Pattayat, J. Parida","doi":"10.1177/13915614231221649","DOIUrl":"https://doi.org/10.1177/13915614231221649","url":null,"abstract":"Using the national-level employment and unemployment surveys (NSS and PLFS) and the macro-level data for the period 2005–2019, this article explores the trends and recent growth patterns of rural non-farm sector employment in India. It also examines the micro-level factors determining individuals’ preference towards non-farm sector jobs and the macro-level factors responsible for the growth of non-farm sector employment in rural India. The main findings of the study suggest that although rural non-farm sector employment is rising in absolute terms, its growth rate has slackened in recent years. While the level of education and skill training, market wage rates and socio-cultural setups are among the key micro-level factors determining farm–non-farm employment choices of rural folks, at the macro-level, the growth of investment in capital goods, the number of factories, investment in infrastructure development and the growth of the manufacturing sector are crucial for the growth of non-farm sector jobs in India. Based on these findings, it is argued that the improvement of human capabilities through increased investment in education and skill, and the growth of non-farm sector employment through the development of rural infrastructure and industrialization measures, are necessary to sustain the structural transformation and to harness the demographic dividend in India. JEL Codes: J01, J21, J43, J64","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140426479","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-02-27DOI: 10.1177/13915614241226538
Zanbaz Ahmed Khan, Biswajit Patra
This article analyses the movement of intergenerational mobility (IGM) in South Asia from birth cohorts comprising 1950–1980 using the World Bank’s data on IGM. The article compares the IGM movements across countries to account for the causal factors of the IGM. Exploratory data analysis and Bayesian regression have been used in this study for empirical analysis. We note that in the past three decades, the share of primary parental education in South Asia constitutes 79% of the total, while the children who achieved the highest level of education constitute only 10%. Children in Sri Lanka have been enrolled in school for the greatest number of years, but the absolute IGM in India is greater than Sri Lanka. Bhutan lags in average years of educational attainment, yet their relative mobility surpasses every country in South Asia. The likelihood that Pakistani children’s status shall be independent of their parental status is as low as 20%. Despite variation in parental education, absolute IGM in India is highest in South Asia. Variation in parental education reduces the degree of independence in the next generation. Relative measure of mobility is a better indicator of social mobility than the absolute measure. JEL Codes: I21, I24, I28, J24, J62, N35
{"title":"Intergenerational Mobility in South Asia","authors":"Zanbaz Ahmed Khan, Biswajit Patra","doi":"10.1177/13915614241226538","DOIUrl":"https://doi.org/10.1177/13915614241226538","url":null,"abstract":"This article analyses the movement of intergenerational mobility (IGM) in South Asia from birth cohorts comprising 1950–1980 using the World Bank’s data on IGM. The article compares the IGM movements across countries to account for the causal factors of the IGM. Exploratory data analysis and Bayesian regression have been used in this study for empirical analysis. We note that in the past three decades, the share of primary parental education in South Asia constitutes 79% of the total, while the children who achieved the highest level of education constitute only 10%. Children in Sri Lanka have been enrolled in school for the greatest number of years, but the absolute IGM in India is greater than Sri Lanka. Bhutan lags in average years of educational attainment, yet their relative mobility surpasses every country in South Asia. The likelihood that Pakistani children’s status shall be independent of their parental status is as low as 20%. Despite variation in parental education, absolute IGM in India is highest in South Asia. Variation in parental education reduces the degree of independence in the next generation. Relative measure of mobility is a better indicator of social mobility than the absolute measure. JEL Codes: I21, I24, I28, J24, J62, N35","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140424929","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-01-19DOI: 10.1177/13915614231221648
Rinzin Choden, P. Pholphirul
Even though quantifying the impacts of COVID-19 on jobs and employment has been studied in recent literature worldwide, not much research has attempted to investigate the impacts in terms of employment adjustment, especially during the initial outbreak of the pandemic. Using secondary survey data of 1,320 employees working in the tourism sector in Bhutan as a case study, our multinomial logit model estimations show that female workers were among the most vulnerable group to be asked to reduce some benefits from work, to receive only a partial salary or to leave without pay during the initial outbreak. However, when the situation became more severe (resulting in the laying off of employees), the tourism sector in Bhutan laid off male workers also. Negative impacts on their employment were likely to be found among workers with higher education, the relatively young and married workers. In addition, employment adjustments were also found to vary by tourism sub-sector during initial outbreaks. Workers in the entertainment sector seemed to experience the smallest hit from the initial outbreak since they still received some partial payments or were asked to only temporarily leave their jobs without receiving payment. Some sectors, especially tour guides, tour operations, river rafting and land transport, however, had to lay off their workers during the initial outbreak as those businesses rely mostly on international tourists. This study also discusses the policy recommendations to ensure employment stability during such a crisis in the future. JEL Codes: J23, M51, Z39
