Discussion Papers-: 2000-2003
How Do Infrastructure Facilities Affect Regional Income? An Investigation with South Asian Countries
by Prabir De and Buddhadeb Ghosh
This paper tries to find out the role played by infrastructure facilities in economic development across South Asian countries over the last quarter century. The findings are statistically very significant to warrant major changes in future regional policies in order to remove rising regional disparities in both infrastructure and income. This also has a strong bearing on the success of poverty removal policies as the poor are regionally concentrated in such diverse and heterogeneous region of the world.
This paper reviews the Indian experience with FDI since the 1991in a comparative East Asian perspective. The structure of the paper is as follows: Section 2 summarizes the evolution of Indian government’s policy towards FDI. Section 3 examines the trends and patterns in FDI inflows in the 1990s. It also comments on the determinants of FDI inflows in India. Section 4 examines the impact of FDI in terms of various parameters of development. Section 5 discusses the emerging trends in the MNE activities in knowledge-based industries in India, viz. IT software and global R&D activities. Section 6 concludes the paper with some remarks on policy lessons.
India’s Monetary Integration with East Asia: A Feasibility Study by Sweta Chaman Saxena
This paper examines the relevance of India’s monetary integration with East and Southeast Asia in particular the existence of the economic criteria for a common currency. The analysis in this paper shows that significant complementarities in trade exist among these countries, most of them experience similar shocks and labour mobility is already present. These results point to the fact that the cost of adopting a single currency may be minimal, while huge benefits could accrue from enhanced trade. The paper also recognizes the importance of yen for the success of the monetary union in Asia.
The rise of service sector outward FDI (O-FDI) activities has emerged as one of the most important aspects of Indian economy during nineties. The present paper reviews the recent trends and patterns and tries to identify determinants of such investment.
Short-term Forecasting of India's Export: Developing a Framework by Countries and Commodities byRajesh Mehta and Parul Mathur
The existing country-wise models have not given due attention to the trade sector since most of them have been built keeping in view specific objectives, and a systematic effort is still required for building a short-term econometric forecasting model for India’s export sector. It is with this view that this paper intends to fill one of the gaps in the existing macro-econometric models for the trade sector. The main objective of this paper is to develop a framework for forecasting of India’s annual exports at regular intervals, which would be carried out for principal trading partners and their principal commodities.
This paper attempts to look into the dynamics of National System of Biotechnology Innovation (NSBI) in the wider framework of its role in the economic development. The evidence from Singapore shows that sectoral approach in NSBI may help developing countries in finding a niche for growth instead of broadening the area of investment within biotechnology.
WTO Non-Agriculture Market Access Modalities A Case Study of Impact on A Developing Country
by Rajesh Mehta and Pooja Agarwal
Section I of this study gives a background of the negotiations with a review of Doha mandate on market access of non-agriculture products. Section II presents the current position of modalities for negotiations. Section III contains the implications of these negotiations on Indian industrial tariffs and Section IV concludes the entire scenario.
The agenda for developing countries should address both the procedural and substantive issues of SPS agreement per se. At the same time, it has also been observed how other qualitative dimensions of cross cutting themes like the processing techniques, etc. gets crafted on the SPS platform for denying access to the markets. Thus a three-pronged strategy in a regional cooperation framework requires to be explored.
WTO Negotiations Towards Cancun: Implication on Indian paper and newsprint Industry by Rajesh Mehta and Pooja Agarwal
This paper attempts to analyze the implications of market access negotiations on the Indian paper industry. In this paper discussion concentrates on the impact of tariff measures alone. Section II briefly outlines the meaning of market access for non-agriculture products in the WTO because the paper industry falls under nonagricultural sector. Section III outlines the current state of Indian paper industry in the international nomenclature. Section IV comes up with the possible outcome of recent negotiations on this industry. Concluding remarks are contained in Section V.
This paper examines the relevance of a multilateral framework on investment from a developing country perspective in the light of the evidence available on the role of FDI in development. It also suggests the policy options that developing countries may consider at the Cancun Ministerial Conference on the issue of Trade and Investment. It also reflects on the approaches to make different elements of a possible multilateral framework on investment more pro-development and balanced, in case a negotiating mandate is unavoidable at the Cancun.
