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Special Centennial Issue

No. 394

January 2019


ISSN 0019-5170



Measuring Capital for the Indian Economy -
An Application of OECD Alternative PIM

Arijit Roy1

It is not an easy task to measure capital since two distinct but interlinked concepts of capital exist. One is capital as 'stock of wealth' which is the net fixed capital stock (NFCS). But if conceived as an argument in the production function, the proper measure of capital should be 'capital services. It should be the services' delivered by the stock' that should constitute the appropriate measure of capital input in production. Measuring capital services needs derivation of a hypothetical stock - the productive stock. In the context of the Indian economy, several studies have been carried out only to derive the NFCS. But there is no viable attempt to measure productive stock and capital services till now. The OECD alternative Perpetual Inventory Method (PIM) is an aggregative approach which may become a way out in this regard. We have established this by applying the OECD alternative PIM to construct the series for NFCS and the productive stock of capital for the Indian economy.

Key Words:PIM, NFCS, Productive Stock, Capital Service, Age-Efficiency, Age-Price.

JEL Classification : B40, B41, CO2, E01, E22

  1. Asstt. Professor in Economics, Vivekananda Mission Mahavidyalaya, Chaitanyapur (Haldia, Purba Medinipur, West Bengal, PIN-721645 Email:

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A study of the Political Economy Dynamics of
Agricultural Protection Policy in Nigeria, from 1980 to

Emmanuel Ejiofor OMEJE 1
Chukwuemeka John ARENE
Benjamin Chiedozie OKPUKPARA


This study examined the major factors influencing agricultural protection in Nigeria, from 19802016 with a special interest in their relationship with the dynamics of political economy. The specific objectives were to ) estimate the rate of agricultural protection in Nigeria's agricultural sector and, (ii) analyze the major political economy determinants of financing and supporting agricultural protection Nominal Protection Coefficient (NPC) and nominal rate of protection models, and multiple regressions were used to realize the objectives, while the hypotheses were tested with F-test. Results revealed a negative rate of protection from 1980 to 1985 but turned positive from 1986 to 2016. There was a negative but significant relationship between protection and agricultural growth. Also, there was a positive significant relationship between agricultural protection and structural changes in the policy over the period. A significant and positive relationship also exists between farmer welfare and protection in the agricultural sector.

  1. Department of Agricultural Economics, Faculty of Agriculture, University of Nigeria, Nsukka Naukka, Enugu State, Nigeria. Email:

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Spatial and Temporal Dimensions of Paddy Farming in
India during Economic Liberalisation Period

P. Guha1


Present study was initiated with the objective of having an inter-regional comparison of paddy farming in India during the liberalisation period using secondary data collected for all the states and union territories of India covering the period 1962-63 till 2015-16. With sub aggregation of state wise data for six different regions of India, the analysis at disaggregate level reveals that the acreage expansion under paddy farming during liberalisation period has let to smaller increase in paddy output when compared with the overall period of study. Over the past two decades, the success in the realisation of higher output of kharif and rabi paddy has remained restricted with the irrigated regions of the country.Such result have been complemented by the negative value of relative productivity gap in irrigated areas of the Northern and Southern region but was abysmal in rainfed areas of Central, Eastern, Western and North Eastern region of India for the reference period.

Key Words: Liberalisation period, relative productivity kharif cropping season.

JEL Classification : Q19

  1. Assistant Professor, Dept. of Economics, Sikkim University, 6th Mile Samdur, Po.: Tadong-737102, Gangtok, Sikkim (India)

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Determinants of Pre and Post Process of Corporate
Merger and Acquisition: A Study with Reference to India

Rakesh Kumar Sharma1

This research paper examines the overall merger and acquisition process and identifies the determinants of successful merger and acquisition for Indian companies. The acquisition process identified for this paper was classified into three stages, i.e., pre-acquisition management, post-acquisition integration, and post-acquisition performance evaluation. This process itself has a crucial role in deciding the success of the acquisition deal. Utilizing information from previous research, in the present study fifteen dimensions have been identified in three stages of merger and acquisition. These fifteen dimensions were employed as the building blocks of a successful acquisition transaction. Through synthesizing multiple dimensions in the overall acquisition process simultaneously, an attempt has been made to identify the content of specific factors that has affected a successful merger and acquisition deal. Specifically, the study attempted to systematically discover evidence about the determinants of a successful pre-merger and acquisition management process, and the determinants of successful post-acquisition integration, as well as the identification of appropriate evaluation criteria for determining the post-acquisition performance of an acquisition deal. In addition, this study tried to identify important merger and acquisition objectives of acquirer or merging company in India.

Key Words: :Merger and acquisition, Due diligence, Delphi technique, Takeover.

JEL Classification: G34, F65, G39.

  1. Assistant Professor, School of Humanities & Social Sciences, Thapar Institute of Engineering & Technology, Patiala. Email:

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Impact of Intergovernmental Transfers and Recent
Paradigm Shift in Indian Fiscal Structure on States
Own Revenues

Masroor Ahmad1

This paper is an empirical attempt to examine the impact of intergovernmental transfers on own revenues of Indian states. Unlike previous studies, we have examined impact of transfers with due consideration for political factors. (in addition to demographic and fiscal factors) that may dampen or enhance the states' own revenue raising efforts. We could not find evidence for states resorting to lenient revenue raising efforts, if they are politically aligned to central government or if elections were approaching. However, funds transferred through different channels have differential impact on states' own revenues. We have also examined impact on fiscal space of India states because of recent paradigm shift in Indian fiscal system, more specifically characterized by enhanced devolution (42%) for states after implementation of FC-XIV recommendations. Budgetary figures revealed that increase in devolution percentage may be regarded as compositional shift as it has not actually expanded the fiscal space for states although it had added a little to their flexibility. This compositional shift will have a negative bearing on the states' own revenues in view of the fact that differently routed funds have different impacts on states' own revenue. To avoid the weak state finances because of this compositional shift many policy measures have been suggested.

Key Words:Public Finance, Intergovernmental Transfers, Tax effort, Finance Commission, State Finances.

JEL Classification:H61, H76, H77, C23

  1. Assistant Professor (Economics), Central University of Kashmir, Transit campus, Nowgam III, Jammu and Email: Kashmir, India. Pin code: 190015.

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