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| Special Centennial Issue |
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No. 405 |
October 2021 |
Vol. CII |
ISSN: 0019-5170 |
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Contents
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Insurance Parameters, Linkages between Investment and
Economic Growth in India
Shrikant Madar1
Sheetal D. Arondekar2
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With the advent of private sector life insurance firms, the
post-2000 period has led to fierce competition amongst the
firms to retain existing and attract prospective consumers
with their innovative life insurance products. This paper is an
attempt to examine the trends and performance of the life
insurance sector in India and to analyze the impact of this
sector’s investment on the gross domestic product(GDP)for
the period from 2000-01 to 2019-20. The database for this
study is purely dependent on secondary sources namely, the
Handbook on Indian Insurance Statistics and RBI. Data were
analyzed using MS-Excel and GRETL Software and results
were presented in the form of tables and graphs. For effective
data analysis, the econometrics models such as linear trend
line analysis, Log-linear model, and correlation analysis were
applied. The performance of the life insurance sector is
assessed using the parameters, viz., insurance penetration,
and insurance density. The study reveals that life insurance
density and penetration have an increasing trend that results
in the overall growth of the economy and also shows that
investment in the life insurance sector has a significant
association with India's GDP.
Keywords: Insurance, Investment, Economic Growth,
Hypothesis testing, Econometric and Statistical Methods.
JEL Codes: G22, P45, F43, C12, C10
- VVM’s Shree Damodar College of Commerce &Economics (Economics and Banking),
Margao (Goa), India. E-mail: shrikantmadar00@gmail.com
- VVM’s Shree Damodar College of Commerce &Economics (Commerce and Management),
Margao (Goa), India.E-mail: sheetaldnyan11@gmail.com
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Does High Trade Volume Affect the Fiscal Deficit of
India? An Econometric Investigation
Diptarghya Bhattacharjee1
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This paper establishes the relation between fiscal deficit and
trade volume of India and apart from trade volume also the
other variables are government final consumption
expenditure and share of defence expenditure of total GDP
of India and the theory says that the trade volume has the
negative relation with the fiscal deficit but by using the
Engle-Granger two step cointegration approach it is found
that there is the cointegration between fiscal deficit, trade
volume, government final consumption expenditure and
share of defence expenditure even though there is no
cointegration between trade volume and fiscal deficit solely
and also having the positive relation between trade volume
and fiscal deficit in case of India which contradicts the
theory and the only reason is high import which raises the
expenditure of government and the fiscal deficit is supressed
if there is the balance trade and also government should
increase the tax base and which will automatically reduce
the government expenditure and fiscal deficit as well.
Keywords: Fiscal deficit; Trade volume; Government final
consumption expenditure; Share of defence expenditure
- M.Sc. (passed in 2021) in Economics, University of Calcutta, West Bengal, India.
E-mail: rick.bhattacharjee02@gmail.com
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Maternal and Child Health Deprivation Scenario - An Analysis of Longitudinal Data Across Selected SAARC Countries
Soumyendra Kishore Datta1
Tanushree De2
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The issue of health care benefits for females during maternity
and that of children should be considered in an integrated
manner and not in isolation. Children health deprivation
often gets aggravated due to inadequacy in maternal health
condition. It is rightly viewed that child bearing phase of
mother and condition at delivery constitute the prime definite
life incidents that have a bearing on the health status of a
child’s future life courses. In this context, a maternal health
deprivation index and child health deprivation index based
on some relevant components are developed in the context of
six SAARC countries over 2000-2016. Principal component
method and UNDP goalpost method are applied in this
context for deriving the indices and corresponding ranks.
The variation in these indices are further tried to be
explained by considering several relevant factors. A
recursive simultaneous equation structure is applied for
explaining the simultaneity in variation of these two
deprivation indices. It is observed that provision of several
health related benefits needs to be made in order to lift the
poor state of maternal and child health in some of the
considered countries.
Keywords : Maternal Health, Child Health, Deprivation
Index, Simultaneous Equation, SAARC Countries.
- Professor, Department of Economics, The University of Burdwan, Burdwan, West
Bengal, India, Email: soumyendra_d@rediffmail.com
- Assistant Professor, Department of Economics, Vivekananda Mahavidyalaya, Burdwan,
West Bengal, India, Email: shree_de2009@rediff.com
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Policy Transmission Channels and the Economy: Structural Vector Autoregression Estimation of the Monetary Policy Effects
T. Lakshmanasamy1
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The monetary policy shocks propagate to the real economy
affecting the aggregate demand and aggregate through
various transmission mechanisms like credit, asset price,
exchange rate and interest rate channels. This paper
analyses the relative importance of the monetary
transmission channels in India through which the monetary
policy influences output and prices and to ascertain the
components of aggregate demand of the economy in which
the effect of the monetary policy has maximum impact in
India during the period 2001 to 2019 using quarterly data
applying the structural vector autoregression estimation
method. The SVAR results show the significance of interest
rate and asset price channels in transmitting the monetary
shocks to the real economy in India than the credit and
exchange rate channels. Among the components of aggregate
demand, the maximum impact of the monetary shock is borne
by investment demand and imports. The interest rate changes
account for a significant part of the fluctuations in the
components of aggregate demand. All the channels of
monetary policy and all components of aggregate demand
except for private consumption are robust around the period
where the impacts are felt the most.
JEL classification: B23, C32, C54, E43, E52, E63
Keywords : Monetary policy, shocks, transmission channels,
commodity prices, components of aggregate demand, SVAR.
- Formerly Professor, Department of Econometrics, University of Madras, Chennai.
