Contents
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New Economic Geography: The Role of Small and
Medium Towns in the Genesis of Urbanization in India
Boishampayan Chatterjee
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This paper examines the extent to which small and medium
towns in India have contributed toward the growth of urban
population. As agglomeration benefits outweigh its costs,
small and medium towns can become an important hub for
economic activity. Descriptive mapping of 15 Indian states
indicates that the growth of small and medium towns have a
substantial share in the overall growth of urban areas in a
state. Results from the district-level regressions show that a
positive shock in district urban population is associated with
a significant increase in the number of small and medium
towns. Additionally, growth of population in small and
medium towns responds positively to the increased pace of
urbanization at the district level. However, the dispersed
nature of urbanization may point towards the role of the
government to mobilize resources from greater economic
activities to facilitate the rapid growth of small and medium
towns.
- Anil Surendra Modi School of Commerce, SVKM’s Narsee Monjee Institute of
Management Studies (NMIMS) University, V.L. Mehta Road, Vile Parle West, Mumbai,
Maharashtra-400056..
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Short Run and Long Run Co-integration between
Economic Growth, Inflation and Money Supply:
An Application of Co-integration Approach
Javaid Ahmad Mir 1
Rekha Acharya2
Majid Rehman Khuroo3
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The dynamic relationship between economic growth,
inflation and money supply is one of the major
macroeconomic policy objectives. The objective of the
present study was to examine the impact of inflation and
money supply on economic growth in both short run and long
run for India. The study uses yearly time series data of
economic growth, consumer price index (CPI), Inflation as
measured by the consumer price index, and money supply.
The studies uses vector error correction model (VECM)
model to estimate short run and long run co-integration
between inflation, money supply and economic growth. In
addition to this, this study aims to examine the association
among inflation, money supply and economic growth using
VAR Granger Causality test. The findings revealed the
existence of both short run and long run elasticities running
from inflation to economic growth but only short run cointegration
from money supply to economic growth. The
results from VAR Granger Causality indicate the existence of
causation from both money supply and inflation to economic
growth and from economic growth and money supply to
inflation. The findings have some important policy
implications to be considered while formulating any policy
action for stabilizing the economy.
Keywords: Dynamic Relationship, Economic Growth,
Inflation, Money Supply, Vector Error Correction Model,
Granger Causality Test, Policy Implications.
- Lecturer in Economics, GDC Kupwara, Email: Javidecon99@gmail.com
- Professor in Economics, DAVV, Indore, Email: mailforrekha@gmail.com
- Assistant Professor, Commerce, GDC Kupwara, Email: majidrehman3@gmail.com
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Examining the Relationship between Public Private
Partnership Investment and Economic Growth in India:
An Empirical Analysis using an ARDL Framework
Pratibha Rai1
Vijeta Pundir2
Priya Gupta3
Deepthi B.4
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The relationship between private and government investment
and their impact on GDP remains ambiguous, with studies in
developing and advanced economies showing contradictory
findings. It is unclear whether government investment
complements or substitutes private sector investment, and the
dynamics of this relationship need further exploration, along
with the role of public-private partnerships (PPPs) in
enhancing private sector capital formation and economic
growth. Using the Autoregressive Distributed Lag technique
within an extended Cobb-Douglas framework, flexible
accelerator model, and employing Granger Causality
analysis, the study investigates a three-decade period from
1989 to 2020. The findings reveal both short and long-term
co-integrating linkages, indicating the Indian economy's
tendency to converge to equilibrium following exogenous
and endogenous shocks. The study emphasizes the
importance of strategic investment allocation in the public
sector, particularly in infrastructure and non-infrastructure
projects, to stimulate private sector investments aligned with
sustainable development goals. The study suggests
investigating how PPPs enable governments to avoid or
defer infrastructure spending without forgoing the benefits, which can be particularly relevant for countries facing fiscal
constraints. The future scope also entails exploring the
effectiveness of qualitative fiscal and monetary policies in
supporting and enhancing private investments.