Economic Cooperation between India and Egypt
by Abdel Hamid Saba Elregal
(Ministry of Foreign Trade Arab Republic of Egypt)
The focus of this paper is analyzing constraints and prospects for greater economic cooperation between Egypt and India. Section I provides a brief economic profiles of Egypt and India. Indo-Egypt bilateral economic relations are analyzed in Section II. Potentials for Small and Medium Enterprises (SMEs) has been taken up as a special theme of analysis in Section III. Some of the constraints coming the way of Indo-Egypt cooperation are highlighted in Section IV. Section V puts forth some of the policy recommendations to strengthen economic cooperation efforts between India and Egypt.
Nepal-India Bilateral Trade Relations Problems and Prospects
by Gyanu Raja Shrestha
(Ministry of Finance, Nepal)
This study mainly concentrates on the trade relationship between Nepal and India. The objectives of the study are to review of Indo-Nepal trade relations, provide an overview of trade treaties held between Nepal and India, analyze foreign trade direction of Nepal; analyze the impact of Indo-Nepal Trade Treaty 1996, in particular, in improving trade relation between the two countries, and identify the scope and areas of improvement in Indo-Nepal trade relations.
Economic Cooperation between India and Central Asian Republics with Special Reference to Uzbekistan
by Abdurahim Okunov Abduraxmonovich
(University of World Economy and Diplomacy Ministry of Foreign Affairs, Republic of Uzbekistan), 2003
The issue of economic cooperation between India and Central Asia and Uzbekistan, in particular, is the focus of this study. Section I analyzes economic development of Uzbekistan and India. Section II profiles briefly the economic performance of Central Asian countries. Indo-Uzbek bilateral economic relations are analyzed in Section III. A special emphasis is placed in Section IV on identifying constraints in cooperation. Finally, in Section V some policy recommendations have been made for intensifying economic cooperation between India and Uzbekistan.
This paper reviews the experiences of developed and developing countries to draw implications for the current debate on the relevance of performance requirements (PRs). It summarizes the evidence on use of PRs in developed countries, reviews theoretical, cross-country and case evidence on effectiveness of PRs in meeting their stated policy objectives in developing countries.
India and the Asian Economic Community by Mukul G. Asher and Sadhna Srivastava
There is increasing recognition that even as Asian countries engage in competition, Asia-wide communication and dialogue, constructive co-operation, and institution building through JACIK (or similar forum) provide much sounder base for securing Asia’s future and its rightful place in the world community than the current sub-regional efforts. There is therefore urgency in establishing an Asia-wide forum such as JACIK. Given India’s gradual emergence as a knowledge-based economy and the existence of wide-ranging complementarities with other JACIK countries, India is poised to play an important role in the proposed new Asian Economic Community.
ASEAN's Contribution to the Building of an Asian Economic Community by K. Kesavapany
Currently, ASEAN holds separate annual summit meetings with China, Japan and Korea within the ASEAN+3 framework, and will also be holding similar meetings with India. In the context of an Asian Economic Community, ASEAN thus could serve as a vital link between India and the East Asian economies. Hopefully, this could lead to the establishment of an ASEAN+4 framework. Such a framework would enable North and Southeast Asia to interact more effectively with India.
In this paper the authors makes a strong plea for a bilateral FTA between India and China.
In order to examine the efficacy of various rounds of SAPTA, the study attempts to link the contents in the regional PTA with other trade related issues and throw light on the prospects of trade liberalisation in the region.
Towards an Economic Community: Exploring the Past by Vineeta Shanker
The paper sketches the historical roots of the Asian community. It shows that these historical ties run deep and can be traced back to the pre-Christian Era. It brings out the close economic links that bound the region into a highly developed, complex and flourishing network of regional trade. It also highlights the importance of these regional economic relations not only in the growth and prosperity of the region but also as the very basis of the expanding long distance trade. Interaction among the Asian countries was not limited to the economic but went beyond to include social, political, cultural and religious aspects.
Towards a Multipolar World of International Finance by Ramgopal Agarwala and Gauri Modwel
The domestic policy reforms proposals have to be seen in the political economy context of the benefits accruing to the leader under the current unipolar international financial system. The only viable alternative to the countries adversely affected by the unipolar financial world is to reduce their dependence on the current international system and develop their own regional financial architecture. Europe has made a good beginning in that direction. Asia should now follow suit.
