Introduction, Overview, and Policies

2017 ◽  
pp. 1-14
Author(s):  
Pradumna B. Rana ◽  
Wai-Mun Chia
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
South Asian ◽  
Economic Integration ◽  
Policy Reform ◽  
Economic Reforms ◽  
Reform Process ◽  
Asian Countries ◽  
Economic Growth Rate ◽  
Reform Agenda

This chapter analyses macroeconomic trends in South Asian countries. It argues that the high economic growth rate that these countries had achieved due to macroeconomic reforms of the 1980s and 1990s has started to soften once again. A major reason for this is the slowing pace of economic reforms in these countries. The chapter then highlights the key objectives of the book. The first objective is to argue that in order to jumpstart economic growth and deepen economic integration, South Asian countries need to adopt a two-pronged strategy. First, South Asian countries need to complete the economic reform process that they had begun. Second, they need to implement the second round of ‘Look East’ policies (LEP2). The second objective of the book is to identify the unfinished policy reform agenda for South Asian countries and the components of LEP2 that they should implement. The chapter also summarizes the major findings of the book.

scholarly journals Economic Growth of Nepal and Its Neighboring Countries

2016 ◽  
pp. 163-174
Author(s):  
Sovit Lal Bajracharya
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Development ◽  
South Asian ◽  
Asian Countries ◽  
Economic Growth Rate ◽  
Economic Journal

Economic growth and poverty are interrelated. Generally, economic development is believed to reduce poverty. In Nepal, over the last fifteen years, poverty has remarkably come down in spite of lower economic growth meaning that reducing poverty would be much easier if economic growth rate could be increased. Higher economic growth can never be attained unless production and productivity rise. Regarding economic growth of South Asian Countries, Afghanistan accorded first place followed by 10.2 percent, Bhutan second 9.7 percent, China third 7.8 percent. Nepal Sixth 4.6 percent and Maldives occupies last followed by 3.5 percent for the year 2012.Economic Journal of Development Issues Vol. 17 & 18 No. 1-2 (2014) Combined Issue, Page: 163-174

Investigating the Role of Regional Economic Integration on Growth: Fresh Insights from South Asia

2020 ◽  
pp. 097491012097480
Author(s):  
Muhammad Ibrahim Shah
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
South Asia ◽  
South Asian ◽  
Economic Integration ◽  
Regional Integration ◽  
Policy Implications ◽  
Regional Economic Integration ◽  
Asian Countries ◽  
Regional Economic

Regional economic integration is the key to achieving prosperity and stability. However, intra-regional trade in South Asia accounts for not more than 5%–6% of their total trade. This study aims to examine the role played by regional economic integration in determining the economic growth of South Asian countries over the period 1980–2015. Since shocks in one country may affect another country in the region, this is taken into account in the article by employing methodologies that are robust to cross sectional dependence. Specifically, continuously-updated and bias-corrected (CupBC) of Bai et al. (2009) and Dumitrescu–Hurlin panel causality test (2012) have been employed to estimate long-run coefficients and determine the direction of relationship among the variables, respectively. The findings suggest that economic integration increases economic growth significantly in this region. However, contrary to popular belief, both democracy and human capital are negatively related to economic growth. Bidirectional causality is found between economic integration and democracy, regional integration and human capital, democracy and human capital and, democracy and labor. This study also presents several policy implications for South Asian countries.

Financial Sector Reforms in South Asian Countries

2016 ◽  
pp. 36-50
Author(s):  
Amir Manzoor
Keyword(s):  
Economic Growth ◽  
South Asia ◽  
South Asian ◽  
Economic Integration ◽  
Growth Rates ◽  
Financial Sector ◽  
Asian Countries ◽  
Settlement Systems ◽  
Domestic Savings ◽  
Economic Growth Rates

Several far-reaching reforms to the financial sector were introduced by South Asian countries in early 1980. The nature and progress of these reforms vary from country to country. These reforms covered a number of areas such as promoting competition in the financial sector, developing payment and settlement systems, and strengthening regulations. So far, these reforms have not only helped South Asian countries to significantly raise domestic savings, attract foreign capital, and raise economic growth rates but also provided greater economic integration of South Asia. This chapter performs a close re-scrutiny of the reforms implemented in South Asian countries. Suggestion for further reforms for building efficient, competitive, and resilient financial sector is also provided.

scholarly journals A Decade of Economic Reforms in India: The Unfinished Agenda

Metamorphosis ◽  
2002 ◽  
Vol 1 (2) ◽  
pp. 125-154 ◽  
Author(s):  
Nirupam Bajpai
Keyword(s):  
Economic Growth ◽  
Information Technology ◽  
Banking Sector ◽  
New Technologies ◽  
Economic Reforms ◽  
Small Scale ◽  
Reform Process ◽  
Infrastructure Development ◽  
Reform Agenda ◽  
Rates Of Growth