{"title":"Employment Adjustment During the Initial Outbreak of COVID-19: Empirical Evidence from Tourism Workers in Bhutan","authors":"Rinzin Choden, P. Pholphirul","doi":"10.1177/13915614231221648","DOIUrl":"https://doi.org/10.1177/13915614231221648","url":null,"abstract":"Even though quantifying the impacts of COVID-19 on jobs and employment has been studied in recent literature worldwide, not much research has attempted to investigate the impacts in terms of employment adjustment, especially during the initial outbreak of the pandemic. Using secondary survey data of 1,320 employees working in the tourism sector in Bhutan as a case study, our multinomial logit model estimations show that female workers were among the most vulnerable group to be asked to reduce some benefits from work, to receive only a partial salary or to leave without pay during the initial outbreak. However, when the situation became more severe (resulting in the laying off of employees), the tourism sector in Bhutan laid off male workers also. Negative impacts on their employment were likely to be found among workers with higher education, the relatively young and married workers. In addition, employment adjustments were also found to vary by tourism sub-sector during initial outbreaks. Workers in the entertainment sector seemed to experience the smallest hit from the initial outbreak since they still received some partial payments or were asked to only temporarily leave their jobs without receiving payment. Some sectors, especially tour guides, tour operations, river rafting and land transport, however, had to lay off their workers during the initial outbreak as those businesses rely mostly on international tourists. This study also discusses the policy recommendations to ensure employment stability during such a crisis in the future. JEL Codes: J23, M51, Z39","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139525491","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.1177/13915614231192775
Kashyap Gupta, Sunil Kumar, Sarthak Gulati
Empirical investigation finds that firm-specific factors, namely deleveraging of balance sheets, comfortable cash flows and improving debt servicing capacity impact fixed investment in private corporate sector positively. Monetary policy impacts fixed assets investment growth of financially constrained firms more compared to non-financially constrained firms. Furthermore, the impact of COVID pandemic on investment was more adverse in case of weak firms. JEL Codes: G3, E22, O16, E52
{"title":"Drivers of Corporate Investment in India: Assessing the Impact of Monetary Policy and COVID","authors":"Kashyap Gupta, Sunil Kumar, Sarthak Gulati","doi":"10.1177/13915614231192775","DOIUrl":"https://doi.org/10.1177/13915614231192775","url":null,"abstract":"Empirical investigation finds that firm-specific factors, namely deleveraging of balance sheets, comfortable cash flows and improving debt servicing capacity impact fixed investment in private corporate sector positively. Monetary policy impacts fixed assets investment growth of financially constrained firms more compared to non-financially constrained firms. Furthermore, the impact of COVID pandemic on investment was more adverse in case of weak firms. JEL Codes: G3, E22, O16, E52","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135255431","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.1177/13915614231169152
Suparna Ganguly, Saikat Sinha Roy
This study investigates into intergenerational occupational mobility of Indian workers towards and within service sectors during globalization. In particular, such mobility of workers is observed in the presence of structural shift of the economy towards service industry, especially towards service trade, and explores whether there is intergenerational mobility towards services and more skill-oriented occupations in India during 1999–2011. The Altham measure of relative mobility is applied on the National Sample Survey Organization employment–unemployment survey database to measure the degree of association between occupational choice of fathers and co-resident sons in urban India. An upward mobility among sons is observed between 1999–2000 and 2011–2012. JEL Codes: F14, F16, J62, L80, C46
{"title":"Structural Change, Services Sector and Intergenerational Occupational Mobility in India: Some Exploratory Evidence","authors":"Suparna Ganguly, Saikat Sinha Roy","doi":"10.1177/13915614231169152","DOIUrl":"https://doi.org/10.1177/13915614231169152","url":null,"abstract":"This study investigates into intergenerational occupational mobility of Indian workers towards and within service sectors during globalization. In particular, such mobility of workers is observed in the presence of structural shift of the economy towards service industry, especially towards service trade, and explores whether there is intergenerational mobility towards services and more skill-oriented occupations in India during 1999–2011. The Altham measure of relative mobility is applied on the National Sample Survey Organization employment–unemployment survey database to measure the degree of association between occupational choice of fathers and co-resident sons in urban India. An upward mobility among sons is observed between 1999–2000 and 2011–2012. JEL Codes: F14, F16, J62, L80, C46","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90291539","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.1177/13915614231179527
Amit Kumar Bardhan, Barnali Nag, Chandra Sekhar Mishra
