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Compendium of Abstracts
International Conference onEconomics & Finance
(ICEF - 2018)
16-17 February 2018
Compendium of Abstracts International Conference on Economics & Finance
Copyright© 2018 by Department of Economics, BITS Pilani K K Birla Goa Campus
ISBN 978-93-5300-707-2
Compendium of Abstracts International Conference on Economics & Finance
ORGANIZERS
Chief Patron Prof. G Raghurama Convener Dr. Aswini Kumar Mishra
Organising Secretary Dr. Rajorshi Sen Gupta
Treasurer Dr. Sukumar Vellakkal
Publications In-Charge Dr. Debasis Patnaik
Logistic Management Dr. Ch.V.V. S.N.V.Prasad Mr. Arjun Halarnkar Mr. Partha Saha
Advisory Committee Prof. Mridula Goel Prof. R.P. Pradhan Mr. Rammohan Menon
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Compendium of Abstracts International Conference on Economics & Finance
COORDINATORS Web & App Management Hardik Gupta Aayush Singla Mr. Om Prakash
Publishing Management Mohammed Anjal
Program Management-Student Center Manogna R L Abhishek Kumar Sinha King David Kweku Botchway
Registration Management- Student Center Raghav Goyal Riyanka Swain Madhav Maheshwari Pulipilelil Sheetal Thomas
Photo Credits Department of Photography BITS Pilani, KK Birla Goa Campus
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Compendium of Abstracts International Conference on Economics & Finance
SCIENTIFIC COMMITTEENAME INSTITUTIONAL AFFLIATIONS
Prof. Chetan Ghate Economics and Planning Unit, Indian Statistical Institute, New Delhi
Prof. B Kamaiah Professor Emeritus, School of Economics, University of Hyderabad
Dr. Tada Prabhakar Reddy Sr Consultant, Policy, Planning and Evaluation UNICEF, India
Prof. Sanket Mohapatra Indian Institute of Management, Ahmedabad
Dr. P Steven Raj Institute of Management Technology, Hyderabad
Prof. Prasant Kumar Panda Department of Economics, Central University of Tamil Nadu
Dr. Sunil Kumar Department of Humanities & Sciences, National Institute of Technology (NIT) Goa
Prof. P. K. Sudarashan Department of Economics, Goa University
Dr. Jose Antonio Pedrosa Garcia United Nations ESCAP(Economic and Social Commission for Asia and the Pacific)
Dr. Krishna Reddy Chittedi School of Economics, University of Hyderabad
Prof. Rajas Parchure Officiating Director & RBI Chair Professor, Gokhale Institute of Politics & Economics, BMCC Road, Pune 411004.
Dr. Arya Kumar Srustidhar Chand Department of Humanities and Social Sciences, Indian Institute of Science Education and Research, Bhopal
Prof. Badri Narayan Rath Department of Liberal Arts, Indian Institute of Technology Hyderabad, Hyderabad, India
Dr. Shailendra Kumar Department of Management Studies, Indian Institute of Information Technology (IIIT) Allahabad
Prof. Vairam Arunachalam Director, School of Accountancy & Pricewater-houseCoopers / Silvoso Distinguished Professor, Trulaske College of Business, University of Missouri
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Compendium of Abstracts International Conference on Economics & Finance
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Compendium of Abstracts International Conference on Economics & Finance
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Chief Guest & Keynote Speaker
Dr. Viral Acharya(Dy. Governor, Reserve Bank of India)
Global spillovers: Managing capital flows and forex reserves
Distinguished Speaker
Prof. Chetan Ghate(Economics and Planning Unit, Indian Statistical Institute, New Delhi)
A Monetary Business Cycle Model for India
Invited SpeakerMr. Bauer, W. Andreas(IMF Senior Resident Representative for India, Nepal, and Bhutan)
Demographic Transition in Asia: Risk of Growing Old Before Becoming Rich
Invited Speaker
Dr. J A Pedrosa Garcia(Economic Affairs Officer, United Nations Economic and Social Commission for Asia and the Pacific - ES-CAP)
Economic and Social Survey of Asia and the Pacific
The Presentation Slides of eminent speakers can be downloaded from the following link:http://www.bits-goa.ac.in/ICEF/publication-opportunities.html
EMINENT SPEAKERS
Compendium of Abstracts International Conference on Economics & Finance
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Compendium of Abstracts International Conference on Economics & Finance
DEPARTMENT OF ECONOMICS
Birla Institute of Technology & Science, Pilani Tel: +91 0832 2580258
K.K. Birla Goa Campus, Near NH 17B, Bypass Road Email: [email protected] Zuarinagar 403726, Goa, India Web: www.bits-goa.ac.in
Dr. Aswini Kumar Mishra Head of Department and Convener of the Event
MESSAGE The International Conference on Economics and Finance (ICEF-2018) aims at stimulating critical thinking and sharing knowledge across emerging themes towards sustainable development, economics, finance and related fields. Through this event, it is being strived to provide a platform for researchers from academia, industry and regulatory organizations to deliberate on empirical findings, advances in economic and finance theories and policy implications related to emerging market economies, with special reference to India. I am confident that the Conference will lead to generation of fresh ideas, and enlightening brainstorming to all participating scholars from all over the world. Heartiest wishes for the grand success of the conference.
Date: 5th February, 2018 ASWINI KUMAR MISHRA
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Compendium of Abstracts International Conference on Economics & Finance
Table of Contents
Organizers I Coordinators II Scientific Committee III Emminent Speakers V Message from the Director VI Message from the Convener VII
Abstracts
S.NO. ID. NO.
NAME OF AUTHORS TITLE PAGE NO.
1 A993 DR. ANIMA CHOWDHURY A VALUE CHAIN ANALYSIS OF THE COMPARATIVE ADVANTAGE OF THE CHILD NUTRITION SCHEMES
1
2 A985 HASMUKHKUMAR JAYANTILAL DAVE & KAUSHAL BIPINCHANDRA MEHTA
EFFECT OF MERGER ON NPA AND PROFITABILITY OF REGIONAL RURAL BANKS IN GUJARAT
2
3 A979 SOUMYA GUHA DEB RETURN-BASED STYLE ANALYSIS OF ACTIVELY MANAGED EQUITY MUTUAL FUNDS: NEW INDIAN EVIDENCE
3
4 A977 FIRDOUS AHMAD MALIK, DR.D.K.YADAV & DR RANU JAIN
INCOME AND EXPENDITURE MISMATCH OF POOREST OF THE POOR: AN ANALYSIS OF FINANCIAL REQUIREMENT OF SLUM DWELLERS
4
5 A975 SUHAIL AHMAD BHAT,DR. SURENDRA MEHER & SHWETA SINGH
SMALL SCALE INDUSTRIES: A NEW HOPE TOWARDS SUSTAINABLE ECONOMIC DEVELOPMENT OF JAMMU AND KASHMIR ECONOMY
5
6 A969 ELISABETTA AURINO , JASMINE FLEDDERJOHANN & SUKUMAR VELLAKKAL
FOOD INSECURITY AND ADOLESCENT LEARNING DISPARITIES IN INDIA: DOES THE TIMING AND THE PERSISTENCE OF HOUSEHOLD FOOD INSECURITY MATTER?
6
7 A961 GYANENDRA PRATAP SINGH SOME EMPIRICAL EVIDENCE ON THE EFFECTS OF MONETARY POLICY IN INDIA: A VECTOR AUTOREGRESSIVE (VAR) BASED ANALYSIS
7
8 A947 RAKESH SAXENA ROLE OF INSTITUTIONAL STRENGTH AND ECOLOGICAL INFRASTRUCTURE IN SOCIO-ECONOMIC DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE ACROSS COUNTRIES, REGIONS AND GROUPS
8
Compendium of Abstracts International Conference on Economics & Finance S.NO. ID.
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9 A945 BILAL AHMAD PANDOW & PROF. KHURSHID AHMAD BUTT
AN EVENT STUDY ANALYSIS OF STOCK SPLITS IN INDIAN STOCK MARKET: SECTORAL RESPONSE
9
10 A943 NARAYAN SETHI, PADMAJA BHUJABAL, DEVI PRASAD DASH & SANHITA SUCHARITA
AN EMPIRICAL INSIGHT OF EXAMINING IMPACT OF RECENT DEMONETIZATION ON MONETARY SYSTEM: EVIDENCE FROM INDIA
10
11 A939 KSHAMANIDHI ADABAR & TRUPTI MAYEE SAHOO
STRUCTURAL CHANGE, ECONOMIC GROWTH AND EMPLOYMENT IN INDIA: A STATE-WISE ANALYSIS
11
12 A937 SIBANJAN MISHRA& SOUMYA G DEB
ASSESSING PREDICTABILITY OF FIRM REVENUE GROWTH USING FINANCIAL INFORMATION: NEW EVIDENCE FROM INDIA
12
13 A935 PRAGYANRANI BEHERA & BIKASH RANJAN MISHRA
INSTITUTIONS AND FOREIGN DIRECT INVESTMENT: EVIDENCE FROM ASIAN DEVELOPING COUNTRIES
13
14 A933 RAKHI OJHA CELLULOSIC ETHANOL AND ELECTRIC VEHICLES: PROSPECT FOR LOWPETROLEUM DEMANDS
14
15 A931 DR.NIRANJAN.R POVERTY AND SOCIAL INEQUALITY IN KARNATAKA: A STUDY ON HK REGION
15
16 A929 NITIN A. LOKHANDE & HARIPRIYA GUNDIMEDA
INDIA’S MGNREGA SUCCESS BOILS DOWN TO FEW STATES, FEWER DISTRICTS AND FEWEST BLOCKS
16
17 A923 MANISHA KUMARI & PROF. MARY JESSICA
IMPACT OF CREDIT RATING ON HOSPITAL FINANCING
17
18 A921 HEMISHA SHAH THE ECONOMICS OF DIGITAL DIVIDE IN INDIA: IMPACT ON LOW INCOME COMMUNITIES
18
19 A917 SANIYA PURANIK OPPORTUNITY COST NEGLECT AS A MARKETING TECHNIQUE: A CASE OF A LUXURY GOOD
19
20 A915 SUJATA KUNDU & ARGHYADEEP HALDER
RURAL WAGE DYNAMICS IN INDIA: WHAT ROLE DOES INFLATION PLAY?
20
21 A913 RITESH PANDEY MARKET POWER AND COMPETITION IN THE INDIAN BANKING INDUSTRY
21
22 A911 SHASHANK BANSAL &M.THENMOZHI
DOES CONCENTRATED FOUNDER OWNERSHIP AFFECT RELATED PARTY TRANSACTIONS? EVIDENCE FROM EMERGING ECONOMY
22
23 A909 PRIYANKA SAHU INFLATION DYNAMICS AND IMPACT OF DEMAND AND SUPPLY SHOCKS IN INDIA
23
24 A905 BISHNU PRASAD MISHRA INFRASTRUCTURE FINANCING IN INDIA: AT THE CROSSROAD
25
25 A903 SUMEET CHINDALIA CULTURAL FACTORS AFFECTING CONSUMER BUYING BEHAVIOR : A CASE STUDY OF TWO SELECTED COMMUNITIES
26
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26 A893 CHINMAYEE SAHOO & ALOK RANJAN BEHERA
FINANCING MSMES RIFE WITH PROBLEM- A DEMAND SIDE ANALYSIS
27
27 A887 ABHA MOHAN,DR. TOMY MATHEW & DR. K. SUBRAMANIAN
INFLATION AND STOCK INDICES THROUGH INDUSTRY PRISMS
28
28 A879 AMAR JYOTI INTER-LINKAGES AMONG CAPITAL INFLOW, MONETARY POLICY AND FINANCIAL SECTOR DEVELOPMENT: AN EMPIRICAL STUDY OF EMERGING ECONOMIES
29
29 A877 DR. TUSHAR RATHORE MANDATORY ASPECTS OF VEHICLE CAR INSURANCE IN INDIA. “A STUDY ON CAR INSURNACE POLICYHOLDERS RELATED TO PUBLIC INSURANCE COMPANIES AND PRIVATE INSURANCE COMPANIES IN INDIA”
30
30 A875 ANCHAL PUROHIT, NAHUSHA HEBBAR & DR. K. R. PILLAI
PRODUCTIVITY TRENDS IN INDIA AGRICULTURE DURING STRUCTURAL REFORMS
32
31 A873 PROF. V. MARY JESSICA& ATHIRA K
POSSIBILITIES AND CHALLENGES OF AFFORDABLE HOUSING IN INDIA
33
32 A871 HRUSHIKESH MALLICK, MANTU KUMAR MAHALIK & HEMACHANDRA PADHAN
ROLES OF INFRASTRUCTURE, HUMAN CAPITAL FORMATION, ECONOMIC GLOBALIZATION ON INCOME INEQUALITY: A CONTRASTING PERSPECTIVE FOR TWO EMERGING ECONOMIES, INDIA AND CHINA
34
33 A867 SHAHRUKH SALEEM & DR. S. SUDALAIMUTHU
CAPITAL ADEQUACY AND CREDIT RISK ASSESSMENT OF STATE BANK OF INDIA: A STUDY
35
34 A865 RENJI GEORGE AMBALLOOR & ROSHUN GEORGE AMBALLOOR
POPULARISING ENTREPRENEURSHIP IN A CONVENTIONAL CAMPUS : A SOCIO - ECONOMIC ANALYSIS
36
35 A861 ABDUL RISHAD, AKHILSHARMA & DR SANJEEV GUPTA
DEMAND FOR MONEY IN INDIA : AN ARDL APPROACH
37
36 A855 SOCRATES SHAHROUR THE ROLE OF TECHNOLOGY TRANSFER AND IPR IN THE DEVELOPMENT OF MICRO, SMALL AND MEDIUM ENTERPRISES
38
37 A849 AISWARYA THOMAS MONETARY POLICY SHOCKS AND CAPITAL FLOWS: AN INDIAN PERSPECTIVE
39
38 A847 PRIYANKA MENON INVESTIGATING THE RELATION BETWEEN FINANCIAL DEVELOPMENT, OPENNESS AND ECONOMIC GROWTH IN INDIA: AN ARDL APPROACH
40
39 A845 SEEMA SAINI & YADAWANDANA NEOG
EXAMINING THE LINKAGES BETWEEN FINANCIAL DEVELOPMENT AND ENERGY CONSUMPTION IN INDIA
41
40 A841 RUBINA BARODAWALA & DIKSHA RANAWAT
FUNDAMENTAL DRIVERS OF INDIAN STOCK MARKET
42
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NO.
41 A839 SHRABANI MUKHERJEE & AKSHAT GARG
TECHNICAL EFFICIENCY IN INDIAN BANKING SECTOR: COMPARISON BETWEEN DESIRABLE AND UNDESIRABLE OUTPUT FUNCTION
43
42 A829 KANIKA DHINGRA & NIKIT DHINGRA
RECONSIDERING HEALTHCARE SYSTEM IN INDIA
44
43 A827 MRIDULA GOEL & SAURABH NAYAK
POLICY IMPLICATIONS FOR FINANCIAL INCLUSION OF UNSKILLED LABOUR MIGRANTS: INSIGHTS FROM GOA
45
44 A821 VIVEK JADHAV, ABHISHEK DATE, SHUBHANGI DUBEY, ALEXI VISHESH,APOORVA MAHENDRU, DEBDULAL THAKUR & BIDYUT KUMAR GHOSH
MEASURING THE ETHNIC AND POLITICAL DIVERSITY AND THEIR IMPACT ON ECONOMIC GROWTH IN INDIA
46
45 A819 ANUBHAV GUPTA, AMAN VOHRA, ASHLYN D’SOUZA, MISHIKA AND SARTAJ RASOOL
ASYMMETRIC EFFECTS OF MONETARY SHOCKS ON OUTPUT AND INFLATION: EVIDENCE FROM INDIA
47
46 A817 ROHIT PRABHUDESAI & CH. V. V. S. N. V. PRASAD
WHAT CAUSES VARIATION IN PERFORMANCE OUTCOMES OF SME ALLIANCES? : A REVIEW STUDY
48
47 A815 ANUJA SETHIYA & M. THENMOZHI
DOES IDENTITY OF CONTROLLING SHAREHOLDERS TRIGGER INNOVATION MOTIVES?
