Pub Date : 2020-06-29DOI: 10.1108/IGDR-12-2018-0128
Biswajit Mandal, Alaka Shree Prasad
In this paper we attempt to model virtual trade resulting from time zone differences in an otherwise Heckscher-Ohlin set up which is absent in the literature. So, this paper tries to add some value to the existing stuff on the trade theory and the role of time zones. In doing so, it has been proved that exploitation of time zone difference benefits skilled labor only under reasonable assumption. Contrarily, in output font, time zone difference exploiting sector expands and the other sector contracts irrespective of any factor intensity assumption. The model has been extended to examine how distance may also lead to similar outcomes. In addition, the model is further extended to explore the effect of virtual trade on an economy also endowed with a huge supply of unskilled labor causing the occurrence of informality and associated corruption. Interestingly trade turns out to be beneficial to unskilled workers and lead to a fall in the number of workers engaged in corrupt activities in the economy though the informal sector expands.
{"title":"A simple model of time zone differences, virtual trade and informality","authors":"Biswajit Mandal, Alaka Shree Prasad","doi":"10.1108/IGDR-12-2018-0128","DOIUrl":"https://doi.org/10.1108/IGDR-12-2018-0128","url":null,"abstract":"In this paper we attempt to model virtual trade resulting from time zone differences in an otherwise Heckscher-Ohlin set up which is absent in the literature. So, this paper tries to add some value to the existing stuff on the trade theory and the role of time zones. In doing so, it has been proved that exploitation of time zone difference benefits skilled labor only under reasonable assumption. Contrarily, in output font, time zone difference exploiting sector expands and the other sector contracts irrespective of any factor intensity assumption. The model has been extended to examine how distance may also lead to similar outcomes. In addition, the model is further extended to explore the effect of virtual trade on an economy also endowed with a huge supply of unskilled labor causing the occurrence of informality and associated corruption. Interestingly trade turns out to be beneficial to unskilled workers and lead to a fall in the number of workers engaged in corrupt activities in the economy though the informal sector expands.","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/IGDR-12-2018-0128","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46985668","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 : 2020-06-25DOI: 10.1108/igdr-10-2019-0110
Shilpi Jain, Soni Agrawal
Purpose Cyber-bullying is a form of cyber-crime that has been propagated through extensive use of social networking sites (SNS). Despite the implementation of sophisticated security measures and government compliances, privacy intrusion is petrifying. Therefore, the purpose of this paper attempts to explore as follows: why cases of bullying are still snowballing year after year? Is it possible that advances in security measures are making users more vulnerable? Or, is it a social media addiction, which is making users vulnerable to cyberbullying? Design/methodology/approach The proposed research framework is grounded in the technology threat avoidance theory (TTAT). An empirical survey of 365 social media users was analysed using structural equation modelling (SEM) to understand the impact of security measures, voluntary self-disclosure (VSD) and addiction on perceived vulnerability (PV) to cyber-bullying. Findings The findings indicate that security measures play a significant role in propelling users to disclose their personal information voluntarily, which, in turn, results in social media addiction, which further exposes users to cyberbullying. Moreover, the study unravels gender differences in perceived vulnerabilities to cyberbullying. Practical implications The findings of the current research contribute to a better understanding of gender differences in the awareness of security measures, addiction intensities, level of self-disclosures and propensity to cyberbullying victimization. Additionally, prevention and intervention efforts may benefit from using a more targeted approach to identify potential male and female victims that experience different forms of bullying on SNS. Originality/value In addition to other constructs, the current research investigates the role of user security measures (USM) and website security measures (WSM) on the PV to cyberbullying, typically, the role of these measures is to prevent the users from becoming the victims, whereas the research unravels that they could be the possible reasons for the increased number of cases in India. To the best of the knowledge, such conflicting roles of security measures have not been discussed earlier.