This study evaluates the financial and social efficiency of Indian Microfinance Institutions (MFIs) from 2005 to 2018 and also tries to find out the determinants of financial and social efficiency. In the first step, bias-corrected bootstrap Data Envelopment Analysis (DEA) efficiency scores for financial and social efficiency were calculated using two input and two output variables. In the second step of analysis above efficiency scores have been used as dependent variables and Seemingly Unrelated Regression (SUR) model is employed to ascertain the determinants of financial and social efficiency of Indian MFIs. The study finds that the aggregate financial efficiency of Indian MFIs is higher than the social efficiency. Over the study period, efficiency of Indian MFIs shows an increasing trend. Results of SUR suggest that as compared to Non-Banking Finance Company (NBFC) MFIs, Non-NBFC MFIs’ financial and social efficiency is better. Influence of age, scale of loan portfolio, asset quality and financial leverage on efficiency of MFIs are insignificant. This study also finds that asset size of the firm is positively associated with efficiency. Evidence from this study suggests that reform measures taken post microfinance crises has negatively affected the financial efficiency. However, social efficiency has improved during post reform period. JEL Codes: G21, C33
{"title":"Microfinance Institutions’ Efficiency and its Determinants: Evidence from India","authors":"Amit Kumar Bardhan, Barnali Nag, Chandra Sekhar Mishra","doi":"10.1177/13915614231179527","DOIUrl":"https://doi.org/10.1177/13915614231179527","url":null,"abstract":"This study evaluates the financial and social efficiency of Indian Microfinance Institutions (MFIs) from 2005 to 2018 and also tries to find out the determinants of financial and social efficiency. In the first step, bias-corrected bootstrap Data Envelopment Analysis (DEA) efficiency scores for financial and social efficiency were calculated using two input and two output variables. In the second step of analysis above efficiency scores have been used as dependent variables and Seemingly Unrelated Regression (SUR) model is employed to ascertain the determinants of financial and social efficiency of Indian MFIs. The study finds that the aggregate financial efficiency of Indian MFIs is higher than the social efficiency. Over the study period, efficiency of Indian MFIs shows an increasing trend. Results of SUR suggest that as compared to Non-Banking Finance Company (NBFC) MFIs, Non-NBFC MFIs’ financial and social efficiency is better. Influence of age, scale of loan portfolio, asset quality and financial leverage on efficiency of MFIs are insignificant. This study also finds that asset size of the firm is positively associated with efficiency. Evidence from this study suggests that reform measures taken post microfinance crises has negatively affected the financial efficiency. However, social efficiency has improved during post reform period. JEL Codes: G21, C33","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91181946","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.1177/13915614231198283
Arfanul Ibna Mustafa Sakib
Using the data from 1991 to 2019, this study attempts to verify Okun’s law by utilizing both ‘The difference and the dynamic versions’ of Okun’s law in Bangladesh and tries to find the value of Okun’s coefficient. The autoregressive-distribution lag (ARDL) bounds test is applied to determine the existence of a long-term relationship between the variables, and then the ordinary least squares (OLS) approach is used to estimate the findings. The findings show that Okun’s coefficient is –0.058 for the difference version of Okun’s law, which is statistically insignificant. In addition, for the dynamic version of Okun’s law, findings show that the effect of the ‘immediate past economic growth rate’ on ‘current change in the unemployment rate’ is 0.15, and it is statistically insignificant too. However, the effect of the ‘current economic growth rate’ on ‘current change in the unemployment rate’ is –0.22, and it is statistically significant at 10% significance level. In both versions of Okun’s law, R 2 values, F-statistic and cumulative sum of squares show the instability of the models. Due to statistically insignificant coefficients and model instability, it can be concluded that Okun’s law is invalid in Bangladesh. JEL Codes: E24, C22, B23, C87
{"title":"Is Okun’s Law Valid in Bangladesh? A Time Series Analysis","authors":"Arfanul Ibna Mustafa Sakib","doi":"10.1177/13915614231198283","DOIUrl":"https://doi.org/10.1177/13915614231198283","url":null,"abstract":"Using the data from 1991 to 2019, this study attempts to verify Okun’s law by utilizing both ‘The difference and the dynamic versions’ of Okun’s law in Bangladesh and tries to find the value of Okun’s coefficient. The autoregressive-distribution lag (ARDL) bounds test is applied to determine the existence of a long-term relationship between the variables, and then the ordinary least squares (OLS) approach is used to estimate the findings. The findings show that Okun’s coefficient is –0.058 for the difference version of Okun’s law, which is statistically insignificant. In addition, for the dynamic version of Okun’s law, findings show that the effect of the ‘immediate past economic growth rate’ on ‘current change in the unemployment rate’ is 0.15, and it is statistically insignificant too. However, the effect of the ‘current economic growth rate’ on ‘current change in the unemployment rate’ is –0.22, and it is statistically significant at 10% significance level. In both versions of Okun’s law, R 2 values, F-statistic and cumulative sum of squares show the instability of the models. Due to statistically insignificant coefficients and model instability, it can be concluded that Okun’s law is invalid in Bangladesh. JEL Codes: E24, C22, B23, C87","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135588785","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.1177/13915614231193997
Subaran Roy, Anusree Paul