49
48 A803 DR. T.K. VENKATACHALAPATHY & ERRA KAMAL SAI SADHARMA
FACTORS DETERMINING DURATION OF CREDIT CYCLE IN SBLP HOUSEHOLDS: A CASE STUDY OF TAMIL NADU
50
49 A801 ASWINI KUMAR MISHRA, ABHIJEET KHASNIS, SAI THEJA VADLAMANI & ABHISHEK KUMAR SINHA
UNDERSTANDING FIRM-LEVEL INNOVATION AND PRODUCTIVITY ININDIA
51
50 A799 REMICA AGGARWAL & S.P SINGH A LOW CARBON SUPPLY CHAIN CONFIGURATION FOR AN FMCG ENTERPRISE
52
51 A795 DR. ASHISH KUMAR & MS. SWATI KHANNA
INFORMATION TRANSMISSION IN POST RECESSION ERA: EVIDENCE FROM INDIA, CHINA, HONG KONG AND JAPAN
53
52 A793 DR.GURENDRA NATH BHARDWAJ & AYUSHI GOEL
A STUDY ON BUYBACK OF SHARES IN INDIAN IT INDUSTRY
54
53 A791 DR. GURENDRA BHARADWAJ & PRAJWAL B. AINAPUR
AN ANALYTICAL STUDY ON INDIAN CURRENCY MARKET
55
54 A787 DR. AMAR JOHRI,DR. SHAILENDRA KUMAR & MR. RAJEEV RANA
SOCIO-ECONOMIC FACTORS AFFECTING FINANCIAL LITERACY AMONG INVESTORS OF RUDRAPRAYAG REGION OF UTTARAKHAND STATE
56
55 A783 MAVIS HENRIQUES & DR. DEBASIS PATNAIK
ECONOMIC COSTS OF STRESS AND ADJUSTMENT NEUROTICISM SHIFTS IN NAVY PILOTS (AVIATION) SECTOR
57
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56 A781 DR. T PRABHAKAR REDDY THE IMPACT OF MGNREGS ON RURAL LABOUR MARKETS AND AGRICULTURE; A STUDY OF MADHYA PRADESH
58
57 A779 EVA MISHRA IMPACT OF SOCIO-ECONOMIC STATUS ON MIGRANT WORKERS: A STUDY OF JEYPORE CITY OF ODISHA, INDIA
60
58 A777 KRUTARTH NAKADE & RAJORSHI SEN GUPTA
SUSTAINABILITY OF INDIAN SOLAR PANEL INDUSTRY: ALTERNATIVE POLICY ANALYSIS
61
59 A775 DR. R P PRADHAN COMPARATIVE LAND, LABOUR & AGRARIAN PRODUCTIVITY: INDIA’S MILLION MUTINY IN MAKING
62
60 A773 DR SHANTANU CHAKRAVARTY
ENTREPRENEURSHIP ECOSYSTEM DEVELOPMENT IN ACADEMIA-CONCEPTUAL EVALUATION
63
61 A771 SANDRA D’SA & DR. DEBASIS PATNAIK
DEVELOPING A BENCHMARK FOR PREVENTION OF INDUSTRIAL WATER POLLUTION
64
62 A769 SARTAJ RASOOL RATHER INFLATION AND THE DISPERSION OF RELATIVE PRICES: A CASE FOR 4% SOLUTION
65
63 A767 RADHA RAGHURAMAPATRUNI INDIA AND THE ASEAN: A STUDY ON THE COMPETITION AND CO-OPERATION IN THE COMMODITY TRADE
66
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1
International Conference on Economics & Finance Compendium of AbstractsA VALUE CHAIN ANALYSIS OF THE COMPARATIVE ADVANTAGE OF THE CHILD
NUTRITION SCHEMES Dr. Anima Chowdhury *
Global Nutrition Report 2016 once validates India’s dismal performance in tackling chronic malnutrition. The level of child malnutrition is abysmally low in most of the developing countries with 90% in Asia and Africa. In a ranking of countries from lowest to highest on stunting, India ranks 116 out of 173 countries. On the prevalence of anemia in women of reproductive age, India ranks 170 out of 185 countries at 48.1%. The most affected segments continue to be adolescent girls, women and children and especially Scheduled Caste and Schedule Tribes are the worst off. This echoes the insidious economic and cultural deprivation so prevalent in India. It goes without saying that the level of malnutrition is highly prevalent in rural areas than the urban areas. India has the highest number of low birth weight babies per year at an estimated 7.4 million. To tackle this economically critical issue of hunger and malnutrition, which effects the future competitiveness of the economy, Government of India has implemented various socially effective policies. This paper applies Porter's Value Chain Model (Value Chain is comprised of primary and support activities; comparative advantage mainly comes from the Technological advancement, Research and Development and general management of any Scheme). It also uses Contemporary Strategy Analysis to calculate primary activity, the total cost, the cost drivers and strategies to reduce cost, SWOT Analysis and Outbound Logistics to measure the strength and weakness of the schemes.
Keywords: Child Nutrition, Government Policies, Porter's Value Chain Analysis.JEL Code: O10
*National Public School, India. Email: [email protected]
2
International Conference on Economics & Finance Compendium of AbstractsEFFECT OF MERGER ON NPA AND PROFITABILITY OF REGIONAL RURAL BANKS
IN GUJARAT
Hasmukhkumar Jayantilal Dave* & Kaushal Bipinchandra Mehta+
The purpose of this study is to highlight the impact of Merger of Regional Rural Banks on NPA and profitability in Gujarat state where efforts are made by the authors to have idea about what will be the financials with respect to profit and NPA on the balance sheet of the one RRB as a whole in the state. Authors have made endeavor to study the problems in merger of regional rural banks along with the suitable recommendations and suggestions to tackle the problem as far as NPA and profitability is concerned. Mergers driven by Government are seeking to address financial crisis or distressed financial position in the Banks. In India Government is creating environment to encourage consolidation of Banks by way of mergers. Now the Indian banking is moving towards consolidation for the creation of globally competitive strong banks to reap the benefits in administration. The stated research has guided the authors to believe that after merger if it happens one RRB in Gujarat state will be quite sound as far as its profitability and Non Performing assets are concerned and it has also helped in believing that the consolidated RRB will be in better position to manage the financial issues in line with Central Government and state Government and Sponsor Bank. Merger of the three RRBs in Gujarat are surely going to add in the benefits with respect to overall management of the Bank to Government and sponsor Bank but has some obstacles also like to decide upon sponsor Bank. All in one it will be ease on the part of Management with respect to one RRB and take benefits of larger institutional resources as well as operational efficiency and financial profitability and improvement in services being provided along with technological advancements. The scope of the study is limited to the state of Gujarat only which may be having corresponding effect in the other states.
Keywords: Merger, Non Performing Assets(NPA), Profitability.JEL Code: D90; M37
* Department of Commerce and Business Administration, Saurashtra University, Rajkot. Email: [email protected] + Saurashtra Gramin Bank, Rajkot, India. Email: [email protected]
3
International Conference on Economics & Finance Compendium of AbstractsRETURN-BASED STYLE ANALYSIS OF ACTIVELY MANAGED EQUITY MUTUAL
FUNDS: NEW INDIAN EVIDENCE
Soumya Guha Deb*
In this paper, we do a return based style analysis of equity mutual funds in India using quadratic optimization of an asset class factor model proposed by William Sharpe. We also analyze the relative performance of the funds with respect to their style benchmarks. Using monthly return data of 263 funds and 11 asset class benchmarks, which exist continuously between 2006 and 2016, we find that fund returns can be explained to the tune of 55% of the average by a combination of asset class benchmarks. We also find that Indian equity mutual fund managers are not able to beat their style benchmarks on the average. An average fund generates close to 3.42% less per annum than its style benchmark. The underperformance below style benchmarks gets further pronounced during bear periods. This pattern is robust and stable across fund size, fund age or expense ratio. However, larger, older and low expense ratio funds seem to be doing marginally better than the average. Low expense ratio funds are the only categories, which seem to be marginally outperforming their style benchmarks, which once again speaks directly against active management skills of Indian fund managers. This is because low expense ratio funds are expected to be having lower levels of portfolio turnover and hence lower levels of active management efforts. We substantiate our results through several robustness tests. To the extent our analysis pointed out the weakness of fund manager’s vis-a-vis their style benchmarks, we hope that our attempt could augment the performance evaluation framework currently used in India.
Keywords: Style Analysis, Equity Mutual Funds, IndiaJEL Code: G10, G11, G23
*Xavier Institute of Management Bhubaneswar, India. Email: [email protected]
4
International Conference on Economics & Finance Compendium of AbstractsINCOME AND EXPENDITURE MISMATCH OF POOREST OF THE POOR: AN
ANALYSIS OF FINANCIAL REQUIREMENT OF SLUM DWELLERS
Firdous Ahmad Malik* , Dr. D.K.Yadav+ & Dr Ranu Jain$
Economic and social positioning of individuals are the prime indicators which are directly related to incomes of the households. Income and consumption expenditure determines economic stability and social well-being of the households. Income is used as a display to measure economic deprivations of the households in India. So both the income and consumption expenditure are used to measure the overall conditioning of the households.
Here the question arises weather consumer behavior is determined more by income or expenditure. Some policy makers and economists believe that poverty can be displayed by current income and it is not a stable measure to provide an exact description of individuals well-being (Meyer, B. D., & Sullivan, J. X. (2008). Consumption expenditure is not determined by consumers current income, but the measures of consumers permanent income are representative by his/her ability to earn income over a longer time period and also Expectations of future earnings and wealth (Friedman, M. (1957). and the income which Friedman talks about is the annual incomes of consumers expect to earn over the years. It has been observed that income and expenditure didn’t remain similar among households. Income is concerned as a good indicator of well-being for various reasons which are Housing, Food, Child care, Health care and other necessities. In low income households there is a possibility of consumption without expenditure and earnings. Income and expenditure are the two key fundamentals by which people make the best efforts to live a good life. Everyone wants to have a handsome income to live in a comfortable way.
This study examines the income and expenditure pattern of slums dwellers and their financial requirements among the key financial services (i.e. savings, credit, insurance, micro-leasing and pension schemes) of Lucknow city, Findings suggest that poor people can and do save, particularly when institutional barriers to saving are cut off. Institutional polices should target poor people on the bases of poverty so that poor can get an opportunity to promote their poverty into more sustainable and inclusive wealth endorsement policies that will assist them to create own pathways out of poverty.
Keywords: Savings, Income, Consumption-Expenditure, Financial-Services, Slums Dwellers.JEL Code: G2
* Doctoral Fellow, Department Of Economics, BBAU, Lucknow, Uttar Pradesh-226025, India. Email: [email protected]+ Assistant Professor, Department Of Economics, BBAU, Lucknow, Uttar Pradesh-226025, India. Email: [email protected]$ Assistant Professor Finance Government of Maharashtra's Sydenham Institute of Management Studies,3rd Floor, B-Road,Churchgate University of Mumbai. Email : [email protected]
5
International Conference on Economics & Finance Compendium of AbstractsSMALL SCALE INDUSTRIES: A NEW HOPE TOWARDS SUSTAINABLE ECONOMIC
DEVELOPMENT OF JAMMU AND KASHMIR ECONOMY
Suhail Ahmad Bhat*, Dr. Surendra Meher$ & Shweta Singh#
Industrialization is known as the life-blood of every economy this is due to the fact that Industrialization involves the production of manufacturing goods at large scale which simply leads to economic development of a country. As the production of goods and services increases in the economy with the use of modern technologies and skilled labor it results the increase in the Gross Domestic Product (GDP), per-capita income, expands employment opportunities, builds a self-reliant and self-sustained economy, and also increases the foreign earning of the country as a result of huge receipts from exports of goods to abroad (Sharma, R. K. (2014). Therefore, industrialization and economic development are synonyms and cannot be separated from each other. Nevertheless, India has rightly followed the pathway of Industrialization but there are still many states and regions which have remained industrially backward in the country among them Jammu and Kashmir is one of the major industrially backward states of the country. The economic backwardness of the state is due to various factors which include geographical location, industrial backwardness, climate conditions, occupational structure, composition of imports and exports, residential patterns, low social product and productivity and the foremost problem is instability in the state. Therefore, in-order to remove the economic backwardness of the state the state government has followed the pathway of Small Scale industrial sector in the state. The small scale sector has played a very important role in the overall socio-economic development of the country during the past 50 years and is now a major hope for Jammu and Kashmir economy for enhancing the overall growth in terms of the Gross State Domestic Product (GSDP), employment generation and Industrial Production of the state. At present, the small scale industrial sector contributes approximately 13 percent to the Gross State Domestic Product (GSDP) and is provides employment about 2.5 lakh persons in the state Jammu and Kashmir. Therefore, the present paper is based on the secondary and examines the growth and performance of the small scale industrial sector and its critical role in-terms of providing employment in the state of Jammu and Kashmir (J & K).
Keywords: Small Scale industries, Growth, Investment and Employment.JEL Code: L5
* Doctoral Fellow Department of Economics BBAU, India. Email: [email protected]$ Assistant professor Department of Economics BBAU, Indian. Email: [email protected]# Research Scholar Department of Economics BBAU, India. Email: [email protected]
6
International Conference on Economics & Finance Compendium of AbstractsFOOD INSECURITY AND ADOLESCENT LEARNING DISPARITIES IN INDIA: DOES THE TIMING AND THE PERSISTENCE OF HOUSEHOLD FOOD INSECURITY
MATTER?
Elisabetta Aurino*, Jasmine Fledderjohann$ & Sukumar Vellakkal#
Learning achievements in India are strikingly low, despite substantial expansion of educational access. Using rich longitudinal data in a value-added framework, we investigated the relationship between household food insecurity at ages 5, 8 and 12 years and learning achievements at 12 years for a sample of about 2,000 children in Andhra Pradesh and Telangana. Episodes of household food insecurity at any age predicted lower vocabulary, reading, Maths and English scores in early adolescence. However, this relationship varied by timing and persistence of household food insecurity over childhood, and by competency. Children from households that transitioned out from food insecurity at age 5 to food security later in childhood, and children whose households were chronically food insecure had the lowest achievements at 12 years old across all competences. Household food insecurity in mid-childhood and early adolescence also predicted lower Maths and English scores. Results were robust to the inclusion of potential explanations of the “food security gap”, i.e. parental investments in education, health, and child psychosocial skills. These findings suggest that interventions tackling household food insecurity may have important positive spillovers for adolescent learning achievements.
Keywords: Cognitive skills; Learning; Adolescent; Food insecurity; India; Human capital; Longitudinal; Education; LifecourseJEL Code: I24; I29; I39; H52
* Imperial College London, UK. Email: [email protected]$ Lancaster University, UK. Email: [email protected]#BITS Pilani, India. Email : [email protected]
7
International Conference on Economics & Finance Compendium of AbstractsSOME EMPIRICAL EVIDENCE ON THE EFFECTS OF MONETARY POLICY IN
INDIA: A VECTOR AUTOREGRESSIVE (VAR) BASED ANALYSIS
Gyanendra Pratap Singh*
The global financial crisis of 2007-08 has been one of the most difficult financial and economic episodes for the world economy. This paper investigates changes in the impact of monetary policy on some key macroeconomic variables in pre-and post-global financial crisis of 2007-08. We estimate a reduced form Vector Autoregressive model of five variables: money, output, prices, interest rates and the exchange rates for pre-and post-crisis periods. VAR models have been used in standard literature for studying the dynamic relationship among economic variables. The main focus of the paper is to test the hypothesis whether the impact of monetary policy on some key macro variables changed significantly in post crisis years in comparison to pre-crisis period. Because of Global Financial Crisis in 2007-08, there is possibility of structural break within the sample. To address the possibility of structural break, we have estimated the VAR model for pre-and post-crisis periods. The VAR estimated in this paper is of reduced form in which only lagged values of the variables enter on the right hand side and hence there is no simultaneity problem in the system. The vector of variables in the VAR comprises the following variables: money, output, interest rate, prices and exchange rate. The model has been estimated using monthly data running from 2000-01 April to 2015-16 March. Index of Industrial Production has been used as a proxy variable for GDP output since the monthly data of GDP output is not available in India. Monetary policy rate is approximated by overnight weighted average call money rate (CMR) since it is also used as operating target by the Reserve Bank of India. For price index, the headline wholesale price index (WPI) has been selected. Broad money (M3) in real terms by deflating correspondingly monthly WPI index has been used as a measure of real monetary aggregate. Rupee per US dollar has been taken for exchange rate variable. All the variables have been transformed into natural logarithms. The empirical evidence suggests that monetary policy shocks have expected effect on output and prices. However, the monetary policy transmission lags are significantly reduced in post crisis period. The peak effect on output and prices are felt with a lag of 5 months and 12 months which were 13 months and 23 months respectively in pre-crisis periods.
Keywords: Monetary Policy, Vector Autoregression Model, Structural Break, Impulse responses.JEL Code: E43, E51, E52, E58
* (D. Phil Scholar) G. B. Pant Social Science Institute, University of Allahabad, UP, India. Email: [email protected]
8
International Conference on Economics & Finance Compendium of AbstractsROLE OF INSTITUTIONAL STRENGTH AND ECOLOGICAL INFRASTRUCTURE IN SOCIO-ECONOMIC DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE
ACROSS COUNTRIES, REGIONS AND GROUPS
Rakesh Saxena*
There is a huge variation in socio-economic development and environmental performance of different countries across the world. While there may be many important factors that may partly explain such variations, this study examines the role of two factors, namely, ecological infrastructure and the overall institutional strength of a country in the form of lack of corruption. The socio-economic development of a country is represented by its Human Development Index (HDI) as measured by the United Nations Development Programme (UNDP). The environmental performance of a country is indicated by the Environmental Performance Index (EPI) as measured by the Yale University and its associates. Another dimension of the environmental performance is brought in through the Ecological Footprints of a country as estimated by the Global Footprint Network (GFN). The GFN also measures the biocapacity of a country which is used to indicate the status of the ecological infrastructure in the country. The overall institutional strength of a country is expressed through its Corruption Perceptions Index (CPI) as estimated by the Transparency International. The higher level of corruption in a country indicates its lower level of overall institutional strength and vice versa. A regression analysis is done by using the latest cross section data available on the above variables across the countries, regions and groups.