{"title":"Perceived vulnerability of cyberbullying on social networking sites: effects of security measures, addiction and self-disclosure","authors":"Shilpi Jain, Soni Agrawal","doi":"10.1108/igdr-10-2019-0110","DOIUrl":"https://doi.org/10.1108/igdr-10-2019-0110","url":null,"abstract":"\u0000Purpose\u0000Cyber-bullying is a form of cyber-crime that has been propagated through extensive use of social networking sites (SNS). Despite the implementation of sophisticated security measures and government compliances, privacy intrusion is petrifying. Therefore, the purpose of this paper attempts to explore as follows: why cases of bullying are still snowballing year after year? Is it possible that advances in security measures are making users more vulnerable? Or, is it a social media addiction, which is making users vulnerable to cyberbullying?\u0000\u0000\u0000Design/methodology/approach\u0000The proposed research framework is grounded in the technology threat avoidance theory (TTAT). An empirical survey of 365 social media users was analysed using structural equation modelling (SEM) to understand the impact of security measures, voluntary self-disclosure (VSD) and addiction on perceived vulnerability (PV) to cyber-bullying.\u0000\u0000\u0000Findings\u0000The findings indicate that security measures play a significant role in propelling users to disclose their personal information voluntarily, which, in turn, results in social media addiction, which further exposes users to cyberbullying. Moreover, the study unravels gender differences in perceived vulnerabilities to cyberbullying.\u0000\u0000\u0000Practical implications\u0000The findings of the current research contribute to a better understanding of gender differences in the awareness of security measures, addiction intensities, level of self-disclosures and propensity to cyberbullying victimization. Additionally, prevention and intervention efforts may benefit from using a more targeted approach to identify potential male and female victims that experience different forms of bullying on SNS.\u0000\u0000\u0000Originality/value\u0000In addition to other constructs, the current research investigates the role of user security measures (USM) and website security measures (WSM) on the PV to cyberbullying, typically, the role of these measures is to prevent the users from becoming the victims, whereas the research unravels that they could be the possible reasons for the increased number of cases in India. To the best of the knowledge, such conflicting roles of security measures have not been discussed earlier.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/igdr-10-2019-0110","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45863328","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 : 2020-05-15DOI: 10.1108/igdr-04-2019-0039
A. Rath
Purpose The purpose of this paper is to find out the factors contributing to major shifts in the growth of tax revenue through the estimation of structural breaks and analysis of major tax regimes. Recent contributions to optimal tax theory and empirical literature on the Laffer curve effect, based on elasticity of taxable income, challenge the settled understanding on the rate-revenue relationship. In this backdrop, the objective of the paper is to find out the relative significance of changes in tax rate, tax base and administrative reforms in affecting the growth of tax revenue in India. The paper considers tax data spanning a period of six and half decades for five major components of direct and indirect taxes (corporation, personal income, customs, excise and service) of the central government of India. Design/methodology/approach Unknown break point(s) – single and multiple – in the tax structure are identified by using the Quandt-Andrews and Bai-Perron econometric tests. These tests were conducted for two models of growth of taxes (tax revenue and tax-NDP ratio) estimated using semi-log functions. A simulation exercise was conducted to find out the robustness of the results by varying the trimming parameter and number of breaks. An analytical framework is used to understand the factors associated with these breaks. Findings There is more than one break identified for every tax component as per the results of Bai–Perron test. The simulation exercise suggests that estimated breakpoints are mostly robust. Economic growth, structural changes in the economy, simplification and rationalization of tax structure, tax competition, policies such as liberalization have contributed to the changing tax regimes. Results of this study suggest that high tax rates have not been, in particular, detrimental to achieving growth in revenue and factors other than changes in tax rates have been more prominent in bringing about the shifts. Originality/value This is, perhaps, the first paper exploring the multiple structural breaks in the fiscal variables in India. It offers an understanding of the changing regimes of central government taxes and the underlying factors for the same.
