South Asia Economic Journal最新文献

{"title":"An Analysis of Trade Credit Behaviour of Indian Firms","authors":"N. Kumar, Arvind Shrivastava, Purnendu Kumar, M. Bhatti","doi":"10.1177/13915614211009659","DOIUrl":"https://doi.org/10.1177/13915614211009659","url":null,"abstract":"Trade credit transactions are quite common for businesses. The article carries out the trade credit analysis for an emerging economy, namely Indian corporate sector employing rich information dataset covering multiple industries such as manufacturing, services, construction and others, since the period of financial crisis including both firm specific and macro-economic factors. The annual dataset spans 13 years from 2006 to 2018 covering the crisis period. Applying dynamic panel framework, it is found that the inventory management and macro indicators are significant in determining trade credit for Indian firms. While trade payable is chiefly driven by raw material inventory, firms having reasonable stock of raw or finished goods inventory are less likely to offer trade credit. Large-sized firms are found to be both leading consumers and suppliers of the trade credit. The pecking order theory is clearly validated with net profits being preferred over the trade credit that is a more expensive source of finance. Credit from formal financial sources is found to act as a substitute to trade credit borrowing. JEL: G3, G21, E4, C23","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84172372","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Structural Transformation in South Asia: Does the Pattern Ensure Growth Momentum?","authors":"R. Jha, S. Afrin","doi":"10.1177/1391561421989855","DOIUrl":"https://doi.org/10.1177/1391561421989855","url":null,"abstract":"We model the evolution and determinants of shares of agriculture, manufacturing and services to gross domestic product for four South Asian countries (Bangladesh, India, Sri Lanka and Pakistan) for 41 years (1974–2018) to understand their structural transformation pattern. Determinants of shares were classified into three broad categories: ‘country fundamentals’, ‘policy’ and ‘decadal dummies’. This is the first article to investigate the empirical regularities of the structural transformation pattern and their determinants for this region. The generalized least squares estimation technique for panel data was applied. We find mixed evidence in support of structural transformation. With the increase in per capita income, the share of agriculture decreases and that of services increases, partially supporting the Kuznets hypothesis; however, the share of manufacturing sector shows a more tepid rise and even decreases in some model specifications. Thus, the Kuznets model of structural transformation is supported to some extent, but not strongly for these countries. JEL: C22, C23, F63, O11","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78061704","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An Estimation of the Implementation Costs and Financing Options for Introducing a Universal Pension Scheme in Bangladesh","authors":"Mustafiz Rahman, T. I. Khan, Mostafa Amir Sabbih","doi":"10.1177/13915614211008102","DOIUrl":"https://doi.org/10.1177/13915614211008102","url":null,"abstract":"The number of people aged more than 60 in Bangladesh is projected to constitute 20% of total population by 2051. The demographic momentum makes it necessary to pursue policies that guarantee a secured life for the country’s senior citizens. Currently, more than 40% of old age population (more than 65 years) in Bangladesh do not receive any type of pension or social security benefits. In this backdrop, introduction of a universal pension scheme (UPS) is an idea that should merit serious consideration. The idea of a UPS is also aligned with several Sustainable Development Goals (SDG) targets. Based on the International Labour Organization multi-pillar pension model, the article deals with required financing under different scenarios of introducing UPS in Bangladesh. The study estimates that for introducing a non-contributory UPS in Bangladesh, it would require an additional average allocation equivalent to 0.1%–0.5% of gross domestic product per annum between now and 2040. The article also estimates financing needs considering two options for the contributory UPS. The article concludes that UPS in Bangladesh can be launched on a limited scale which then could be expanded in scope and coverage in a gradual and phased manner. The article also underscores that introduction of UPS will create opportunities to rationalize the existing safety net programmes that will release funds for underwriting the UPS. JEL: H53, H55, I31, I38","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88740067","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Terrorism and Brain Drain in Pakistan: Is There a Connection?","authors":"Sidra Feroz, B. Yasmin","doi":"10.1177/1391561421997216","DOIUrl":"https://doi.org/10.1177/1391561421997216","url":null,"abstract":"This study empirically investigates the effect of terrorism and other push and pull factors on the skilled labour out-migration in Pakistan over the time period 1973–2015. The empirical findings based on fully modified ordinary least squares (FM-OLS) technique suggest that the waves of terrorism have not significantly driven the out-migration of skilled labour from Pakistan. Relatively, traditional push factors including inflation, unemployment and rising capital share in gross domestic product (GDP) have remained the major factors behind brain drain from Pakistan. Comparatively, the