Kanhaiya Singh

The inflation-growth nexus in India: an empirical analysis

Abstract Given the growing concern, particularly in the EMU area that excessively low inflation threshold may hurt economic growth, the objective of this study is to examine whether a developing countries perspective is different. The empirical analysis is done using the annual data from India for the period of 1971–1998. A specific question that is addressed in this paper is what is the threshold inflation rate for India. The findings clearly suggest that the increase in inflation from any level has negative effect on economic growth and substantial gains can be obtained by focusing the monetary policy towards maintaining price stability.

A Comparative Analysis of China's and India's Recent Export Performances

Drawing on the convergence theory, one would expect that the export performance of India (a latecomer to integrating with the global economy) would be at least on par with that of China because Chinas performance has happened as predicted by the theory. This study, using performance measures based on the endogenous growth theory that internalizes the ability to export the maximum possible exports under the determinants of exports including the existing behind the border and beyond the border constraints, shows that Indias export performance is still far behind that of China. The implication of this study is that Indias reform measures need to be bolstered effectively to catch up and to overtake China.

Monetary Transmission in Post-Reform India: An Evaluation

Abstract In the post-reform period, the monetary policy of India has been undergoing various transformations. The emphasis is shifting from conventional instruments of price and quantity control to a more sophisticated route of monetary transmission. Using the recent econometric methodology of cointegrated vector autoregression with generalized restrictions, this study has attempted to examine whether monetary policy in India does work through interest rates in the post-reform period. The long-run relationship and the short-run dynamics suggest an important role for the interest rate.

The pace of poverty reduction across the globe: an exploratory analysis

Purpose - This is an account-taking paper on the status of global poverty and its reduction. The purpose of this paper is to examine why some countries reduce poverty more quickly than others. Design/methodology/approach - The data on the population living below

Economic liberalisation strategies and poverty reduction across Indian states

1 a day during 2000 and 2002 reported in the World Development Indicators (WDI) 2004 have been used to identify the status and determinants of poverty across countries. Next, using the national data on poverty level with respect to countries having a

Climate Change and Poverty Reduction—Where Does Official Development Assistance Money Go?

1 poverty level of more than 3 percent as reported in WDI-2004, the rate of change in the poverty level was calculated. In both cases, the explained and the explanatory variables used in the multiple regression frameworks were selected based on theory and other empirical findings. Findings - The results indicate that countries with sustainable agricultural growth, foreign capital flows, and better infrastructure tend to achieve a faster reduction in poverty. Practical implications - The practical implications of policy formulations are to strengthen economic activities such as labour-intensive export promotion, emphasis on agriculture productivity, improved communication and infrastructure, besides effectively implementing policy initiatives such as population control, reduced dependency on aids and reducing malnutrition to achieve a lower incidence of health expenditure. Originality/value - This paper identifies the common economic characteristics that prevail across the countries with extreme poverty by developing a statistically consistent model from a pool of explanatory variables selected from earlier cross-country poverty studies.

Development Performance across Indian States and The Role of the Governments

The focus of the study is the pace of poverty reduction across Indian states and its determinants. In particular, the role of foreign direct investment (FDI) and industrialisation in reducing poverty is examined. Empirical evidence shows that poverty reduction did occur during the 1990s following the implementation of Indias economic liberalisation program, which included mainly industrial and FDI policy reform. The empirical analysis shows that, thus far, FDI has not contributed significantly to poverty reduction, but it did influence structural changes in the economy, particularly with respect to industry, which is an important driver of poverty reduction. The analysis clearly shows that states with dominant industrial sectors have been able to reduce poverty faster than states dominated by agriculture. It is argued that targeting of FDI in India has been misplaced. Had it been in the more labour-intensive manufacturing, it would have more effectively contributed to the reduction of poverty.

A decade of economic reforms in India: the mining sector

There is an urgent need to mainstream the key challenges of climate change into sector and development planning and decision making processes to create sustainable long-term development. Empirical results in this study emphasize that more caution is needed in directing overseas development aid (ODA) towards climate change mitigation and adaptation due to the links between various macroeconomic variables related to growth and poverty reduction.

Monetary Policy in India: Objectives, Reaction Function and Policy Effectiveness

India has a federal system of governance with both the state or provincial and the Central governments responsible for the development of the nation as a whole. Policies at the Central as well as state levels influence the state level variations in economic conditions in turn. It is in this context, this paper examines whether governments in India within a federal framework have been able to foster development equitably across its states. Overall, the results in this paper indicate that Government in India within a federal framework has mechanisms that foster development equitably across its states, particularly through health and education expenditures aimed at improving human capital development. However, the slowly rising disparities in economic services across states warrant the Central and state governments’ attention.