Kishore G. Kulkarni

The Role of International Trade Policy in Economic Growth: A Case of Tanzania

While the benefits from international trade are well documented in economic literature, application of a prudent trade policy may need a political acumen as well as economic insight. Tanzania has been a classic example of how a strategic trade policy can affect economic growth in a positive way. This paper analyzes the economic effects of tariff policy and by discussing the background of Tanzania economy it applies the theoretical principles to this specific case.

Purchasing Power Parity Theory Revisited: Recent Evidence from US Dollar and Japanese Yen

This article is yet another simple test of the Purchasing Power Parity explanation of the exchange rate behaviour. We use the data of the US Dollar and Japanese Yen, and conclude that the PPP explanation has a substantial explanatory power for the behaviour of this exchange rate. The article recognizes the difference between real and absolute purchasing power parity, survey-related literature, and carries out econometric analysis of the PPP theory argument.

Outward Looking Policies and Economic Development: A Case of Taiwan since 1952

In this paper, we analyze the transformation of Taiwan from an agriculture based natural-resource-abundant economy into a high-technology, advanced economy, with the help of comparative advantage in international trade theory, and the Heckscher-Ohlin model. Taiwans trade policies shifted from import substitution and industrialization after World War II, to a labour-intensive export-led growth stage between 1965 and 1972, a secondary imports substitution stage between 1973 and 1980, and a technology and modernization stage since 1981. Our research shows that with a relative low endowment of natural resources, a small economy like Taiwan benefited greatly from international trade because it could acquire not only the capital goods and raw materials of industrialization but also the necessary output for its consumption. In this transition, government policies that restructured the economy were crucial for Taiwan to use its resource endowments to the greatest advantage.

Why Regionalism? A Look at the Costs and Benefits of Regional Trade Agreements in Africa

Countries were involved in regional trade agreements (RTAs) long before the General Agreement on Tariffs and Trade (GATT) was established in 1947. In recent years, however, RTAs have proliferated, particularly in Africa. In this article, we examine the various reasons why African countries have chosen to engage in these agreements, particularly in light of the fact that they do not seem to be ‘trade creating’ in nature. As Jacob Viner made it popular in the 1950s, not all trade agreements lead to higher economic welfare for the nations engaging in them. In the case of African countries where there is a limited degree of variation in the goods that are produced, and infrastructure and trading systems are designed for intercontinental rather than intra-continental trade, RTAs may not necessarily lead to greater welfare. Our examination of RTAs does not yield a strong positive result that they are welfare-enhancing exercises. A greater care needs to be taken for future RTAs.

Women's empowerment and economic development: the cases of Bangladesh and Kenya

This paper reviews the women issues in Bangladesh and Kenya in a comparative fashion. It is argued that education, social status of women, dictates their living conditions. Womens role in economic development is very crucial. Therefore, their social and economic conditions need to improve significantly if an economy desires to grow fast. It is seen that both Kenya and Bangladesh have made a mediocre progress in handling their women issues but there is a long way ahead. The paper is divided into sections according to the countries studied.

A Case Study: Impact of International Liberalization on the Indian Economy

This paper, using the Solow growth model looks at the impact of liberalization on Indias economic growth. Additionally, using empirical data, it analyzes the patterns, processes, and characteristics of Indias economic growth. The Solow model explains the long run economic growth via the change in the Solow residuals. This paper defines the Solow residual as International trade. This paper will show that International trade and fewer regulations on exports and imports have ignited high economic growth in India. After the late 1980s, India saw an immense increase in international trade. Led by low tariff rates, India saw a hike in exports and imports and more importantly, foreign investments. With the backing of facts and figures, this paper will show that India has actually benefited in terms of economic growth from international trade. With liberalization, India has not only had success in the macro level, but it has also impacted people in terms of per capita income in the micro level. This paper is broken down into 4 sections. The first section gives an introduction to India and its relevance to the Solow model. The second section explores the theoretical framework of the Solow model. The third section uses the empirical data to examine the impact of liberalization on India (pre and post reformation). Finally, the fourth section is the analysis and conclusion section which compares India to other South Asian counties and gives policy recommendation.

Have the Monetary and Fiscal Policies been Effective in India

This paper analyzes the impact of fiscal and monetary policies on output in India.The econometric evidence suggests that less than 5 per cent of the variation in output is explained by fiscal and monetary policies before the crisis in 1991. However, post-crisis data reveals the growing importance of both the macro-economic policies in explaining output variation. The paper discusses theoretical arguments, surveys prior studies and attempts to explain the reasons for the empirical results.

Who Will Lead Global Growth? Slowing Trends are the ‘New Normal’:

Focusing on the US, Japan, Germany and China—four large economies that make up almost half of the world’s GDP—this article analyses each of their growth stories independently and comparatively. None of these economies were doing well by historical measures, years after the financial crisis of 2008. The article addresses possible reasons for this slow growth, and which country might lead growth into the future. The results of our review suggest that rapid growth is not likely to return to most parts of the world. Similar growth trends are apparent across our four economies despite clear differences in institutions and circumstances. The 2008 financial shock was a turning point in terms of how these economies function, but we see long-term trends that began before the crisis. Of the four economies, China is likely to increasingly become a key determinant of global growth—at least until its aging demographics kick in.