Market responsiveness of peasant cultivators: Some evidence from prewar India

This study attempts to analyse the responsiveness of Indian farmers to changes in profitability with reference to non‐food crops, such as groundnuts, cotton, jute and sugarcane, over the period 1900–39. Various types of adjustment and expectations models have been used. The generalized distributed lag models have been formulated and some special forms have been applied to study the behaviour of farmers. Both ordinary least‐squares and two‐stage‐least‐squares estimates have been carried out. In the distributed‐lag analysis, short‐run and long‐run price coefficients and elasticities have been computed and compared with some of the other studies on the subject. The emerging conclusion from this study is that farmer s seem to respond to changes in profitability, expansion of irrigation facilities, varietal improvements and qualitative factors in the case of all the crops.     

Capability Failure and Group Disparities : Some Evidence from India for the 1980s

This paper advances a particular measure of deprivation - called the Capability Failure Ratio (CFR) - on the dimensions of longevity, knowledge and income, and suggests how an (inequality-) 'adjusted' version of the CFR may be derived. These measurement concerns are explored in the context of relevant State-wise data for the Indian Union. The paper thus makes an attempt to enrich the analysis of human predicament by sensitising 'measures of central tendency' to distributional concerns.     

Women's Wellbeing and the Sex Ratio at Birth: Some Suggestive Evidence from India

A declining sex ratio (SR) for a population has generally been diagnosed as an indicator of worsening female advantage, while a declining sex ratio at birth (SRB) – such as in the context of the Indian population over the recent past – has been diagnosed as being caused largely by the phenomenon of sex-selective foeticide. In this article, we examine the merits of a less sinister hypothesis in terms of which a secular improvement in women's wellbeing has led to a sex-neutral reduction in the rate of foetal wastage, and through that route, to a reduction in the SRB (and therefore in the overall SR of the population). We seek support for this hypothesis by examining evidence from India. We also discuss the implications of this line of reasoning for women's wellbeing, development and the significance of a declining sex ratio.     

Fixed capital stock depreciation in developing countries: Some evidence from firm level data

Abstract

Previous growth accounting studies suggest severe capital underutilisation and mismeasurement of the stocks of capital in some developing countries. Using the firm level data sets from the World Bank surveys, this paper estimates the economic depreciation rates of fixed capital stocks in the manufacturing industries of seven developing countries. The findings indicate that the stocks of fixed capital may depreciate at higher rates in these countries, as compared with the normal rates usually assumed for advanced industrial countries. This study also discusses the economic and social forces that may influence the incentive to maintain capital appropriately and the implications of high depreciation for the total factor productivity (TFP) growth estimates and volatility of capital accumulation.     

Growth in NICs in Asia: Some tests of new growth theory

New growth theory has revitalised the existing theory of long run growth by focusing on such determinants as investment in human capital, increasing returns to scale and the impact of openness in international trade. This article provides some empirical tests of this new growth theory in terms of the remarkable episodes of growth experienced by the NICs in the Asian Pacific Rim in general and by Korea in particular. The estimates appear to be strongly favourable to the basic premises of the new growth theory.     

Inflation and economic development in Latin America: Some new evidence

This article presents an evaluation of various relationships that explain shifts in economic structure. These are (1) inflation as measured by (a) the wholesale price index, and (b) sectoral price index; (2) changes in sectoral profits; and, (3) changes in alternate sectoral profits. Changes in sectoral profits (measured by sectoral price minus wholesale price) were more strongly correlated to changes in economic structure than either wholesale or sectoral price indices, while changes in economic structure are as expected when compared to changes in alternate sectoral profits in all but three of the years studied.     

Intergenerational Transmission of Gender Attitudes: Evidence from India

This paper examines the intergenerational transmission of gender attitudes in India, a setting with severe discrimination against women and girls. We use survey data on gender attitudes (specifically, about the appropriate roles and rights of women and girls) collected from nearly 5500 adolescents attending 314 schools in the state of Haryana, and their parents. We find that when a parent holds a more discriminatory attitude, his or her child is about 11 percentage points more likely to hold the view. We find that parents hold greater sway over students’ gender attitudes than their peers do, and that mothers influence children’s gender attitudes more than fathers. Parental attitudes influence child attitudes more in Scheduled Caste communities and student gender attitudes are positively correlated with behaviours such as interacting with children of the opposite gender.     