Keywords: Environmental Performance, Socio-Economic Development, Ecological Footprints, Biocapacity, CorruptionJEL Code: Q56, O15, O57
* Professor, Institute of Rural Management Anand (IRMA), Anand-388001 (Gujarat), India. Email: [email protected]
9
International Conference on Economics & Finance Compendium of AbstractsAN EVENT STUDY ANALYSIS OF STOCK SPLITS IN INDIAN STOCK MARKET:
SECTORAL RESPONSE
Bilal Ahmad Pandow* & Prof. Khurshid Ahmad Butt$
The event studies examine share price movements around a corporate event. A stock split is one of the corporate event that refers to the division of stock of a specific firm. The division can either be forward or reverse split and in this study only forward splits are deliberated. Most of the times the splits are considered as the mechanism in the hands of the corporates to make new prices more attractive to the prospective small retail shareholders. The review of the literature reveals that in a not-so-efficient capital market like India having asymmetries in information flow, the stock split announcement affects shareholder wealth. However, very scarce efforts have been made so far to know stock split behaviour of firms in India of various sectors. The present study is a small step in this direction. This paper attempts to analyse the effect of share split on different sectors of industries and to study the variation in return of the stocks of the selected firms during the pre and post-split. The average abnormal return is used by applying the event study methodology. The sectoral indices will comprises of nine index: Auto, Bank, Financial Services, FMCG, IT, Media, Metal, Pharma, and Realty. The data for the paper is secondary from sector-based index by National Stock Exchange which is designed to offer a single value for the collective performance of a various companies demonstrating a collection of connected businesses or within a sector of Indian economy and the analysis of the data is performed by using appropriate statistical techniques.
Keywords: Share Split, Corporate Event, Share Price, Sector Analysis JEL Code: G12, G14, O30
* Research Scholar, Dept. of Commerce, University of Kashmir, India. Email: [email protected]$ Dean,School of Business Studies, University of Kashmir, India.
10
International Conference on Economics & Finance Compendium of AbstractsAN EMPIRICAL INSIGHT OF EXAMINING IMPACT OF RECENT DEMONETIZATION
ON MONETARY SYSTEM: EVIDENCE FROM INDIA
Narayan Sethi* , Padmaja Bhujabal+ , Devi Prasad Dash$ & Sanhita Sucharita#
Demonetization has impacted the Indian economy considerably post Nov, 2016. The intitiative is mainly to attain more fiscal space, contain the black money, terrorism problem and formalize the informal economy. In the background of this, we empirically analyse the impact of demonetization on the economy. Our empirical analysis shows that there exists an inverse association between demonetization dummy and M1 flows in the economy. Simulatanously, we find positive correlation between cash in banks, notes in circulation to that of M1 flows in the system. By applying cointegration further, we obtain a cointegrating relationship among the variables in our equation. Since variables are cointegrated, we apply alternative specifcations like FMOLS and DOLS and find that DOLS estimates show an inverse and significant association between demontization dummy and M1 flows. Furthermore, Our ARDL cointegration technique reveals that there exists long run and short run cointegration among the variables. Moreover, we find inverse and significant association between demonetization and M1 flows, indicating that the intiative has impacted the money supply negatively in both short and long run. Based on the results, it is found that sudden demonetization drive has impacted the economy negatively. Although it has many positive sides, still the findings from this study can be generalized in across time and space.
Keywords: Demonetization, Money Supply, ARDL, IndiaJEL Code: E50, E52, E59
* Assistant Professor, Dept. of Humanities and Social Sciences, National Institute of Technology (NIT) Rourkela, Odisha, India, . Email: [email protected]+ Research Scholar, Dept. of Humanities and Social Sciences, National Institute of Technology (NIT) Rourkela, Odisha, India. Email: [email protected]$ Research Scholar, Dept of Humanities and Social Sciences, Indian Institute of Technology (IIT), Ropar, Punjab, India. Email- [email protected]# Assistant Professor, Centre for Humanities and Social Sciences, Central University of Jharkhand, Brambe , Ranchi-835205 India. [email protected], Phone +91 9031822957
11
International Conference on Economics & Finance Compendium of AbstractsSTRUCTURAL CHANGE, ECONOMIC GROWTH AND EMPLOYMENT IN INDIA: A
STATE-WISE ANALYSIS
Kshamanidhi Adabar* & Trupti Mayee Sahoo$
Understanding structural change and its relation with economic growth and employment is very important to address the issues of unemployment, poverty and inequality in Indian economy. A number of studies have examined these issues at national and sub-national levels (Basu and Das, 2016; Basu and Miroshnik, 2013; Sundaram, 2013; Felipe, 2010; Hirway and Shah, 2011; Cortuk and Singh, 2015; Mallik, 2015; Chottopadhyay, 2017; Singariya, 2014; Kar and Sakthival, 2006; Debnath and Roy, 2012; Rodrik, 2013; Spence, 2011; Mallik, 2015, Bhattacharya and Mitra, 1989, 1990, 1993; Panagariya, 2008 among others) which show that there have been sharp fall in share of agriculture sector during 1960-1980 but increase in growth industrial sector and subsequently Indian economic growth has been led by service sector after 1980s. These authors are of the view that Indian structural change is different from other countries due to skipping the intermediate phase of industrialization and change in the structure of income is not accompanied by the same change in its structure of employment. This raises serious concern about the jobless nature of economic growth in India. Therefore, there is a need to identify the sectors affecting structural change that foster to sustainable economic growth and employment. An in-depth understanding of structural change becomes all more important for policy makers to recommend policies and institutions to achieve broader objective of inclusive growth. In this context, the present study makes an attempt to analyse structural change in income and employment for the period 1993-84 to 2011-12 by using disaggregated income from EPW Research Foundation and employment data from different rounds of NSSO at the sector and sub-sector levels among major Indian states. Following in the line with Dietrich for NAV and MLI, McMillan and Rodrik for within and static effects, de Vries et al. for within effect, static and dynamic effect, it estimates structural change in income for 14 major states from 1993-94 to 2011-12. Since it is based on population instead of employment data for labour productivity, these estimates are fragile. However, there is an increasing trend in patterns of structural change as evident by NAV and MLI across sectors to contribute to the growth process of per capita real income. Including structural change in income and employment in industrial sector (high intensity) along with other control variables such as per capita investment, human capital, in initial level of per capita real income in cross-sectional regressions, if finds the evidence of absolute beta divergence and significant contribution of structural change for economic growth across Indian states during this period. However, dynamic panel data analysis will sort out some of the problems encountered in cross-sectional growth regression.
Keywords: Structural Change, EmploymentJEL Code: L16, E24
* Assistant Professor, Centre for Studies in Economics and Planning (CSEP), Central University of Gujarat, Gandhinagar. Email: [email protected]$ Ph. D Student, Centre for Studies in Economics and Planning (CSEP), Central University of Gujarat, Gandhinagar. Email: [email protected]
12
International Conference on Economics & Finance Compendium of AbstractsASSESSING PREDICTABILITY OF FIRM REVENUE GROWTH USING FINANCIAL
INFORMATION: NEW EVIDENCE FROM INDIA
Sibanjan Mishra* & Soumya G Deb#
The purpose of this paper is to examine predictability of firm performance, in terms of its future revenue growth, using relevant accounting and financial information. More specifically it studies the above relationship on two sub samples i.e. first sub sample relates to firms classified on size basis (i.e. large and small firms) and second sub sample relates to firms classified on time of exuberance and turmoil basis (i.e. bull and bear phases). We use data of 17 financial variables for a sample of 1450 Indian firms which existed continuously between 2003 to 2014 and generate a framework for assessing the predictability of the possible firm revenue growth. Further we employed a variable reduction technique via principal component analysis (PCA), to identify the principal factors. These factors are finally utilized in a logistic regression framework to derive the significant factors affecting the revenue growth of the firms. The principal results reveal, that factors related to capital deployment efficiency(CADEFF), current asset management efficiency(CAEFF), firm size(SIZE), long term solvency(LTSOL) and asset management efficiency(AMEFF) are positively affecting sales growth in decreasing order of importance. Short term solvency (STSOL) which is significantly contributed by cash holding is not a critical factor, while CAEFF which includes all items of current assets including cash holdings is a critical factor. This implies that excess cash holding may be having a negative impact on sales growth. LTSOL seems to be an extremely critical factor during bear phases, representing periods of uncertainty (second only to CADEFF), while it is not so during bull periods, representing periods of exuberance. This is something in line with logical expectation, as during periods of overall uncertainty and fear, LTSOL can certainly prove to be a differentiating factor for generating additional sales. Between smaller and larger firms, the relative importance of CADEFF is more for small firms than for large firms, visible from the relatively higher odds ratio. This probably implies that, for smaller firms, deployment of precious funds in fixed assets is probably less, which might be causing a marginal loss of economies of scale for them, which goes to the larger firms with greater deployment of funds in fixed assets. This improves the criticality of the AMEFF factor in larger firms. This, in conjunction with the observation that SIZE (proxied by total assets of firms) is also one of the critical factors impacting sales growth, confirms this conjecture.
Keywords: Firm Performance, Revenue Growth, Financial Information, Logistic Regression. JEL Code: G31, G32, M100, M400
*Xavier School of Commerce (XSC); Xavier University, India. Email: [email protected] #Xavier Institute of Management (XIMB),Xavier University, India. Email: [email protected]
13
International Conference on Economics & Finance Compendium of AbstractsINSTITUTIONS AND FOREIGN DIRECT INVESTMENT: EVIDENCE FROM ASIAN
DEVELOPING COUNTRIES
Pragyanrani Behera* & Bikash Ranjan Mishra#
The past decade has witnessed that the developing countries outperform their developed counterparts at least in terms of attracting FDI by increasing their global share. In 2014, these countries attracted $681 billion (54%) in comparison to only $233 billion (36%) in the year 2004. Moreover, the total FDI inflow towards Asian developing countries increased from $148 billion to $465 billion between the same time periods and considered as the largest recipient in the world. FDI inflows to a country depend on its economic, institutional, regulatory and infrastructure related factors. Among several factors institutional quality plays a significant role in influencing the sentiments of foreign investors. The investors become more attracted towards sound institutional environment like efficient bureaucracy, low corruption and secure property rights. The impact of institutional quality to attract more FDI has been examined by many scholars. Though there is no dearth of empirical findings in terms of enquiry into the cause-effect relationship between FDI and institutional quality, the number of analysis is only limited when selected Asian countries are considered. Therefore, this paper aims to empirically analyse the institutional factors that cause FDI inflow to these countries. Based on a balanced panel data of 24 selected Asian developing economies from the period ranging between 2002 and 2015, this paper identifies a set of six different though related institutional factors that determine the magnitude of FDI with the presence of other macroeconomic variables such as market size, infrastructure, human capital and trade openness. The empirical results of Pedroni co-integration test confirm a long-run association between FDI and institutional variables. The findings of FMOLS method also confirm that some institutional variables are highly significant determinant of FDI. The robustness check is also undertaken by splitting the overall sample into over-perform and below-perform category and it reaffirms the findings. Thus, the policy makers of the sample countries need to give priority for improving the institutional quality as on urgency basis as building a strong macroeconomic environment for attracting more FDI and boost economic development.
Keywords: Institutions, Fdi, Developing Countries, Panel Data JEL Code: C23, F21, O38, O43
*NIT Rourkela, India. Email: [email protected]#NIT Rourkela, India. Email: [email protected]
14
International Conference on Economics & Finance Compendium of AbstractsCELLULOSIC ETHANOL AND ELECTRIC VEHICLES:
PROSPECT FOR LOW PETROLEUM DEMANDSRakhi Ojha*
In the world’s second highest populated country, it comes as no surprise that we face shortages and rise in demand in various sectors of the economy, one of it being the great and increasing demand of energy resources. In India, like all other countries, one of the majorly utilized energy resource includes the petroleum products, making India the 3rd largest oil consuming country in the world and most of its share going towards transportation fuels. There is a lot of research being done as to what and how we can successfully replace gasoline with an equally efficient and a more environmental friendly source of energy.
As a fall out of the COP21 Paris agreements in 2015, the government of India has mandated the oil manufacturing companies to reach a 20% fuel blend rate by 2022. This now seems achievable with the breakthrough of the cellulosic ethanol (ethanol made out of agricultural residues) technology in the biofuels industry. Apart from this policy, to stand by its commitment to reduce the intensity of GHG emissions by 35%, the Indian government plans to offer 100% electric vehicles by the year 2030.
In this paper we study - • The introduction and background of cellulosic ethanol and electric vehicles in India.• The demand and availability of raw materials and steps taken by Government towards it.• The impact of the 2G ethanol and electric vehicles on the fuel industry and the various sectors of the Indian economy.• Overall benefits and challenges of implementing these alternatives.• Where India stands at present in the market of 2G ethanol as well as that of electric vehicles. • The application of Nudge theory in India for increasing demand for electric vehicles.
Keywords: Sustainable Development; India; Petroleum; Electric Vehicles; Ethanol; Environment.JEL Code: 013; 033; 038; 044
*Pandit Deendayal Petroleum University, India. Email: [email protected]
15
International Conference on Economics & Finance Compendium of AbstractsPOVERTY AND SOCIAL INEQUALITY IN KARNATAKA- A STUDY ON HK REGION
Dr. Niranjan.R *
The relationship between growth, poverty and inequality is vital in the debates of development economics. The concept of poverty relates to socially perceived notion of deprivation in well-being with respect to basic minimum needs. People’s experience of poverty will differ depending on the depth and intensity of poverty, which has implications both for their own life course as well as for intergenerational transmission of poverty. The study by using 61st (2004-05) and 68th (2011-12) rounds of NSSO unit level household consumption expenditure data envisaged to examine comprehensively the regional as well as disaggregated (sub-state level district-wise) patterns and intensity of poverty and inequality among socio-religious groups in Karnataka. The results reveal that during the study period a large proportion of population are still under poverty and this proportion is higher in Kalaburgi division which constitute the entire Hyderabad Karnataka (HK) region. The poverty among SC, ST is higher in relative to other social groups in the entire state and as well as in all administrative divisions. The result provides a glimpse of spatial variation in poverty distribution and concentration in the state so that it helps to frame region specific policies for reduction of poverty.
Keywords: Measurement Of Poverty; Income Distribution: Poverty InequalityJEL Code: I32, O15.
*Assistant Professor, Department of Economics, Vijayanagara Sri Krishnadevaraya University, Karnataka, India. Email: [email protected]
16
International Conference on Economics & Finance Compendium of AbstractsINDIA’S MGNREGA SUCCESS BOILS DOWN TO
FEW STATES, FEWER DISTRICTS AND FEWEST BLOCKS
Nitin A. Lokhande* & Haripriya Gundimeda#
Given its demographic dividend, India is badly in need of strategies for generation of employment opportunities for its rural youth. The current rural unemployment rates implies that India needs rural employment guarantee schemes like MGNREGA more than ever to support its growing unemployed rural population. However, official data shows that satisfactory performance which we would call ‘success’ of MGNREGA boils down from few States to fewer Districts and further down to fewest Blocks. We analyze and interpret the official MIS data of the scheme. The study has two parts - first, a State level performance analysis and second, a District and Block level performance analysis of an average performing State. The first part primarily focuses on using the non-parametric method viz. Data Envelopment Analysis (DEA) as a bench-marking tool for computing State level efficiency and identifying the best and worst performing States. The second part develops a composite index of performance based on selected indicators and categorizes the Districts as well as Blocks of an average performing State into four clusters of varying performance. While only 4 States of 29 are overall efficient and performing at the optimum scale, it is observed that in majority of Districts of an average performing State more than 40% of Blocks are performing at unsatisfactory levels.
Keywords: MGNREGA, DEA, Composite Index, PerformanceJEL Code: H53, I38
*Ph.D. Research Scholar, Department of HSS - IIT Bombay; Email: [email protected]#Professor, Department of HSS - IIT Bombay; Email: [email protected]
17
International Conference on Economics & Finance Compendium of AbstractsIMPACT OF CREDIT RATING ON HOSPITAL FINANCING
Manisha Kumari* & Prof. Mary Jessica#
Getting fund to run a hospital is very important. This paper will tell you about what the sources of finance are and how it is affected by credit rating. There are many credit rating agencies exist and all having different rating methodology and symbols. From the study I find that credit rating not only affects the source of financing but also it affects the quality of service provided by hospitals. In present economy the hospital is become a part of Business. People are investing in hospitals with a motive of earning a profit. The hospital whose instrument is highly rated their health care service charge is more, which is not affordable by low income group people. To increase the rating of instrument/entity hospital management started investing in equipment’s or increases the health care service area. The facility provided by the highly rated hospital is very costly but for such type of hospitals, obtaining fund is easy. Whenever they required raising the capital, easily get the fund either through bond, shares, Commercial paper, loan etc.
