CAPITAL FORMATION AND ITS FINANCING IN THE PRIVATE CORPORATE SECTOR IN INDIA**Any views expressed here are the personal views of the authors and are not necessarily those of the institution which they serve.

Author(s):  
N.S.R. SASTRY ◽  
V.K. SASTRY
2015 ◽  
Vol 1 (1) ◽  
pp. 74-82
Author(s):  
Anandakumara K ◽  
Glorinthal P

The fact that saving is one of the main factors to economic growth is unquestionable.Accumulated saving can be consider as the sources of capital stock which play a crucial role in creating investment, production, and employment. And all these activities eventually enhance the economic growth. The present paper attempts to analyze the contributions of household sector, private corporate sector and public sector in Gross Domestic Savings (GDS) and thus Gross Capital Formation (GCF) of India. The study is based on secondary data from 2000-2013. The statistical  tools like Percentage, ANOVA, Correlation and Regression analysis are used for data analysis. The analysis reveals that the maximum contribution to GDS and GCF is made by household sector followed by private corporate sector and public sector.


2013 ◽  
pp. 109-135
Author(s):  
Y. Goland

The article refutes popular belief about the necessity to abolish the New Economic Policy (NEP) of the 1920s for the purpose of industrialization. It is shown that it started successfully under NEP although due to a number of reasons the efficiency of the investments was low. The abolishment of NEP was caused not by the necessity to accelerate the industrialization but by the wrong policy towards the agriculture that stopped the development of farms. The article analyzes the discussion about possible rates of the domestic capital formation. In the course of this discussion, the sensible approach to finding the optimal size of investments depending on their efficiency was offered. This approach is still relevant today.


2005 ◽  
pp. 53-68 ◽  
Author(s):  
R. Kapeliushnikov ◽  
N. Demina

The paper provides new survey evidence on effects of concentrated ownership upon investment and performance in Russian industrial enterprises. Authors trace major changes in their ownership profile, assess pace of post-privatization redistribution of shareholdings and provide evidence on ownership concentration in the Russian industry. The major econometric findings are that the first largest shareholding is negatively associated with the firm’s investment and performance but surprisingly the second largest shareholding is positively associated with them. Moreover, these relationships do not depend on identity of majority shareholders. These results are consistent with the assumption that the entrenched controlling owners are engaged in extracting "control premium" but sizable shareholdings accumulated by other blockholders may put brakes on their expropriating behavior and thus be conductive for efficiency enhancing. The most interesting topic for further more detailed analysis is formation, stability and roles of coalitions of large blockholders in the corporate sector of post-socialist countries.


2015 ◽  
pp. 42-59
Author(s):  
Saba Ismail ◽  
Shahid Ahmed

The research objective of this paper is to explore the empirical linkages between economic growth and foreign direct investment (FDI), gross fixed capital formation (GFCF) and trade openness in India (TOP) over the period 1980 to 2013. The study reveals a positive relationship between economic growth and FDI, GFCF and TOP. This study establishes a strong unidirectional causal flow from changes in FDI, trade openness and capital formation to the economic growth rates of India. The impulse response function traces the positive influence of these macro variables on the GDP growth rates of India. The study also reveals that the volatility of GDP growth rates in India is mainly attributed to the variation in the level of GFCF and FDI. The study concludes that the FDI inflows and the size of capital formation are the main determinants of economic growth. In view of this, it is expected that the government of India should provide more policy focus on promoting FDI inflows and domestic capital formations to increase its economic growth in the long-term.


2012 ◽  
Vol 1 (4) ◽  
pp. 97-99
Author(s):  
Dr. M. Venkatasubba Reddy ◽  
◽  
B. Swetha B. Swetha ◽  
T. Srinivasaroa T. Srinivasaroa

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