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Andhra Pradesh Manufacturing Industry in the Era of Globalization:
A Cobb-Douglas Production Function Analysis
-- Pesala Busenna and V Ramesh
The main objective of the paper is to investigate which factors influenced the output growth—fixed capital or workers? The paper analyzes the data by calculating Compound Annual Growth Rate (CAGR) for different years and different variables like workers, fixed capital and output collected for 62 manufacturing industries from the Annual Survey of Industries (ASI) in Andhra Pradesh. In general, Cobb-Douglas production function has been used in two variables framework and value added has been considered as output and labor and capital as inputs. The Cobb-Douglas production function analysis through panel data analysis was done. The study followed the 1998-99, National Industrial Classification (NIC). The main findings of the study are, firstly, not all industries influenced the output growth. Secondly, most of the industries (20 industries) did not provide employment opportunities. Thirdly, a few (18) manufacturing industries’ fixed capital CAGR has negatively declined. Fourthly, a few (12) manufacturing industries’ output CAGR has negatively declined. And, finally only manufacture of machinery and equipment industry’s workers per factory employed average declined, and rest of the industries’ average number of workers per factory employed increased. © 2011 IUP. All Rights Reserved.
Indian Real Estate Market and Potential of House Price Indices
as an Indicative Tool: Cases and Concepts
--Sumanta Deb
Movements in prices of real estate, particularly residential housing, is of vital importance to the macro economy as well as to individual households. A House Price Index (HPI) in this context will not only give an indicative trend of the prices of properties in different cities but also serve as a benchmark for different users and a useful tool for monitoring real estate bubble. The absence of a strong database on the real estate sector is well recognized and considered critical in the context of on-going reforms in India. Information system and data need to be strengthened to enable better understanding and management of financial flows to enhance the sectors’ contribution to GDP and revenue base of governments to monitor and formulate policy to minimize economic slump due to burst of real estate bubble. © 2011 IUP. All Rights Reserved.
Productivity of Commercial Banks in India: A Bank Group-Wise Study
-- Anand S Kodan, Kuldip S Chhikara, Sandeep Mehra and Amit Yadav
The study indicates that the productivity performance of public sector bank group has been better than private and foreign bank groups; both public and private sector bank groups are operating under increasing return to scale, while foreign bank group is operating under decreasing return to scale; and the public and private sector bank groups are laborintensive, while foreign bank group is capital-intensive. © 2011 IUP. All Rights Reserved.
Infrastructure, Export-Led Growth and Economic Development
in Sub-Saharan Africa: An Empirical Analysis
-- Auta Elisha Menson
This study examines the impact of infrastructure and outward-orientation development strategy on the development of Sub-Saharan African economies. Three structural models were estimated using two-stage least squares (2SLS) method, and the results indicate that infrastructure is a significant determinant of per capita GDP in SSA. The elasticities of the coefficients of per capita GDP with respect to telephone, power and road are 0.19, 1.01 and 0.14 respectively. The adjustment expression and the initial gap expression for infrastructure are positive and significant. The estimated convergence rate is about 2.34%. However, the primary export/GDP ratio is positive but not statistically significant. The study suggests that it is time to rethink and there is a need to shift to the new development policy agenda that focuses on domestic demandled growth with emphasis on good governance that supports domestic growth drivers, large-scale investment in power, transport, and Information and Communication Technology (ICT) systems and other forms of soft and hard infrastructure, and encourages competitiveness and diversification towards higher value-added goods and services with greater technological content. © 2011 IUP. All Rights Reserved.
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