Credit rating of hospital is provided by analyzing their financial profile, which is largely determined by Balance sheet and market share of hospital. Other factors like a stable, strong hospital management team, a robust payer mix, and providing unique health care services that competitor’s lack, also play into the formula. To increase the rating, hospital improve the quality of health care services by providing various facilities, purchases new equipment’s, hiring reputed doctors, increasing numbers of beds, expanding infrastructure. In this paper I compare the health care facilities provided by the hospital whose instrument/entity rated A or BBB, BB and unrated hospital instruments. What is the difference between health care services provided by these hospitals? In Present days hospitals are comes into 3rd place in providing employment after Agriculture and construction.
Many hospitals depend on bond funding for their expansion and purchase of new equipment. Revenue created by the hospital is used to pay back the bond holders. But the risk for the bondholder is that, they receive after hospital pays its operational expenses. Therefore if hospital is less profitable than expected or less profitable, bondholders assume financial risk. In this situation if bond ask rating to Credit rating agency, they will get lower credit rating.
Keywords: Financing, Creditworthiness, Commercial Paper JEL Code: G24, G23, 112
*Reasearch Scholar, University of Hyderabad, India. Email: [email protected] Mob.- 9311136155 #Associate Professor, University of hyderabad, India. Email: [email protected]
18
International Conference on Economics & Finance Compendium of AbstractsTHE ECONOMICS OF DIGITAL DIVIDE IN INDIA: IMPACT ON LOW INCOME
COMMUNITIES
Hemisha Shah*
With the world moving towards the information age and undergoing a technological revolution, information and communication technologies have become a necessity rather than being complementary to growth. In addition to that, it also has a significant impact on all the aspects of development. With the pace at which India is growing, access to computers, internet and various other technologies and the ability to effectively use them are becoming increasingly important for full participation in India’s economic, political and social life. These technologies are yet not accessible to a major part of India’s population. Even if accessible they are not used efficiently and lack in real aspects. The economic, social and political constraints are increasing the socioeconomic inequality and leading to economic and social exclusion, commonly termed as digital divide. A significant part of the population is stuck in a vicious cycle in which digital inaccessibility and inability to use them efficiently reinforces and amplifies the already existing disadvantage. This paper broadly discusses the socioeconomic impacts of digital divide on low-income communities living in urban areas and why it has become increasingly important to bridge this gap for the overall development of the country.
Keywords: Information Age; Digital Divide; Low Income Communities; Socioeconomic Inequality; Vicious Cycle.JEL Code: O33; O10; I31
*Pandit Deendayal Petroleum University, Gandhinagar, India. Email:[email protected]
19
International Conference on Economics & Finance Compendium of AbstractsOPPORTUNITY COST NEGLECT AS A MARKETING TECHNIQUE: A CASE OF A
LUXURY GOODSaniya Puranik*
The assumption that people consider opportunity costs i.e. the cost of the best foregone alternative while making decisions is a long standing one. Opportunity costs are essentially implicit costs, and represent the trade-off made by an individual with limited resources to allocate. The implicit nature of these costs, however, does not render them unimportant since value is relative. It is best represented when compared between two alternatives, and not just in monetary terms. Past research regarding this subject shows that consumers generally neglect opportunity costs, especially while making purchase decisions. It has also shown that external cues towards these costs can increase their consideration of it. The objective of the present study is to test these views and apply them further as a marketing technique for luxury goods, which in this case is a luxury car. The aim of the study is to find out whether consumers will consider opportunity costs if they are made explicit to them, and whether the nature of the foregone alternative will affect the evaluation of the opportunity cost. Two different opportunity costs are provided as external cues using two advertisements, and a comparative study is undertaken on the participants’ willingness to buy in both conditions. It is hypothesized that when considerably important opportunity costs are highlighted, the willingness of the consumers to buy reduces than if a less important cost is drawn attention to. It has been found that neither is there any significant difference in the willingness to buy of the respondents, nor are foregone alternatives of the car purchase considered while making the decision, thus refuting prior studies in the matter. It has been concluded that taking the limitations of this study into account, more research would be required to be performed before a marketing technique could be developed for such a luxury product using the concept of opportunity cost neglect.
Keywords: Opportunity Cost Neglect; Luxury Good; Marketing; Willingness to BuyJEL Code: D90; M37
*Symbiosis School of Economics, Symbiosis International (Deemed) University, Pune. Email: [email protected]
20
International Conference on Economics & Finance Compendium of AbstractsRURAL WAGE DYNAMICS IN INDIA: WHAT ROLE DOES INFLATION PLAY?
Sujata Kundu* & Arghyadeep Halder#
The paper studies the relationship between rural wage growth and inflation in India over the past 15 years. Given the fact that, during the last decade, quite often growth in rural wages and inflation have moved in close association with each other, disentangling the relationship between rural wage movements and inflation assumes importance. The paper makes an attempt to identify the possible key factors explaining the recent slowdown in rural wage growth. In order to analyse the short run and long run dynamics of rural wage growth and prices, the study tries to find out the lead-lag relationship between wage growth and rural inflation over different phases. Then, using data for 13 years (January 2001-October 2013) it tries to look at the long run dynamics between the two. The methodology used is co-integration and Vector Error Correction Model (VECM). The results of the VECM analysis show that in the long run both nominal agricultural wage and non-agricultural wage growth have a significantly positive relation with inflation. Further, any disturbance in the long run relationship is corrected. However, the correction is not fast. Finally, to find out the probable factors explaining the deceleration in rural wage growth in the more recent years, the study uses the approach of the dynamic panel data analysis with Arellano–Bover/Blundell–Bond system generalized method of moments (GMM) structure. The results show that during November 2013-October 2017, rural inflation had a positive and significant impact on nominal agricultural wage growth in a contemporaneous manner. The results nevertheless also point to the stickiness in nominal wages, and presence of a statistically significant positive impact of increases in construction wages and MGNREGA wages on agricultural wages.
Keywords: Rural Wages, Agricultural Wages, Construction Wages, MGNREGA, Inflation.JEL Code: E31, I38, J01, J20, J21, J31.
*Reserve Bank of India. Email: [email protected] #FICO. Email: [email protected]
21
International Conference on Economics & Finance Compendium of AbstractsMARKET POWER AND COMPETITION IN THE INDIAN BANKING INDUSTRY
Ritesh Pandey*
In this paper, we have three objectives. First, we study the intensity and evolution of competition in the Indian banking industry over the past decade (specifically, from 2005 to 2016) by measuring the market power of individual banks. Second, we study whether market power differs between banks belonging to the public sector and those belonging to the private sector and also between domestically-owned banks and foreign-owned banks. Third, we try to find factors, at the bank, industry and economy level, that may influence competition in the banking industry. Market power, as measured by pricing power (specifically, the Lerner index) of individual banks, has fluctuated within a narrow range of twenty to thirty percent over marginal cost. This indicates that banks do possess some pricing power and that the industry is not fully competitive. Of course, it is evident that because of the several liberalization measures taken by the government in the nineties, such as relaxation of entry norms for private players and allowing wide expansion of bank branches, average market power of the (then dominant) public sector in the industry would have reduced drastically. On the other hand, whether or not pricing power with the public sector banks was high before liberalization is not clear as the banking sector was heavily regulated regarding key decisions like interest rate ceilings, priority sector lending and allowed product portfolios. Marginal costs are measured by first estimating a translog total-cost function for different banks. Prices are then estimated using accounting variables. Over the period studied, there is little evidence of increase in competition since market power shows regular variation around a mean that is stable, at least for the period under consideration. Moreover, we find no evidence for greater market power for public sector banks or lower market power for private sector banks. Finally, we are able to identify several factors that affect industry competition.
Keywords: Indian banks, Lerner index, CompetitionJEL Code: D40, G21, L10
*Institute of Management Technology, Ghaziabad, India. Email: [email protected]
22
International Conference on Economics & Finance Compendium of AbstractsDOES CONCENTRATED FOUNDER OWNERSHIP AFFECT RELATED PARTY
TRANSACTIONS? EVIDENCE FROM EMERGING ECONOMY
Shashank Bansal* & M.Thenmozhi#
Related Party Transactions (RPTs) are a topic of increasing interest around the world and can have a large impact on financial performance of the firm. The relatively small literature in the field motivates us to examine whether concentrated founder ownership affects the degree of RPTs in a firm. We further examine what type of RPTs are affected by concentrated founder ownership and also analyse if related transactions influence the firm value.
Using the data set of all NSE listed firms from 2002 to 2015, we find that concentrated founder ownership in India is positively associated with the magnitude of RPTs. We empirically find that concentrated founder ownership encourages RPTs which are beneficial for the minority shareholders compared to RPTs which are more likely to expropriate minority shareholders. We also document that business group firms encourage RPTs more compared to standalone and state-owned firms. Finally, we find that RPTs in Indian firms are associated with higher firm value and this value increment is observed more when concentrated founder ownership is high.
Overall, we find that in the Indian market, reputation incentive plays a very important role for concentrated founder ownership and they align their interest with minority shareholders by encouraging RPTs which are beneficial for them. We support the view of efficient transaction hypothesis and find that RPTs can be used as an efficient mechanism under incomplete information and underdeveloped capital markets, thus increasing the firm value.
Keywords: Related Party Transactions, Concentrated Founder Ownership, Corporate Governance, Ownership Structure. JEL Code: G34, G32
*Indian Institute of Technology Madras, India. Email: [email protected]#Indian Institute of Technology Madras, India. Email: [email protected]
23
International Conference on Economics & Finance Compendium of AbstractsINFLATION DYNAMICS AND IMPACT OF DEMAND AND SUPPLY SHOCKS IN
INDIA
Priyanka Sahu *
Targeting inflation within the specific range has become the major objective of the monetary policy especially with the central bank who has adopted inflation targeting as their major objective. As an emerging economy, understanding inflation and its dynamic behaviour has become the major concern for the authority in India. Recently, there are two major development in the macroeconomics management in India. Firstly, the announcement of a new monetary policy committee as a part of new framework for the task of deciding the benchmark policy rates to target inflation at a specific level and secondly the formal declaration of inflation targeting as a new monetary policy objectives. Like other developed and developing countries, India too adopted the fully-fledged inflation targeting policy in 2014, where Consumer Price Index (CPI) acts a nominal anchor to target inflation at the rate of 4 percent with a band of 2 to 6 percent.
There are both monetary and non-monetary factors that effects inflation. The non-monetary factors such as monsoon failure, oil price shocks are consider as the main source of fluctuation in the headline inflation in the short run. The empirical studies in India has suggested that the cyclical fluctuation in inflation is mainly drive by oil price shock and monsoon failure. Inflation, being dynamic in nature, the fluctuation in the food prices consisting of vegetables and pulses have significantly pushed up the headline inflation in India. Similarly, the monetary factors especially with the supply side, such as, money supply, demonetization have also significantly affected both core and headline inflation expectation in India. However, these effects are tangible and can be controlled by the monetary authority, but the non-monetary factors such as monsoon failure, oil prices shocks and other relative prices shocks are unforeseen and hence bear major challenges in anchoring inflation expectation. Therefore, the present study has empirically examine the inflation dynamics by taking into consideration, both demand, supply shocks, and further examine the monetary and non-monetary policy implication with respect to inflation targeting in India.
This paper attempts to empirically identify the impact of demand and supply shock on core inflation in India. Firstly, it discusses the methodology of core inflation, empirically constructed through asymmetric trim mean approach. Secondly, it discusses the dynamic effects of demand and supply shocks on core inflation through Autoregressive Distributed models and Impulse Response Function.
The empirical estimation is carried out by using monthly time series macroeconomic data covering the sample period of January 2012 to August 2017 with (2011-12) as base year price. Combined Consumer Price Index (CPI) Y-o-Y inflation data is used to calculate core inflation for India. For the proxy for demand shock, monetary variables such as money stock (M3), money gap, short-term interest rate, real effective exchange rate are taken into monetary measure model whereas real variables such as output gap and index of industrial production are included in non-monetary
*University of Hyderabad, India. Email:[email protected]
24
International Conference on Economics & Finance Compendium of Abstractsmeasure model. On the other hand, fuel inflation, food inflation, and skewness-based inflation calculated by subtracting core inflation from headline inflation are considered as three alternatives supply shocks. In addition to this, the study has also empirically estimated output gap and money gap through Hodrick–Prescott decomposition. The impact of shocks on inflation is empirically analyse by considering two econometric modelling i.e. Monetary Measure Model and Non-Monetary Measure Model. The monetary measure model, which include monetary variables, further consists of three econometric modelling with respect to different supply shock i.e. Skewness based inflation, food inflation and fuel inflation. Similarly, the non-monetary measure model, which includes real variables, also further divided into three econometric modelling with respect to different supply shock.
The evidence from empirical investigation suggests that there is a significant impact of demand and supply shock on core inflation. The response of core inflation to demand shock is high in case of real variables such as output gap and index of industrial production as compared to monetary variables, indicating that higher impact of the non-monetary factor on inflation in India. However, with respect to the supply shock, the response of core inflation to skewness-based inflation is high under monetary measure model, whereas in case of non-monetary measure model, food and fuel inflation is seen much to influence the core inflation. On the whole, the empirical analysis evidence that both demand and supply shock under both monetary and non-monetary measure model have significant effect on core inflation in India.
Keywords: Inflation Dynamics, Core Inflation, Demand Shocks, Supply Shocks.JEL Code: C32, C97, E52, E58, F62
25
International Conference on Economics & Finance Compendium of AbstractsINFRASTRUCTURE FINANCING IN INDIA: AT THE CROSSROAD
Bishnu Prasad Mishra*
The infrastructure sector has become Sunrise Sector of the country since the beginning of this century. This view was reflected a belief that the rapid growth in the volume of both private and public investments would continue unabated. The infrastructure engagement over the past years have yielded valuable lessons about project design and appraisal , poverty focus, private sector participation, environmental and social sustainability, the issue of corruption and stakeholders communication apart from supportive funding sources.
However, the spectrum of financing infrastructure in India ranged from complete budgetary support to extensive fund raising in the private space including frantic effort to internationalize the funding Channels. The necessary regulatory changes for varied sources and varied instruments used have culminated over the years in a dynamic construct of funding avenues.
The acceptance of FDI through non-government channels, private participation of PPP mode, issue of Infra Bonds, Masala Bonds by permitted entities, public issue of Equity and Bonds by private participants in the domestic Capital Market, floatation of InvITs and REIT/Trust funds etc. The policy of the Government to support infra development through Viability Gap Funding (VGP) mechanism has also few takers, as evidence suggests.
The experiment of new sources of funding has some extent succeeded in certain cases and some has also floundered to meet the specific needs of the infrastructure. However, it is high time to strengthen the sources where considerable success has been achieved and reappraise the risk and potent deterrent/ road blocks where the result has somewhat not up to the expected level. In short, the infrastructure funding space currently looks hazy and badly in need of a relook, if all the announced policy goals have the slender chance of meeting with success in days to come.
Keywords: Infrastructure, Infra- funding, FDI, Masala Bonds, Infra Bonds, VGP, InvITs and REIT/Trust funds.JEL Code: G23, 30, 32, 38, 39
*Xavier Institute of Management, India. Bhubaneswar- 751013. Email: [email protected]
26
International Conference on Economics & Finance Compendium of AbstractsCULTURAL FACTORS AFFECTING CONSUMER BUYING BEHAVIOR - A CASE
STUDY OF TWO SELECTED COMMUNITIES
Sumeet Chindalia*
Culture can be defined as the social behavior and norms found in human societies. Social norms are the rules of behavior that are considered acceptable in a group or society. Cultural differences affect the existing behavioral economic theory whether rational or irrational. Behavioral Economics draws upon fields of both Economics and Psychology that influence decision making of an individual. Cultural factors are different in each and every country followed by various differences within the states. People have different tastes and preferences based on their culture which at times is governed by the society they live in, the religion or region they belong to, etc. Consumers play a very important role in the demand and supply chain of economic system of a country. Factors such as culture, subculture and social class affect the consumer buying behavior. These factors also influence the economic activity through the choices that people make on about how to allocate the available resources.
India is considered by some to be one of the most diverse countries in the world with over 122 languages spoken by at least 10,000 people. The objective of this paper is to examine the impact of belief, values, perception on buying behavior of two selected communities: Marwaris and Sindhis, further to which will also to examine how cultural factors affect price elasticity of different products. There are around 5,600,000 Marwaris and 3,810,000 Sindhis in India. Both the communities are majorly spread across the north western region of the country covering states like Rajasthan, Gujarat, Delhi, etc. To carry out the research, primary data is collected from a sampling of selected people and secondary data is collected from various research papers, scholarly articles in various magazines and newspapers to reach a conclusion.