per capita economic growth, poverty and host and origin country’s emigration policies have curtailed the skilled out-migration. The findings suggest improving socio-economic conditions, increasing GDP per capita and decreasing unemployment and inflation in order to control the out-migration of skilled workers from Pakistan. Besides, the domestic labour market is required to boost the absorption capacity of highly educated and qualified workers in the country by making them more compatible to the existing stock of capital to restrict the brain drain. JEL: F22, F52, J24, C32","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80585748","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Impact of Policy Shift from In-kind Transfers to Direct Cash Transfers on Paddy Production: Evidence from Mahaweli H System in Sri Lanka","authors":"S. Perera, A. Rathnayake, Janaka Fernando, T. Navaratne, D. Rajapakshe","doi":"10.1177/13915614211004821","DOIUrl":"https://doi.org/10.1177/13915614211004821","url":null,"abstract":"In 2016, the Sri Lankan government introduced a policy change related to fertilizer subsidy by converting the in-kind transfer into a direct cash transfer. This research article analyses the consequences of this policy change on the paddy production from economics perspective. The analysis uses national-level data from 1961 to 2013 and farm-level data collected in 2016. Macro-level findings manifest that the use of fertilizer significantly increases the paddy production in Sri Lanka. It was also identified that the cash amount granted under the direct cash transfer policy is not equivalent to the in-kind transfer programme. As a result, paddy production is expected to decline under the direct cash transfer programme when compared to the material subsidy scheme. However, this is against the preference of economists on direct cash transfers over in-kind transfers. The findings reveal that direct cash transfers increase the paddy production under two conditions: (a) when rational farmers effectively utilize the cash grants to optimize their production inputs; and (b) an equivalent amount of in-kind transfer is provided as direct cash transfer. Hence, direct cash transfers are not always better than in-kind transfers; it is better when in-kind transfer is compensated with an equivalent amount of cash transfer. JEL: A1, B1, B2, C1, C5, D6, N5","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82613220","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Nexus Of Foreign Reserves, Exchange Rate And Inflation: Recent Empirical Evidence From Sri Lanka","authors":"Ayesh Ariyasinghe, N. S. Cooray","doi":"10.1177/1391561420987106","DOIUrl":"https://doi.org/10.1177/1391561420987106","url":null,"abstract":"The conventional mandates of the central banks on meeting stability objectives and maintaining a growth-maximizing inflation rate have come under some criticism since the global financial crises. Maintaining adequate foreign reserves is seen as a viable solution to foreign exchange liquidity needs during crisis periods. Since the end of 2011, many Asian economies, including China and Japan, led from the forefront in central bank-led reserves build-up. However, reserves build-up remains challenging and sensitive for small open economies. Such policies help create ‘risk-neutral’ buffers for monetary and fiscal authorities to absorb transitory current account shocks and foreign exchange stress to smoothen the balance of payments. This study is motivated by the importance of identifying the inflation–foreign reserves nexus that may affect inflation in a manner counterproductive to the central bank mandate of maintaining price stability. It probes the debate of the sustainability of reserves build-up in the long and the short term. The outcome of the study poses several vital questions for fiscal and monetary policymakers concerning their respective mandates. The reserves–inflation nexus and its magnitude is determined using monthly data spanning two decades, through engaging an autoregressive distributed lag (ARDL) model and relevant bounds-testing techniques proposed by Pesaran et al. The vector autoregression (VAR), error correction and Johansen cointegration methods supplement the robustness checks. Exchange rate is introduced to enrich the discussion on the reserves–inflation nexus and shows a cointegration relationship in the long run. The study provides an insight into the influence of exchange rate on reserves and inflation. The variance decomposition shows the presence of a lukewarm response from foreign reserves and exchange rate on inflation. Policymakers concerned with inflationary expectations in the medium-to-long term need to consider these signals, as reserves build-up is one of the important policy-driven objectives for a number of economies. JEL: C50, C32, E31, E52, E58, F30, F31, F39","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83371069","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Love Thy Neighbour? Perceived Community Abidance and Private Compliance to COVID-19 Norms in India","authors":"Upasak Das, Prasenjit Sarkhel, Sania Ashraf","doi":"10.1177/13915614211053928","DOIUrl":"https://doi.org/10.1177/13915614211053928","url":null,"abstract":"To arrest the spread of COVID-19 infection, strict adherence to frequent hand washing and respiratory hygiene protocols have been recommended. While these measures involve private effort, they provide health gains along with collective community benefits and hence are likely to be driven by pro-social motives like altruism and reciprocity. Using data