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Special Centennial Issue

No. 396

July 2019

Vol. C

ISSN: 0019-5170



Factors Determining the Choice of Institutional Credit
among Farmers in West Bengal

Sarbani Sarkar1


In this paper we try to determine the household specific and institution specific factors affecting the choice of credit sources. We try to find out, factors controlling the propensity to choose formal source of borrowing among the farmers using Probit model with unit level data available from NSSO, 70th Round on agricultural household's survey. We choose here source of outstanding credit as dummy dependent variable and land holding size with other demographic characteristics as independent variables. At household level, we have considered demographic characteristics like caste, age, gender, education, family size as important variables. To incorporate the characteristics of institution we have taken into account the size of land. Our main point of focus is to clarifi how land holding pattern influences the choice of credit. The other variables help us to understand the issue in a wider sense. We found that land holding is not only variable affecting the credit source choice significantly but education, age, household size also affect significantly the choice of borrowing source in West Bengal.

  1. Assistant Professor in Economics, Ranaghat College, Old Behrampore Road, District: Nadia, State: West Bengal, PIN-741201.Email:

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Mechanism for Determining Optimal Management of
Use of Production Capacity at the Textile Enterprises

Tursunov Bobir Ortikmirzaevich*1


This article attempts to create a mechanism for determining the optimal management of fhe use of production capacity in the textile industry. The peculiarity qf' lhis mechanism is that, it is based on the hierarchy method using the choice of a Pareto-effective set of' alternatives. The method Qf' analyzing hierarchies in such systems has two rather important advantages. On the one hand, il allows stakeholders to express their subjective view on the system of values of the enterprise. On the other hand, on the contrary, the method minimizes subjectivity (including lobbying) in relation to specific alternatives. Indeed, afier defining specific criteria with a system, it is rather difficult to present an essentially non-objective comparison of alternatives on them.

Key Words: production capacity, utilization, effectiveness, production process, assessment, textile.

JEL code: D24; D25; C65;

  1. Tashkent State Econmic Universtiy, The Republic of Uzbekistan.

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Energy Generation and Industrial Output in Nigeria

DADA James Temitope 1


This study examines the supply side of energy on industrial output in Nigeria. The study focuses on the effect and causal relationship between energy generation and industrial output in Nigeria from 1971 to 2017. Auto-regressive distributive lag and Granger pairwise causality are used as the estimation techniques. Energy generation is disaggregated into energy generation from gas, hydro and oil, gas and coal. The results reveal that energy generation from gas, hydro and oil, gas and coal have negative effect on industrial output in the short run. While in the long run, energy' generation from oil, gas and coal has positive effect on industrial output. The direction of causality also indicates a bi-directional causality between energy generation from gas and industrial output. Uni-directional causality exists between energy generation from oil and gas and industrial output. The study concludes that adequate energy' should be supplied to industrial sector.

Key Words: Energy Generation, Industrial Output, Gas, Hydro, Oil and Gas.

  1. Department of Economics, Obafemi Awolowo University, Ile-lfe, Nigeria Email:,

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Inclusiveness of Recent Financial Inclusion Schemes:
A Field Level Investigation from Atrauli and Jabrauli
Village of Lucknow District

D. K. Yadav 1  

Recently NDA Government, led by the Prime Minister Shri Narendra Modi, has started many new schemes of financial inclusion to achieve the target of complete financial inclusion. Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Fasal Bima Yojana (PMFBY), PM MUDRA Scheme, Atal Pension Yojana (AP Y), are those schemes announced by Modi Government and targeted to provide different key financial services to the poor. On the basis of Government reports, it is being found that Government is claiming to open bank account of 99 percent households under the PMJDY scheme. Similarly, very adorable claims have also been made by Government related to other schemes. Under Mudra scheme, nearly 8.5 crore loan account have been opened, which covers nearly 35 per cent of total households. Similarly as per data provided by Government on the website of PMSBY, PMJJBY, and APY nearly 9.6 crore (38.85%), 3 crore (12%), and 18 lakh (72%) households have been covered respectively.

