Is there any relationship between Economic Growth and Human Development? Evidence from Indian States

The paper attempts to analyse the relationship between economic growth and human development for 28 major Indian States during four time periods ranging over last two decades: 1983, 1993, 1999-00 and 2004-05. To construct Human Development Index for Indian States, we consider the National Human Development Report 2001 Methodology. The objective of this exercise to understand at what degree and extent the per capita income (as an indicator of economic growth) has influenced the human development across Indian States. To understand the rural – urban disparity in the achievement of human development, the Human Development Index is constructed for rural and urban areas separately for each of the States. The result shows that that per capita income is not translating into human well being. This perhaps in another way might signify the rising influence of other variables in determination of the HD achievements of a state. The result shows the need for further investigation to determine the underlying factors (other than per capita income) which influence HD achievements of a State.Economic Growth; Human Development; Human Development Index Methodology; Economic Liberalisation; Indian States

Environment, Human Development and Economic Growth after Liberalisation : An Analysis of Indian States

Economic growth does not necessarily ensure environmental sustainability for a country. The relationship between the two is far more complicated for developing countries like India, given the dependence of a large section of the population on natural resources for livelihood. Under this backdrop, the current study attempts to analyze the relationships among Environmental Quality (EQ), Human Development (HD) and Economic Growth (EG) for 14 major Indian States during post liberalisation period (1991-2004). Further, for understanding the changes in EQ with the advancement of economic liberalisation, the analysis is carried out by dividing the sample period into two : Period A (19901996) and Period B (19972004). For both the sub-periods, 63 environmental indicators have been clustered under eight broad environmental groups and an overall index of EQ using the HDI methodology. The EQ ranks of the States exhibit variation over time, implying that environment has both spatial and temporal dimensions. Ranking of the States across different environmental criteria (groups) show that different States possess different strengths and weaknesses in managing various aspects of EQ. The HDI rankings of the States for the two periods are constructed by the HDI technique following the National Human Development Report 2001 methodology. We attempt to test for the Environmental Kuznets Curve hypothesis through multivariate OLS regression models, which indicate presence of non-linear relationship between several individual environmental groups and per capita net state domestic product (PCNSDP). The relationship between EQ and economic growth however does not become clear from the current study. The regression results involving individual environment groups and HDI score indicate a slanting N-shaped relationship. The paper concludes that individual States should adopt environmental management practices based on their local (at the most disaggregated level) environmental information. Moreover, since environmental sustainability and human well-being are complementary to each other, individual States should attempt to translate the economic growth to human well-being.Environmental Quality, Economic Liberalisation, economic growth, Human Development, India

India’s Recent Infrastructure Development Initiatives: A Comparative Analysis of South and Southeast Asia

Since the early 1990s, the number of Regional Trade Agreements has increased considerably across continents. This is resulting into increasing regional integration with substantial importance being given to cross-border connectivity development. India, a late subscriber of active RTA strategy, is enthusiastically venturing into cross-border connectivity exercises to enhance its trade integration with the neighbouring countries in recent period. Developing cross-border connectivity is currently receiving salience in the regional forums like SAARC, though limited progress has been made so far. In contrast, ASEAN is the only forum in Asia where substantial progress in integration through cross-border infrastructure augmentation has been witnessed. India has recently entered into FTA with ASEAN and is involved in several infrastructure augmentation projects in several ASEAN member countries. Given this background, the current paper seeks to analyze the Indian infrastructure development initiatives in the immediate and Southeastern neighborhood. The discussion covers the SAARC and ASEAN initiatives towards building physical infrastructure, as well as the recent aid for trade initiatives being undertaken in South and Southeast Asia. The paper concludes by drawing the lessons for SAARC members from the ASEAN experience.Economic Integration; Infrastructure

Environment, Human Development and Economic Growth after Liberalisation: An Analysis of Indian States

Economic growth does not necessarily ensure environmental sustainability for a country. The relationship between the two is far more complicated for developing countries like India, given the dependence of a large section of the population on natural resources for livelihood. Under this backdrop, the current study attempts to analyze the relationships among Environmental Quality (EQ), Human Development (HD) and Economic Growth (EG) for 14 major Indian States during post liberalisation period (1991-2004). Further, for understanding the changes in EQ with the advancement of economic liberalisation, the analysis is carried out by dividing the sample period into two: Period A (1990–1996) and Period B (1997–2004). For both the sub-periods, 63 environmental indicators have been clustered under eight broad environmental groups and an overall index of EQ using the HDI methodology. The EQ ranks of the States exhibit variation over time, implying that environment has both spatial and temporal dimensions. Ranking of the States across different environmental criteria (groups) show that different States possess different strengths and weaknesses in managing various aspects of EQ. The HDI rankings of the States for the two periods are constructed by the HDI technique following the National Human Development Report 2001 methodology. We attempt to test for the Environmental Kuznets Curve hypothesis through multivariate OLS regression models, which indicate presence of non-linear relationship between several individual environmental groups and per capita net state domestic product (PCNSDP). The relationship between EQ and economic growth however does not become clear from the current study. The regression results involving individual environment groups and HDI score indicate a slanting N-shaped relationship. The paper concludes that individual States should adopt environmental management practices based on their local (at the most disaggregated level) environmental information. Moreover, since environmental sustainability and human well-being are complementary to each other, individual States should attempt to translate the economic growth to human well-being.Environmental Quality; Economic Liberalisation; Economic Growth; Human Development; India