This paper shows that the two countries have high degree of economic potentials to complement each other for mutual benefit. The close economic cooperation should not be extended only up to Free Trade Area, but should encompass more strategic economic areas for cooperation such as investment, joint production and marketing, and cooperation in trade in services
Determinants of Outward Foreign Direct Investment From A Developing Country: the Case of Indian Manufacturing Firms
by Nagesh Kumar and Jaya Prakash Pradhan
In this paper, an empirical model of outward foreign direct investment (O-FDI) behaviour has been developed to identify the factors influencing the decision of Indian manufacturing firms to engage in foreign value-added activities. Findings suggest that firms’ own technological strength is an important source of monopolistic advantage for overseas ventures. The change in policy regime in 1991 from an inward-looking strategy to an outward-looking one has had a favorable impact on the O-FDI behaviour of Indian manufacturing firms.
Export Competitiveness in the Knowledge-Based Industries: A Firm-Level Analysis of Indian Manufacturing
by Nagesh Kumar and Jaya Prakash Pradhan
This paper makes an attempt to identify factors that play important role in the export competitiveness of Indian manufacturing firms with particular emphasis on knowledge-based industries. The study finds that younger firms drive export competitiveness in the high technology and low technology sub-samples of Indian manufacturing whereas in the medium technology older firms are drivers of global competitiveness. Firm size is observed to have a non-linear impact on export performance largely represented by an inverted U-shape curve. It is also found that the firm’s own innovative activity is by far the most important technological factor contributing to enhance competitiveness whereas the import of foreign technology through technology contracts found to have detrimental effects on the export competitiveness in high technology and medium-high technology segments of Indian manufacturing.
Export Performance of Indian Enterprises in Knowledge-Based Industries: Recent Trends, Patterns and Implications
by Nagesh Kumar and Jaya Prakash Pradhan
This paper discusses that achieving higher export competitiveness in the high technology industries is becoming the focus of policy attention in both developed and developing countries, as these industries are by nature higher value-added, fastest growing segment of global market and generate substantial inter-industry and intra-industry knowledge spillovers vital for economic growth.
The paper examines the scope, extent and focus of a possible free trade agreement between India and Singapore. Section I gives an overview of the Singapore economy. A brief outline of Singapore trade policy regime is presented in Section II. Further sections of the paper deals with: measures affecting Singapore imports; Singapore’s trade; Indo-Singapore trade relations; foreign direct investment flows; electronic industry; information technology; and some select issues economic cooperation between India and Singapore.
Liberalization, Firm Size and R&D Performance: A Firm Level Study of Indian Pharmaceutical Industry
by Jaya Prakash Pradhan
The paper attempts to empirically verify the impact of economic liberalization on the R&D behaviour of Indian pharmaceutical firms controlling for the effects of several firm specific characteristics including firm size. The study suggests several policy measures to further indigenous technological efforts of pharmaceutical firms, which include, removing obstacles that inhibit outward orientation of firms, providing special scheme for small size firms in the overall technology policy for the industry, intensifying collaborative research efforts between private sectors and government research institution among others.
Addressing Sanitary and Phytosanitary Agreement: A Case Study of Select Processed Food Products in India
by Rajesh Mehta, M. Saqib and J. George
The paper attempts to get to the ground realities prevailing in India as far as the application of SPS measures is concerned. After detailed introduction, Section II of the study takes a quick overview of the salient features of the agro food exports and the food processing industry in India. Section III provides an examination of impact of SPS in destination markets, especially an analysis of the available rudimentary detention information. In Section IV, case studies of select processed foods and agro products are presented in order to assess the width of the Spectrum of influence consequent to SPS measures implementation. The paper ends with concluding observations that are contained in Section V.
Analysis of Environment related Non-Tariff Measures in the European Union Implications for South Asian Exports
by S.K. Mohanty and T.R. Manoharan
The main objectives of this study are: (i) to examine the coverage of the environment related to non-tariff measures (NTMs) in different product groups of the EU’s imports, and the role of other NTMs in limiting the market access of developing countries, (ii) to analyze the structure of ad valorem tariff and specific tariff in different product categories of the EU, and (iii) to examine the linkages between TBs and NTMs in protecting the EU market and its implication on the export prospects of South Asian countries.
