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No. 353 |
October 2008 |
Vol LXXXIX |
ISSN 0019-5170 |
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Contents
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Fiscal Deficit-Inflation Nexus in Nigeria
Ogunmuyiwa, Michael' Segun
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This study examines the causal linkage between fiscal deficit and inflation in Nigeria. The study performed various econometric tests such as Augmented-Dickey-Fuller (ADF) unit root test, Granger-Causality test, O.L.S. estimation and chow-break point test on time-series data from 1970-2004. The results support a unidirectional causality from inflation to fiscal deficits in Nigeria.
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Causality Relationship between
Energy Demand and Economic
Growth in Nigeria
Clement A. U. Ighodaro
and
Ovenseri-Ogbomo Friday
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This paper attempts to examine the causal relationship between
electricity demand and economic growth for Nigeria using data for 1970 -
2003. The study uses the Johansen cointegration VAR approach. The ADF
test statistic was used to test for stationarity of the data. It was found that the
data were not stationary at level but only after first differencing i.e., the data
were I (1). The Johansen co-integration technique reveals that two co-
integrating relationships exist between GDP and Electricity demand in
Nigeria. The result of the study reveals that there is unidirectional relationship
between energy consumption and economic growth i.e., energy consumption
Granger causes economic growth in Nigeria based on the available estimated
data. The result has useful implications on account of energy conservation and
energy related pollution in Nigeria. |
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A Comparative Study of Priority Sector
Lending in India by Public and
Private Sector Banks
Yogesh Gupta & Sanjeev Kumar
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Commercial banking has played a very important role in the economic
development of all the nations of the world. The commercial banking system
in India consists of public sector scheduled banks and private sector scheduled
as well as non-scheduled banks. On July 19, 1969 fourteen commercial banks
with deposits worth Rs. 50 crores or more were nationalized. This was a
historic event in the banking structure of the country. In 1980, six more
commercial banks with deposits worth Rs. 200 crores were nationalized. At
present their total number is nineteen sine, in 1993, New Bank of india was
merged with Punjab National Bank. In terms of business the public sector
banks now have a dominant position. The nineteen nationalized banks had
33,211 offices all over the country on June 30, 2004. In terms of branches and
business done by the private sector banks are much smaller than nationalized
banks. In 2004, private sector banks has a network of 5,794 branches
operating in the country. Priority sector lending is an important feature of
Indian banking policies. Priority sector lending is the crux of social banking,
under priority sector finance is provided on liberal terms and conditions. The
financial sector reforms committee set up in 1991, under the chairmanship of
M. Narasimhan recommended for the withdrawal of priority sector lending
limit from 40 per cent to 10 per cent. The paper mainly analyses the priority
sector lending by public sector banks and private sector banks.
In section I st overall priority sector lending from the year 1997 to the
year 2005 is analyzed.
In section 2nd, structure of priority sector lending from the year 1997
to the year 2005 is analyzed.
And in the last section 3rd, overall incidence of Non-Performing
Assets in priority sector and sector-wise Non-Performing Assets of public
sector banks and private sector banks from the year 2000 to the year 2005 is
analyzed. |
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Export Instability, Investment and
Economic Growth in Asian Countries:
A Time Series Analysis
Dipendra Sinha
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In this study, we look at the relationship between export instability,
investment and economic growth in the following nine Asian countries using
time series data: India, Japan, (South) Korea, Malaysia, Myanmar, Pakistan,
the Philippines, Sri Lanka and Thailand. In spite of the increasing availability
of data, surprisingly, there have been hardly and time series studies on this
subject. The few previous time series studies in this area have paid or have
not paid any attention to the time series properties of the variables. The results
are not uniform across countries casting doubts about the validity of the
numerous cross-section studies. For India, Japan, Malaysia and the
Philippines, we find a positive relationship between export instability and
economic growth. For (South) Korea, Myanmar, Pakistan, Sri Lanka cases,
economic growth is found to be positively associated with the growth of
investment. |
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Economic Analysis and Milk Utilization Pattern:
A Case Study of a Cooperative Milk Plant
in Haryana
Sheikh Mohammad Feroze, N. K. Verma
and
I. K. Sawhney
The milk plants channelize the milk produced in rural areas towards
the 'consumption pocket' to maintain the demand supply equilibrium and act
as incentive for enhanced milk production. Milk being perishable commodity,
its processing is the best alternative to enhance its keeping quality and also
increase in the value of the product at each stage. There is need for proper
planning to decide the product-mix and level of production for various
products to become profitable and viable. Hence, the present study has
specific objective of examining the milk utilization pattern and product mix
of the dairy plant. Sale of milk and milk products contibuted 92.61 percent to
the total revenue. The average milk arrival per day was 77.45 thousand litres
and it was maximum at January. Ghee and FCM had utilized most of the total
solids. |
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Further Test on Stock Liquidity Risk
with a Relative Measure
Md Hamid Uddin, Wong Kie Ann
and
Ms Soh Siew Eng
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Negative relationship between stock's return and its liquidity is
established in literature that is interpreted as reflection of liquidity risk, since
illiquid stocks are risker than liquid stocks, hence, illiquid stocks should earn
more return. Researchers subsequently considered liquidity as another
variable in asset pricing model when they found commonality in liquidity
across market. Earlier studies tested stock and market liquidities
independently, using measure based on stock's characteristics. We therefore,
further test the relationship of stock's return with its liquidity relative to
market-wide liquidity by a relative measure linking the individual liquidity
with market-wide liquidity. Results confirm the negative relationship between
stock's return and liquidity exists, but the relationship is non-linear and the
relative measure of liquidity complements the liquidity measures used in prior
studies. We also find that fluctuations in relative liquidity do not have positive
effect on stock return, raising a question whether variability in liquidity .
captures liquidity risk if it inherently arises from investors' inability to trade. |
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Phillips Curve in India:
Theory and Evidence
Satish Verma and Ms. Deepali
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In the present study an attempt has been made to examine the nature
of Phillips Curve in India and to work out its implications for formulation and
operation of the macroeconomic policy in India. The well known Phillips
curve showed that there exists an inverse relationship between rate of change
in wage rate and unemployment rate suggesting thereby a trade-off between
inflation and unemployment. The present paper seeks to examine Phillips-curve using the data for Indian economy over the period 1969-2005.
Along with auto regressive approach, the study utilises a comprehensive
causality procedure wherein a special attention has been paid to the selection
of lags and sequencing of variables. The study finds empirical evidence to
support the view that there exists a trade-off between rate of change in wage
rate and unemployment in India. |
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Trends and Patterns of Technology Acquisition
in Indian Organised Manufacturing:
An Inter-Industry Exploration
Jaya Prakash Pradhan
and
Puttaswamaiah S.
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With liberalization of foreign technology import policy in the 1990s,
India has seen declining R&D intensity at national level. This has generated
a general concern on how Indian industries are doing in technology
accumulation under the new policy regime. The present study has made a
preliminary attempt to analyze different modes of technology acquisition
including R&D for Indian Manufacturing Industries by National Industrial
Classification (NIC) Revision 1998 at 3-digit level. It has constructed a new
technology indicators database for Indian Industries at NIC (1998) and also
constructed a composite technology index for Indian manufacturing to
examine how high-technology industries have performed during the period
1991-2002. The research revealed many interesting facts about the nature and
character of technology accumulation in Indian manufacturing, which has
important policy implications. |
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