Keywords: Cultural Factors, Behavioral Economics, Consumer Behavior, Price Elasticity, Sindhis-MarwarisJEL Code: D11, D12
*Pandit Deendayal Petroleum University, India. Email: [email protected]
27
International Conference on Economics & Finance Compendium of AbstractsFINANCING MSMES RIFE WITH PROBLEM- A DEMAND SIDE ANALYSIS
Chinmayee Sahoo* & Alok Ranjan Behera#
MSME sector faces a number of marketing, infrastructural, financial and other constraints and challenges which put hindrance on the way to achieve a faster growth of this sector. Among the other constraints, lack of access to sufficient financing especially in developing countries, has been identified as a major bottleneck in realizing the potential of this sector. Odisha is one of the top ten States in creation of job (20839 persons in 2006-07 and 107011 in 2014-15) by MSME sector although it is positioned at 11 in respect of number of MSME units set up as compared to other States. Credit flow to the MSME sector declined during recent period in the state (41%) as against an increasing trend in the country (48%) (RBI Report, 2015). This brought to the forefront to study about the demand side issues for accessing institutional finance by MSME because of banks are reluctant to provide credit to this sector. The study is conducted in Bhubaneswar city (No 1 smart city in India) of Odisha and chosen two clusters through cluster sampling technique. The total of 60 enterprises has been drawn randomly for the demand side analysis. . To collect the data Personal interview method is used by taking semi structured questionnaire schedule for sample entrepreneurs. Factor analysis with rotate varimax normalization method is used to find out the major constraints faced by the MSMEs and to rank their problem, is presented through an index. It identified six major factors among its interest rate is the number one constraint in the demand side which impedes the growth of MSMEs. Not only is the financial problem but also in addition to that competition from well-running firm and lack of Labour are the major problem faced by the sample entrepreneurs. The results plot that manufacturing sector rife with more financial issues.
Keywords: MSME, Demand, Manufacturing Sector, Financial ConstraintsJEL Code: L6, L68, O14, C38
*NISER, INDIA. Email: [email protected]#Utkal University, Odisha, INDIA. Email: [email protected]
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International Conference on Economics & Finance Compendium of AbstractsINFLATION AND STOCK INDICES THROUGH INDUSTRY PRISMS
Abha Mohan* , Dr. Tomy Mathew# & Dr. K. Subramanian$
The relationship between macroeconomic variables and stock prices is widely discussed and investigated topic both in developed and developing countries. But, so far industry specific studies are limited in Indian context. Among various macroeconomic variables, inflation rate is considered to be a prominent economic indicator.
As per random walk theory, stock prices equip the information in the economy and promptly react to it. Therefore the stock market may become agog towards the changes in inflation rate and the same would be an omen to stock market to either tank or surge prices. As indicated by Arbitrage Pricing Theory the stock return can be linearly related to inflation. Moreover Irving Fisher (1930), Fama and Schwert (1977), Fama (1981) and many more had already established the relationship between these variables. But will the relationship be similar with the stock indices of different industries?
The current study examined long run association between Industry specific indices and inflation rate. Since April 2014, Reserve Bank of India is considering Consumer Price Index (combined) as the key measure of inflation and thus in the current study, Inflation rate measured in terms of CPI was considered. Four major sector indices of Bombay Stock Exchange such as S&P BSE Fast Moving Consumer Goods, S&P BSE Healthcare, S&P BSE Information Technology and S&P BSE Bankex were taken for industry specific analysis. In view of the fact that CPI numbers are measured monthly, the study used monthly data of the variables, starting from January 2012 to October 2017. Econometric techniques such as Augmented Dickey Fuller test, Johansen Co-integration test, VECM and VAR models were used to analyse the time series data. The results exhibited negative long run causality running from inflation rate towards FMCG and Banking indices, being cyclical stocks. But no relationship was established with Pharmaceutical index being defensive stock and IT index being growth stock. The results are an implication for the investment decisions in these sector stocks at the time of higher inflation.
Keywords: Inflation, Stock Price, Industry, Consumer Price Index, BSE Sectoral IndicesJEL Code: E31, E41, E42, E52
*Assistant Professor, Chinmaya University Kerala, India. Email: [email protected] (also Research Scholar, M. G. University, Kerala)#Associate Professor, CMS College (Autonomous) Kerala, India. Email: [email protected]$Assistant Professor, Chinmaya University Kerala, India. Email: [email protected]
29
International Conference on Economics & Finance Compendium of AbstractsINTER-LINKAGES AMONG CAPITAL INFLOW, MONETARY POLICY AND FINANCIAL SECTOR DEVELOPMENT: AN EMPIRICAL STUDY OF EMERGING
ECONOMIES
Amar Jyoti*
The emerging economies are witnessing a spurt in capital inflow which when used in the production processes can lead to economic growth. Development of financial sector gives further boost to the growth by channelizing the capital inflow into the productive sectors. Otherwise, this capital inflow could have been used for speculative purposes which may not have any impact on economic growth. On the other hand, there exist linkages between capital inflow and the monetary policy. The amount of capital inflow in an economy apart from other factors also depend on the stance of the central bank and the effectiveness of monetary policy. And in addition, the overall effectiveness of the monetary policy depends on the level of the financial sector development in the economy. There are theoretical models to test each of the linkages separately but as per the knowledge of the author there are no such models which have studied the inter-linkages in a singular framework.
The present study pertains to the emerging market economies and aims to empirically test the inter-linkages among the capital inflow, effectiveness of the monetary policy and the financial sector development. The relationship turns out to be highly interdependent and it is found out to be significant. The panel-VAR methodology is employed on the set of emerging economies for the appropriate sample period. The change in the monetary policy stance of the central bank is captured by a change in the policy rate. The data are collected from the secondary sources like IFS, IMF, WDI, and World Development Financial Structural Database etc. The variables are seasonally adjusted, normalised and then tested for the stationarity of the series. Measures of financial development are selected based on the existing literature. The model is controlled for other macroeconomic variables and they are based on the literature. The estimation is tested for robustness across different specifications. All the variables are tested for the presence of co-integration and it is found out that there is no such evidence. This paper provides further new insight and some more evidence to the debate on the relationship among capital inflow, the effectiveness of monetary policy and financial development.
Keywords: Monetary Policy, Capital Inflow, Financial Development, EffectivenessJEL Code: E52, E58, F41, G21
*IIT Madras, India. Email: [email protected]
30
International Conference on Economics & Finance Compendium of AbstractsMANDATORY ASPECTS OF VEHICLE CAR INSURANCE IN INDIA. “A STUDY ON CAR INSURNACE POLICYHOLDERS RELATED TO PUBLIC INSURANCE
COMPANIES AND PRIVATE INSURANCE COMPANIES IN INDIA”
Dr. Tushar Rathore *
The introduction on the insurance sector in world arena with relation to the Indian Insurance Market, the role of IRDA in insurance market and the vehicle insurance companies and its operations are analyzed in details in the given research paper. There are various challenges, opportunities and issues related to Indian insurance sectors in terms of general insurance in India. The introduction of motor insurance in India related towards car insurance is mentioned in details in the given paper.
The present paper is related to vehicle insurance in India, mainly concentrating on car insurance. Car vehicle insurance policy is mandatory under the various motor vehicle acts, while other forms of general insurance are optional. The law mandates that every owner of car motor vehicle must have the motor insurance policy to operate on the road. The present paper shows the analysis of car vehicle insurance policies format in India, along with competitive environment of car insurance in India. The regulation on car insurance by (IRDA) and the views in relation to the future scenario on car insurance in India, overview of car insurance market is also covered in detail.
The need for vehicle insurance of third party liability towards injury, death or property damage is mandatory as per the Motor Vehicle Act. Therefore the vehicle car insurance becomes vital as it is not only for car owners to minimize the risk for his or her vehicle but also for the persons who may get injury or damage due to vehicle hit or so on. The present paper throws light on the various aspects of motor vehicle insurance in general and specifically for minimizing risk of vehicle users. There has been growth in car industry in India, with that the demand for Insurance policies have increased. The present paper evaluates the performance of public and private insurance companies with reference to the policyholders of car insurance domain.
The primary data collected for the present paper is obtained from sampled car insurance companies policyholders. The data sample selection of 30 i.e. 360 policyholders details were collected from each 12 car insurance companies registered with IRDA. The secondary data was also collected through books, reports from various motor tariffs committee reports etc. The Data analysis, observations / findings, suggestions were generated from the sampled data collected.
The Car / motor insurance market has experienced growth with constant rise in company potentials and market shares. Vehicle insurance policies in India have been devised to insure private cars, two wheeler, and commercial vehicles. Individuals can get instant car insurance quotes by filling out a simple online application form. Vehicle and car insurance sector is poised to mark great progress in the years to come. Over the past few years, many private insurance companies have ventured into the Indian landscape in order to harness the immense untapped latent potential
*Symbiosis Institute of Management Studies, Kirkee, Pune, Pin - 411 020, India. Email: [email protected]
31
International Conference on Economics & Finance Compendium of Abstractsof the Indian market. Moreover, the favorable regulatory environment from IRDA also ensures stability and fair play in the overall vehicle insurance market in India.
Keywords: Insurance, IRDA, Vehicle Insurance, Car vehicle insurance Market, Insurance MarketJEL Code: F63, G22 ,G28 ,G39, L91
32
International Conference on Economics & Finance Compendium of AbstractsPRODUCTIVITY TRENDS IN INDIA AGRICULTURE DURING STRUCTURAL
REFORMS
Anchal Purohit* , Nahusha Hebbar# & Dr. K. R. Pillai$
India embarked on the path of economic reforms during early 1990s to make the economy internationally competitive and domestically robust. The global exposure and continuous decline of public sector affected agriculture badly in terms of a protective shield. Hence, the recorded contribution agriculture to the total national has been dwindling over the years, though Indian economy has historically been referred to be propelled by agriculture. Structural reforms introduced in the country gave more importance to industry and service sector. Agricultural sector was expected to experience significant fillip but lost its hegemony in onset of reform packages in the name of austerity and prudential norms. The study examines the longitudinal trends in the productivity of India’s agriculture focusing on yield per hectre of major crops in the post reform period. The growth of agriculture, in terms of yield observed during the reference period may not be ascribed to reform. The productivity trend of agriculture has not manifested any response to macroeconomic transitions or shocks.
Keywords: Economic Reforms; India’s Agriculture; Longitudinal Trends In AgricultureJEL Codes: Q00; Q10
*School of Management, MAHE, Manipal.Email: [email protected] #School of Management, MAHE, Manipal. Email: [email protected] $Faculty Mentor: Professor, School of Management, MAHE, Manipal.Email: [email protected]
33
International Conference on Economics & Finance Compendium of AbstractsPOSSIBILITIES AND CHALLENGES OF AFFORDABLE HOUSING IN INDIA
Prof. V. Mary Jessica* & Athira K#
Affordable housing is turning into a possible game changer for the real estate industry and there has been an increase in the affordable housing projects in India as huge unmet demand and favourable government policies have encouraged many developers to launch new projects in this segment. In 2015, the “Housing for all by 2022” scheme was announced by the central government targeting 2 crore homes to be built across all urban locations over the next five years. Affordable housing is an attractive proposition both for developers and consumers as the demand is huge and largely unmet. Affordable housing promoters have also been granted more time for project completion. However there are challenges for affordable housing projects. The biggest challenge to create affordable housing is the unlocking of land in urban areas. Unless adequate land is made available, creating a 2 crore homes will be a distant dream. High construction costs and unfavourable tax environment are the other major challenges faced by affordable housing segment. Here, in this paper, an attempt is being made to analyse the possibilities and challenges of financing in affordable housing in India.
Keywords: Affordable Housing; Sustainable Cities And CommunitiesJEL Code: G11
*School of Management Studies, University of Hyderabad, India, Email: [email protected] #University of Hyderabad, India. Email: [email protected]
34
International Conference on Economics & Finance Compendium of AbstractsROLES OF INFRASTRUCTURE, HUMAN CAPITAL FORMATION, ECONOMIC GLOBALIZATION ON INCOME INEQUALITY: A CONTRASTING PERSPECTIVE
FOR TWO EMERGING ECONOMIES, INDIA AND CHINA.
Hrushikesh Mallick* , Mantu Kumar Mahalik# and Hemachandra Padhan$
By using the annual data from 1980-2013, this study explores the effect of Infrastructure development, Human capital formation, and Economic globalization on income inequality in the sample of two emerging economics, India and China. By applying the Bayer-Hanck (2013) combined cointegration and the ARDL bound testing approach to cointegration (2001) methods; it finds existence of a long-run relationship among the variables in the inequality equation for both India and China. After confirming the cointegration among the series, the long-run results based on ARDL model surprisingly revealed that while the infrastructure development is leading to rise in income inequality, the human capital formation as expected reduces the income inequality in both the countries. Contrastingly, it also reveals that economic globalization while accelerates the income inequality in India but the same diminishes the inequality in China. In addition, while examining the effects of structural changes in these economies from the changing sectoral contribution of output in total output (Industry sector and Service).
Keywords: Infrastructure Development; Income Inequality; Bayer-Hanck, ARDL approaches to cointegration, India and ChinaJEL Code: H54; H4; C54; C32
*Centre for Development Studies (CDS), Trivandrum-695011, Trivandrum, Kerala, India. Email: [email protected]#Humanities and Social Sciences (HS), National Institute of Technology (NIT), Rourkela-769008, Sundargarh, Odisha, India. Email: [email protected]$Humanities and Social Sciences (HS), National Institute of Technology (NIT), Rourkela-769008, Sundargarh, Odisha, India. Email: [email protected]
35
International Conference on Economics & Finance Compendium of AbstractsCAPITAL ADEQUACY AND CREDIT RISK ASSESSMENT OF STATE BANK OF INDIA:
A STUDY
Shahrukh Saleem* & Dr. S. Sudalaimuthu#
Capital adequacy is considered as the financial soundness indicator for any bank. It is one of the most important parameter prescribed by the Basel Norms under the auspices of Bank for International Settlements. (BIS). Risk assessment is vital to measure the bank’s capital adequacy according to the Basel norms. Every bank faces the issue of managing risk. Various strategies to assess the risk associated with the banking operations, mitigate it are formulated and implemented by the banks. This study relates to the analysis of Capital adequacy in State Bank of India (SBI). State Bank of India is the biggest and one of the oldest public sector bank operating in India. It operates not only in India but has a number of overseas branches as well. To calculate the Capital adequacy for such a bank is a tedious task. The data for the study has been collected from various available secondary sources such as Annual reports of the bank, data from RBI website and NIBM website, Newspaper reports such as business line, economic times, business standard, various reputed journals, Capitaline and CMIE as well. The study period is 10 years from 2007-08 to 2016-17.Various Statistical tools and Credit risk measurement techniques have been used for the study. The results show a strong risk management policy being followed by the State Bank of India (SBI). Capital Adequacy for the bank varies under the different regimes of Basel viz Basel II and Basel III and is calculated by the authors based on the available data.
Keywords: Banks, Capital Adequacy, Risk Management in Banks JEL Code: G21, E42, G11
*Research Scholar, Department of Banking Technology, School of Management, Pondicherry University, R.V Nagar, Puducherry- 605014, Pondicherry, India. E-mail: [email protected]#Associate Professor, Department of Banking Technology, School of Management, Pondicherry University, R.V Nagar, Puducherry- 605014, Pondicherry, India. E-mail: [email protected]
36
International Conference on Economics & Finance Compendium of AbstractsPOPULARISING ENTREPRENEURSHIP IN A CONVENTIONAL CAMPUS:
A SOCIO - ECONOMIC ANALYSIS
Renji George Amballoor* & Roshun George Amballoor#
Entrepreneurship has gained a lot of momentum in our professional campuses but the concept continues to be an undesirable word in our conventional degree colleges offering undergraduate programmes in Arts, Science & Commerce. On the other hand conventional colleges contribute the maximum to the serpentine queues in our labour market.
Inorder to tap our demographic dividend, youth has to be skilled and employed. The employment generation in the organised sector has not been able to keep pace with the dynamics of labour supply. Majority of the output from the conventional system neither has the skill nor the exposure required by the prospective employer. Inability to provide them suitable employment can lead to bandwagon of socio-economic, political & cultural tribulations. The syllabi and the examination system do not allow conventional colleges to go beyond the constraints and make their output marketable and employable.
According to practitioners, entrepreneurship through start-ups can be panacea for the emerging situation. At the same time, the eco-system in the colleges is not conducive for the growth of entrepreneurship.
It is generally accepted that the conventional system is unfavourable for tapping the creativity into entrepreneurship. Entrepreneurship is taught in a theoretical manner without any practical exposure in many campuses. Internships are still a distant dream because it is beyond the university recommended syllabi.
Students are not exposed to the success stories of entrepreneurs. Similarly entrepreneurship failures, even from their catchment areas are not discussed in our classroom. There are no avenues in our colleges for healthy linkages with local, national & international entrepreneurs. The extension activities of the colleges has failed even to document the victorious entrepreneurship journey. Aversion to entrepreneurship is not just limited to the campuses. The asymmetric information about entrepreneurship among different stakeholders like peers, parents and the society at large contributed towards its neglect among students and youth.
This paper is an attempt to understand factors which hinder the flourishing of entrepreneurship in our campuses. The study will also identify the interventions required from different stakeholders for making our conventional educational institutions a hub for entrepreneurship & start-ups.