{"title":"Structural breaks in the central government taxes in India, 1950-1951 to 2013-2014","authors":"A. Rath","doi":"10.1108/igdr-04-2019-0039","DOIUrl":"https://doi.org/10.1108/igdr-04-2019-0039","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to find out the factors contributing to major shifts in the growth of tax revenue through the estimation of structural breaks and analysis of major tax regimes. Recent contributions to optimal tax theory and empirical literature on the Laffer curve effect, based on elasticity of taxable income, challenge the settled understanding on the rate-revenue relationship. In this backdrop, the objective of the paper is to find out the relative significance of changes in tax rate, tax base and administrative reforms in affecting the growth of tax revenue in India. The paper considers tax data spanning a period of six and half decades for five major components of direct and indirect taxes (corporation, personal income, customs, excise and service) of the central government of India.\u0000\u0000\u0000Design/methodology/approach\u0000Unknown break point(s) – single and multiple – in the tax structure are identified by using the Quandt-Andrews and Bai-Perron econometric tests. These tests were conducted for two models of growth of taxes (tax revenue and tax-NDP ratio) estimated using semi-log functions. A simulation exercise was conducted to find out the robustness of the results by varying the trimming parameter and number of breaks. An analytical framework is used to understand the factors associated with these breaks.\u0000\u0000\u0000Findings\u0000There is more than one break identified for every tax component as per the results of Bai–Perron test. The simulation exercise suggests that estimated breakpoints are mostly robust. Economic growth, structural changes in the economy, simplification and rationalization of tax structure, tax competition, policies such as liberalization have contributed to the changing tax regimes. Results of this study suggest that high tax rates have not been, in particular, detrimental to achieving growth in revenue and factors other than changes in tax rates have been more prominent in bringing about the shifts.\u0000\u0000\u0000Originality/value\u0000This is, perhaps, the first paper exploring the multiple structural breaks in the fiscal variables in India. It offers an understanding of the changing regimes of central government taxes and the underlying factors for the same.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"1 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/igdr-04-2019-0039","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41733901","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 : 2020-03-26DOI: 10.1108/igdr-09-2019-0095
Maitreyee Das, K. Rangarajan
The influence of sustainability practices, especially those related to the environment and society in driving business growth is evident from the annual sustainability reports of big corporations. Also, there has been a plethora of research relating sustainability performance to the financial performance of these companies. However, in the case of small and medium-sized enterprises, a very limited research study has been done so far considering the societal and environmental aspects of their business operations. Small and medium enterprises (SMEs), especially those in the emerging economy have grossly neglected their responsibilities and obligations towards the environment and society. SMEs are considered as growth engines for any nation. However, literature has shown that a large percentage of SMEs across the world fail within a few years of their incorporation. This paper aims to verify the relationship between sustainability performance and business growth for SMEs in the developing economy.,In the paper, the authors have tried to develop a model taking a sample of 200 SMEs from Indian leather and chemical sectors and find out how the factors like collaborative synergy and government policy initiatives impact the sustainability performance of small and medium firms and how in turn, their improved sustainability performance helps them to drive sustainable business growth. Data were mainly collected through primary survey and also from the company websites.,Empirical results of the study reveal that both policy initiatives and collaborative synergy positively influence the firm’s sustainability performance and, in turn, the company’s business growth is positively impacted by their enhanced sustainability performance. Company size was found to have a moderating effect on this relationship.,There are theoretical and conceptual papers elaborating on the importance of adoption of sustainability practices in SME business operations but no empirical study has been conducted to mathematically relate the factors of sustainability and business growth. The authors have tried to build a model relating the factors of sustainability improvement with those of the business growth of the firm and also verified the influence of control variables like company size on the proposed relationship.