Present study attempts to assess the above adorable claims of the Government with the help of field level observation collected through well structured questionnaire from Atrauli and Jabrauli villages of Lucknow District. In the analysis, it has been found that there is voy big difference between the claim of government and ground realities. It has been identified that unawareness of villagers about these schemes and provisions made under these schemes, as one very important reason behind not getting the benefits of these schemes. As awareness is being identified as key variable for availing the benefit of government schemes, paper tries to explain the level of awareness with the help of socio economic characteristics and financial behavior of households using binomial logistic regression model.

Key Words:Financial Inclusion, Inclusive Growth, Micro finance, Weaker Sections.

  1. Assistant Professor, Department of Evonomics, Babasaheb Bhimrao Ambedkar University, Lucknow 226025. E-mail:

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Dynamics of Estimation of Liquidity Created
by Banks in India

Naina Grover 1
Pankaj Sinha 2  

Risk transformation and liquidity creation are the two key functions of a bank. Liquidity Creation plays a very important role in the economy, but there is no comprehensive measure of liquidity creation that exists in our country. This study estimates the notional value of liquidity created by Scheduled Commercial Banks (excluding Regional Rural Banks) in India during 2005-2018. Following Berger and Bouwman, two measures of liquidity creation have been developed i.e. narrow and the broad measure. As per the broad measure, the notional amount of liquidity created for the FY 17-18 is Rs.41524096 million, which is 27.2 percent of the total assets of all Scheduled Commercial Banks. Off- balance sheet activities play a significant role in liquidity creation, 25 percent of the total liquidity creation (as per broad measure) is found to be determined by the off-balance sheet activities. Recently, there have been discussions to privatize the nationalized banks, but the study finds that for FYI 7-18, nationalized banks contribution is around 68.2 percent towards liquidity creation whereas private banks and foreign banks are contributing 29.7 per cent and 2.0 percent, respectively. Though the total number of foreign banks has increased from 31 in 2005 to 45 in 2018, but there is a declining trend in liquidity creation by the foreign banks.

Liquidity creation based on size has also been estimated. The study finds that large banks are contributing significantly towards the liquidity creation, which constitutes 94% of total liquidity creation as per broad measure. The study is corroborated statistically with Kruskal Wallis and Dunn 's test which evidences that ownership and size has significant impact on liquidity creation.

Keywords:Risk transformation, liquidity creation, Scheduled commercial banks, Off-balance sheet activities.

  1. Research Scholar at Faculty of Management Studies, University of Delhi.Email:
  2. Professor at Faculty of Studies. University of Delhi. Email:

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Determinants of Child Mortality in Nigeria:
A Socio-Economic Analysis  

Bhola Khan 1

In a developing country to assure a good child health is an important issue of any public policy. If there is any declining trend in their child mortality rate, it indicates that their Human Development Index (HDI) is improving. But regrettably, in developing world often ignore this core issue of sustainable development and they spent less than half of per cent their Gross Domestic Product (GDP) on health. Moreover, out of this half of per cent of the GDP, they spent meager amount on child health issues. Therefore, it's become an important issue in Nigeria to investigate the problem. In this study, attempt is made to analyze the various determinants of child mortality such as female literacy rate, expenditure on education and sanitation and per capita income at Purchasing Power Parity (PPP). For this purpose, Ordinary Least Square (OLS) regression analysis is used. It is evident for the regression analysis that the female literacy rate has negative and significant impact on child mortality. Expenditure on education, in general, have also negative and significant effects on child mortality in Nigeria.

Keywords: Child Mortality, Female Literacy Rate, Per Capita Income, Regression.

  1. Department of Economics, Yobe State University, Gujba Road Damaturu,

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Causality Between Dividend Policy and Stock Price
Volatility in India: A Time Series Analysis

Minimol M.C.1

The purpose of this paper is to examine the relationship between dividend policy and stock price volatility. Two key variables; dividend yield and dividend pay-out have been considered as the independent variables after controlling for total assets, EPS and leverage. The stock price volatility has been taken as the dependent variable. Data collection was carried out with a sample of 30 companies listed in the Bombay Stock Exchange, for a period often years from 2008 to 2017. The statistical tools used are unit root test, Johansen Co-integration test, Vector error correction model, Granger Causality and regression analysis. The results confirmed that the variables are stationary in nature. The variables were also regressed to find out the relationship between share price volatility, dividend policy, yield, EPS, total assets and leverage. Vector error correction model lead to the conclusion that there is no short term relation between dependent and independent variables, hence confirming the long term relation.