from 934 respondents collected from April till May 2020 across India, we assess if changes in perceived community compliance can predict changes in individual compliance behaviour. We observe statistically significant and positive relationship between the two, even after accounting for observable and omitted variable bias allowing us to view the results from a plausible causal lens. Further, we find subsequent lockdowns having a detrimental effect on individual compliance though the gains from higher perceived community compliance seem to offset this loss. We also find positive perceptions about community can be particularly effective for people with pre-existing co-morbidities. Our findings underscore the need for multi-level behavioural interventions involving local actors and community institutions to sustain private compliance during the pandemic. We suggest these interventions need to be specially targeted for individuals with chronic ailments and emphasize on community behavioural practices in public messaging. JEL Codes: I12, I18, I19, I31","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75866759","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Demystifying Blue Box Support to Agriculture Under the WTO: Implications for Developing Countries","authors":"S. Sharma, Adeet Dobhal, Surabhi Agrawal, A. Das","doi":"10.1177/13915614211035852","DOIUrl":"https://doi.org/10.1177/13915614211035852","url":null,"abstract":"Developing members at the WTO face a shrinkage in policy space for supporting their agricultural sector due to the limited room available under the provisions of the Agreement on Agriculture (AoA). Contrastingly, most developed members can provide high levels of product-specific support without breaching their commitments on account of their support entitlements. For some of these members, the so-called ‘Blue Box’ under the AoA, plays a pivotal role in expanding the policy space with respect to domestic support to agricultural products. Though a lot of scholarship has discussed and examined other support provisions under the AoA, the ‘Blue Box’ remains relatively shrouded in mystery. Testimony to this is the fact that although the Blue Box has found use amongst developed members, no developing member, except for China in 2016, has ever used the Blue Box to support their producers. Given the impasse in the Doha Round of negotiations and limited flexibilities available under the AoA, this paper examines the feasibility and compatibility Blue Box measures with developing members’ socio-economic situation. Findings of this paper bring to fore the variations in member practice and the operational flexibilities available in implementing Blue Box programmes to support agriculture. JEL: F13, F14, F17, Q17","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83450204","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Financial Inclusion in India: Does Distance Matter?","authors":"Saibal Ghosh","doi":"10.1177/1391561420961649","DOIUrl":"https://doi.org/10.1177/1391561420961649","url":null,"abstract":"Employing a novel district-level survey data for India, the study investigates the impact of distance on financial inclusion. Using advanced econometric techniques, the findings indicate that distance primarily dampens the use of bank accounts as compared with access. These results are robust irrespective of whether distance is measured in terms of the time taken to reach the banking infrastructure or physical distance. These results are robust to a wide battery of robustness checks. The analysis suggests the need for policy strategies that can address the tyranny of distance towards achieving the financial inclusion goal.","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/1391561420961649","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72439931","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"What Drive Trade Costs? South Asia and Beyond","authors":"M. Kumari, Nalin Bharti","doi":"10.1177/1391561420968543","DOIUrl":"https://doi.org/10.1177/1391561420968543","url":null,"abstract":"Higher trade costs in developing countries have received enormous attention during the recent past. In this context, it is imperative to revisit the factors contributing to such higher trade costs. This article attempts to explore the major determinants of trade costs conceptually and empirically. Further, the study endeavours to solve the puzzle of higher trade costs in the South Asian perspective. Using panel data of 93 countries from 2007 to 2015, the study tends to uncover major determinants of trade costs between South Asian countries and their two proximate regional blocks, namely Asia-Pacific Economic Cooperation (APEC) and Association of Southeast Asian Nations (ASEAN). In estimating the model, the study prefers to use fixed-effect estimation technique, owing to the results of statistical tests carried out to choose the most appropriate model for the estimation. The findings of the study reveal that trade facilitation, political corruption and financial development affect intra-regional trade costs of South Asia significantly. Trade facilitation influences trade costs between South Asia and ASEAN. Moreover, trade facilitation and financial development affect trade costs between South Asia and APEC. The diagnoses of South Asian intra and inter-regional trade costs can push forward ongoing efforts at unlocking the potential of regional integration as well as global integration of the region.","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90176856","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}