Constraints in Macroeconomic Policies in Raising Employment

2018 ◽  
Vol 7 (1) ◽  
pp. 1-9
Author(s):  
Mudaser Ahad Bhat
Keyword(s):  
Economic Policy ◽  
Vicious Circle ◽  
Policy Changes ◽  
Macroeconomic Policies ◽  
New Economic Policy ◽  
Macroeconomic Factors ◽  
Development Tools ◽  
Role Of The State ◽  
Long Run ◽  
The Government

Macroeconomic factors such as low inflation, export orientation and low labor taxes help to determine how much employment is created by growth. The relationship between growth and employment is strong and positive which gets enlightened when all macroeconomic policies work in harmony. Indian economy at the time of independence was mainly rural in nature and in a bad state. This was due to the anti-Indian policies of the British Government. The country was engulfed by the vicious circle of poverty and to break this vicious circle Government of India planned in a focused way. The emphasis shifted from agriculture to industry. Also emphasis was laid on increasing role of the state to generate employment and reduce poverty by appropriate macroeconomic policies. However, little was achieved till 1990’s. So the path to long-run economic growth was ensured by introducing New Economic Policy in 1991, which aimed at reducing fiscal deficits, lowering inflation, maintaining exchange rate stability etc. One thing that was obvious was that under New Economic Policy, the public sector will have a diminished role and will be largely limited to social sectors and non-profit making activities unattractive to the private sector. These policy changes affected macroeconomic policies of the government. Despite these policy changes brought under the New Economic Policy, one feature that still remains an important feature of macroeconomic policies in India is that macroeconomic policies still continue to act more as the control devices rather than as development tools. As a result macroeconomic policies fail to generate additional employment. Macroeconomic policies need to be converted into tools for macroeconomic stabilization (Shah, 2008). There are various constraints in macroeconomic policies which refrain them to act as development tools and thereby increase unemployment levels in underdeveloped economies of the world. The present paper attempts to highlight such constraints and suggest remedial measures.

Labour Relations in the New Economic Environment

1993 ◽  
Vol 18 (3) ◽  
pp. 3-12 ◽  
Author(s):  
N R Sheth
Keyword(s):  
Economic Policy ◽  
Trade Unions ◽  
Global Economy ◽  
Full Employment ◽  
Industrial Relations ◽  
Responsibility To Protect ◽  
Mutual Trust ◽  
New Economic Policy ◽  
Labour Relations ◽  
The Government

The process of rationalization and liberalization dominating the government's new economic policy (NEP) is an inevitable part of India's need to exist and grow with dignity in the emerging global economy. While this implies freedom and flexibility for industry, this has also led to incidence of labour redundancy, unemployment and casualization. With the government committed to full employment in the current five-year plan and the trade unions bearing a crucial social responsibility to protect workers' interests, the industrial relations issues involved in NEP need to be resolved amicably. This paper by N R Sheth examines these issues in detail and discusses the need for a meaningful dialogue among the various concerned parties in an atmosphere of mutual trust.

scholarly journals The contradiction of entrepreneurship through affirmative action

2009 ◽  
Vol 27 (1) ◽  
pp. 38-66 ◽  
Author(s):  
Anthony Shome
Keyword(s):  
Economic Policy ◽  
Affirmative Action ◽  
New Economic Policy ◽  
Public Companies ◽  
The Creation ◽  
The Government

Malaysia’s affirmative action, introduced as the New Economic Policy (NEP) in 1971 to redress Malay economic setbacks, failed in its objective of acquiring for the Malay public companies the 30 percent equity of Malaysian public companies by 1991. The government believed that the NEP’s affirmative action, boosted by Malay political primacy, was a recipe for the creation of entrepreneurship. While not minimizing the role it justifiably plays for marginalized societies, affirmative action for the creation of entrepreneurs is questionable. This paper attempts to explain that state assistance to an economically-challenged society does little to create entrepreneurship, and because of its dependency ethos, is likely to inhibit the survival instincts and gumption necessary to face the challenges of entrepreneurship. It offers a proposition: in the context of Malaysia, selective assistance under affirmative action invites cronyism which non-Malay entrepreneurs resent and react with even higher competitive resilience by organizing themselves more collaboratively and optimizing their resources.

scholarly journals Non-performing assets of banks and economicgrowth vinculum in the era of globalization: The Indian experience