The substantial amount of existing literature investigating the debt–growth association for high-income countries shows that debt has a negative impact on economic growth or the existence of an inverted U-shaped relationship between these two variables on some occasions. Given the lack of literature involving developing economies in this space, our study entirely focuses on a developing country like India. The study examines the empirical relationship between public debt (internal) and state gross domestic product (SGDP) for India in the post-reform era. The panel data extend from the year 2000 till 2020. Our random error component model findings indicate a positive and significant impact of debt in enhancing the Indian SGDPs for the above-mentioned period. Results are also confirmed by using an alternative estimation technique, namely, fixed effect. Next, we address the issue of endogeneity by employing generalized method of moments. Our results continue to remain robust. Finally, the inclusion of other control variables does not alter our findings. JEL Codes: H63, H54, O50, C51
{"title":"Role of Public Debt in Indian States in the Post-Reform Era","authors":"Subaran Roy, Anusree Paul","doi":"10.1177/13915614231193997","DOIUrl":"https://doi.org/10.1177/13915614231193997","url":null,"abstract":"The substantial amount of existing literature investigating the debt–growth association for high-income countries shows that debt has a negative impact on economic growth or the existence of an inverted U-shaped relationship between these two variables on some occasions. Given the lack of literature involving developing economies in this space, our study entirely focuses on a developing country like India. The study examines the empirical relationship between public debt (internal) and state gross domestic product (SGDP) for India in the post-reform era. The panel data extend from the year 2000 till 2020. Our random error component model findings indicate a positive and significant impact of debt in enhancing the Indian SGDPs for the above-mentioned period. Results are also confirmed by using an alternative estimation technique, namely, fixed effect. Next, we address the issue of endogeneity by employing generalized method of moments. Our results continue to remain robust. Finally, the inclusion of other control variables does not alter our findings. JEL Codes: H63, H54, O50, C51","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135254900","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.1177/13915614231198656
Nassir Ul Haq Wani, Mohammad Mirwais Rasa
The idea that regional integration is the podium of economic growth dates back a long time. Even now, a plethora of literature confirms a strong and positive link between regional integration and economic growth. However, most of these studies are focused on developed countries. Indeed, literature from developing countries is scant, and that from underdeveloped and landlocked countries like Afghanistan is almost non-existent. In the context of South Asian Free Trade Agreement, this article endeavours to innovatively scrutinize the trends in exports, imports and trade at different industry levels in the trade specialization of Afghanistan. At the harmonized standard 6-digit level of product classification, the study has employed the Lafay Index approach. The study finds that Afghanistan has a greater affinity for resource-intensive manufacturing products and non-fuel primary commodities. The study suggests that Afghanistan should confront issues such as its trade deficit, its dependency on agricultural products for export and the underutilization of its natural resources. The results show that Afghanistan still has a competitive disadvantage over South Asian Association for Regional Cooperation (SAARC) members at different industry levels. The study recommends dealing with problems including technology diffusion, product diversity and quality sophistication at various industrial levels, which restrict a higher degree of trade specialization. JEL Codes: F1, F10, F14
{"title":"Dynamics of Trade Specialization and Performance of SAFTA: A Case Study of Afghanistan","authors":"Nassir Ul Haq Wani, Mohammad Mirwais Rasa","doi":"10.1177/13915614231198656","DOIUrl":"https://doi.org/10.1177/13915614231198656","url":null,"abstract":"The idea that regional integration is the podium of economic growth dates back a long time. Even now, a plethora of literature confirms a strong and positive link between regional integration and economic growth. However, most of these studies are focused on developed countries. Indeed, literature from developing countries is scant, and that from underdeveloped and landlocked countries like Afghanistan is almost non-existent. In the context of South Asian Free Trade Agreement, this article endeavours to innovatively scrutinize the trends in exports, imports and trade at different industry levels in the trade specialization of Afghanistan. At the harmonized standard 6-digit level of product classification, the study has employed the Lafay Index approach. The study finds that Afghanistan has a greater affinity for resource-intensive manufacturing products and non-fuel primary commodities. The study suggests that Afghanistan should confront issues such as its trade deficit, its dependency on agricultural products for export and the underutilization of its natural resources. The results show that Afghanistan still has a competitive disadvantage over South Asian Association for Regional Cooperation (SAARC) members at different industry levels. The study recommends dealing with problems including technology diffusion, product diversity and quality sophistication at various industrial levels, which restrict a higher degree of trade specialization. JEL Codes: F1, F10, F14","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135588776","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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