{"title":"Impact of policy initiatives and collaborative synergy on sustainability and business growth of Indian SMEs","authors":"Maitreyee Das, K. Rangarajan","doi":"10.1108/igdr-09-2019-0095","DOIUrl":"https://doi.org/10.1108/igdr-09-2019-0095","url":null,"abstract":"The influence of sustainability practices, especially those related to the environment and society in driving business growth is evident from the annual sustainability reports of big corporations. Also, there has been a plethora of research relating sustainability performance to the financial performance of these companies. However, in the case of small and medium-sized enterprises, a very limited research study has been done so far considering the societal and environmental aspects of their business operations. Small and medium enterprises (SMEs), especially those in the emerging economy have grossly neglected their responsibilities and obligations towards the environment and society. SMEs are considered as growth engines for any nation. However, literature has shown that a large percentage of SMEs across the world fail within a few years of their incorporation. This paper aims to verify the relationship between sustainability performance and business growth for SMEs in the developing economy.,In the paper, the authors have tried to develop a model taking a sample of 200 SMEs from Indian leather and chemical sectors and find out how the factors like collaborative synergy and government policy initiatives impact the sustainability performance of small and medium firms and how in turn, their improved sustainability performance helps them to drive sustainable business growth. Data were mainly collected through primary survey and also from the company websites.,Empirical results of the study reveal that both policy initiatives and collaborative synergy positively influence the firm’s sustainability performance and, in turn, the company’s business growth is positively impacted by their enhanced sustainability performance. Company size was found to have a moderating effect on this relationship.,There are theoretical and conceptual papers elaborating on the importance of adoption of sustainability practices in SME business operations but no empirical study has been conducted to mathematically relate the factors of sustainability and business growth. The authors have tried to build a model relating the factors of sustainability improvement with those of the business growth of the firm and also verified the influence of control variables like company size on the proposed relationship.","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"13 1","pages":"607-627"},"PeriodicalIF":1.4,"publicationDate":"2020-03-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/igdr-09-2019-0095","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41982164","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 : 2020-03-23DOI: 10.1108/igdr-05-2019-0048
Yadawananda Neog, Achal Kumar Gaur
In the academic debate, the tax–growth relationship is always a controversial one. This paper aims to investigate the relationship between tax structure and economic growth in India for the period 1980-2016. After controlling for total tax revenue share to GDP in the estimation model, the authors examine the long-run and short-run relationship between tax structure and growth in India.,Auto-regressive distributed lag (ARDL) model has been used in this study. This bound cointegration model has certain advantages to the traditional cointegration model. This study also applies the threshold cointegration test of Hansen and Seo (2002) for examining non-linearity in tax–growth nexus.,The analysis shows that income tax share, corporation tax share and excise tax share are harmful to growth in the long-run. While the custom share is enlarging the growth performance. Corporation tax share is also reducing growth in the short-run. Following the Pesaran et al. (2001) approach of ARDL bound testing, the authors find the existence of a long-run relationship between studied variables. However, this study does not find any existence of threshold effect in the tax–growth relationship for India.,Based on the empirical findings, the author suggests that the prime tax change, which has the potential to impact both long-run growth and short-run economic recovery is the reduction of corporate tax rate with sustainable revenue generation. It will definitely enlarge the foreign direct investment, saving and investment in India.,This study will be a contribution to the empirical literature by investigating “tax–growth” relationship in the Indian case. To the knowledge, this will be the first study to examine this relationship for India with a recent data set.