2019 ◽  
Vol 1 (3) ◽  
pp. 19-31
Author(s):  
Sovik Mukherjee
Keyword(s):  
Time Series ◽  
Economic Policy ◽  
Business Cycles ◽  
Commercial Banks ◽  
Foreign Banks ◽  
New Economic Policy ◽  
Limited Impact ◽  
Indian Experience ◽  
The Government ◽  
Globalized World

The introduction of the New Economic Policy (NEP) in 1991 by the Government of India (GoI) made it very clear that the viability of commercial banks is conditioned on their ability to make profits. In a globalized world, the whims and fancies of business cycles govern the fate of banks and a recessionary phase hampers the bank’s ability to pile on the profits thereby increasing their stock of non-performing assets. India, recently, is placed in a very bizarre situation, — some of the renowned banks are reporting huge losses but there is a very limited impact on stock markets. Strategically, the government, however, has taken corrective measures to arrest the growth of non-performing assets (NPAs) of banks. This paper builds upon a time series model capturing the position of NPAs of banks in India (excluding foreign banks operating in India). Empirically, there is a uni-directional causal relationship running from NPAs of banks to growth. Theoretically, what we can conclude is that imposing strict lending norms on banks actually manifests itself into a deeper recession, lowers growth and in turn aggravates the NPA problem further.

Development and Terrorism in Nigeria: Co-Integration and Causality Analysis of Macroeconomic Factors

2018 ◽  
Vol 2 (1) ◽  
pp. 1-33
Author(s):  
Emmanuel O. Okon
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Trade Openness ◽  
Private Investment ◽  
Series Data ◽  
Causality Analysis ◽  
Macroeconomic Policies ◽  
Macroeconomic Factors ◽  
The Government ◽  
Adf Test

This paper is a cointegration and causality analysis of macroeconomic factors and terrorism in Nigeria using time series data spanning between 1970 and 2016. The stochastic characteristics of each time series was examined using Augmented Dickey Fuller (ADF) test. The result reveals that LOG(GOVX), LOG(INTR), POLX, DLOG(GDPC) and DLOG(OPEN) were in line with the apriori expectation. With this development, some recommendations were made amongst which are that trade openness rate should be all time kept at peak benchmark by adopting tight trade openness while strategic macroeconomic policies should be instituted in order to encourage domestic private investment to enhance the growth of the economy. Nigerian political system has to be stabilized and the government should step up its intelligence gathering capacity as well as training security agents to forcefully combat terrorist group.

Abenomics and the Japanese Economy

2014 ◽  
Vol 06 (01) ◽  
pp. 102-109
Author(s):  
Yoshihisa GODO
Keyword(s):  
Economic Policy ◽  
Prime Minister ◽  
Japanese Economy ◽  
New Economic Policy ◽  
Financial Condition ◽  
Japanese Prime Minister ◽  
The Government ◽  
Economic Boom

Japanese Prime Minister Shinzo Abe regained power in end 2012. Almost simultaneously, Japan's economy started flourishing. Abe proclaims that his new economic policy called Abenomics is responsible for the growth. Since many factors account for the current economic boom, it is uncertain how much comes from Abenomics. It is, however, quite certain that Abenomics has worsened the financial condition of the government, which is already struggling with dangerous budgetary problems.

scholarly journals Seed Industry in India: Issues Arising from GATT

1995 ◽  
Vol 20 (4) ◽  
pp. 21-41
Author(s):  
Rakesh Basant
Keyword(s):  
Economic Policy ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Current Debate ◽  
New Economic Policy ◽  
Seed Industry ◽  
The Government ◽  
The Impact

Any analysis of the Intellectual Property Rights relating to the seed industry in India needs to take cognizance of three interrelated issues: (a) that the current debate on IPR is part of a larger debate on issues relating to GATT; (b) that the options on IPR are intricately linked to the New Economic Policy and the accompanying liberalization process; and (c) that the IPR relating to plant varieties need to be seen in a broader framework of the seed policy pursued by the government. In this background, this paper by Rakesh Basant reviews the available literature and data to explore the impact of IPR on the seed industry in India.

scholarly journals A Co-integration Approach to the Determinants of Inflation in Nigeria

2021 ◽  
Vol 4 (3) ◽  
pp. 50-60
Author(s):  
Ugwulali I.J. ◽  
Adejuwon J.A. ◽  
Ojomolade D.J. ◽  
Ogwulali J.I.
Keyword(s):  
Exchange Rate ◽  
Crude Oil ◽  
Money Supply ◽  
Government Expenditure ◽  
Oil Price ◽  
Crude Oil Price ◽  
Macroeconomic Factors ◽  
Integration Approach ◽  
Long Run ◽  
The Government