Keywords: Entrepreneurship, College, Campus, Start-Ups JEL Code: L26
*Government College Quepem, India. Email: [email protected]#Goa Engineering College, India. Email: [email protected]
37
International Conference on Economics & Finance Compendium of AbstractsDEMAND FOR MONEY IN INDIA: AN ARDL APPROACH
Abdul Rishad* , Akhil Sharma# & Dr Sanjeev Gupta$
Money is considered to be the life blood of an economy. Estimating money demand is important for monetary policy decisions as it determines the behavior of economic variables like inflation, production, interest rate and economic development. Despite the economic and financial reforms, majority of empirical research on money demand relies on the standard hypothesis that there is stable demand for money. Even though there are number of studies on demand for money, the results differ based on the time, variables and motives of such studies. Demand for money in the post-deregulation period in India, has attracted less academic attention. Majority of such studies have restricted their approach methodologically based on conventional econometric models. This has constrained the scope of employing their results to understand detailed dynamics of money demand in the present Indian scenario. To address these limitations, the present study seeks to empirically investigate the issue with an Autoregressive Distributed Lag (ARDL) model. Unlike the conventional models used in majority of the earlier studies, ARDL model can accommodate both stationery at level and First difference. This enables the present study to examine non-stationery (at level) variables which were beyond the scope of methodological premises of the earlier studies. Moreover, it facilitates easy calculation of short-term and long-term dynamics of money demand. Apart from addressing the methodological limitations and investigating an updated dataset, the present study also seeks to revisit the findings of previous literature related to Indian context. It further investigates the suitability of M3, in context of policy decisions. In order to develop the model, the study employs Consumer Price Index (CPI), Interest rates (I), Producer Price Index (PPI) and other economic variables for a period of 41 years from 1975 onwards. Based on the results, the study seeks to bring forth recommendations to facilitate formulation of effective monetary and inflation targeting polices required in the contemporary scenario to pursue the development goals.
Keywords: Money Demand, ARDL, Monetary Policy, M3JEL Code: E41
*Research Scholar, Department of Accounting & Finance, Central University of Himachal Pradesh, Dharamshala, Email: [email protected].#Research Scholar, Department of Accounting & Finance, Central University of Himachal Pradesh, Dharamshala, Email: [email protected].$Associate Professor & Dean, School of Business & Management Studies, Central University of Himachal Pradesh, Dharamshala, Email: [email protected]
38
International Conference on Economics & Finance Compendium of AbstractsTHE ROLE OF TECHNOLOGY TRANSFER AND IPR IN THE DEVELOPMENT OF
MICRO, SMALL AND MEDIUM ENTERPRISES.
Socrates Shahrour*
There is no doubt these days about the importance of technology especially for the micro, small and medium enterprises. It helps them to improve the productivity and save time and money, which means increased ability to compete in the market. Here the term Technology Transfer come into surface, because acquiring technologies has to go through many procedures whether the technologies are nationally or internationally transferred. Intellectual Property Rights have to be taken into account as well since most of technologies are protected by patents, licenses or other types of IPR protecting tools. Governments have to make policies and issue laws and legislations to facilitate the transfer of technologies and guaranty the inventor's rights at the same time. This paper will describe the classifications of goods according to the technologies embodied within the goods as well as the types and methods of technology transfer. After that the author will go through Indian polices regarding technology transfer and Intellectual Property Rights also the related acts and legislation. In the next step the author will analyze the structure of Indian imports of technology and MSMEs imports of technology in particular. And how the MSMEs are affected. Finally he will try to see how Indian government can benefit - as a WTO member- from TRIPS and GATS agreements in making policies and developing strategies that helps MSMEs to get new technologies.
Keywords: Technology Transfer, IPRJEL Code: O32, O30, O34
*Osmania University, India. Email: [email protected]
39
International Conference on Economics & Finance Compendium of AbstractsMONETARY POLICY SHOCKS AND CAPITAL FLOWS: AN INDIAN PERSPECTIVE
Aiswarya Thomas*
Financial integration has led to large scale capital movements across the economies. There is constant debate over whether global factors or the country specific factors are the major determinants of these capital movements. Many a studies conclude that global financial cycles and monetary policy shocks are responsible for the capital flows. However country specific factors such as macroeconomic fundamentals, quality of institutions, financial openness and exchange rate stability were also found to be the determinants of capital inflow to emerging market economies. Given this perspective, this study is an attempt to investigate the factors determining capital flows to India. In addition to that, this paper would also try to compare the global and country specific factors with respect to India. This study reveals that capital inflows are negatively correlated to VIX which is taken as a proxy for global financial cycles. Financial openness and exchange rate stability are factors determining capital inflows.
Keywords: Global Financial Cycles, VIX, Monetary Policy Shocks, Financial Integration. JEL Code: F4, E5
*Institute for financial Management and Research, India, India. Email: [email protected]
40
International Conference on Economics & Finance Compendium of AbstractsINVESTIGATING THE RELATION BETWEEN FINANCIAL DEVELOPMENT,
OPENNESS AND ECONOMIC GROWTH IN INDIA: AN ARDL APPROACH
Priyanka Menon*
This study aims at investigating the relation between financial development, trade openness and economic growth in India using the Autoregressive Distributed Lag (ARDL) bounds test approach for the period ranging from 1961-2015. We use principle component analysis to reduce the dimension and create a financial development index. The results suggest that the financial development has positive impact on the investment. In contrast, the findings also reveal that the trade has a negative impact on the investment. The results imply that for an improved productivity of the nation, investments have to be induced and this would be enhanced by sound financial system. This study also addresses the issue of non-stationarity.
Keyword: Financial Development, Economic Growth, Trade, India, ARDL.
JEL Code: O11, O16, O47
*Institute for Financial Management and Research, India. Email: [email protected]
41
International Conference on Economics & Finance Compendium of AbstractsEXAMINING THE LINKAGES BETWEEN FINANCIAL DEVELOPMENT AND
ENERGY CONSUMPTION IN INDIA
Seema Saini* & Yadawandana Neog#
This paper examines the long run equilibrium and the existence of causal relationship between financial development, energy consumption, economic growth and FDI in India for the period 1978 to 2014. The Johansen-Juselius maximum likelihood procedure in multivariate framework and Granger causality in the vector error correction framework (VECM) is employed to examine the co-integration and causal association between the considered variables. The results of Johansen-Juselius co-integration test shows that there is long run equilibrium relationship among variables. We also find that there is no long run causality between the variables, but there exists bi-directional short run causality between financial development and energy consumption in India. Based on these results, suitable growth policies are also discussed for India.
Keywords: Energy-Finance, Co-Integration, CausalityJEL Code: A10
*Indian Institute of Technology, Kanpur, India. Email: [email protected]#Banaras Hindu University, Varanasi, India. Email: [email protected]
42
International Conference on Economics & Finance Compendium of AbstractsFUNDAMENTAL DRIVERS OF THE INDIAN STOCK MARKET
Rubina Barodawala* & Diksha Ranawat#
The paper sketches historically the emerging Indian stock market economy from the birth of the Bombay stock exchange and the National stock exchange to the present. It focuses on analysing the return properties of securities on the stock market using higher moments of the return distribution viz., skewness and kurtosis. This is in recognition of the fact that return distributions are not normally distributed as assumed by Standard Mean Variance portfolio models. Consequently, it would help the investors in their forecast of market risk and portfolio adjustments with the help of studying these higher moments to access the risk and return trade off. This particular analysis which test for the significance of higher moments is likely to yield a deeper insight into the dynamics of stock market crises and booms. Moreover,the attempt here is to describe the stylised facts at a fundamental level to comprehend the extent of diversion from the normal and the reason's causing the difference. Thus, when the fluctuating nature of Indian stock market is correlated with these rudimentary factors it would yield a model of the risk factors of the stock market in different phases of the market.
Keywords: Booms & Crises In Indian Stock Markets, Skewness, KurtosisJEL Code: G01
*The Maharaja Sayajirao University Of Baroda, India. Email: [email protected]# The Maharaja Sayajirao University Of Baroda, India. Email: [email protected]
43
International Conference on Economics & Finance Compendium of AbstractsTECHNICAL EFFICIENCY IN INDIAN BANKING SECTOR: COMPARISON BETWEEN
DESIRABLE AND UNDESIRABLE OUTPUT FUNCTION
Shrabani Mukherjee* & Akshat Garg#
The financial crisis of 2008 had a limited impact on the banking sector mostly leaving it unscathed. The issue of increasing bad loans is the emerging challenge for Indian banks. The paper aims to compute the productive efficiency of Indian scheduled commercial banks over the period of 2006-2013 using Data Envelopment Analysis (DEA). It tries to make dynamic comparative analysis according to output oriented technical efficiency adopting two specific approaches, viz., Inter-mediation Approach and Operating Approach. Further, it captures the role of undesirable output on efficiency estimates like rising non-performing assets (NPAs) for public and private banks using two stage DEA (with NPA and without NPA). Bank-wise efficiency estimates highlight public banks, specifically, nationalised banks performing better than foreign banks and private banks over time. It has been observed that high net NPA ratio does not lead to lower efficiency levels under Inter-mediation Approach. In this approach, public banks perform better than private banks even with high levels of net NPA ratio. This signifies that technical efficiency can be improved with rising NPA if banks can their portfolio of instruments in a better way.
Keywords: Banking Institutions, Data Envelopment Analysis, Non-Performing Assets, Technical Efficiency, Input Output ModelJEL Code: E58, G21, C67, C43, C31
*Associate Professor, Symbiosis School of Economics, Symbiosis International (Deemed University), Pune, India. Email: [email protected]#Student, Madras School of Economics. Email: [email protected]
44
International Conference on Economics & Finance Compendium of AbstractsRECONSIDERING HEALTHCARE SYSTEM IN INDIA
Kanika Dhingra* & Nikit Dhingra#
The provisions of constitution of India is to provide and ensure that the citizens of the country have access to free healthcare services and thus the government hospitals have to give healthcare services free of cost to the needy. But still private healthcare sector is serving major part of the market. In other words, the developing countries like India have practiced such health care schemes in which government played a significant role for providing funds and delivering healthcare services. In spite of innumerable investments in health care sector; the healthcare services and schemes, which are desired by the consumers, are not same as those actually provided to them. According to this study, taking the present situation in most of the countries, the scheme to frame out a long duration scheme; i.e. national level healthcare service, can be considered as inefficient model. As per data analyzed in healthcare funding in India, the role played by the private players in healthcare system is emphasized in attaining elevated level of admittance to general and basic healthcare services. There are many problems, which are being faced by the people in regard of cost as well as the quality of the healthcare services. Most of the healthcare expenses are borne by the patients themselves and not through health insurance schemes. As the permeation of health insurance in India is very low. The insurance schemes offered by the private firms do not cover all the expenses borne by the patients. The developing countries like India and others should reconsider the strategies of healthcare sector offered by government and attempt to promote those services. Relatively the schemes provided by the private sector in healthcare should also be taken as an extension and not as a restraint in effective government schemes.
Keywords: Healthcare Services, Government Schemes, Developing Countries, Private Players, Funding.JEL Code: H51, I11, I12, I13, I18
*Research Scholar, IIFT, Delhi, India. Email: [email protected]#B.Tech. Graduate, MDU, Rohtak, Email: [email protected]
45
International Conference on Economics & Finance Compendium of AbstractsPOLICY IMPLICATIONS FOR FINANCIAL INCLUSION OF UNSKILLED LABOUR
MIGRANTS: INSIGHTS FROM GOA
Mridula Goel* & Saurabh Nayak#
"Migration is set to increase rapidly in the coming decade. As the people in India become increasingly mobile, the transfer of income in the form of domestic remittances is slated to increase dramatically. Since a substantial section of the labor flow comprises of daily wage earners, majority of which are financially excluded (as validated in this paper as well), there exists an inherent demand for safe, secure and efficient remittance systems that can be capitalized on by the banking sector to ‘pull’ these migrants into active financial inclusion. It has been well established that majority of remittances in India are channeled outside the formal banking system. Our research indicates that there appears to be a hidden, unfulfilled demand for remittances among the unskilled labor migrants. The phenomenon of migration thus spells a splendid opportunity for the banking sector to financially include a sizeable population in the country. Remittances can be an important channel to spread financial inclusion in the country. With a mandate from the RBI, banks have been arguably successful in providing an access to millions of unbanked through the ‘business correspondent model. Although the supply side factors are thus, being addressed, the banking sector seems to be facing challenges on the demand side in getting poor people use their services. The poor are either unaware of the benefits, if indeed there are any, that these financial services have to offer or are simply satisfied with their current financial arrangements. Either argument indicates that the perceived value is too low for the poor to change their current financial behavior. It is in this context that we focus on the case of poor labor migrants.
The paper presents its findings based on a primary survey conducted in the state of Goa which has been witnessing a considerable inflow of labour migrants annually. The need to increase financial inclusion amongst such groups is especially important as they are being viewed as a threat to internal security in the state. Our premise is that a financially included migrant having a stake in the development of host economy is less likely to be antisocial.
The paper proposes that there is need for a business approach tailored to financial needs and behaviour of the end user. In line with this, it not only attempts to assess the demand side challenges faced by the banking sector in promoting access to financial services but also tries to assess the willingness and ability of these groups to shift to mobile based platforms of financial inclusion. Our findings with regards to the readiness for mobile remittances demonstrate that given the choice there is a willingness on the part of labor migrants to shift to mobile based remittance systems. Thus, the spread of mobile usage can be a key instrument to increase the financial inclusion of labour migrants.
Keywords: Remittances, Financial Inclusion, Mobile Financial Services, Goa, Migrants JEL Code: O10, O16, O17, R23
*Associate Professor, Department of Economics, BITS Pilani, K K Birla Goa Campus, Zuari Nagar, Goa, India; Email: [email protected]#BITS Pilani, K. K. Birla Goa Campus, Zuari Nagar, Goa, India. Email: [email protected]
46
International Conference on Economics & Finance Compendium of AbstractsMEASURING THE ETHNIC AND POLITICAL DIVERSITY AND THEIR IMPACT ON
ECONOMIC GROWTH IN INDIA
Vivek Jadhav* , Abhishek Date# , Shubhangi Dubey+, Alexi Vishesh$ , Apoorva Mahendru** ,Debdulal Thakur## & Bidyut Kumar Ghosh$$
This paper studies the impact of social diversity and political structure on the growth of an economy. It discusses the various measurements of political stability and social diversity by constructing the indices for political coalition, diversity and ethnic heterogeneity. HHI (Herfindahl-Hirchman Index) is used to construct the effective number of political parties in the political system to reflect the degree of government coalition. Fractionalization and polarization indices are used for measuring social and ethnic diversity. Finally multiple linear regression model is run to find the impact of ethnic and political diversity on economic growth. It is found that social diversity has a statistically significant negative impact on growth rate while religion polarization has a positive impact. Effective numbers of parties has negative but statistically insignificant impact on economic growth.
Keywords: Effective Number of Political Parties, Ethnic Heterogeneity, Polarization Index, Fractionalization Index.JEL Code: O11; Z12; O53; D72
*Symbiosis School of Economics, Department of Symbiosis International University, 3rd Floor SCHC Building, Senapati Bapat Marg, Pune 411003, Maharashtra, India. Email: [email protected] #Email: [email protected]+Email: [email protected]$Email: [email protected]**Email: [email protected] ##Email: [email protected]$$Email: [email protected]
47
International Conference on Economics & Finance Compendium of AbstractsASYMMETRIC EFFECTS OF MONETARY SHOCKS ON OUTPUT AND INFLATION:
EVIDENCE FROM INDIA
Anubhav Gupta* , Aman Vohra# , Ashlyn D'souza^ , Mishika$ and Sartaj Rasool+
This study examines the impact of monetary shocks on output and inflation in India. The empirical results suggest that the positive and negative monetary shocks do not have symmetric impact on output growth and inflation. More precisely, the results indicate that the positive monetary shocks lead to higher level of inflation whereas the negative shocks do not seem to have significant impact on inflation. On the other hand, the negative monetary shocks result in lower level of output growth and the positive monetary shocks have lesser impact on the output. These findings are consistent with the predictions of menu cost models.
Keywords: Inflation, Output Growth, Monetary Shocks, AsymmetryJEL Code: E30, E31, E52
*Birla Institute of Technology and Science (BITS) Pilani, Dubai Campus, Dubai UAE -345055, United Arab Emirates Email: [email protected]#Birla Institute of Technology and Science (BITS) Pilani, Dubai Campus, Dubai UAE -345055, United Arab Emirates Email: [email protected]^Birla Institute of Technology and Science (BITS) Pilani, Dubai Campus, Dubai UAE -345055, United Arab Emirates Email: [email protected]$Birla Institute of Technology and Science (BITS) Pilani, Dubai Campus, Dubai UAE -345055, United Arab Emirates Email: [email protected]+Birla Institute of Technology and Science (BITS) Pilani, Dubai Campus, Dubai UAE -345055, United Arab Emirates Email: [email protected]
48
International Conference on Economics & Finance Compendium of AbstractsWHAT CAUSES VARIATION IN PERFORMANCE OUTCOMES OF SME ALLIANCES?
: A REVIEW STUDY
Rohit Prabhudesai* & Ch. V. V. S. N. V. Prasad#
SMEs require alliances in order to access the resources necessary for achieving competitiveness, but they also remain vulnerable to the risk of potential partner opportunism (Alvarez and Barney, 2005; Franco and Haase, 2013). Thus, researchers have tried to unravel how antecedents cause variation in performance outcomes of SME alliances, in order to improve the understanding on the topic. However, in doing so, the studies have not acknowledged the dual-level conceptualization of alliance performance provided by Christofferson et al. (2014), thereby obtaining inconsistent findings. Through a systematic review of 45 peer-reviewed studies which have analyzed the impact of antecedents on SME alliance performance, this study aims to determine how their impact on the two levels of alliance performance- alliance-level and firm-level, has been studied. The study finds that as opposed to traditional understanding wherein antecedents were thought to affect the unitary construct of alliance performance, they have a differential impact on alliance-level as well as firm-level performance.