The impact of the financial sector on economic development: Some cross-section evidence

Conclusion This paper has attempted to analyze the effect of the development of the financial sector, as reflected by the extent of financial deepening, in the economic development of countries. The Theoretical framework integrating financial growth to real growth is basically an adaptation of the Gurley-Shaw theory of finance in the development context, but with emphasis placed upon the supply-leading role of the financial sector. The empirical results of this study although not conclusive, indicate that financial deepening leads to a higher rate of capital accumulation and a higher level of per capita income. The lack of definitiveness of our evidence in support of the financial theory of economic development is due to a lack of comparable data on financial institutions, other than banks, for the different countries. Thus, although our study lends support to the supply-leading thesis, further judgement of the thesis must await more detailed empirical analyses.     

Inequality and Political Clientelism: Evidence from South India

Political parties can be vehicles for economic and social development in poor countries. They can also serve as rent seeking instruments. Uncovering how parties function is therefore key to establishing the preconditions for good governance. The article discusses when and why clientelism on the basis of party affiliation may arise. Operationally, party-based clientelism is defined as a bias of public policy in favour of members of the governing political party. In a sample of local governments in India, party-based clientelism is shown to exist in two out of four states and to be strongly affected by economic inequality.     

The Rise of India: Overcoming Caste Society and Permit-License-Quota Raj,Implementing Some Economic Freedom

Two or three centuries ago most of mankind was still very poor. When the West outgrew mass poverty, India was a British colony and suffered from stagnation. When East Asian economies exploited the advantages of backwardness and benefited from export-led growth, India remained inward-looking and poor. The ‘Hindu rate of growth’ preserved mass poverty. Since the reforms of the early 1990s India has exploited the advantages of backwardness and some global markets. In this article, the roots of India's failure to grow rapidly before the end of the twentieth century are analyzed. Stagnation is blamed on restrictions of economic freedom, whereas growth is explained by the expansion of economic freedom. Before the mid-twentieth century, the caste system and the legacy of sultanism curtailed economic freedom and contributed to economic stagnation. Thereafter, democratic socialism distorted incentives and generated ‘permit-license-quota raj’ or a rent-seeking society. When some obstacles to growth were dismantled, vigorous growth followed. Although expanding economic freedom remains limited. India's growth potential is not yet fully exploited. Indian infrastructure and human capital formation remain inadequate, regulations intrusive, and the budget in deficit. The rule of law looks better on paper than from the ground. Compared to China Indian public policy still has a lot of room for improvements. ‘Maoists’ or Naxalites threaten political stability and economic freedom. Geopolitics may explain India's late, slow and incomplete reforms. The rise of Asia, in particular of China and India, generates geopolitical challenges of its own. Conceivably, the global expansion of economic freedom permits not only the rise of Asia, but the peaceful management of the coming power transition between Asia and the West.     

Estimating the shadow price of foreign exchange: An illustration from India

Although there has been a rapid growth in the literature urging the use of shadow prices in cost‐benefit analysis, little attention has been devoted to the estimation of shadow prices or to the feasibility of alternative methodologies for estimating a particular shadow price. This paper is a modest contribution toward meeting this gap. By applying a variety of methodologies, a range of values is determined for the shadow price of foreign exchange for India. The paper also demonstrates a general approach to estimating shadow prices, which in turn emerges from an explicit consideration of the costs and expected benefits of the required research and analysis.     

Migrant Networks in the Urban Labour Market: Evidence from India

This paper analyses the informal channels of the job search process through migrant networks in the urban labour markets in developing countries. Using a novel approach and nationwide sample survey, we measure various aspects of migrant networks such as size, diversity, efficiency and experience content and estimate their effect on probability of employment. Our findings suggest that migrant stock (having experience content) has an inverted-U relationship with the probability of finding a job for a migrant. The share of employed workers in a migrant network (efficiency) and different origin identity (diversity) positively affect the employment outcome through weak ties. Further, the migrant network effect is more active in larger cities as compared to smaller urban areas. The implications of this study indicate towards the importance of non-market informal channels in job searches and the need for integrating labour markets to harness the benefits of larger positive network externalities.     

Labour demand and Agroindustrial development: The evidence from Mexico

Agroindustrialisation, in contrast to assertions by Mexican policy‐makers, has had a negative employment‐generating effect in agriculture in the region known as El Bajío. The impact of widespread crop substitution and the wholesale transfer of technology promoted by transnational processing plants have both reduced the total labour employed and increased the instability of employment through heightened seasonality of labour demand. A decomposition analysis assesses the role played by various determinants of labour demand in the alteration of regional agricultural employment which has resulted from agro‐industrialisation.     

The Correlates of Corruption in India: Analysis and Evidence from the States

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