The Determinants of India's Exports: A Simultaneous Error-Coorection Approach by Saikat Sinha Roy
This paper attempts an analysis of changing India’s export behaviour during 1960/61 to 1999/2000. Broadly, there are two sharply divided views on the India’s export behaviour. While the predominant view stresses the importance of supply and policy related constraints, other studies find the significance of world demand in the determination of exports. Most econometric studies find relative price factor, real effective exchange rate in particular, to be significant. The emergence of various export sectors over the period of time does not lend support to the observation that only relative prices play an important role, but highlights the importance of various demand and supply factors at the sectoral level. Individual demand and supply factors can be found to be important for specific short periods, but their confluence very likely determine a long run behaviour. The demand-supply model of export determination, which is based on Goldstein and Khan (1978), is estimated using error-correction method. The study establishes the importance of demand factors such as world demand and real effective exchange rates in the determination of India’s exports as against the relatively weak relevance of supply side determinants. The findings are a definite improvement over the existing studies on India’s exports.
WTO and Product related Environmental Standards: Emerging Issues and Policy Options before India
by Sachin Chaturvedi and Gunjan Nagpal
The issues of environmental regulation and international competitiveness revolve around the question of harmonization of standards and it is generally observed that competitive deregulation could lead to downward harmonization of environmental standards. In the context of WTO, the nature of linkage between trade performance and environmental measures has become a major concern for the developing countries. An added dimension to this debate pertains to the national technical regulations and standards pertaining to environment. These environmental standards, often resorted to by developed countries, are seen as non-tariff barriers against Southern trade. This paper aims at examining these emerging issues in the Indian context.
This paper attempts to look into the various issues involved in the debate on geographical indications in the background of EU-India cooperation. While Section II deals with the conceptual aspects of GI and explains India’s stand, Section III looks into the on-going debates in the TRIPs council and their wider trade implications. The Section IV summarizes the various EU initiatives in this regard while the last section draws the broad conclusions.
Towards an Asian Economic Community: The Relevance of India by Nagesh Kumar
Towards an Asian Economic Community: Monetary and Financial Cooperation by Ramgopal Agarwala
Persistence in India's Manufactured Export Performance by Saikat Sinha Roy
Status and Development of Biotechnology in India: An Analytical Overview by Sachin Chaturvedi
Foreign Direct Investment, Externalities and Economic Growth in Developing Countries: Some Empirical Explorations and Implications for WTO Negotiations on Investment by Nagesh Kumar and Jaya Prakash Pradhan
Product Standards and Trade in Environmentally Sensitive Goods: A Study of South Asian Experience
by Sachin Chaturvedi and Gunjan Nagpal
Perceptions on the Adoption of Biotechnology in India by Biswajit Dhar
Review of the WTO Agreement on Agriculture: The Current State of Negotiation by Biswajit Dhar and Sudeshna Dey
India-ASEAN Economic Cooperation with Special Reference to Lao PDR-India Economic Relations
by Thatsaphone Noraseng
Post-Reforms Export Growth in India: An Exploratory Analysis by Saikat Sinha Roy
Indo-Japanese Trade: Recent Trends by Rajesh Mehta
Alternate Forms of Trading Arrangements in Indian Ocean Basin: Implication for India from IOR-ARCby Rajesh Mehta and S.K. Mohanty
India’s Trade in 2020: A Mapping of Relevant Factors by Nagesh Kumar
China as # 1: Threat or Opportunity? by Ramgopal Agarwala
Liberalization Outward Orientation and In-house R&D Activity of Multinational and Local Firms: A Quantitative Exploration for Indian Manufacturing by Nagesh Kumar and Aradhana Agarwal
Multinational Enterprises and M&As in India: Patterns and Implications by Nagesh Kumar
Natural Resource Accounting: Economic Valuation of Intangible Benefits of Forests by T.R. Manoharan
Trade and Environment Linkages: A Review of Conceptual and Policy Issues by T.R. Manoharan, Beena Pandey and Zafar Dad Khan
World Trade Organisation and India – Challenges and Perspectives by V.R. Panchamukhi