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No. 380

JULY 2015





Assessing Factors Affecting Farmers Adherence to Safety Precautions on Pesticides Use among Cocoa Farmers in Nigeria

P. T. Owombo1*, F. S. Afolayan*, A. A. Akinola** and Koledoye. G. F.***

In addressing the problem of ill-health and risks associated with the use of pesticides, health and safety practices were advocated among cocoa farmers in the area. The study was therefore conducted to investigating safety options the farmers were aware of as well as the factors influencing the farmers' adherence to the safety precautions. Descriptive statistics and Ordered probit model were used to analysed data collected from 480 respondents using multi stage sampling technique. Descriptive statistics revealed that the average age of the farmers was 54+12.5.

Farmers were aware of the use of eye glasses, nose mask, mouth cover, protective clothing, protective boot hand glove as well as washing/bathing after application and disposing off chemical container but adopt only the protective boot, protective clothing and wash/bath after application. Farmers' adherence to safety practices in the area were influenced by age, number of extension contact, cocoa income, livestock income as wall as level of education. It is therefore become important for development organization, government and her agencies to put in place policy thrust that would improve extension service, educate farmers as well as encourage them on the need to engage in livestock enterprise.

  • * Department of Agricultural Science, Wesley University of Science and Technology, Ondo, Nigeria.
  • ** Department of Agricultural Economics, Obafemi Awolowo University, lle-Ife, Nigeria.
  • *** Department of Agricultural Extension and Rural Development, Obafemi Awolowo University, lie-lfe. Nigeria. *Corresponiding Author

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Agriculture Price and its Impact on Farmers Income: A Case for FDI in Retail

Masroor Ahmad Beg*

Inelastic demand (both price and income) and fixity of i the short run induces the farmers to dispose of the output in haste and is rewarded scrawny price both : government and the private food grain buyers. Seventy-five per cent of the world's poor live in rural areas. The evidence in agriculture is on average at least twice as effective poverty as growth outside agriculture. Agricultural reduces poverty directly, by raising farm incomes, and indirectly, through generating employment and reducing food prices. Pro-poor agricultural growth is centered on smallholder farmers who are made more competitive and sustainable through institutional and technological innovations and empowered through producer organizations.

This study aims to highlights the apathy of the farmers, in view the impasse in thought process of the most Indians towards these neglected farmers. In addendum to this, the study also highlights the various apprehensions related to FDI in India, but also throws light on the various problems existing in the Indian Retail Sector; and finally explores as how the FDI may help the sector to overcome these challenges. Till recently, FDI in retail (except under single-brand retailing) was not allowed in India. With the announcement made in the month of September 2012, 51% FDI has been permitted in multi-brand retail. According to AT Kearney's Global Retail Development Index, 2012, India has been ranked as the fifth most desirable destination for international retailers.

This study is broadly divided into two parts. The first part deals with the application of the economic theory delineating the vexed problem of the farmers. The second part deals with the endeavour to explain the role of FDI in retail, particularly in the agricultural goods. The study found that perpetuation of rural poverty is due to low prices of major food staples like rice, wheat and pulses as these crops provide main source of their earning. As against it, the urban poverty is high due to augmentation in the prices of these major food staples because most urbanities have to splurge major fraction of their income on the purchase of food grains. Total poverty is cumulative effect of rural and urban poverty. On the whole, it can be inferred from the present task that on the one hand the farmers need to be guaranteed of lucrative price of their produce and the urban and non-farming class be assured of food at affordable prices to ameliorate them from the clutches of poverty.

  • * Associate Professor, Zakir Husain Delhi College, University of Delhi, Delhi.