{"title":"Tax structure and economic growth in India: insights from ARDL model","authors":"Yadawananda Neog, Achal Kumar Gaur","doi":"10.1108/igdr-05-2019-0048","DOIUrl":"https://doi.org/10.1108/igdr-05-2019-0048","url":null,"abstract":"In the academic debate, the tax–growth relationship is always a controversial one. This paper aims to investigate the relationship between tax structure and economic growth in India for the period 1980-2016. After controlling for total tax revenue share to GDP in the estimation model, the authors examine the long-run and short-run relationship between tax structure and growth in India.,Auto-regressive distributed lag (ARDL) model has been used in this study. This bound cointegration model has certain advantages to the traditional cointegration model. This study also applies the threshold cointegration test of Hansen and Seo (2002) for examining non-linearity in tax–growth nexus.,The analysis shows that income tax share, corporation tax share and excise tax share are harmful to growth in the long-run. While the custom share is enlarging the growth performance. Corporation tax share is also reducing growth in the short-run. Following the Pesaran et al. (2001) approach of ARDL bound testing, the authors find the existence of a long-run relationship between studied variables. However, this study does not find any existence of threshold effect in the tax–growth relationship for India.,Based on the empirical findings, the author suggests that the prime tax change, which has the potential to impact both long-run growth and short-run economic recovery is the reduction of corporate tax rate with sustainable revenue generation. It will definitely enlarge the foreign direct investment, saving and investment in India.,This study will be a contribution to the empirical literature by investigating “tax–growth” relationship in the Indian case. To the knowledge, this will be the first study to examine this relationship for India with a recent data set.","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"13 1","pages":"589-605"},"PeriodicalIF":1.4,"publicationDate":"2020-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/igdr-05-2019-0048","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48248399","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 : 2020-03-16DOI: 10.1108/igdr-06-2019-0064
Amarjyoti Mahanta, B. Sengupta
Purpose Over the past 25 years, direct cash transfers (often abbreviated as direct benefit transfer, DBT) to the poorer section of the society are gaining popularity over explicit subsidization of prices of essential commodities. One of the main arguments in favor of DBT is that it will cost the government less money and yet, the consumer benefit will be high. This paper aims to examine the proposition critically. Removal of price support exposes the consumers to market risk, and any income support programme must compensate the consumers accordingly. Design/methodology/approach The authors use a theoretical study where the model of a representative consumer under different specification of preferences is used to compare programme costs under price stabilization and income support programmes. Findings What the authors show in the paper that the comparative cost of the programmes crucially depends on the nature of preferences, as well as the good under question. For certain specifications of the indirect utility function and the marginal utility of money, one programme may cost less than the other. Any policymaker must take account of such nuances before making a blanket prescription. Research limitations/implications The main limitation is that only a representative consumer is taken. Practical implications The specification of indirect utility function plays a decisive role in deciding, which one these two policies, DBT or stabilizing price at a fixed level. Originality/value The main novelty of the paper is in the different specifications of the indirect utility function considered in the paper.
{"title":"Price stabilization or income support? Preferences and cost of programmes","authors":"Amarjyoti Mahanta, B. Sengupta","doi":"10.1108/igdr-06-2019-0064","DOIUrl":"https://doi.org/10.1108/igdr-06-2019-0064","url":null,"abstract":"\u0000Purpose\u0000Over the past 25 years, direct cash transfers (often abbreviated as direct benefit transfer, DBT) to the poorer section of the society are gaining popularity over explicit subsidization of prices of essential commodities. One of the main arguments in favor of DBT is that it will cost the government less money and yet, the consumer benefit will be high. This paper aims to examine the proposition critically. Removal of price support exposes the consumers to market risk, and any income support programme must compensate the consumers accordingly.\u0000\u0000\u0000Design/methodology/approach\u0000The authors use a theoretical study where the model of a representative consumer under different specification of preferences is used to compare programme costs under price stabilization and income support programmes.\u0000\u0000\u0000Findings\u0000What the authors show in the paper that the comparative cost of the programmes crucially depends on the nature of preferences, as well as the good under question. For certain specifications of the indirect utility function and the marginal utility of money, one programme may cost less than the other. Any policymaker must take account of such nuances before making a blanket prescription.\u0000\u0000\u0000Research limitations/implications\u0000The main limitation is that only a representative consumer is taken.\u0000\u0000\u0000Practical implications\u0000The specification of indirect utility function plays a decisive role in deciding, which one these two policies, DBT or stabilizing price at a fixed level.\u0000\u0000\u0000Originality/value\u0000The main novelty of the paper is in the different specifications of the indirect utility function considered in the paper.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"13 1","pages":"629-640"},"PeriodicalIF":1.4,"publicationDate":"2020-03-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/igdr-06-2019-0064","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46310862","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 : 2020-02-13DOI: 10.1108/igdr-11-2018-0116