Keywords: dividend policy, stock price volatility, dividend yield, dividend pay-out, leverage.

JEL Classification: G3; G35; G350.

  1. Associate Professor. Rajagiri College of Social Sciences (Autonomous) Rajagiri Valley, Kakkanad, Kochi, Kerala 682 039,

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Causality between Environmental Degradation and
Macro Economic Variables in India:

A Time Series Analysis

Asheref Illiyan1

Vasim Akram1

The present study analyses the short run and long run relationship between macro variables and C02 emissions(proxy for environmental degradation) in India for the period 1971 to 2017.The study is based on data from World Development Indicators published by World Bank. The study employed Augmented Dickey Fuller (ADF) test for checking the stationarity of the variables, Granger Causality test and Johansen Co-integrations tests for short run and long run relationship among the variables. The findings provide no support of short run relationship among nancial thecarbon emission (C02), economic growth, fi development, energy' consumption and population growth. However, our result lent support to the long run equilibrium relationship among the above variables as evidenced by Johansen 's co-integration test. The results stress that there isa need to move to minimum carbon technologies which aims to reduce the C02emission and bring the sustainable economic growth as well as green growth as needed in India. This may interalia include need for more energy efficiency and fast moving from non- renewable energy to renewable energy like solar energy.

Keywords : Environment, Economic Growth, Carbon Emission, Granger Causality, Co- integration, India.

  1. Associate Professor, Dept. of Economics, Jamia Millia Islamia University, New Delhi, India.
  2. Assistant Professor (Contractual) during 2018- 19, Dept. of Economics, Jamia Millia Islamia University, New Delhi, India. Email:

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Economics Growth and Subjective Well-Being Inequality
in India: Evidence from the World Value Surveys  

Maya K. 1

Neeraj Kumar 2

Happiness or Subjective Well-Being literatures are now more focusing on the link between economic growth and subjective well-being. A central question is whether higher income and/or for economic growth rates are associated with levels of Subjective Well Being (SWB). Cross higher sectional analysis clearly indicates that there is a positive relationship between inconw and SWB. However, in lime series this relationship may vanish (the Easterlin Paradox). In this paper, we examine the relationship between income, economic growth, and SWB inequality using dala .fiom the World Values Survey and Planning Commission. The results indicate that per capita income is directly related to SWB inequality in cross-sectional analysis. There is also evidence that greater economic growth is associated with a weakly increase in SWB inequality. The relationship between income, economic growth, and SWB inequality is strongly explained by income inequality in India.

Key Words: Life Satisfaction, subjective Well-being, Happiness Inequality, Income Inequality.

JEL Classification: D63, H55, 131, 138

  1. Guest Faculty, Department of Economics, St. Thomas College Thrissur, Kerala-680001.
  2. Senior Research Fellow, Livestock Economics, Statistics & IT Div. ICAR-Indian Veterinary Research Institute, Izatnagar, Bareilly, Uttar Pradesh-243122. E-mail:

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Pandit Deen Dayal Upadhyaya's Unified Tax System and
GST in India

M. K. Agarwal 1

Mohd. Yousuf Malik 2

The present paper is an attempt 10 analyze the tax reforms in India through the GST (Goods and Service tax) which is a major initiative for overall economic reforms in India. In the first half of the paper, we have explained the need and history of tax reforms in India which dates back to ancient India. However, in the modern India, the concept of a single tax system similar to GST has been first suggested by Pandit Deen Dayal Upadhyaya who is considered to be a great economic thinker and strategist for the contemporary Indian economic development. He was clearly against the multiple taxsystem as it leads to cascading effect. Therefore, he voiced his support for a unified tax system. There are two basic variables used to measuring success of tax reforms, first one is revenue and second is tax base. The growth rate and the absolute indirect tax amount had surpassed direct taxes after the implementation of GST in July 2017. The average monthly GST collection has been improving gradually. The tax base has also increased by crossing one crore mark in year 2017-18. These two variables prove the structural changes that have been brought by the GST in a very short period. Both these variables prove that GST has been a successful tax reform which has achieved the desired objectives.

  1. Professor, Department of Economics, University of Lucknow, Lucknow- 226007;
  2. Research Scholar, Department of Economics, University of Lucknow, Lucknow -226007; Email:

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