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No. 370

January 2013


ISSN 0019-5170


The Theory of Demand and Supply Revisited: The Total Differential Approach

R. O. Aruofor1

As important as the theory of demand and supply which permeates the whole of economics, different scholars express different and varying view points about it This does not only suggests that the theory is poorly understood, but that the model as conceived is not just simplistic but based on partial analysis. This may underscore the poor performance of markets in Developing countries. In view of this lapse, it will appear that practitioners have so far not been able to identify the functions statistically. This paper reviews the theory and contends that the contemporary theory of demand and supply is not only incomplete but an oversimplification of a more complex situation. The demand and supply sides of the theory are presented and are statistically, identified by the total differential (ecostatometric) method and analysed. A critique of the traditional econometric approach to the estimation of the functions is carried out and the solution of the estimated total differential model is attempted by means of Linear Goal Programme. It became evident that contrary to popular views, demand and supply can have separate existence in a market model and that equilibrium is a superficial constraint imposed on the market by economic theory.

1. *Benson Idahosa University, Benin City, Edo State, Nigera.

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Analysis of Agricultural Development in India

M. M. Goel1
Suraj Walia2

To understand, analyze and interpret Indian agriculture, it is essential to assess the nature and extent of agricultural development in post reform era. The contribution of agricultural sector to national Gross Domestic Product (GDP) has continued to decline over the years; while that of other sectors, particularly services, has increased. Presently, agriculture contributes 13.9 per cent of India's Gross Domestic Product (GDP) Yet, agriculture forms the backbone of the economy, as 52 per cent of India's work force is still engaged in agriculture for its livelihood and is important for food security and inclusive growth. For sustainable agriculture in India, we need to adopt rainbow revolution which is capable for not only ensuring food security but removing fear of the global economic crisis in terms of the reduced rate of growth of GDP. An attempt to analyze Indian agriculture by computing compound annual growth rate (CAGR) has been made in the study which confirms that CAGR for the production of major food, grains as well as area under cultivation for food grains is less in post reform in comparison to the pre reform years.

This paper also investigates the relationship between agriculture and economic growth through regression analysis and reveals the existence of positive relationship between them. Lastly, the paper highlights the various challenges faced by the Indian agriculture and gives policy implications to develop agriculture sector as a real engine of economic growth in Indian economy.

1. Dean, Faculty of Social Sciences, Kurukshetra University, Kurukshetra. E-mail:
2. Research Scholar, Dept of Economics, Kurukshetra University, Kurukshetra. E-mail:

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Structural Breaks and the Time Series Properties of Selected Export and Food Crops in Nigeria (1961-2007) An Application of the Perron Test

S. 0. Binuomote1


J. 0. Ajetomobi2


This paper examines the structure of Nigerian Agriculture by analyzing twelve pertinent annual series, namely; acreage, yield, production and the producer price of cocoa, coffee, maize and cassava in Nigeria during the 1961-2007 period. The methodology used is that of Perron (1989) wherein he tests the null and alternative hypotheses of a unit root or 'trend-stationary' series, respectively in the presence of possible slope and/or level shifts. The results indicate all the series with the exception of cocoa yield (LYC0) cassava yield (LYca), maize yield (LYma), coffee acreage (LAee) and coffee yield (LYee) could not reject the null hypothesis of unit root SAP also has a positive and significant effect on maize producer price (LPma) and cocoa yield (LY) in Nigeria.

Department of Agricultural Economics, Faculty of Agricultural, Sciences, Ladoke Akintola University of Technology, P. M. B. 4000, Ogbomoso, Nigeria. E-mail:

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Panchayats and Universalization of Elementary
Education: A Study of West Bengal

"Education means enabling the mind to find out that ultimate truth which
emancipates us from
the bondage of the dust and gives us the wealth, not of things but of inner light,
not of
power but of love, making this truth is own and giving expression to it"