Keywords: Small and Medium Enterprises; SME; Alliance; Alliance Performance JEL Code: M00
*BITS Pilani. K.K. Birla Goa Campus, India. Email: [email protected]#Faculty, Department of Economics, BITS Pilani. K.K. Birla Goa Campus, India. Email: [email protected]
49
International Conference on Economics & Finance Compendium of AbstractsDOES IDENTITY OF CONTROLLING SHAREHOLDERS TRIGGER INNOVATION
MOTIVES?
Anuja Sethiya* & M. Thenmozhi#
Innovation motives of firms are a key strategy to establish one’s unique identity and it is directly linked with firm’s expenditure on Research and Development (R&D). Investment on R&D activities has become an important factor for manufacturing and IT companies, as it can result in cost reduction and increase in productivity apart from increasing the long-term value of the firm by adding competitive advantage. Decision on R&D expenditure is very crucial for large firms, as agency conflict may arise between managers and controlling shareholders, since managers may focus more on the short term benefits and profitability, while shareholders focus on maximizing the long-term wealth. However, decision on R&D expenditure may vary with the variation in level and type of controlling ownership i.e. decisions on R&D expenditure may be dependent on the identity of controlling shareholders (Munari et al., 2010). This is a question of interest for Indian economy as well, which is also counted as one of the fastest growing emerging economies in the world. ER&D center announcements by countries in 2015, has listed India as no.1 R&D hub, leaving behind China and UK. These facts and evidences motivates us to examine the impact of controlling ownership on the innovation motives of Indian firms.
In this paper, we divide the controlling ownership on the basis of its identity, such as family firms (both standalone and consolidated), state-owned firms, domestic and foreign firms and examine the impact of each type of controlling ownership on R&D expenditure. Our preliminary analysis shows a positive association between family firms and R&D expenditure, we find state-owned firms also invest more in R&D activities. Probably, family firms and state-owned firms are more interested in long term investment rather than short term growth and thus motivate to increase the investment in R&D activities, future technologies and innovation strategies. While foreign firms invest less in R&D activities and are more prone towards short term growth and investment.
Keywords: R&D Expenditure, Controlling Shareholders, Family Firms, State-Owned FirmsJEL Code: G30,G32,O32
*Indian Institute of Technology Madras, India. Email: [email protected]#Indian Institute of Technology Madras, India. Email: [email protected]
50
International Conference on Economics & Finance Compendium of AbstractsFACTORS DETERMINING DURATION OF CREDIT CYCLE IN SBLP HOUSEHOLDS:
A CASE STUDY OF TAMIL NADU
Dr. T.K. Venkatachalapathy* & Erra Kamal Sai Sadharma#
Since Indian independence, the proportion of financially excluded people in the population has been very high. To promote financial inclusion and rural development in the country, the government initiated the Self-Help Group Bank Linkage Programme (SBLP). Self-Help Groups (SHGs) facilitate easier access to credit from banks to their members. Subsequent loans are extended to SHG members on repayment of earlier loans. The period between extending two consecutive amounts of loans is referred to as credit cycle. The aim of this paper is to examine the factors determining the duration of credit cycle among SHGs in Madurai and Ramanathapuram districts of Tamil Nadu. The study randomly sampled 400 SHG households from 133 SHGs groups during 2013-14. The duration of credit cycle is defined as the time taken (in days) by a member of an SHG to repay the previous loan so as to avail the next loan. The duration of credit cycle differs for households as well as for SHGs due to variations in various socio-economic factors. It was observed from the analysis that higher total loan amount implies a longer credit cycle, while attendance at SHG meetings and holding a MGNREGA card are negatively associated with the duration of the cycle. On the other hand, annual household income and experience with SHG groups are seen to have minimal impact on the credit cycles length.
Keywords: Self-Help Groups, Credit Cycle, Tamil NaduJEL Code: G29, O10, O12
*& # University of Hyderabad, India. Email: [email protected]; [email protected]
51
International Conference on Economics & Finance Compendium of AbstractsUNDERSTANDING FIRM-LEVEL INNOVATION AND PRODUCTIVITY IN INDIA
Aswini Kumar Mishra* , Abhijeet Khasnis# , Sai Theja Vadlamani$ & Abhishek Kumar Sinha^
The paper focuses on the different types of innovation and the effect it has on the productivity of the firms in India. Innovation in this case has been measured using three main measures: Product innovation, which focuses on the newly introduced products, Process innovation which focuses on the adoption of new techniques and Organisational innovation which focuses on the firms which have adopted new organisational structure. The data used in this report is firm level data that has been obtained from World Business Enterprise Survey. The paper aims to contribute to the nascent literature that analyses the effect of innovation inputs and outputs on the productivity of the firms in a developing country like India using the structural Crepon-Douget-Mairesse(CDM) model that links R&D expenditure, Research expenditure (comprising of R&D expenditure and training and equipment expenditure) and innovation output with the productivity of the firms in India. The results that have been obtained from our econometric models suggest that the probability for a firm to engage in research increases with increase in the size of the firm and is impacted by the perceptions of the obstacles it faces. The innovation output in case of R&D expenditure and Research expenditure increases with the size of the firm and is positively impacted by capital intensity. Firm productivity, which is measured by sales per worker is being affected by the innovation output and is significantly being impacted by the capital intensity and the number of employees which serve as controlling factors. Overall, this study lays more emphasis on the effect innovation outputs have on the overall productivity of the firms in India which are in essence a consequence of the innovation inputs.
Keywords: Innovation, CDM model, IndiaJEL Code: O31, O38, Q55
*Faculty, Department of Economics, BITS Pilani KK Birla Goa Campus. Email: [email protected]#Student, MSc (Hons) Economics and BE (Hons) Electrical and Electronics Engineering, BITS Pilani KK Birla Goa Campus. Email: [email protected]$Student, MSc (Hons) Economics and BE (Hons) Mechanical Engineering, BITS Pilani KK Birla Goa Campus. Email: [email protected]^PhD Scholar, Department of Economics, BITS Pilani KK Birla Goa Campus. Email: [email protected]
52
International Conference on Economics & Finance Compendium of AbstractsA LOW CARBON SUPPLY CHAIN CONFIGURATION FOR AN FMCG ENTERPRISE
Remica Aggarwal* & S.P Singh#
Environment protection has become a major concern, especially following the adverse impacts of unchecked harmful carbon footprints over the world ecological cycle. Managing the supply chains sustainably under consideration of both environmental as well as economic issues is a herculean task for any entrepreneur particularly in a developing country like India under the cut throat competition for survival.
A supply chain design focuses on global adjustments of production plants and distribution or demand centres of the firm and its links to the suppliers and customers. Traditionally, Supply chains focuses on either cost minimization or profit maximization seldom taking in to account the environmental aspects. That is where the concept of green supply chain now comes in to picture. Although a lot has been written about green supply chain, supply chain management concerns, carbon footprints and sustainable supply chains in newspapers, magazines, the area is quite new for research community. Research on Supply Chain Configuration for new product represents a comparably new trend and needs to be explored further. The integration of Supply Chain Configuration decision making in to new product development processes offers large optimization potential. However, comparably few research papers suggest the models to configure new products and that too about FMCG products.
The research paper tries to addresses this research area and proposes a conceptual framework and a mathematical model for a low carbon supply chain configuration for a (hypothetical) FMCG manufacturing enterprise in the event of uncertain demand from the demand centers. The multi-objective optimization model proposed focuses in providing a compromising solution to multiple conflicting objectives of minimizing the total costs due to procurement, production, storage and transportation subject to a strict carbon emission cap and operational constraints such as minimum lot sizes and capacity at the supplier and production plants and demand requirements at the various demand zones.
Keywords: Carbon Emissions; CO2 Equivalents; Environmental Policy; Economic PolicyJEL Code: C44; C54
*Department of Management Studies, IIT Delhi, India. Email: [email protected]#Department of Management Studies , IIT Delhi, India
53
International Conference on Economics & Finance Compendium of AbstractsINFORMATION TRANSMISSION IN POST RECESSION ERA: EVIDENCE FROM
INDIA, CHINA, HONG KONG AND JAPAN
Dr. Ashish Kumar* & Ms. Swati Khanna#
Purpose: The study proposes to investigate lead lag relationship in price discovery, volatility spillover and leverage effect in stock markets of four Asian countries namely India, China, Hong Kong and Japan.
Design and Methodology: Data has been collected from a period from April, 1, 2010 to October, 31, 2016 which marks the post-subprime crisis era. Data consist of daily market indices of Hang Seng Composite for Hong Kong, Nikkei for Japan, Shanghai Composite Index for China and Sensex for India. Johansson Co-integration Test, VEC model, Granger Causality Test, ARCH LM test and EGARCH model is employed to examine and explore price discovery, volatility behavior and Leverage effect from one country to another.
Findings: In post crisis period India is co- integrated with China but is not integrated with Hong Kong and Japan. China is co-integrated with Hong Kong but not with Japan. Hong Kong and Japan are co integrated with each other. India leads China in price discovery process. Hong Kong leads China and Japan in price discovery process. Volatility spillovers have been found among select Asian countries in post-recession era. Leverage effect is observed among all market pairs except for Hong Kong and China. Good news information transmission generates less volatility for stock markets of India, Hong Kong and Japan but on the contrary, good news information transmission generates more volatility for stock markets of China.
Originality: The research contributes to existing literature on Lead Lag relationship in price discovery, volatility spillovers and leverage effect in stock markets and is one of the very few studies conducted for select Asian countries. Most of the studies in literature focus on developed countries of US, UK, Europe and Asia. Multivariate GARCH model has been used extensively for Analysis. In this study we have used Johansson Cointegration Test and VEC model for price discovery and E-GARCH model to analyze leverage effect.
Keywords: Unit Root Test, Financial Crisis, Co-Integration, Granger Causality, E-GARCH, Volatility Spillover.JEL Code: C-58, G-14, G-170
*Assistant Professor, University School of Management Studies, GGSIP University, Delhi, India. Email: [email protected]#Research Scholar, University School of Management Studies, GGSIP University, Delhi, India.Email: [email protected]
54
International Conference on Economics & Finance Compendium of AbstractsA STUDY ON BUYBACK OF SHARES IN INDIAN IT INDUSTRY
Dr. Gurendra Nath Bhardwaj* & Ayushi Goel#
Repurchasing of issued shares by companies has become a bandwagon. Firms in almost every sector can be found indulging in this activity. This paper intends to find out the reason behind this frenetic increase in share buyback. Examination of data suggests, distribution of excess cash as the main motive of share buyback including others like possible threat of takeover and exercising stock options by the firm. Signaling hypotheses is another popular repurchase theory (Fried, 2000).
Various methods can be used to inspect a buyback decision and data relating to the pre-announcement and post announcement return has been analyzed. The believed trend of EPS increasing because of buyback has also been scrutinized. There is no doubt that a repurchase will increase EPS but to what extent and if that extent is countable is what matters (Gupta, 2016; Sarin, 2016). Additionally, the impact of a repurchase by a firm on the industry as a large can been seen. Since the buyback laws of most of the countries are quite flexible, the real motive behind a buyback stays a mystery due to data limitations and unavailability of disclosure policy about the same (Harris & Ramsay, 1995). The present research uses statistical tools like Regression Analysis, correlation, Auto regression, and Python Plot Visualization etc. to speculate data.
This paper gives a special focus to the IT industry where buyback has unfurled itself and growing at a fast pace. This includes the recent buyback announcements by Cognizant, TCS and Infosys. It can be seen that for most of the firms, this is the most common way of cash distribution though some players of the industry like Wipro, Tech Mahindra and HCL Technologies are not seen participating in the same. Studies have also been conducted to see the impact that the first buyback scheme by a company has versus when it comes to the market repeatedly (Hyderabad, 2009).
Finally, the paper not only works on the objectives of a buyback; finding its shortcomings and the general trend of activities before and after a buyback, but it also intends to draw relation between the IPO/FPO of the same company which is issuing the share repurchase and inspect the change in equity return because of the method of repurchase adopted. Equity return in the respective market, and industry return will also play an important role to take decision of buyback of shares (Otchere & Ross 2001).
Keywords: Capital and Ownership Structure, IPOJEL Code: G320, G240
*NIIT University, Neemrana, Rajasthan, India. Email: [email protected]#NIIT University, Neemrana, Rajasthan, India. Email: [email protected]
55
International Conference on Economics & Finance Compendium of AbstractsAN ANALYTICAL STUDY ON INDIAN CURRENCY MARKET
Dr. Gurendra Bharadwaj* & Prajwal B. Ainapur#
Currency price is one of the very few factors which has a very significant effect on every aspect of macro-economic environment such as balance of trade, inflation etc. The balance of trade is severely influenced by the sectors which play a major role in the imports and exports of a country. In the context of India, Gold and IT are two such sectors which hold a large chunk of imports and exports respectively. Currency fluctuations are a major driver of these imports and exports. From an investor’s perspective, currency has its association with many investment instruments be it gold, equity, debt derivatives or indices of stock market. Thus, the currency market plays a key and vital role in the economy of a country from all the frontiers be it the economic indicators or the commodities. Therefore, there is a need to analyze the factors which affect the strength of the currency with special reference to the Indian economy and to figure out the indicators which could be used to predict the currency fluctuations in the coming years. The extent of association of the currency with the indicators would help the economic decision makers to simulate the effects before passing any government policy. The primary indicators that would be focused in this paper are balance of trade, foreign reserves besides also analyzing the impact of government policies and gold prices. The study is descriptive in nature based on secondary data collected from a reliable source. Statistical tools like linear regression analysis and granger causality test etc. shall be used for the analysis of the obtained data.
Keywords: Balance of Trade, Gold, FOREX Reserves, Currency Market.JEL Code: E42; E44; E52
*NIIT University, India. Email: [email protected]#NIIT University, India. Email: [email protected]
56
International Conference on Economics & Finance Compendium of AbstractsSOCIO-ECONOMIC FACTORS AFFECTING FINANCIAL LITERACY AMONG
INVESTORS OF RUDRAPRAYAG REGION OF UTTARAKHAND STATE
Dr. Amar Johri* , Dr. Shailendra Kumar# & Mr. Rajeev Rana$
Financial Literacy has been considered as one of the strongest attribute for the development of a financial system of an economy. Financial literacy is offset also known as an important part of financial planning, which is now an essential part of every individual. Financial literacy is a process of framing sound financial goals, obtaining sound financial skills and making sound financial planning in order to achieve better financial results. Financial literacy is an important component to be studied, before and after making an investment, however level of awareness of financial literacy is not acknowledged in a broader sense in rural areas in Indian context.
In today’s scenario, the awareness of financial literacy is also a big challenge for all developing countries. One side countries are bringing new and innovative changes in financial products and markets and on second side, creating the awareness about the same products and markets are now a big challenge for their concerned governments.
India as a country counts maximum young population, which may also contributes in increasing the investment corpus of financial market, but this could only possible when there is ample opportunity of financial literacy awareness. This awareness also varies between urban investors and rural investors. Therefore the present study focuses on to understand the factors affecting level of financial literacy awareness among rural investors in Indian context.
The present study is based on both primary and secondary data. Primary data is collected through a structured questionnaire, designed with help of previous empirical literature and secondary data is collected through various magazines, published literature and the source of print and electronic media. It is important to analyze the key factors affecting socio-economic issue of financial literacy among investors of rural investors in India. This paper is an attempt in this direction. The paper reports key factors based on socio-economic judgment on different dimensions of financial literacy among the investors of Rudraprayag region of Uttarakhand State in India.