This paper aims to assess the economic reforms in India undertaken during the 1990s. India has gone through the first decade of her reform process. Hence, an assessment of what has been achieved so far and what remains on the reform agenda is in order. Reforms in the industrial, trade, and financial sectors, among others, have been wide and deep. As a consequence, they have contributed more meaningfully in attaining higher rates of growth. A decade of opening of the economy has produced new dynamism, most dramatically in the information technology sector, but in others as well. The new technologies (especially information technology and biotechnology) give new opportunities for economic and social development. It is necessary to move swiftly to complete many of the reforms, which are now underway. Examples of such continuing reforms are the reduction in protection levels, continuing reforms in banking sector, product de-reservation for the small-scale industry, decontrol of prices, such as petroleum, reform of the power sector and so on. Among other things, sustaining higher rates of economic growth would require a more vigorous pursuit of economic reforms at both the federal and state levels. Significant reduction of fiscal deficit is the first order of business. Unless substantial fiscal consolidation is achieved, in our view, continued fiscal deficits pose India's greatest risk to future destabilization. Other critical reforms include, labor laws, exit policy, privatisation of state-owned enterprises, further opening-up of the economy to trade and foreign direct investment. In addition, there is a vast amount of economic reform that can be carried out to improve conditions in rural India, especially in the Gangetic valley. The reforms implemented so far have helped India attain 6 plus percent growth, however, should India be able to implement the remaining reforms and re-orient governmental spending away from inessential expenditures towards high priority areas of health and education and infrastructure development, then it is very likely to attain and sustain even higher rates of economic growth.

Policy Reforms in South Asia

2017 ◽  
pp. 15-48
Author(s):  
Pradumna B. Rana ◽  
Wai-Mun Chia
Keyword(s):  
South Asian ◽  
Good Governance ◽  
Policy Reform ◽  
High Growth ◽  
Policy Reforms ◽  
Asian Countries ◽  
Institutional Reforms ◽  
Reform Agenda ◽  
Legal Reforms ◽  
Education And Health

This chapter focuses on issues related to designing and sequencing policies and argues that South Asian countries have completed the easy part of the reform exercise and plucked the ‘low-hanging’ fruits. They now need to focus on implementing sectoral reforms and the ‘second generation’ reforms, mainly governance and institutional reforms which are designed to improve the operation of markets, enhance competition, and improve economic efficiency and competitiveness. These include reforms of institutions for good governance, reforms of institutions to create human capital—education and health, and the environment for private sector—flexible labour markets, legal reforms, and property rights. As we have already witnessed, implementation of these reforms will pose significant challenges for South Asian countries as it requires a strong political consensus. Yet, without these reforms, high growth rates of the recent past will be difficult to attain. The chapter also identifies the unfinished policy reform agenda for South Asian countries.

A Study of Trends in India’s Economic Growth since 1951: The Inclusive Growth Approach

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Arjun. Y. Pangannavar
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Growth Model ◽  
Economic Reforms ◽  
Inclusive Growth ◽  
Economic Growth Rate ◽  
Economic Growth Model ◽  
High Level ◽  
The Impact ◽  
Double Digit

This paper focuses on the saga of India’s economic growth under the ‘Nehru-Mahalanobis Economic Growth Model’ (NMEGM) and ‘Narsimhrao-Manmohan Singh Economic Growth Model’ (NMSEGM). The NMEGM continued till 1990 unceasingly; Indira Gandhi’s social control had supported the model to place India’s economic growth at a high level. After becoming a member of World trade Organization (WTO), India entered the epoch of world new economic order and initiated new economic reforms. It followed globalisation, liberalisation and privatisation policies to achieve double digit economic growth rate. This model is popularly known as ‘Narsimhrao-Manmohan Singh Economic Growth Model’. Based on past trends and new changes, this paper attempts to assess the impact of NMSEGM on future economic growth. India has practiced both endogenous and exogenous models of economic growth. The endogenous model was in operation from 1956-57 till 1990-91 that placed economic growth rate at more than 5%. However, from 1990-91, the new economic reforms have followed the exogenous model that has raised economic growth rate to nearing double-digit; but, the decadal economic growth rate has shown a declining trend. This paper attempts to assess the growth rate trends of Indian economy by using the measuring tool called ‘Inclusive Growth’ to get a fair and true picture.

scholarly journals Influence of corruption on economic growth rate and foreign investment

2008 ◽  
Vol 63 (4) ◽  
pp. 547-550 ◽  
Author(s):  
Boris Podobnik ◽  
Jia Shao ◽  
Djuro Njavro ◽  
Plamen Ch. Ivanov ◽  
H. E. Stanley
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Foreign Investment ◽  
Economic Growth Rate

External Debts and Economic Growth when Debt Rating Matters

2021 ◽  
Author(s):  
Ly Dai Hung
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Cross Section ◽  
Sovereign Debt ◽  
Developing Economies ◽  
External Debt ◽  
Fixed Effect ◽  
Panel Regression ◽  
Economic Growth Rate ◽  
Determinants Of Economic Growth

The paper investigates the dependence pattern of economic growth on external debt supply by accounting for the safety of debts, measured by the sovereign debt rating. The method of cross-section regression is based on a sample of 145 advanced and developing economies with averaged data over the 1990–2019 period. The pattern of economic growth follows a U-shaped curve, for which the growth rate is first decreasing and then increasing on the external debt supply. A possible explanation can rely on the sovereign debt rating. For low supply of external debts, more supply of debts reduces the debt rating, which, in turn, lowers the economic growth rate. But for high enough supply of debts, more debts raise their rating, improving the growth rate. These results are robust on controlling for various determinants of economic growth and on the fixed effect panel regression.

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