Welcome to Guest !
       IUP Publications
              (Since 1994)
Home About IUP Journals Books Archives Publication Ethics
  Subscriber Services   |   Feedback   |   Subscription Form
- - - - - - - - - - - - - - - - - -- - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
The IUP Journal of Managerial Economics

August '10

The first paper, “An Analysis of the Behavior and Composition of Savings in India” by Shradha H Budhedeo, is an analytical study of the changing trends in savings in India. It is often said that India’s savings are healthy,

An Analysis of the Behavior and Composition of Savings in India
Minimum Quality Standards with More Than Two Firms Under Cournot Competition
Green Accounting: Issues and Challenges
Group Lending Scheme Operating Through Primary Agricultural Credit Society: A Critical Assessment
Select/Remove All    

An Analysis of the Behavior and Composition of Savings in India

-- Shradha H Budhedeo

The Indian savings experience has been marked by varied oscillations since the inception of planning in India. In the period following the independence, India has witnessed a rising trend in the gross domestic saving rate, accompanied by many fluctuations over time though. Also, there have been many major shifts and substitutions within the composition of savings over the six decades. The objective of the present study is to examine the trend behavior and changing composition of savings in India over the planned economic era from 1950 to 2007. The study uses three indicators, namely, the trend growth of saving, the trend growth of saving rate and the average saving rate for an analysis of the trend behavior of savings in the country. On the basis of which, the entire six-decade period is decomposed into six distinct time periods or phases of saving—low-saving phase, increasing-saving phase, high-saving phase, stagnation phase, recovery phase and new-high-saving phase. For studying the changing composition of savings, the average share of saving components has been computed for different saving phases. After an extensive review of Indian savings, the study arrives at certain enlightening findings. There have been very important and major changes in the behavior and composition of savings in India over the analysis period. Household sector is the largest saver with the lion's share in GDS. Private corporate sector saves very low, while the public sector even dissaves. There have been some dramatic and drastic substitutions within the saving composition, with household preferences shifting from the conventionally most sought after saving instruments such as currency, life funds, provident and pension funds to bank deposits, shares and debentures, and other small-saving assets.

-- Mario Pezzino

This paper presents a study of the effects of the introduction of a Minimum Quality Standard (MQS) in a vertically differentiated market in which three identical firms compete in quantities in the short run and face quality-dependent fixed costs. In contrast to what has been shown under the assumption of Bertrand triopolistic competition (Scarpa, 1998), the introduction of an MQS has a positive effect on the average provision of quality.

-- Himanshu Sekhar Rout

National income measures like Gross Domestic Product (GDP) and Net Domestic Product (NDP) have been used as measures of the economic progress and standard of living in almost all countries for a long time. Decision makers and researchers use these measures for new policy initiatives and to analyze policy alternatives respectively. The traditional Systems of National Accounting (SNA) are now recognized as inadequate, as they cannot accurately measure the contribution of environment and the impact of economic activities on it due to the exclusion of the non-marketed services provided by natural assets, inconsistent treatment of depreciation on man-made and natural assets, and inadequate representation of the degradation of environment. This gives a false impression of increase in income to the decision makers and researchers, while natural wealth is actually reducing. Hence, green accounting can be useful for sustainable national income accounting and in removing the current biases.

-- Amit Kundu and Suranjana Mitra

The basic objective of the paper is to identify the effectiveness of group lending-based microfinance program operating through Primary Agricultural Credit Societies (PACS) in improving the economic condition among the rural participants in two blocks of Hooghly district in West Bengal. For the impact study, both Difference-in-Difference and First Difference methods have been considered. With the help of longitudinal data, the methods have been applied to minimize the possibility of selection bias during the time of drawing samples. It was found from the field survey that very few marginal farmers had taken credit from their respective groups for agricultural purposes. Results reveal that there has been no significant impact of microfinance program in terms of improvement of the outcome variables among the member households, in spite of the low interest rate charged on loans, high repayment rate within the groups and small size of Self-Help Groups (SHGs). The reasons for the same are lack of skill-based training programs for the members of groups and lack of marketing facilities to promote and sell the products produced by the members of SHGs. The only positive aspect is that the members can now protect themselves from the clutches of professional moneylenders who charge exorbitant interest rates.



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Click here to upload your Article

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.


View Previous Issues
Managerial Economics