Understanding the potential of capital formation by the
government sector and PPPs to incentivize private sector
capital formation and promote national well-being through
higher growth is crucial for policymakers and researchers
alike. Given the global trend of countries initiating PPPs to
address infrastructure and non-infrastructure needs, further
investigation into their implications and benefits is
warranted. Such studies can provide valuable insights and
guidance for countries facing fiscal constraints and seeking
sustainable economic expansion.
Keywords : PPP; Crowding out; ARDL; FDI; GDP; Public
and Private Investment
- Maharaja Agrasen College, University of Delhi, Delhi, India.
E-mail: rai.pratibha@gmail.com
- Maharaja Agrasen College, University of Delhi, Delhi, India.
E-mail: vpundir@mac.du.ac.in
- Atal Bihari Vajpayee School of Management and Entrepreneurship, Jawaharlal Nehru
University, New Delhi, India. E-mail: pgupta1902@gmail.com
- Atal Bihari Vajpayee School of Management and Entrepreneurship, Jawaharlal Nehru
University, New Delhi, India. E-mail: deepthy.spandan@gmail.com
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How Vaccinations and Stringency Index Impacts
the Volatility of Indian Treasury Bills and
the Stock Market?
Munawar Sayyad1
Satish Chandra Tiwari2
Kaushik Bhattacharjee3
Abhishek Sinha4
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Pandemic is a black swan event that impacts the returns and
the volatility of the stocks market and has cascading impact
on the Treasury bill markets as investors look at safe
investment opportunities. In this study the authors investigate
impact of variables impacting the severity of corona (Total
deaths of Corona, Total vaccination given, positivity rate,
and Stringency index) on the NIFTY 500 Returns, Volatility
Index (VIX) and Treasury Bills Returns (91 days) using
regression methodology. We find a significant positive
association between NIFTY 50 return and daily vaccination
count of Covid-19.The result shows that increasing number
of vaccination helps to recover the investor’s faith for
investing in market again and hence NIFTY 50 gets a
positive signal in terms of return. Furthermore, there is a
positive relationship between market volatility and variables
that impact Covid-19. The result clearly depicts that as the
number of covid-19 cases has been increasing as government
takes stringent measures the market has become more
volatile.
Keywords : Corona virus, PANDEMIC, Vaccinations,
Treasury Bills returns, Financial markets, Stock returns.
- Department of Finance, IFHE, ICFAI Business School, Hyderabad, India.
Email: munawar0013@ibsindia.org
- Department of Finance, IFHE, ICFAI Business School, Hyderabad, India.
Email: satish2bhu@gmail.com
- Department of Finance, IFHE, ICFAI Business School, Hyderabad, India.
Email: kaushik@ibsindia.org
- Department of Finance, IFHE, ICFAI Business School, Hyderabad, India.
Email: abhisheksinha@ibsindia.org
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Sustainability of Microfinance Institutions in India
Nishi Malhotra1
Pankaj Kumar Baag 2
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Around the world, 1.7 billion people live in abject poverty.
Due to a lack of collateral and knowledge about
creditworthiness, these people cannot obtain financial
services. Due to mission drift, formal financial institutions
are wary of lending to these members. U.N. sustainable
development has earmarked an additional role for the MFIs
in catering to poor people. This study examines the trade-off
Indian microfinance firms face between breadth of outreach
and financial sustainability. To study this relationship, we
deployed a dynamic panel estimator with the G.M.M. to
address the issue of endogeneity between outreach and
financial sustainability of microfinance institutions. The
analysis confirmed the existence of a trade-off between
outreach and financial viability. In other words, small loans
are less financially sustainable. Considering the mission drift
faced by the microfinance institutions in India, this study
demonstrates a critical trade-off between financial
sustainability and outreach. This analysis will aid
policymakers as MFIs shift their focus away from
microcredit and toward individual responsibility loans and
lending. No previous research has examined the endogeneity
and reverse causality between microfinance institutions'
outreach and financial sustainability. This study is the firstever
study to explore this issue in the context of the
microfinance institutions.