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Impact of Foreign Aid Inflows on Income Inequality in India: Regression Analysis

Kalpana Sahoo*
Narayan Sethi**

This paper investigates the impact of foreign aid on income inequality in India by using the Ordinary Least Square (OLS) test from 1960-61 to 2009-10. The study uses the major macroeconomic variables such as per-capita Gross National Income (PcGNI), Gross Domestic Product (GDP), Official Development Assistance (ODA), Wholesale Price Index (WPI), population, Gross National Expenditure (GNEx) and Gini Index (GI) for its empirical analysis. The whole study is based on the secondary annual time series data which is collected from the World Development Indicators published by the World Bank and the Standardized World Income Inequality Database (SWIID). First, this study uses the Unit Root test to verify the stationary property of the variables. The OLS test result shows that foreign aid, per-capita national income and public expenditure help in the reduction of income inequality whereas economic growth, high population growth and inflation rate are some of the factors responsible for raising the inequality gap in India during the study period. The study concludes that aid helps in reduction of income inequality in India but its impact is not satisfactory. Corruption, poor management, poor technology, unproductive utilization, institutional inefficiency might be some of the factors causes aid ineffectiveness in India.

  • * Doctoral Research Fellow (JRF), Department of Humanities and Social Sciences, National Institute of Technology (NIT), Rourkela-769008, Odisha, India.
  • ** Assistant Professor in Economics, Department of Humanities and Social Sciences, National Institute of Technology (NIT), Rourkela-769008, Odisha, India.

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Trade Structure among India, Sri Lanka and Bangladesh: An Investigation

Sushil Kumar*
Shahid Ahmed**

This paper explores the trade structure of three countries India, Sri Lanka and Bangladesh. First, the study revealed that the export structures are becoming similar. Second, the study revealed that export structures of these three countries (India, Sri Lanka and Bangladesh) are becoming similar competition in the world market is also becoming more intense. The trade specialisation index (2000-2011) shows that India has the more comparative advantage in 2000 instead of 2011, Bangladesh exports is the less specialized products and consequently facing more competition than India and Sri Lanka has the comparative advantage in SITC 62 (rubber manufactures] and SITC 33 (petroleum and petroleum products) in 2000 as well as 2011.

Intra-Industry trade between India, Bangladesh and Sri Lanka over the period 1975 to 2010 are investigated. The extent of intra-industry trade between India and Bangladesh in 1975 to 2010 was high in sector like, crude materials except fuels, food and live animals. Intra-Industry trade index for most of the industries experienced a deceleration over time. India's IIT index with Sri Lanka has declined in chemical, food and live animals, mineral fuels, lubricant and related industries. There is potential of trade between India and Sri Lanka in the food and live animals, beverage and tobacco, manufacture goods classified chiefly by material. India has clear export complementarity with Bangladesh and Sri Lanka since 2000. This result is quite expected because India is major trade partner of Bangladesh and Sri Lanka. Bangladesh and Sri Lanka, on the other hand, clearly lack of export complementarity with India and each other value of TCI is less than 40.

  • * Research scholar, Department of Economics, Jamia Millia Islamia (A Central University), New Delhi.
  • ** Professor, Department of Economics & Director, Centre for Jawaharlal Nehru Studies, Jamia Millia Islamia (A Central University), New Delhi.

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Strategy of Food Security Through, Stocks and Public Distribution

Tarujyoti Buragohain*
Amit Sharma**

Government intervention in food grains markets has been an integral part of Indian food security. Government procures food grains to meet the requirements of public ifetribution systems at a price lower than the market price and to meet the requirement of special welfare schemes. The system is extremely inefficient and marked by corrupt practice. In India, Food grain production growth is lower than the growth of population. In this study,-an attempt has been made to develop models to assess the inter-dependency between output, procurement, prices, stocks and distribution of food grains in India and its policy implications. The models have been tested empirically. The study finds that buffer stocks are determined mainly by output, whereas public distribution determines internal procurement But imports are determined both by the stock and flow elements of demand.

Unless internal procurement is raised sufficiently to meet the public distribution, Indian economy will have to depend upon imports for food security.

  • * Economist. N.C.A.E.R, New Deihi.
  • ** Associate Professor, Bimtech, Knowledge Park II, Greater Noida.

