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No. 320 |
JULY 2000 |
Vol LXXXI |
ISSN 0019-5170 |
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Contents
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Public Infrastructure Investment and
Economic Growth in Nigeria
R. I. UDEGBUNAM
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This paper examines the empirical relation between public
infrastructure investment, as measured any nonmilitary expenditure, and output
growth in Nigeria. A simple model is formulated and estimated, using annual
data covering the period 1975-1995. The estimates indicate a modest evidence of
positive correlation between public infrastructure investment and output
growth. While the evidence shows that private capital investment is strongly
positively related to output growth, public infrastructure investment is found
to exert a moderate effect on output growth.
The implication of these findings is that not the amount of money expended on
infrastructure per se, but the actual services flow from such expenditures,
that generate growth. Thus, the results suggest that public infrastructure
policy should focus more on enhancing services delivery ability of the existing
public infrastructure. |
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A Theoretical Model of Sustainable
Development
MIAO-SHENG CHEN AND MING-LIANG
TSAI
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The purpose of this paper is to describe a theoretical model
of sustainable development. Under the consideration of the sustainable
development, the objective of this model is to maximize the total present
utility value of current and future generations. To internalize the
externality, the environmental protection is to collect the pollution tax not
only from producer but also from consumer in order to accordance with the
spirit of social justice. At last, we have the contributions of this
theoretical model as our conclusions. |
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A Re-examination of
the Long-run Relationship between Money Supply and Inflation, in India
M. THOMAS PAUL. NISHANT BAPAT AND N. R. BHANUMURTHY
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The present study tries to examine the long-run relationship
between money supply and prices in the Indian context with the help of both
annual data for the period 1953-1998 and with the help of monthly data for the
period 1993 : 1 to 1998 : 12. By using various time series techniques the
present study concludes that there still exists the strong influence, though
not immediate, of money supply on the price changes in India in the loog run.
It was also found that the money supply is not exogenous and is influenced by
prices and output. The results that are derived in this study certainly raise
doubts about shifting focus from money supply to interest rates by RBI. The
shift to interest rate targeting is not supported, by this study. Financial
liberalization has not made income velocity of money unstable in India. The
monetary targeting is still useful. |
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Rural Income, Savings and Investment
Behaviouramong Farmers in Osun State of Nigeria
A. B.AYANWALEANDA. S. BAMIRE
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This paper aims at identifying the determinants of farmers'
farm investments and savings as they affect farm level production in Osun State
of Nigeria.
A multi-stage sampling technique was employed to select 100 respondents for
the study. Data analysis revealed that farmers spent 67.84 per cent of their
annual total income on non-farm activities out of which about 17 per cent was
on socio-culture activities. Regression results showed that farm investments,
area of land cultivated to food crop, time spent on the farm, labour size and
age of farmers were significant determinants of respondents income; expenses on
socio-cultural activities and level of farm income were main determinants of
savings; while area of food crops grown, amount borrowed and expenses on
socio-cultural activities determine farm investments. Factor analysis presented
farmers economic and social status as well as off-farm commitments as the main
determinants of their financial allocative decision.
Thus, real income growth and enhancement of food self-sufficiency can be made
possible if policy makers embark on enlightenment programs aimed at re-orienting
rural
dwellers' spending habits. |
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Market Imperfections,
Financial Constraints, and the Volatility of Production
ANITA SINGH AND T. V. RAMAMOHAN RAO
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The present study demonstrates, both theoretically and
empirically, that production is more volatile than sales in imperfect product
markets primarily because output is more flexible than sales ex post. In
particular, financial constraints do not have any influence on sales whereas
production takes the brunt of the adjustment. In addition, a part of the
variation in production is due to the changes in the desired inventory to sales
ratio as prices vary over the business cycle. It has also been demonstrated
that a finn's adjustment to demand, cost, and credit shocks will be different
from the anticipated levels. These adjustments, when they are incorporated into
the production smoothing model, provide a resolution of the Blinder paradox. |
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The Political Economy of Suppressed
Markets: Controls, Black Markets and Rent Seeking in the Indian Cement.
Industry
SHYAM J. KAMATH
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Demand for Money Stability Revisited:
A Case of India
KISHORE G. KULKARNI AND ERICK LEE ERICKSON
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This paper reinvestigates the behaviour of Demand for Money
in Indian economy. It also surveys the main contentions of demand for money
theory of Keynesians and monetarists and brings out the main differences in
their policy advice. By using the annual data for period between 1968 and 1997
the paper investigates the demand for money stability. It is concluded that
interest rate has insignificant effect on the Indian demand for money and real
GDP affects money demand in a significant way. It appears that in some ways,
the monetarists argument that interest. rate is not a significant determinant of
money demand is vindicated for the Indian case. |
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