Keywords: Financial literacy, Socio-Economic factors, Financial Education.JEL: A20, D91
*Graphic Era (Deemed to be University) Dehradun; Email: [email protected]#IIIT Allahabad; Email: [email protected]$Govt. PG College; Email: [email protected]
57
International Conference on Economics & Finance Compendium of AbstractsECONOMIC COSTS OF STRESS AND ADJUSTMENT NEUROTICISM SHIFTS IN
NAVY PILOTS (AVIATION) SECTOR
Mavis Henriques* & Dr. Debasis Patnaik#
Navy pilots reach front-line training for single pilot operation, through a higher level of practical and structured skill training necessary for handling complex mission and weapon systems. This corresponds to a mental training that aims to make them responsible, logical and norm following workers. However the economic costs of stress may make them anxious, unhealthy to fly and may hamper their performance while on duty. As tactical problem solvers they are supposed to be independent, capable of quick decision taking, intelligent assessment of criticisms and retain their free spirited attitude. Coupled with psychological adaptability to situations they are tactical problem solvers while in flight for safe negotiating and landing. However stressful economic conditions may psychologically affect their decisions in handling complex tasks. This paper tries to assess the economic cost of stress leading to neuroticism and the differences in neuroticism adjustment in situational contexts for efficiency. Data was collected through a Personal Data Questionnaire, Adjustment Neuroticism Dimensional Inventory (ANDI) by Dr. Ram Nayan Singh and Dr. Mahesh Bhargava, Flight Management Attitudes and Safety Survey (FMASS) by Sexton, Wilhelm et. al. and the General Health Questionnaire by Goldberg and Williams. The findings of the study indicate significant differences as a result of training-years, hours on duty and shifts undertaken on adjustment neuroticism for situations in flight management and safety situational decision making and moments of wellbeing of naval pilots. Keywords: Adjustment- Neuroticism, Flight Management Attitudes, Economic Costs. JEL Code: R41
*PhD Scholar, Department of Economics, BITS Pilani, K.K. Birla Goa Campus, Zuarinagar. Email: [email protected]#Faculty, Department of Economics, BITS Pilani, K.K. Birla Goa Campus, Zuarinagar. Email: [email protected]
58
International Conference on Economics & Finance Compendium of AbstractsTHE IMPACT OF MGNREGS ON RURAL LABOUR MARKETS AND AGRICULTURE;
A STUDY OF MADHYA PRADESH
Dr T Prabhakar Reddy*
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) can be construed as an opportunity for revitalising agriculture, restoration of ecosystems besides providing livelihood security to the poor and unemployed. The eight categories of works under MGNREGS largely address the key concerns of agriculture. MGNREGS aimed at enhancement of livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work, to create durable assets, and thereby strengthen the natural resource base (MGNREGA, Operational Guidelines, 2008). MGNREGS, India’s main public works programme is unique, being large in size and intended to cover long periods, disburse huge funds and dynamically responsive to climatic and rainfall conditions.
The scheme has two major implications for the Indian economy. Firstly, it will address the rural crisis and the consequent demand deficiency (effective market demand) that has emerged in the post economic reforms period, and secondly, it will use the surplus manpower, especially women, for generating assets that expand the labour absorbing capacity of the mainstream economy to raise the rate of growth of sustainable employment in the economy. Both these implications are interrelated and together, they are capable of promoting pro-poor growth and rural livelihoods in the countryside.
The objective of the study is to assess the impact of MGNREGS on rural labour markets, ascertain the changes in land use, cropping pattern and micro irrigation development in agriculture among others. The study concluded that for both male and female workers in rural areas, the MGNREGS has made a difference in terms of increasing the wage rates for casual work. The real wages increased for both male and female workers and indeed more rapidly for female workers. The study demonstrated that during 2004-05 and 2007-08, person days of employment of rural women in public works increased around 4.4 times, a remarkable shift in terms of involvement in paid work. This was possible because there is hardly any gender gap in the wages paid and secondly, average wages received in MGNREGS were significantly higher than those received by casual labour in other kinds of work.
Further, we have examined the participation of women in MGNREGS, their employment rates and enhancement of income in the state. We tried to see whether there is any gender balance in terms of employment and income generation to the below poverty line (BPL) population. It was found that there is a reduction in the gender wage gap due to the MGNREGS. The impact is direct in terms of the higher wages paid to women in this scheme; indirect in terms of the effects on women workers’ reservation wages and bargaining power among others. Finally, it can be concluded that
*Senior Consultant, Policy, Planning and Evaluation, UNICEF, Patna, Bihar. Email; [email protected] ph; 7330795956
59
International Conference on Economics & Finance Compendium of Abstractsfor all its limitations and difficulties, the scheme had already positive effects on women workers in rural labour markets. It has caused real wages to rise, gender gaps to come down and open unemployment rates of women to decrease.
The pattern of land utilisation showed that there exists 43 per cent agricultural land, 39 per cent forest land, 14 per cent barren land and followed by 4 per cent grazing land. About 3 per cent fallow land has been brought under cultivation in the last five years. As regards the irrigation sources and its potential it is clear that 61 per cent is through dug wells followed by minor tank irrigation (16 per cent) tube wells (8 per cent) medium tanks and dams (8 per cent) and other sources (5 per cent). While irrigation is improving due to MGNREGS works the land brought under cultivation is also rising. It is a fact that the kapildhara wells have become a successful initiative in the state given the suitability and the need for irrigation in an undulating land.It has been observed that there is a tremendous improvement in micro irrigation through Kapildhara wells and field bunding which has become a success in the state and resulted in changes in cropping pattern and established that the resources can be used in a sustainable manner.
The permanent structures like stop dams, kapildhara wells, and cement roads in few places have been taken up under MGNREGS while not so permanent structures are gravel roads, check dams, field bunding, tank excavation and horticultural plantations. Stop dams and check dams across nalas and small rivers provided very good recharging of ground water and restoration of ecosystem benefiting all types of farmers while providing immediate irrigation to the nearby fields. By seeing the water conservation measures under MGNREGS some farmers have invested money in digging bore wells whereas others have spent on land levelling etc. Strictly speaking, the private investment was forthcoming though in a small way but went hand in hand and thus managing natural resources is a clear cut shift in the development of agriculture. Public investment accompanied by private investment created assured irrigation and resulted in changes in cropping pattern which is in favour of cash crops and improved incomes to the farmers.
60
International Conference on Economics & Finance Compendium of AbstractsIMPACT OF SOCIO-ECONOMIC STATUS ON MIGRANT WORKERS: A STUDY OF
JEYPORE CITY OF ODISHA, INDIA
Eva Mishra*
The research study focuses on socio-economic condition and problems of migrant workers in Jeypore city of Koraput district. The migrant workers face several problems such as low wages health hazards and denial of their fundamental rights. Through this study the researcher aims to analyses the life of these migrant workers in Jeypore. The specific objectives of the study are to identify the occupation, economic status; child care services available, health problems & the main reason to come to Jeypore and the expectation of migrant workers. The research design used for this study is descriptive. The sampling strategy used is sample random method. Data was collected from 100 respondents using an interview schedule by directly interviewing the respondents. Majority of these laboures came from rural Odisha. The economic state of these laboures in the city was not very satisfactory as majority did not own any assets & durables. The local labourers were better off than the migrant labourers economically, socially and even at the work place the employers preferred migrant labourer over local labourers for being easily available & dependable. The reason for non-preference was identified as language problem. Making awareness of rights and policies definitely make a change in their lives in the future.
Keywords: Migration, Economic Status, Health Hazards And IndiaJEL Code: K37, O15, R23
*Research Assistant, Dept. of Humanities and Social Sciences, National Institute of Technology (NIT), Rourkela-769008, Odisha, [email protected]
61
International Conference on Economics & Finance Compendium of AbstractsSUSTAINABILITY OF INDIAN SOLAR PANEL INDUSTRY: ALTERNATIVE POLICY
ANALYSIS
Krutarth Nakade* & Rajorshi Sen Gupta#
Solar energy is being considered as a viable source of alternative energy. The purpose of this research was to examine the economic feasibility of solar panel manufacturing in the context of recent 2017 WTO ruling against JNNSM, India’s flagship program which mandates Domestic Content Requirement for the Developers. Given this setback, partial equilibrium analysis isconducted in order to analyze the impact of the four alternative policies: a) Domestic Content Requirement (DCR) regime b) Non-DCR regime c) Direct subsidy to manufacturers and d) Import tariff policy. Alternative policy scenarios are examined to measure the impact of removal of DCR on the domestic manufacturers. Given various sources of uncertainty in policy formulation stage, a simulation analysis is also conducted to analyze the viability of Indian solar panel manufacturers under these four regimes. It is found that providing direct subsidies to the solar panel manufacturers or import tariff would be the optimal policy for sustainable development of the solar panel manufacturing industry.
Keywords: Jawaharlal Nehru National Solar Mission, Domestic Content Requirement, Subsidy, Tariff, Simulation JEL code: F13, Q48, Q56
*Department of Economics and Computer Science, BITS Pilani KK Birla Goa Campus, India. Email: [email protected]#Faculty, Department of Economics, BITS Pilani KK Birla Goa Campus, India. Email: [email protected]
62
International Conference on Economics & Finance Compendium of AbstractsCOMPARATIVE LAND, LABOUR & AGRARIAN PRODUCTIVITY: INDIA’S MILLION
MUTINY IN MAKING
R P Pradhan*
A total of 2, 96,438 farmers have committed suicide in India in the last over two decades which is much larger than entire causality linked to Naxal violence in India and also far higher than global terrorism casualty during the same period. While Green revolution delivered high productivity in select areas and select agriculture products, the absence of subsequent productivity planning has almost left India in the making of a million mutinies that are arising in the hinterlands of India.Sadly enough, when we look at comparative data, India had more arable land than China in 1960 and both produced similar quantity of food grains. However, China today produces more than double per unit of land than India. Even countries like Bangladesh, Pakistan, Vietnam, Thailand and South Korean per unit land yield is higher than India’s productivity.
While the land productivity has stagnated in India, the larger problem of development management of India’s labour market structurally remains a huge challenge. While less than 3% of developed economies labour market works in the Agriculture Sector, India sports around 50% employment in the sector with a GDP contribution of less than 20%. Nearly 60% of Chinese are in the labour market compared to India’s 41%. More strikingly, China’s Agriculture Sector employment dependency is nearly 17% lower than that of India.
Some six decades ago, development economists like Arthur Lewis, Bosurepian Model, Rosenstein Rodan’s Big Push Approach or Ragnar Nursk’s Balanced Growth Model have very conclusively shown the way. India has neither adopted any indigenous novelty nor responded to international development theories or experiences in the sector and net effect of such neglect is huge agrarian under productivity; lopsided labour market structure and farmer suicide.
In the context of India’s Agrarian challenges which is also linked to India’s Naxal uprising and appeal, this paper examines the critical structural challenges and policy neglect to the issues of India’s Labour Market restructuring; Land and its productivity challenges and provide policy suggestions.
Keywords: Agrarian; Nursk; Bosurepian; Mutiny; Labour JEL Code: J01, J43, O20, O57, Q10
*RP Pradhan, Associate Professor, Dept. of Humanities & Social Sciences, BITS Pilani KK Birla Goa Campus is a PhD in International Relations with Political Economy focus. Email: [email protected]
63
International Conference on Economics & Finance Compendium of AbstractsENTREPRENEURSHIP ECOSYSTEM DEVELOPMENT IN ACADEMIA-CONCEPTUAL
EVALUATION
Dr Shantanu Chakravarty*
Entrepreneurship as term is not new for academia. Historically, civilization process provided enough evidence to establish the fact that human beings are enterprising in nature by birth. Societal structure changes with civilization process and now entrepreneurship is the most searched word even in search engines. Under this context in the present research work we had tried to establish how in academia term has been considered apart from debated to adopt various models to implement so that students can be inclined towards creating jobs for self and others. Organizations like Google, Facebook emerged from students to mention few and providing jobs apart from created a revolution in connectivity. India is also not an exception, Flipkart, OYO rooms are classical example.Socio economic structure shifting from job application to startup creation, debate emerged, almost 90 percent startups fail so what are the options for academia to create an entrepreneurial ecosystem to nurture student startups. Every entrepreneurial ecosystem development model is claiming to be the best option, however, researcher presented a live case developed through conceptual basis while implementing ecosystem development model in own university. Since 2013, researcher working on the model even quite a good number of micro-startups emerged from the model implemented, founders trying to establish themselves in market place. Ecosystem development model presented in the paper has already been appreciated by many academicians who are policy makers apart from national level platforms who are mentoring campuses. Researcher in the present conceptual work tried to evaluate some academic models to evaluate implementation framework development which can help academic institution to adopt during curriculum development. Enough focus has been provided on treatment group and non-treatment group experiment so that academicians can consider during curriculum development. An exhaustive study can also be initiated on treatment group and non-treatment group as part of scope of this study. Adequate utility for policy makers can be considered as outcome of the present research work.
Keywords: Entrepreneurship, Ecosystem, AcademiaJEL Code: M00
*Parul Institute of Business Administration, Parul University, Baroda, Gujarat. E-mail: [email protected]/[email protected]
64
International Conference on Economics & Finance Compendium of AbstractsDEVELOPING A BENCHMARK FOR PREVENTION OF INDUSTRIAL WATER
POLLUTION
Sandra D’Sa* & Dr. Debasis Patnaik#
For decades, India has extensively used the Command and Control (CAC) approach to set effluent standards to curb water pollution by the chemical industry. However, this approach has its limitations in terms of resource constraints, monitoring mechanisms, low compliance costs and slow legal enforcement. Conventional measures and parameters of Chemical Oxygen Demand (COD), Total Dissolved Salts (TDS) and pH are rather insufficient to devise a waste management strategy of recover and recycle/reuse. For prevention of industrial wastewater pollution, the characterization of the effluent wastewater stream into its chemical constituents becomes the bedrock upon which pollution abatement and waste management strategies and solutions to either mitigate or remediate the effect on the receiving water body can be devised. Knowledge of the chemical constituents that comprise the conventional effluent parameter values therefore is the first step required to enable the evaluation of the various technology options available for recovery, reuse and recycle as first recourse rather than treating the effluent streams for disposal by default. This paper seeks to study the values of the conventional parameters of wastewater streams of some Indian chemical manufacturers and compare these values with the values of the same wastewater stream in a form that is characterized into its individual chemical constituents. Primary data from chemical manufacturers was obtained both in the form of conventional parameters as well as the individual chemical species that constitute the conventional parameters. A scoring mechanism is developed based on the knowledge level of the chemical constituents of individual wastewater streams emanating from the chemical production processes. Based on the percentage of chemical constituents’ composition in the wastewater stream, the scores are given. A higher score could indicate a higher possibility of an organization looking for technology options that can recover the individual constituents either for reuse or sale. A lower score could indicate that the conventional waste management strategies would continue to be in force. This score presents the organization with an opportunity to make economic and managerial choices to ascend the hierarchy of waste management from ‘treat and throw’ to ‘recover and reuse’.
Keywords: Water Pollution, Industrial Effluents, Chemical Oxygen Demand (COD), Total Dissolved Salts (TDS), Wastewater Characterisation, Recovery, RecycleJEL Code: Q53, Q56, Q57
*PhD Scholar, Department of Economics, BITS Pilani K K Birla Goa Campus. Email: [email protected]#Faculty, Department of Economics, BITS Pilani K K Birla Goa Campus. Email: [email protected]
65
International Conference on Economics & Finance Compendium of AbstractsINFLATION AND THE DISPERSION OF RELATIVE PRICES :
A CASE FOR 4% SOLUTION
Sartaj Rasool Rather
Unlike earlier literature that documented positive association between inflation and the dispersion of relative prices over time, the empirical evidence from this study suggests that the relative price dispersion increases in response to the deviation of inflation from certain threshold/target level in either direction rather than inflation per se. The striking feature of the empirical evidence from US and Japan is that the inflation rate at which the dispersion of relative prices is minimized turn out to be 4%; hence, supporting the proposal of 4% inflation target for both the countries.
Keywords: Inflation Uncertainty, Relative Price Dispersion, Rolling Cointegration, ThresholdJEL Code: E30; E31; E52
*Assistant Professor (Economics), Department of Humanities and Social Science, BITS Pilani - Dubai Campus; Dubai Academic City, Dubai - 345055 Email : [email protected]
66
International Conference on Economics & Finance Compendium of AbstractsINDIA AND THE ASEAN: A STUDY ON THE COMPETITION AND CO-OPERATION
IN THE COMMODITY TRADE
Radha Raghuramapatruni*
MSME Regional integration arrangements are popular phenomenon of the present global economic order and this feature is now an acknowledged future of the international scene. Even though Regionalism existed for long time over the centuries, it has never been risen as rapidly as in the last two decades. Presently, almost all the countries are the members of atleast one regional block. ASEAN (Association of South East Asian Nations) is today a dynamic, rapidly growing regional group that strives to effectively manage both its diversity and growth. Historically both the nations share centuries-old political, economic and cultural ties, and are also the natural partners. Geographically, India shares maritime borders with Indonesia and Thailand and a land border of 1600 Kilometers with Myanmar. The economic relations and especially trade relations between India and the ASEAN nations have been growing rapidly in the recent years especially from the year 1991 and more so, since India has become a sectoral dialogue partner of the ASEAN during the year 1992. India and the ASEAN uphold each other’s centrality in shaping the evolving regional architecture. In pursuit of this objective, India’s Look East Policy had morphed into Act East in the year 2014. The ASEAN-India put together consist one of the largest economic regions with a total population of about 1.8 billion. ASEAN is currently India’s fourth largest trading partner, accounting for 10.2 percent of India’s total trade. India, on the other hand, is ASEAN’s 7th largest trading partner. India’s service oriented economy perfectly complements the manufacturing-based economies of the ASEAN countries. The annual trade between India and the ASEAN stood at 65.04 billion during the year 2014-15. The main objective of the paper is to analyze India’s trade performance with the ASEAN and to explore the comparative advantage and competitiveness between India and the ASEAN countries with respect to commodity trade between the two. The researcher employees various indices Viz. Revealed Comparative Advantage Index (RCA), Revealed Import Dependency Index (RID) and Gravity Index (GI) to obtain the results.
Keywords: ASEAN, Regional Trade, Revealed Comparative Advantage, Revealed Import Dependency Index, Gravity Index, India's Look East Policy .JEL Code: B27
*Associate Professor, GITAM School of International Business, GITAM University, Visakhapatnam-45, Andhra PradeshEmail: [email protected]
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