.... Rabindra Nath Tagore

Niranjan Mandal1


B.N.Dutta 2

Education is the backbone of our society, which emancipates us from the bondage of dust it is regarded as a powerful weapon to fight against poverty and to achieve sustainable development It satisfies the needs of the society by developing human resourced and by transforming these resources into nation's services. All the children of our society should have the opportunity to be educated, irrespective of their caste, class, creed, religion, affiliation, home location and nationality. Universalization of Elementary Education (UEE), in India, as a part of the global drives (i.e. Education For All), has been accepted as a national; goal since 1950. The Directive Principles of the Indian Constitution envisage provision of free and compulsory education to all children upto the age of 14 years. This free and compulsory education to those (i.e. age group 6 -14 years) is now their fundamental right. It is felt that formal education system is not sufficient to fulfill the noble objectives, and it is recognized that informal education, along with the existing system of formal one, can improve the general living standards of the people by imparting essential ingredients of education. In this paper an attempt has been made to assess the role of panchayats and mechanisms in rural West Bengal. From this research study, it is found that panchayats direct role is confined only to informal education. It plays an indirect role in popularizing formal education through informal institutions and mechanisms. It is worthwhile to mention that a considerable gap is observed in between elementary educational needs and availability of educational facilities. It is suggested that this gap can be removed by providing adequate school facilities, creating employment opportunities in rural areas and involving the rural people in the entire process.

1. Reader, Department of Commerce E-mail:
2. Smriti Mahavidyalaya, Hatgobindapur, Burdwan-713407, West Bengal.

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Service-Led Economic Growth Pattern and Prospect Special Reference to India

Samir Kumar Das1


Minaketan Behera2

During the last two decade, there is a significant change in the pattern of economic growth of developed countries and economic development of India. Most of developed countries have had greater share of industrial sector in their Gross Domestic Products followed by Service sector and agricultural sector. However, in case of India Service sector contributing larger share to GDP followed by Industry sector and Agricultural sector. This sectoral shift of Indian economy is a unique case in die theory of Economic Development General thought of this theory is mat with development a country's economy passes through agricultural development to industrial development and then to service sector development India's services sector has witnessed tremendous growth in the last ten years. But this growth has not been accompanied by a corresponding growth in the Industry sector. The share of Industry sector in GDP has also declined in the 1990s.

This has led to a policy dilemma and doubts have been cast on the sustainability of service-led growth. Misalignment of India’s economic development pattern with Economic Development theory is an eye-catching factor for all economic think-tank of India and abroad. Now they are forced to think sustainability of India’s service-let growth. In the view of this, here an attempt is made to identify the major contributing factors to India’s development pattern, and examines the prospects for further “services-led” economic growth in India.

1. Assistant Adviser, Department of Statistics and Information Management, Reserve Bank of India, Chennai-600001

2. Assistant Professor, Economics, Ambedkar University, Lothian Road, Kashmere Gate, Delhi-110006

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Performance Evaluation of Selected Pharmaceuticals Companies Enlisted in Dhaka Stock Exchange

Tanbir Ahmed Chowdhury1


Enayat Kiyoum2

Bangladesh, a country that was previously known for natural resource based sectors like textiles and jute in the business world, has now emerged as one of the fastest growing pharmaceutical exporting nations. After tobacco, pharmaceutical is the second largest revenue generating industry in Bangladesh, and the country looks well set to merge as a global hub for quality medicines. At present there are 257 licensed Pharmaceuticals companies including six are multinationals. Out of 257 companies around 168 companies are actively running their own manufacturing facilities. This sector is also providing 95% of the total medicine requirement of the local market.

Leading Pharmaceutical Companies are expanding their business with the aim to expand export market. Recently few new industries have been established with hi-tech equipments and professionals which will enhance the strength of this sector. It is very encouraging news that Bangladesh has became a drug exporting country instead of importing one. The statistics shows that in 2010 the total export was BDT 3813.50 Million and drugs are exported to 83 countries. The Pharmaceutical Sector of Bangladesh has attained self sufficiency in manufacturing quality drugs. And soon with the prospective thrust in the export scenario, Bangladesh Pharmaceutical Sector is sure to mark its presence in global arena and this will undoubtedly reflect in the growth of GDP in pharmaceuticals.

In this paper, we have tried to analyze the development and growth of Selected Pharmaceuticals Companies Enlisted in Dhaka Stock Exchange. It is observed that all the selected companies are able to achieve a stable growth of Total Sales, Export Sales, Total Assets, Net Income and Earnings per Share during the period of 2005-2009. Thirteen trend equations have been tested for different activities of the Selected Pharmaceuticals Companies. Among them the trend value of Total Assets, Total Sales, Exports Sales, and Net Income are positive incase of all the selected Pharmaceuticals Companies. Square of correlation coefficient (r2) has also been tested for all trend equations. The r2 of Total Assets, Total Sales, Net Income and Export Sales is more than 0.5, which indicates the prospect of selected Pharmaceuticals Companies in Bangladesh very bright.