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Determinants of International Capital Movements in Emerging Asian Economies

Nazia Jamal*
Rachna Mujoo**

Foreign resources are required not only to supplement the domestic savings but also provide the recipient country extra foreign exchange to buy imports essential for economic development. Thus, foreign resources are required for filling the saving-investment gap and foreign exchange gap. The present study attempts to explain the determinants of private capital inflows (CAPF) on some macro economic variables in emerging Asian economies using the time series data of CAPF, RGDP, INF, EXTDEBT, LIBOR, OPNNS, CAB for the period 1980 to 2012. The study also tries to analyse trends and composition of net capital flows in these economies for the said period besides analysing the country wise critical factors responsible for capital movements.

In the present study, an attempt has been made to examine the long run relationship of CAPF with the selected independent variables namely RGDP, INF, LIBOR, EXTDEBT, OPNNS, and CAB. The ADF unit root test has been carried out to test the stationarity of these variables as a first step. Secondly, to find out whether a long run relationship exists between the CAPF and the selected variables, co-integration test has been carried out through Johansen and Juselius method. Further, to find out the degree of responsiveness of the dependent variable to the selected independent variables the normalised co-integrating vector equations have also been estimated through Error Correction Mechanism (ECM). The empirical analysis shows that although interest rate seems to be the most important determinant to capital inflows but actually macro economic stability is the most important and critical factor determining the capital inflows.

  • Assistant Prof., Institute of Management Sciences, University of Lucknow, Lucknow.
  • Associate Prof., Department of Applied Economics, University of Lucknow, Lucknow.

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Influence of Infrastructure on the Economic Perspectives of Regional Tourism Development in Odisha State, India

Dillip Kumar Das*

It is already established that tourism can contribute significantly to the economy of a region. However, in addition to the prime attractions, which motivate tourists to visit a place, infrastructure and services provisions at the regional and destination, level play a major role in the tourist satisfaction and tourist visits. As infrastructure provision is no more a free service and investment in tourism sector is not much favoured recently because of its volatility nature, it is pertinent to understand the relationship between the infrastructure and the tourism economics of a region before investing on them. Therefore, this paper investigates the most influential infrastructures at the regional and destination level, which influence tourism and their individual and combined effect on the tourism economics of a region. The study was conducted by considering a tourism resource rich region of Odisha state in India.

Survey research methodology for data collection, relevant statistical analyses, multiple regression modelling and scenario analysis were followed. The findings are that there is a strong linkage between the infrastructure provision and ton economics. The road length, rail route length, accommodation (hotels) infrastructure at the regional level and investment on the destination level tourism infrastructure mostly influence the tourist arrival. However, enhancement of these infrastructures individually without considering the effect of the other infrastructures will not lead to significant increase in the tourist arrival and consequent economic benefits. However, if they are enhanced together at a perceived there will be significant increase in the tourist arrival, consequent earnings and employment generation tourism in the region.

  • * Department of Civil Engineering, Central University of Technology Free State, 20 President Brand Street, Bloemfontein, South Africa, 9300
    E-mail: Tel: 0027848529260, 0027515073647

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Sustainability: The Concept and its Economic Approach

Brajesh K. Dwivedi*
G. C. Triphati**

More than ever before, we need to understand now that there is an intimate connection between the economics of development and the environment. In the recent years, public debate has tended to focus on trade-off between conservation and economic growth. The conventional belief avers that in order to grow, countries have no choice but to deplete their resources, saving environmental concerns for a later, wealthier stage of development The surplus from growth process can be spent for remedying environmental degradation created along the way. Many developing countries plead that due to excessive pressure on their natural resources for the sake of development and meeting demands of their population, they cannot afford the luxury of environmentalism. Environmental economics considers the environment as an integral part of economic growth. Development is not genuine if it is not sustainable.

Proper valuation of resources is crucial in the processes. The ultimate source of enviro degradation and unsustainability is lack of commitment in micro-economic and environmental policies as also failures. This paper attempts to provide some thoughts perspectives on the need for environmental sound, sc responsible and properly balanced, development approach solving societal problem while duly conserving and ma biological and other natural environmental resources. Authors strongly believes that such a developmental app must embody the concepts of justice, diversity, equity, sustainability, to address and solve both environmental economic problems.

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