This study was a co-integration approach to the determinants of inflation in Nigeria. The study became necessary as a result of the rampaging effect of the increasing rate of inflation in the country particularly immediately after the fiscal crises between 1980 and 1984. The study used secondary data collected from the Central Bank of Nigeria (CBN) statistical bulletin (2012-2018). This was analysed using auto-regressive distributed lag. The findings showed that real and lagged government expenditure, exchange rate, money supply and crude oil price are the main macroeconomic factors responsible for inflation in Nigeria. Whilst exchange rate depreciation helps to reduce the level of inflation, decreases in crude oil prices increase the level of inflation. Also, growth in real government expenditure and money supply exert pressure on price levels to move up. The long run co-integration and bounds results show that there is a long run relationship between inflation and government expenditure. The lagged explanatory variables are significant at 5% level of significance, except crude oil price. It was concluded that inflation in Nigeria is multi-dimensional and dynamic. It was therefore recommended that the government should implement policies that enhance increased production of goods and services leading to reduction in the general prices level and diversify the economic base to control the effect of inflation in Nigeria.

scholarly journals How trade openness influenced economic growth in India: An empirical investigation

2020 ◽  
Vol 8 ◽  
pp. 1-14
Author(s):  
Swapnanil SenGupta ◽  
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Time Series Data ◽  
Negative Impact ◽  
Trade Openness ◽  
Principal Component ◽  
Series Data ◽  
New Economic Policy ◽  
Long Run ◽  
Gdp Growth Rate

Objectives: To analyze the dynamic impacts of trade openness on economic growth in India. Methodology: This study extensively examines the dynamic impact of trade openness on economic growth in India using ARDL Bounds Test approach. A complex trade openness index is constructed using PCA (Principal Component Analysis) and a time dummy variable is used in an effort to capture the Economic Reform Policy dynamics of 1991 in India. Per capita GDP growth rate has been used as a standard measure of economic growth. Annual time series data has been used for estimation over the period of 1960- 2018 Findings: It is found that the trade openness has negative impact on economic growth in India in both the short and long run. The result conforms to several findings on the same topic. Applications: This study incorporates measures to control for the shocks by the new economic policy of 1991. It is also discussed why trade openness might have had a negative impact on the economy of India in spite of it being a desirable phenomenon. Keywords: ARDL; India; economic growth; development; trade openness; new economic policy of 1991

scholarly journals State tax policy in Ukraine: historical and legal aspect (based on the example of the XX century)

2020 ◽  
Vol 77 (2) ◽  
pp. 100-105
Author(s):  
Г. Л. Гуфман
Keyword(s):  
Economic Policy ◽  
Tax Policy ◽  
Legal Aspect ◽  
General Level ◽  
Scientific Article ◽  
New Economic Policy ◽  
Industrial Enterprises ◽  
The Government ◽  
Post War ◽  
The Moment

The scientific article is focused on the research of conceptual bases of public policy in Ukraine in the XX century in the historian legal discovery. The author has established that a financial and tax system, from the moment of declaration of the Soviet power in the territory of Ukraine, underwent serious transformation, the economic policy was directed to maintenance and strengthening of the power, preservation of an economic mechanism and creating favorable conditions for economic recovery. And the economic program is proclaimed still the Bolshevist power provided: Establishment of the progressive income tax; to cancellation of indirect taxes on necessities; establishment of high taxes on luxury goods. At the first stages of the XX century no new types of tax were established, behind an exception the expansion of the bases of application of penalties and only in 1917 it was indicated the need of legal collection of the taxes imposed by provisional government. It defined that the new economic policy was proclaimed for the purpose of restoration of commodity economy, revival of almost cancelled monetary taxes, from the ideas to a central and their principles of decentralization and partial denationalization. However, discrepancy of the made tax decisions, which took root on general level, turned out to be consequence strengthening of planned methods and mediate in administrative control, which constantly amplified arbitrariness from the state. The attention has been focused on the fact that post-war years of the government budget was subordinated to the solution of the major task to mitigation of consequences of war and restoration of the destroyed economy of the country. Growth of receipts in the budget in the form of tax from a turn and assignments from the profit of the restored industrial enterprises allowed to lower taxes on the population a few. Since January 1, 1946 a war tax was cancelled, and since September of the same year the free minimum for workers and employees was raised. The author has reasonably introduced the need for the periodization of the formation of the public tax policy, which is offered for considering through a prism of division into six main stages.

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