Keywords- Microfinance institutions, financial sustainability,
Outreach, Mission drift.
- Ph.D. Scholar (Finance, Accounts, and Control), IIM Kozhikode.
Email: nishim13fpm@iimk.ac.in
- Assistant Professor, (Finance, Accounts & Control) IIM Kozhikode
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Macro-Economic Impacts of Covid-19 Pandemic:
A Comparative Study of Developed
and Developing Countries
D. K. Yadav1
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Covid -19 pandemic led lockdown for substantially long
period of time has affected almost every aspect of human life.
Spread of coronavirus is not limited to any particular
country. Its spread is now across the countries and
continents. In this sense UNO has announced it as global
pandemic of current era. Though the spread of corona virus
has affected every aspect of human life, be it social, cultural,
political, or in that context any other aspect of human
behaviour. However, it has most badly affected to economic
aspect of human life. In this context it is important to analyse
whether global pandemic has affected similarly to
macroeconomic indicators of developed and developing
countries? If it is dissimilar, what is the level of difference
and what are their possible reasons? Keeping these
questions in mind, Present study aims to explore the impact
of Covid-19 pandemic on fundamental economic variables by
comparative analysis of developed and developing countries.
Keywords : Covid-19 Pandemic, Lockdown, Developed
Countries, Developing Countries, Macroeconomic Indicators.
- Assistant Professor, Department of Economics, Babasaheb Bhimrao Ambedkar
University (A Central University), Lucknow. Email: dev1985icfai@gmail.com
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Distribution and Determinants of Out-of-Pocket
Expenditures on Healthcare in India: An Empirical
Analysis at the State Level
Piya Ghosh1
Jayanta Sen2
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This paper deals with an empirical analysis of the changing
pattern of the consumer’s out-of-pocket expenses on
healthcare and the extent of inequality that prevails in the
distribution of healthcare spending among different income
groups across major Indian states. Gini Coefficient & Palma
Ratio are used to measure the degree of inequality. Factors
influencing out-of-pocket health expenses are examined in
rural and urban India separately by using pooled regression
econometric techniques. National Sample Survey
Organisation (NSSO), India, consumer expenditure data on
healthcare are considered. Inequality in out-of-pocket
payments on healthcare appeared as remarkably high as
compared to the inequality in aggregate expenditure in every
parts of the nation. Significant Rural-urban disparity in the
Pattern of expenditure and in the inequality levels exhibited
across the Indian states. Income being an indicator of
ability-to-pay emerged as the prime factor influencing outof-
pocket payments. Pro-poor health insurance policies,
proper health infrastructure and good governance in health
management system would be effective and revolutionary to
reduce the gap in spending pattern between rural and urban
households.
Keywords : Out-of-Pocket Expenses, Healthcare,
Distribution, Inequality, Gini Coefficient, Palma Ratio,
Determinants.
- Research Scholar, West Bengal State University, Barasat, Kolkata, West Bengal.
Email: piyaghosh.ghosh@gmail.com
- Professor & Head, Department of Economics, West Bengal State University, Barasat,
Kolkata, West Bengal. Email: senj123@gmail.com
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Social Networks, Memberships, and Occupational
Mobility in India: Findings from Indian Human
Development Survey (IHDS) 2011-12 Data
Bisla Devi Rajoriya1
Seepana Prakasam2
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The study investigates the extent and patterns of
intergenerational occupational mobility among households
in India using IHDS 2011-12. It estimates the influence of
socio-economics, demographic factors, and networks (age,
gender, caste, education, urban economic status of the
household, and social networks variables) on
intergenerational occupational mobility.