Varun Mahajan
The purpose of this paper is to empirically study the impact of product patent regime on the productivity of different categories such as ownership, R&D, size and product-wise of Indian pharmaceutical firms using non-parametric data envelopment analysis.,The present study has applied Ray and Desli’s Malmquist productivity index and its decomposition to measure total factor productivity (TFP) change, pure technical efficiency change, scale efficiency change and technical change under variable returns to scale (VRS) technology assumption for 141 Indian pharmaceutical firms during 2000-2001 to 2014-2015.,The study found the negligible impact of product patent regime on productivity. The technological change has played a positive role in the growth of productivity, whereas technical efficiency change depicts the judicious utilization of resources for improving performance. From the results, it is found that R&D intensive firms depict better stability in the TFP than the non-R&D firms. However, Granger causality between R&D and productivity found no relationship. Productivity is more directly affected by investment in fixed assets rather than in R&D, which focusses on incremental value additions in a largely branded/plain generic product market. In case of ownership, private foreign firms found to have registered progress in TFP while others have recorded marginal regress, which probably could be attributed to the superior marketing and management skills of the foreign firms, besides possessing proprietary technology. Both small and large firms have shown positive growth in the new regime as compared to the pre-patent regime. These small firms are able to compete with large firms because of their up-gradation of the technological base by improving access to better foreign technology. TFP growth for all the firms can be attributed to improvement in technology, and innovation in terms of high capital-output ratio. Further, the paper tried to identify the determinants of productivity from panel random effect regression, and it is found that export intensity, age and the new patent regime have negative and significant relationship with productivity, whereas other variables such as R&D, ownership, size and capital imports are insignificant. In the end, the results of sensitivity analysis have confirmed the validity of the selected variables.,The results suggest that Indian pharmaceutical firms need substantive improvement in TFP by improving managerial and scale efficiency. Indian pharmaceutical industry (IPI) needs to improve productivity across the network and drive cost excellence initiatives across the spend base through operational excellence and digital initiatives. The results of this paper can be applied in framing policies for future growth and improvement in the productivity of IPI.,The paper aims to make several new contributions to the existing literature. Most of the research papers only analysed TFP of the industry as a whole and detailed fir
{"title":"Is productivity of Indian pharmaceutical industry affected with the introduction of product patent act?","authors":"Varun Mahajan","doi":"10.1108/igdr-11-2018-0116","DOIUrl":"https://doi.org/10.1108/igdr-11-2018-0116","url":null,"abstract":"The purpose of this paper is to empirically study the impact of product patent regime on the productivity of different categories such as ownership, R&D, size and product-wise of Indian pharmaceutical firms using non-parametric data envelopment analysis.,The present study has applied Ray and Desli’s Malmquist productivity index and its decomposition to measure total factor productivity (TFP) change, pure technical efficiency change, scale efficiency change and technical change under variable returns to scale (VRS) technology assumption for 141 Indian pharmaceutical firms during 2000-2001 to 2014-2015.,The study found the negligible impact of product patent regime on productivity. The technological change has played a positive role in the growth of productivity, whereas technical efficiency change depicts the judicious utilization of resources for improving performance. From the results, it is found that R&D intensive firms depict better stability in the TFP than the non-R&D firms. However, Granger causality between R&D and productivity found no relationship. Productivity is more directly affected by investment in fixed assets rather than in R&D, which focusses on incremental value additions in a largely branded/plain generic product market. In case of ownership, private foreign firms found to have registered progress in TFP while others have recorded marginal regress, which probably could be attributed to the superior marketing and management skills of the foreign firms, besides possessing proprietary technology. Both small and large firms have shown positive growth in the new regime as compared to the pre-patent regime. These small firms are able to compete with large firms because of their up-gradation of the technological base by improving access to better foreign technology. TFP growth for all the firms can be attributed to improvement in technology, and innovation in terms of high capital-output ratio. Further, the paper tried to identify the determinants of productivity from panel random effect regression, and it is found that export intensity, age and the new patent regime have