Indira Gandhi Institute of Development Research

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    334 research outputs found

    Social group disparities and poverty in India

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    This paper seeks to provide a profile of social group disparities and poverty in India, where social groups are classified as scheduled caste, scheduled tribe and other social groups, and examine the factors underlying differences in levels of living between these groups and for each group separately. The paper argues that social group disparities in levels of living are the result of historically rooted ‘social disadvantages’ for scheduled castes and scheduled tribes, by way of social exclusion and physical exclusion respectively, which continue to operate in contemporary Indian society

    Macroeconomic effects of public investment in infrastructure in India

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    This paper attempts to build an aggregative, structural, macroeconometric model for India. Investment and output in the model are disaggregated into four sectors, viz., (a) agriculture including forestry & fishing, (b) manufacturing, (c) infrastructure, which includes power, transport, communication and construction and (d) services sector, covering all other activities. The model emphasizes the interrelationships between internal and external balances and also the relation between money, output, prices and balance of payments. A unique feature of the model is that it incorporates the savings-investment identity. The model also tries to link economic growth with poverty reduction. Annual time series data for the period 1978-79 to 2002-03 are used for this purpose. Three-stage least squares method is used to estimate the model. The model is validated for its in-sample forecasting ability. A few counter factual policy simulations relating to public investment in infrastructure are undertaken to illustrate the usefulness of the model for analyzing the policy options in a simultaneous equations framework. A preliminary trend analysis has shown slowing down of the economy during ‘90s and thereafter. There are also significant structural shifts in production from agriculture to infrastructure and services in the Indian economy. The estimated model indicated significant crowding-in effect between private and public sector investment in all the sectors. Counter factual policy simulations of sustained increase in public sector investment in infrastructure, financed through borrowing from commercial banks, shows substantial increase in private investment and thereby output in this sector. Further, due to increase in absorption, real output in the manufacturing and services sectors also seem to increase, which sets-in motion all other macro economic changes. Due to rise in sectoral (and aggregate) output, price level and money supply seem to decline in the short-run. Due to sustained nature of the policy change, the impacts get strengthened over time and benefit the economy. A 10% sustained increase in public sector investment in infrastructure, which is less than 0.4% of GDP, can accelerate the macro economic growth by nearly 2.5% without causing any inflation. Further, this increase in income will lead to nearly 1% reduction in poverty in India. This re-assures the potential for achieving the much debated 10% aggregate real GDP growth in the Indian economy

    Food consumption and nutritional status in India: Emerging trends and perspectives

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    The paper reviews the trends over three decades in the consumption of cereals, calories and micronutrients and nutritional status based on anthropometric measures using the data sets of NSS, NNMB and NFHS. It provides an explanation for the slow growth of nutrient intake and slow reduction in malnutrition. The paper demonstrates that multiple factors influence the nutritional well-being of a child and argues that besides improving the income of a household, there is a need to improve the health and educational status of mothers

    Commercialisation of sustainable energy technologies

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    Commercialization efforts to diffuse sustainable energy technologies (SETs) need to be sustainable in terms of replication, spread and longevity, and should promote goal of sustainable development. Limited success of diffusion through government driven pathways illustrates the need for market-based approaches to SET commercialization. This paper presents a detailed treatment of the pre-requisites for adopting a private sector driven “business model” approach for successful diffusion of SETs. This is expected to integrate the processes of market transformation and entrepreneurship development with innovative regulatory, marketing, financing, incentive and intermediary mechanisms. Further, it envisages a public-private partnership driven-mechanism as a framework for diffusion leading to technology commercialization

    Distant labour supply, skills and induced technical change

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    To analyze the consequences of new technologies, which make it possible to employ distant labour, we model a developed country with high and medium-skilled labour interacting with an emerging market economy (EME) with medium and low-skilled labour. Expansion in labour supply induces medium-skill biased technical change, which raises the demand for such labour. As a result, inequalities tend to fall in the developed country, skill premiums rise marginally in the EME, but equality rises because labour employed in the low-skilled sector shrinks. Inequality falls across the countries since average wages, information and access rise in the EME

    An Alternative approach to measure HDI

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    The popularly known Human Development Index (HDI) is obtained through linear averaging (LA) of indices in three dimensions - health, education and standard of living. LA method assumes perfect substitutability among the indices. We question its appropriateness and propose an alternative measure, which is the inverse of the Euclidian distance from the ideal. Following Zeleny (1974), we refer to this, as the Displaced Ideal (DI) method. Through an axiomatic characterization, the paper shows that the advantages in the DI method are the following. Uniform, as against skewed, development is rewarded. Through an ideal path, it signals a future course of action. These signify that a given increment in any one dimension, with other dimensions remaining constant, has a greater significance for the index at a lower level than at a higher level. In other words, stagnancy in the dimension that has a lower value is more serious than stagnancy in other dimensions. Finally, an empirical illustration has been done by taking the statistics in Human Development Report 2006. We strongly propose that the DI method be considered over the LA method in the construction of HDI

    Energy infrastructure for a high humane and low carbon future

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    Presently India is facing the twin challenge of energy universalization as well as emission reduction. Nearly 0.4 billion people in India– mostly residing in rural areas– do not have access to electricity and more than 0.8 billion people do not use modern cooking fuels. Provision of energy services however needs to take into account the global temperatures rise, which if to be limited to 2°C more from its pre-industrial value, Green House Gas (GHG) emissions must be halved by 2050 from its 1990 level. Energy infrastructure plays a key role to meet this dual challenge of universalization of energy services and reduction of energy-induced emissions. Assessing India’s infrastructure, this study presents the high humane (Energy universalization) and low carbon scenarios and discusses investment needs, financing mechanisms and the key policy issues

    Rewarding innovation efficiently: Research spill-overs and exclusive IP rights

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    We investigate the conditions for the desirability of exclusive intellectual property rights for innovators, as opposed to weak rights allowing for some degree of imitation and ex-post competition. The comparison between the two alternatives reduces to a specific “ratio test,” which suggests that strong, exclusive IP rights are preferable when competition from potential imitators is weak, the innovation attracts large R&D investments, and research spill-overs are small

    Returns to education in India: Some recent evidence

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    This paper estimates returns to education in India using a nationally representative survey. We estimate the standard Mincerian wage equation separately for rural and urban sectors. To account for the possibility of sample selection bias, Heckman two-step procedure is used. The findings indicate that returns to education increase with the level of education and differ for rural and urban residents. Private rates of returns are higher for graduation level in both the sectors. In general, the disadvantaged social groups of the society tend to earn lower wages. We find family background is an important determinant affecting the earnings of individuals. Using quantile regression method, we show the effect of education is not the same across the wage distribution. Returns differ considerably within education groups across different points of the wage distribution. Returns to education are positive at all quantiles. The results show that the returns are lower at the bottom quantiles and are higher at the upper quantiles

    Urban transport sustainability indicators – Application of multi-view black-box (MVBB) framework

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    In a recent work Nathan and Reddy (2011a) have proposed a Multi-view Black-box (MVBB) framework for development of sustainable development indicators (SDIs) for an urban setup. The framework is flexible to be applied to any domain or sector of urban system. In this paper the proposed MVBB framework is applied for transportation sector of Mumbai city. The paper begins with a discussion on transportation sector and its unsustainability links and trends. It outlines the concept of sustainable transportation system and reviews some of the prominent sustainable transportation indicator initiatives. In order to formalize sustainable development indicators (SDIs) for transportation sector, the study collates the indicators from literature, placed them in Mumbai’s context and classified them into the three dimensions of urban sustainability—economic efficiency, social wellbeing and ecological acceptability

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