Email: tlsamy@yahoo.co.in
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Investigating the Agriculture-induced Environmental Kuznets Curve in Indian context
Owais Ibin Hassan1
Shahid Ashraf1
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Agriculture is a pivot in the economic, political and social
landscape of India. As significant as it is to the livelihood, it
also poses high pollution risk most notably through the
unchecked use of fertilizers. This study investigates whether
an agriculture induced EKC exists for India using annual
frequency data over the period 1970-2018. EKC is a widely
tested hypothesis especially for the pollutant, carbon dioxide.
The behaviour of nitrous oxide as a pollutant has been
relatively neglected in the EKC literature. Nitrous oxide is an
environmental hazard with its 300 times greater warming
capability than carbon dioxide. This paper attempts to fill
that gap in literature and uses nitrous oxide as a proxy for
environmental degradation in the EKC framework. The
results of this study conform a short-run as well as long-run
relationship between agricultural growth and environmental
degradation using ARDL Bounds test approach thus
validating the EKC hypothesis for Indian agriculture sector.
However, no significant relationship was found between land
use and nitrous oxide emissions. ARDL Bounds test
approach is applied to investigate the relationship between
pollution and economic growth. Alternate agricultural
practises and use of organic fertilisers and manures should
replace conventional agricultural practises. The findings
underscore a greater and urgent need for wider
implementation of green farming.
Keywords- Agriculture, ARDL Bounds test, Environmental
Kuznets Curve, Greenhouse Gases, Nitrous oxide, Pollution.
- Research Scholar, Department of Economics, Jamia Millia Islamia, Okhla, New Delhi. Email: owaisibnihassan@gmail.com
- Professor, Department of Economics, Jamia Millia Islamia. Email: sashraf@jmi.ac.in
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Joint Forest Management in India: A Game Theoretic Analysis of Its Evolution and Reasons Behind Poor Performance
Debolina Saha1
Avinandan Taron 2
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India initiated Joint Forest Management in 1990, by the
National Forest Policy of 1988. It stressed on the
involvement of partnership between the Forest Department
and local communities for sustainable forest management.
This study utilises a game theoretic framework to describe
the evolution of this system, and its present structural
problems. The model indicates conditions of improvement
within the institution to make it sustainable. These
recommendations are based on certain assumptions of the
existing situation. Therefore, using the conclusion for policy
recommendations needs a thorough appreciation of
complexities existing in the system, which has been simplified
in the model.
Keywords: deforestation, natural resource management,
Joint Forest Management, property rights, game theory.
JEL Classification: Q01, Q23, C7, D02, D7.
- Assistant Professor, Department of Economics, Rabindra Bharati University, 56 A, B.T.
Road, Kolkata 700050, West Bengal, India. Email ID: debolina.saha@rbu.ac.in
- Researcher, Investment and Institutional Analyst for RRR Business Development,
International Water Management Institute, Colombo, Sri Lanka.
Email ID: a.taron@cgiar.org
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Host Country–Transnational Corporations Relative Power Positions and Bargaining Outcomes: A Distinct Model
Shah M. Tarzi1
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This study offers a formulaic-based new schema that is
sufficiently flexible yet robust enough to capture various
complementary and conflicting host governmenttransnational
corporations bargaining dynamics and
interactions. In order to illuminate the need for the proposed
model, a brief overview of the prevailing Obsolescing
Bargaining Model (OBM) model is presented. This segment
pinpoints OMB’s shortcomings which the proposed model
aims to ameliorate. Next, the study provides a narrative of
stages of the investment cycle, and the international
constraints that can impede the ability of host national
governments from translating any potential shift in power
into desirable results so as to explain how these vital factors
can be incorporated into the proposed model.
A concluding section highlight select findings and sets forth
a pathway for applying the model to advance future research
with emphasis on garnering both theoretical, policy and
programmatic insights, the later likely most helpful to host
governments and transnational corporations. Two of the
several vital questions the study poses for applying the
proposed schema in future research are: (1) How close can
the host get to achieving its proximate goal of extracting
economic rent; (2) Under what conditions will national
governments host to transnational corporations and such
firms sustain a relationship in which the rewards and costs
experienced by both players are likely to be one of a positive
zero-sum game?
Keywords: Transnational Corporations, Bargaining with Multinationals, Foreign Direct Investment, Obsolescing Bargains and Development.
- Lee L. Morgan Endowed chair in International Affairs and Professor of International
studies at the Department of Political Science and International Studies, Bradley
University, USA. E-mail: tarzi@fsmail.bradley.edu
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Exploring Trade Potential Between India and Mexico-An Empirical Assessment
Reema Jain1
Saba Ismail2
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This paper aims to assess the trade potential between India
and Mexico. Various indices have been used to analyse the
changes in trade patterns and trade relations from 1997 to
2019 based on HS-2 digit code on a total of 97 commodities.
The empirical analysis reveals that trade relations between
India and Mexico have improved over the last two decades
and identifies the existence of mutually advantageous
product groups. The intensity of trade has strengthened; still
there exists a potential for further economic integration as
compared to their respective shares in the world trade. There
exist intra-industry trade in various commodities and a
strong comparative advantage in products like Textiles and
Ceramics. The findings of this paper suggest that there is a
need for better policy coordination and effective
collaboration between both sides to enhance the trade
volume.
JEL-F10,F14,F15.
Keywords: International economics, Latin America, India,
Mexico,BRCA, Intra-Industry trade.
- Ph.D. Research Scholar, Department of Economics, Jamia Millia Islamia, New Delhi.
Corresponding author’s email id: reema.jn03@gmail.com
- Associate Professor, Department of Economics, Jamia Millia Islamia, New Delhi-110025.
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