Rashmi Umesh Arora

Gender Inequality, Economic Development, and Globalization: A State Level Analysis of India

This study using access to education and health as the indicators of gender inequality examines gender inequality and state level openness in the different states of India. Further, the studys findings show that at the sub-national level in India higher per capita income is accompanied with lower gender inequality. However, in some high income states gender inequality is also very high. High gender inequality was also observed in the states which score high in the openness index.

Finance and inequality: a study of Indian states

Although a large literature exists on finance and economic growth, few studies have empirically examined the relationship between finance and inequality. Using grouped national household sample survey data on monthly household consumption expenditure at the sub-national level for the years 1999–2000 to 2006–2007, we examine the relationship between Financial Development (FD) and rural and urban inequality in India. The results indicate that FD is associated with a reduction in inequality, but only in the urban areas. Further, inequality is found to be higher in the richer states compared to less developed and low income states, and as state income increases, inequality also increases both in the rural and urban areas. Finally, our results show that increase in population per bank branch leads to higher inequality in urban areas but decline in rural areas.

Food subsidies for the poor in India: are they working?

This study examines food subsidy in India and assesses it critically against the objectives leading to its initiation. Using 61st round of National Sample Survey data on the monthly consumption of households for the year 2004–05, our study locates the outreach of Public Distribution System (PDS) in rural and urban areas in India and also examines its role in maintaining price stability. The findings of the study show that the outreach of PDS in the country is highly inadequate and concentrated more in the relatively developed and less poverty states than vice versa.

Economic reforms, growth and well-being: evidence from India

This study examined economic well-being of sub-national units in India since the economic reforms. For this purpose, the study constructed well-being index for 17 major states of India for the period 1981–2011 based on five broad dimensions. Our results showed that the economic well-being of states has declined since the reforms. The interstate disparities have increased and the states (except Punjab and West Bengal) which performed well prior to the reforms continued to perform well in the post-reform years too. In addition, our regression results for the high well-being and low well-being states revealed that the reforms have benefited more developed high well-being states, rather than low well-being states. While human capital was found significantly and positively related to per capita incomes in both groups of the states, financial development was positively related in high well-being states, but a negative association was visible in the low well-being states.

Recent growth experiences of Asian tigers: where does India stand?

Purpose - – The four Asian tigers, Hong Kong, Singapore, South Korea and Taiwan (also called Four Dragons) experienced miraculous high growth rates in the pre-1990s period and rapidly transformed their economic status from less developed “basket cases” to developed high-income countries gaining entry to the rich OECD club of countries. These countries even in the post-1990s, barring few years, have continued to grow further and are an inspiring role model for the newly emerging economies. The purpose of this paper is to adduce certain trends in these countries since the 1990s and specifically examine role of human capital and knowledge building, productivity convergence and intra-regional trade in the Asian tigers’. The authors examine these in the context of India. Design/methodology/approach - – The paper in a simple descriptive yet analytical approach explores the relevance of above factors in the Indian context. Findings - – The study observed that India ranks far below the Asian tigers in the knowledge economy index (KEI). The results at the sub-national level showed large disparities across the states in knowledge economy reflecting country’s difficulties in catching up with other countries overall. Regarding labour productivity, the results show that India was moving away from the benchmark country until 1990 (pre-reform period) and started catching up particularly due to physical capital (not necessarily human capital) since 1995 onwards. Originality/value - – The study is unique due to several reasons. First, it contributes to the literature examining contemporaneous Asian tigers and Indian economies performance as not many studies exist in this area. Second, the study also builds a unique first ever KEI at the sub-national level for India and is, therefore, a contribution in this respect. Finally, the study also contributes to the literature on Indian economic development.

Inequality in Carbon Emissions at Sub-National Level in India

In this study using standard measures of inequality such as Gini coefficient, Kakwani Index, coefficient of variation and Theil Index we examine inequality in carbon emissions for the years 2000-09 at the sub-national level covering 17 major states of India. At the outset, in order to estimate sub-national inequality in carbon emissions we also estimated total carbon emissions for each state for the above years using IPCC Reference Approach. Our findings showed that per capita carbon emissions were highest in the low income resource rich states and lower in the high income more developed states. The inequality in carbon emissions as demonstrated by Gini coefficients has increased over the years indicating that it is the poorer states which have to bear the burden.

Bank Credit and Economic Development: An Empirical Analysis of Indian States

The introduction of economic reforms in India, particularly reforms in the banking sector, although boosted and edged up the profits and improved efficiency of the banks, an unwarranted consequence was the decline in credit to the less developed states and regions. The emphasis on efficient allocation of resources overlooked the developmental needs of these regions and states. This study examines the role of banks in the different states of India in the post-reform period and explores multi-dimensional role of credit in terms of, what it calls, the G-GUIDE indicators. Bank credit in the present study is examined in terms of growth, globalization, urbanization, inequality, reduction in poverty (development) and the empowerment of women.

Government Intervention and Financial Sector Development

Government interventions in the financial sector have prevailed in a number of countries until the early 1990s. Criticisms against financial repression and poor performance of public banks, however, turned the tide against government intervention. As a result, the 1990s saw the introduction of financial sector reforms in several developing countries with the objectives of improving allocative efficiency of the financial institutions and financial markets. However, the recent global financial crisis has led to a resurgent interest on the role that governments can play in the financial sector.