Julien Chaisse & Tsai-yu Lin (Eds.), International Economic Law and Governance: Essays in Honour of Mitsuo Matsushita

Abstract. WTO today stands at a crucial crossroad. On one hand the multilateral negotiations are progressing at a snail’s pace, often dis-incentivizing Member countries from undertaking additional liberalization commitments. On the other hand, the regional collaborations like the Trans-Pacific Partnership (TPP) are losing relevance, given the recent decision of the US to pull out. As a result, several countries are now treading on a path inclined towards protectionist intents, much to the chagrin of their partners. The emerging development has enormous implications for the interaction between WTO Members at the Dispute Settlement (DS) forum, where the possible violations of the multilateral commitments are analyzed.Keywords. Internatioanl economics, Economic law, Governence.JEL. F00, F50, F59, F60

Parthasarathi Shome, The G20 Development Agenda: An Indian Perspective

Abstract. In the aftermath of the global economic crisis during 2008-09, the group of 20 nations (G20) came together to implement a series of macro-economic and financial sector reforms to bring the world economy back on the path of stability. India, given its growing GDP and increased external sector orientation, became a crucial part of the group. Once the recovery process started since 2010, G20 moved on to adopt a series of development agendas, including provisions on food security, infrastructural augmentation, energy and environmental sustainability and so on. Given India’s unique position that allows coexistence of economic growth with livelihood challenges and considerations over environmental degradation, the new G20 development agendasmay significantly influence the country’sfuture policy choice and growth path. In this context, the recent volume edited by Shome is a well-structured and timely contribution to the literature, which analyses the G20 development agendas from an Indian perspective.Keywords. Economic development, Macroeconomic analysis.JEL. F63, O10, O20, O50

Economic and Political Cooperation between India and East Asia: The Emerging Perspective

Abstract. After initiating the economic liberalization policies in 1991, India adopted a ‘Look East Policy’ (LEP) with the dual objective of securing economic growth and maintaining maritime security. Cooperation with East Asia received further boost, when the ‘Act East Policy’ (AEP) came into effect during the maiden visit of Prime Minister Mr. Narendra Modi at the ASEAN-India Summit in 2014, which emphasizes on practicing more action-oriented policy towards ASEAN and the wider East Asia. As a result of the policy shift and through the other initiatives like Make-in-India, India’s trade and investment linkages with East Asia is on the rise. In 2015, the Prime Minister visited five East Asian countries at various occasions. There have been other high level diplomatic visits to the East, followed by the appropriate diplomatic channels. Therefore, AEP has brought a great sense of speed and priority in engaging with the East and Southeast Asian countries. On maritime front, China’s nine-dash line doctrine generated strategic concerns both in East and Southeast Asia and India has emerged as a strategic player in the region through joint naval exercises and capacity buildings with partner countries. Given the recent reservations expressed by Beijing against the ruling by the international tribunal in The Hague, India’s maritime security initiatives in East Asia is likely stay relevant in coming days. The current paper examines the future for India-East Asia relations in days to come, especially in the current geo-political set-up.Keywords. Trade Policy, Intra-Industry Trade, Maritime Security, India.JEL. F14, F15

Nilanjan Banik, The Indian Economy: A Macroeconomic Perspective

Book Revie

Michael G. Plummer, Peter J. Morgan & GaneshanWignaraja (eds), Connecting Asia: Infrastructure for Integrating South and Southeast Asia

Abstract. The recent rise in Regional Trade Agreements (RTAs) across the globe can be explained by the growing depth of intra-regional international production networks (IPNs) connecting firms across borders, slow progress of WTO negotiations under the Doha Round, among others. The upcoming RTAs, through granting of preferential tariff to partnersand introduction of trade facilitation measures including mutual recognition of standards and customs cooperation agreements, promote trade both in intermediate and final products. Intra-regional trade is increasingly taking place through multi-modal forms of transport, and ensuring seamless connectivity successfully complements the trade policy reforms.Keywords. Economic Integration, Economic infrastructure, Infrastructure development, South Asia economies, Southeast Asia economies.JEL. F15, F36, N00, N10, N20, O53