1. Professor, Department of Business Administration, East West University, 43,Mohakhali C/A, Dhaka-1212, Bangladesh E-mail:

2. MBA (EWU) E-mail:

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Nanotechnology for Better Agricultural practices An Economic Analysis


K. S. Rajashekara1


Nanotechnology will leave no field untouched by its ground breaking scientific innovations. The agriculture sector is no exception. So far, the use of nanotechnology in agriculture has been mostly theoretical, but it has begun and will continue to have a significant effect on agriculture and its related activities. Agriculture is a primary occupation in most of the developing ' countries like India. As primary occupation agriculture supports the growing population and it has become precondition for economic development. Land continues to be the primary factor of production in agriculture. The global population has been increasing every year with the expansion of towns and cities leaving lesser area for agriculture. Urbanization is the movement of population from rural to urban areas and the resulting increasing proportion of a population that resides in urban rather than rural places. Farmers across the world are left with daunting task of feeding more people every year from agricultural land which is dwindling correspondingly. The earth is rapidly running out of fertile land. The food production will soon be unable to keep up with the world population. The Malthusian theory has become true particularly in underdeveloped countries like India. The production level of food grains has become a subject of concern with declining trend over the last decade. The rapid urbanization of the world's population over the twentieth century is described in the 2005 Revision of the UN World Urbanization Prospects report The global proportion of urban population rose dramatically from 13% (220 million) in 1900, to 29% (732 million) in 1950, to 49% (3.2 billion) in 2005. The same report projected that the figure is likely to rise to 60% (4.9 billion) by 2030. In recent years, urbanization of rural areas has increased. As agriculture give way to corporate industry the urban and related commerce with the city drawing on the resources of an ever-widening area for its own sustenance. Technological options have to be evolved to address the problem of shrinking land resources available for agriculture to sustain die desired level of production of food grains and other agricultural products. Conversion of agricultural land prevented with suitable policy. Nanotechnology focusing on special properties of materials from nanometric size has a potential to revolutionize agriculture and food sector besides preventing the problem of urbanization.

Nanotechnology is a field of science and engineering that deals with structures having less than 100 nanometers. A nanometer is one billionth of a meter (109). The magic of nano is to shape molecules and atoms in the production and design, processes of products and services. The development, adoption and diffusion of nanotechnology is important in shaping the agricultural sector. Its application covers resource utilization, crop protection and food processing. This technology is useful to remove the toxic effects of pesticides and increasing the fertility of soil. Nanotechnology can infuse new life from agriculture field to the dining table. Particle Farming which is in research stage can make agriculture more attractive and prosperous. The demand for nano particles has been increasing day by day for industrial applications. Some inventions of nano in agriculture are mentioned below:

  • Nano capsules for delivery of fertilizers and other agro chemicals more effectively.
  • Delivery of growth hormones in a controlled manner.
  • Nanosensors for detection of animals and plant pathogens and for quarantine purposes.
  • Nano capsules for delivering vaccines and DN A to plants.
  • Nano sensors for monitoring plant microenvironment and its changes.
  • Green house production of protected cultivation.

Nanotechnology has the potential to revolutionize the agricultural and food industry with new tools for the molecular treatment of diseases, disease detection, enhancing the ability of plants to absorb nutrients etc. Similarly, smart sensors and smart delivery systems will help the agricultural industry to combat viruses and other crop pathogens. In the near future, nanostructured catalysts will be available. They will increase the efficiency of pesticides and herbicides allowing lower doses to be used in farming.

Nanotechnology can improve our understanding of the biology of different crops and thus, potentially enhance the yields or nutritional values through the new agricultural methodology. It can bring changes in cropping pattern besides environmental remediation. Particle farming is one such example., which yields nanoparticles for industrial use by growing plants in defined soils. For example, research has shown that alfalfa plants grown in gold rich soil absorb gold nanoparticles through their roots and accumulate these in their tissues. The gold nanoparticles can be mechanically separated from the plant tissue.

Nanotechnology adds value for agriculture and food system. This technology can change production function in agriculture sector and create a situation where we can produce more output with devine and godly nanoparticles as inputs. The change in the state of art method of production, knowledge, institutions, Organizations, management practices in agriculture sector etc. needs to be reconsidered in the emerging nanoeconomy. The stake holders of agriculture sector including naho-scientists know too little about each others field. This has become major constraints for policy formulation. The future work force in agriculture sector should be trained in this area. Public awareness about the hidden benefits of nanotechnology for human welfare is need of the hour for policy decisions. In order to take the benefits of Nanotechnology by exploiting its opportunities in different fields, the economic agents all over the world should be kept informed about the hidden benefits for human welfare.

1. Professor, PG Dept. of Economics, JSS PG Center, Mysore Karnataka State, 57009, India E-mail:

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University of Allahabad