All levels of education are found to be significant and
positively associated with upward mobility. Son with one
higher level of education increases their chances of upward
mobility by 7per cent. Son of female household heads has a
28 per cent higher probability of upward mobility.
Households belonging to OBC and SC are likely to find open
opportunities to move upward in 2011-12.
We also find a significant influence of networks and
memberships. Acquaintances with youth memberships within
the community in urban areas increase the chances of
upward mobility by 6 per cent compared to the networks
outside the community, whereas membership in religious
groups, social groups, and caste associations have higher
chances of upward mobility of 3per cent. Having networks
with government officers is statistically significant at
positively correlated with upward mobility. Overall, our
study suggests that the households of better background
characteristics are less likely to be in the same occupation as
their fathers and social networks and memberships have an
important influence on upward mobility.
Keywords : Networks & Memberships, Intergenerational
Occupational Mobility, multinomial logitmodel, India
Human Development Survey (IHDS), India.
- ICSSR IEG Doctoral Fellow, Department of Economics, Panjab University, Chandigarh.
E-mail: bisla04@gmail.com
- Asst. Professor of Economics (SG), PGGCG- 11 Chd / Post Doctoral Fellow, Department
of Economics, Panjab University, India. E-mail: drsprakasam@gmail.com
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Improvements and Impediments of Reproductive
Health of Women: A Disaggregated Analysis
in Indian Subcontinent
Gargi Bhattacharya1
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The present study attempts to assess the reproductive health
(RH) status based on 5 selected RH indicators of 15 major
states in India over 3 time points using the District Level
Household and Facility Survey data. Inter-state variations in
overall reproductive health situation at a large scale have
been found to exist. Although over time the states are
converging, the inequality trend in different RH parameters
gives quite mixed results. In order to explore the underlying
reasons behind the inter-state differential of selected
reproductive health parameters, a panel data regression is
carried out incorporating both demand and supply side
factors and in most of the cases the result affirms that female
education, female labor force participation and per capita
social sector spending play important role for explaining the
differential reproductive health outcomes in terms of
different reproductive health services. In some cases poverty
and inadequate health infrastructure appear to be vital and
significant predictors. Achieving Sustainable Development
Goals (SDGs) in respect of reproductive health and “Health
for All” in India are utopian concepts until a proper
intervention is made at the policy level with an aim to ensure
social justice and equity in the economy.
Keywords: Demographic dividend, India, Reproductive
health, Achievement index, Relative inequality, Health
infrastructure.
- Assistant Professor, Department of Economics, Mahadevananda Mahavidyalaya,
Barrackpore, Kolkata-700120, India. E-mail: g.b82here@gmail.com
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Impact of Coronavirus Pandemic on UPI Payments:
A Major Boost to Digitalization
Hargun Sahni1
Hariom Gupta2
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After coronavirus pandemic struck the world, there was an
urgent need to curb the spread of virus by avoiding the use of
currency notes. This is, where Unified Payments Interface
(UPI) transactions played a catalyst role in boosting digital
payment transactions post covid. This paper reviews precovid
and post-covid performance of UPI (Unified Payment
Interface) transactions in India. For this purpose, a time
period of six years, i.e., 2016-2018 (pre-covid) and 2019-
2022 (post-covid) considered for the current study. Pictorial
representation and paired sample t-test has been used at 5%
significance level, if pandemic push has taken place and
boosted UPI transactions. The findings of the study reveal
that there was a positive and significant difference during
pre-covid and post-covid period in UPI transactions with
respect to three parameters, viz., volume of UPI transactions,
value of UPI transactions and the number of banks
supporting UPI mechanism.
Keywords: Unified Payment Interface, Covid-19, digital payments.
- Research Scholar, Department of Commerce and Business Administration, University of
Allahabad (India). E-mail: h.sahni1996@gmail.com
- Assistant Professor, Department of Commerce and Business Administration, University
of Allahabad (India) . E-mail: hariom@allduniv.ac.in
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