negative and significant relationship with productivity, whereas other variables such as R&D, ownership, size and capital imports are insignificant. In the end, the results of sensitivity analysis have confirmed the validity of the selected variables.,The results suggest that Indian pharmaceutical firms need substantive improvement in TFP by improving managerial and scale efficiency. Indian pharmaceutical industry (IPI) needs to improve productivity across the network and drive cost excellence initiatives across the spend base through operational excellence and digital initiatives. The results of this paper can be applied in framing policies for future growth and improvement in the productivity of IPI.,The paper aims to make several new contributions to the existing literature. Most of the research papers only analysed TFP of the industry as a whole and detailed fir","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"13 1","pages":"227-258"},"PeriodicalIF":1.4,"publicationDate":"2020-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/igdr-11-2018-0116","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49164961","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 : 2020-01-08DOI: 10.1108/igdr-04-2019-0035
Vipin Valiyattoor, Anup Kumar Bhandari
This paper aims to evaluate the performance of basic metals industry in India and analyze its determinants, using data envelopment analysis (DEA) method. It also intends to compare the results through conventional two-stage and bootstrap-based inferences.,Considering technical efficiency as a measure of performance, this paper specifically investigates whether the participation of a firm in the global market affects its performance. The conventional two-stage procedure is used to test the export intensity and firm performance nexus. The bootstrap-based algorithms (by Simar and Wilson, 2007) are used to correct the bias and serial correlation issues involved in the conventional approach.,The result shows a negative relation between export intensity and firm performance while following the conventional procedure. Even after accounting for serial correlation, the relation remains more or less similar to that of conventional analysis. However, a strong negative relation between export intensity and firm performance is not observed in a more reliable inference obtained after correcting for possible bias as well as serial correlation.,This paper is based on cross-sectional analysis, and a more reliable result can be obtained by considering a larger sample and longer period.,This paper shows how the conventional two-stage procedure may result in misleading inferences due to bias in the estimation of efficiency scores and the serial correlation during the second stage inferential analysis. This paper also empirically exemplifies how the double bootstrap DEA procedure can overcome these limitations of the conventional two-stage approach.
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Pub Date : 2020-01-02DOI: 10.1108/igdr-09-2019-0092
A. Majumder, R. Ray, Sattwik Santra
Purpose This study aims to apply a proposed methodology for calculating spatial prices in a heterogeneous country setting such as India with limited price information. Based on the empirical evidence, the study plans to draw the spatial price map of India with different colours denoting states and districts with varying level of spatial prices. Design/methodology/approach This study shows that a procedure proposed by Lewbel (1989), based on the idea by Barten (1964) that household composition changes have “quasi-price effects”, can be used to estimate spatial prices in the absence of information on regional prices. Findings The evidence on spatial price differences in India, which is the most comprehensive to date because it goes down to district level, shows that the proposed procedure has considerable potential in future applications on other data sets with limited price information. The policy importance of the results is underlined by the sensitivity of the demand elasticities to the inclusion/omission of spatial price variation. Research limitations/implications The study uses “pseudo unit values” based on household composition and demographic effects on demand as proxy for the missing price information. While the work of Atella et al. (2004) suggests that such proxies are accurate representations of true prices, nevertheless, they are proxies and the results should be treated with caution. Practical implications The evidence on spatial prices in India that point to a high degree of price heterogeneity between regions implies that welfare applications such as income distributional and poverty studies must take account of the price heterogeneity within the country. The implications extend beyond India to cross-country exercises such as the purchasing power parity calculations undertaken by the International Comparison Project. Originality/value This is one of the first studies that provide evidence on spatial price heterogeneity within a country without requiring regional price information. Methodologically, the paper builds on the suggestion of Lewbel (RES, 1989) in showing how the demographic effects on household expenditure pattern can be used to estimate spatial prices. The value of the contribution lies in the use that the estimated spatial prices can be put to in calculating inequality and poverty rates and in standard of living comparisons between regions in the country.
{"title":"The spatial price map of India drawn using pseudo unit values","authors":"A. Majumder, R. Ray, Sattwik Santra","doi":"10.1108/igdr-09-2019-0092","DOIUrl":"https://doi.org/10.1108/igdr-09-2019-0092","url":null,"abstract":"\u0000Purpose\u0000This study aims to apply a proposed methodology for calculating spatial prices in a heterogeneous country setting such as India with limited price information. Based on the empirical evidence, the study plans to draw the spatial price map of India with different colours denoting states and districts with varying level of spatial prices.\u0000\u0000\u0000Design/methodology/approach\u0000This study shows that a procedure proposed by Lewbel (1989), based on the idea by Barten (1964) that household composition changes have “quasi-price effects”, can be used to estimate spatial prices in the absence of information on regional prices.\u0000\u0000\u0000Findings\u0000The evidence on spatial price differences in India, which is the most comprehensive to date because it goes down to district level, shows that the proposed procedure has considerable potential in future applications on other data sets with limited price information. The policy importance of the results is underlined by the sensitivity of the demand elasticities to the inclusion/omission of spatial price variation.\u0000\u0000\u0000Research limitations/implications\u0000The study uses “pseudo unit values” based on household composition and demographic effects on demand as proxy for the missing price information. While the work of Atella et al. (2004) suggests that such proxies are accurate representations of true prices, nevertheless, they are proxies and the results should be treated with caution.\u0000\u0000\u0000Practical implications\u0000The evidence on spatial prices in India that point to a high degree of price heterogeneity between regions implies that welfare applications such as income distributional and poverty studies must take account of the price heterogeneity within the country. The implications extend beyond India to cross-country exercises such as the purchasing power parity calculations undertaken by the International Comparison Project.\u0000\u0000\u0000Originality/value\u0000This is one of the first studies that provide evidence on spatial price heterogeneity within a country without requiring regional price information. Methodologically, the paper builds on the suggestion of Lewbel (RES, 1989) in showing how the demographic effects on household expenditure pattern can be used to estimate spatial prices. The value of the contribution lies in the use that the estimated spatial prices can be put to in calculating inequality and poverty rates and in standard of living comparisons between regions in the country.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/igdr-09-2019-0092","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41948720","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 : 2020-01-02DOI: 10.1108/igdr-06-2018-0062
Marie-Claire Robitaille, I. Chatterjee
Purpose This paper aims to understand the motivations behind married men preferring sons and to quantify the association between a couple’s stated son preferences. Son preference is an endemic problem in India. With half a million female foetuses aborted each year, the root causes of son preference in India have been widely studied. Little is known, however, on how couples mutually decide on their desired child sex-ratio. Design/methodology/approach Using data from the third National Family and Health Survey, the authors apply three-stage least square and optimal general method of moment methods to demonstrate association. Robustness checks are performed on plausibly exogenous instrumental variables and selection issues in the marriage market. Findings The authors show that their spouse's son preference is by far the most significant factor associated with a person's own stated son preference. The association between spouse's stated son preference is observed only for couples being married for three to five years. It is postulated that this is the critical period when sex-selective abortion decisions are being made. Originality/value The focus of existing empirical studies is nearly always on the mother's son preference only. The hypothesis is that spouses mutually influence each other’s preferences and models estimating determinants of son preference should include preferences of both spouses. To the best of the authors’ knowledge, this is the first attempt to understand the motivations of married men towards preferring sons and quantify the association between spouse's stated son preference and respondent's stated son preference.
{"title":"Do spouses influence each other's stated son preference?","authors":"Marie-Claire Robitaille, I. Chatterjee","doi":"10.1108/igdr-06-2018-0062","DOIUrl":"https://doi.org/10.1108/igdr-06-2018-0062","url":null,"abstract":"\u0000Purpose\u0000This paper aims to understand the motivations behind married men preferring sons and to quantify the association between a couple’s stated son preferences. Son preference is an endemic problem in India. With half a million female foetuses aborted each year, the root causes of son preference in India have been widely studied. Little is known, however, on how couples mutually decide on their desired child sex-ratio.\u0000\u0000\u0000Design/methodology/approach\u0000Using data from the third National Family and Health Survey, the authors apply three-stage least square and optimal general method of moment methods to demonstrate association. Robustness checks are performed on plausibly exogenous instrumental variables and selection issues in the marriage market.\u0000\u0000\u0000Findings\u0000The authors show that their spouse's son preference is by far the most significant factor associated with a person's own stated son preference. The association between spouse's stated son preference is observed only for couples being married for three to five years. It is postulated that this is the critical period when sex-selective abortion decisions are being made.\u0000\u0000\u0000Originality/value\u0000The focus of existing empirical studies is nearly always on the mother's son preference only. The hypothesis is that spouses mutually influence each other’s preferences and models estimating determinants of son preference should include preferences of both spouses. To the best of the authors’ knowledge, this is the first attempt to understand the motivations of married men towards preferring sons and quantify the association between spouse's stated son preference and respondent's stated son preference.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/igdr-06-2018-0062","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47631200","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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