Import Demand Function in India Under the Liberalised Trade Regime

The trade liberalisation policy was initiated in India in the 1980s but executed effectively since the early 1990s. Since then India’s foreign trade embarks on a new road with a rapid expansion of export and import. Over the period, import exceed export. Identifying factors influencing such a significant elevation of import is a relevant issue of research. This study appraises import demand function in India for the liberalised trade regime particularly, for an extended period 1980–2018, and for the post-reform period, 1992–2018. The study identifies domestic income in aggregated and disaggregated level with exchange rate, trade openness and population growth as significant determinants of import demand. The income has a positive impact on import demand, where income elasticity of import demand differs significantly across the aggregate income and its components—consumption, investment and export expenditure. The exchange rate has a negative impact, implies a depreciation of Indian currency decrease import demand. The trade openness causes a rise in import demand both in the long run and in the short run. Population growth also raises import demand. The econometric diagnostics corroborate the fact that the estimated import demand functions are stable and robust. JEL Codes: F10, F14, C22

Causality-Based Policy Learning Frameworks Derived from Russian Power Sector Liberalisation

This paper is an inductive, qualitative case study concerning the development of new policy learning theory derived from Russian power sector liberalisation policy reform that was conceived and implemented from the year 2001 to 2007. The research extends the policy learning theory work of James and Jorgensen and others by more holistically explaining how policy knowledge, through policy learning, affects policy formulation, change, the direction of that change, and outcomes. To provide an investigative platform for this, the study aimed to capture the perceptions related to Russian policy learning and adaptation from three primary policy community groups which included Russian energy researchers, international industrial informants, and economists with a high degree of involvement in power sector liberalisation policy development. In the course of the research, policy learning causal ‘moments’ were identified in the form of synchronic and diachronic interrelated frameworks that indicated causal mechanisms and causal paths. The empirically derived research results were from conceptual, planning, and implementation processes used to diversify Russian policy learning, primarily from relevant, concurrent, international policy experiences and outcomes in Britain, and to a lesser extent, the USA.

Economic Impact of COVID-19 Pandemic: Who are the Big Sufferers?

The COVID-19 pandemic identified in Wuhan, China in December 2019, has spread almost to all the countries of the world. The mitigation measures imposed by most of the nations to prevent the spread of COVID-19 have badly hit the global economic activities. As per the latest estimates, the world economy is predicted to decline by 5.2 percent, and world trade is expected to drop by 13-32 percent in 2020 due to the COVID-19 pandemic. In this way it has created havoc in the world economy and the Indian economy is no exception. The International Monetary Fund (IMF) has estimated the Indian GDP growth at 1.9 percent and showed the worst growth performance of India after the liberalisation policy of 1991. According to the World Bank, the Indian economy will contract by 3.2 percent in 2020-21. Daily wage labourers and other informal workers, particularly migrant labourers of economically poor states were the worst hit during the lockdown period and will continue to be adversely affected even after the lockdown was relaxed. The paper suggested multiple measures to support the Indian economic and financial support to all the families of the informal economy workers to tide over this crisis.

Does Trade Liberalisation Policy Enhance Performance of Non-Oil Export Trade in Nigeria?

Decades after the trade liberalisation policy shift, poor performance problem of non-oil export in Nigeria (a net-oil exporting economy) persists. Against this backdrop, and given the lack of analytical depth among Nigerian-specific studies, this study empirically provided answer to the question of whether trade liberalisation policy enhances non-oil export trade in Nigeria. The study adopted an Autoregressive Distributed Lag model approach to the analysis of the impact of trade liberalisation policy on non-oil export trade. Evidence provided support for trade liberalisation policy as the growth driver for non-oil export, a sector that exports more but earns little in terms of revenue. As a result, the study recommends a well thought-out public–private partnership arrangement for the efficiency of the private sector (a major player in non-oil export trade), to optimally harness the benefits of liberalisation in Nigeria’s non-oil trade sub-sector. JEL Codes: F14, F17, F41, F62

The determinants of aggregate and dis-aggregated import demand in Ghana

Purpose The purpose of this paper is to examine the determinants of aggregate and dis-aggregated import demand for Ghana for the period from 1985 to 2015. Design/methodology/approach The study employed the autoregressive distributed lag bounds testing approach. Findings The long-run finding show that aggregate import demand (AIMD) is positively determined by exports of goods and services and consumer spending, but negatively determined by foreign exchange reserves. It is found that consumer spending is the key positive determinant of the import demand of consumer goods, while foreign exchange reserves, trade liberalisation policy and relative import price are negative determinants. It is found that import demand of intermediate goods is positively determined by consumer spending, government spending and investment spending. The long-run findings further confirm that import demand of capital goods is negatively determined by relative import price. In the short run, the findings suggest that AIMD is positively affected by exports of goods and services, investment spending and consumer spending, but negatively affected by foreign exchange reserves. Import demand of consumer goods is positively influenced by consumer spending, but negatively determined by relative import price. Finally, import demand for intermediate goods is found to be positively determined by investment spending and government spending, while import demand for capital goods is positively associated with exports of goods and services and trade liberalisation policy in the previous period. Originality/value A number of studies have looked at the determinants of import demand, focussing on the aggregated import demand. This study adds the component of dis-aggregated import demand, as it assist in dealing with the issues of bias.

The Border of Responsibilities in Global Distribution of Aid: Ethical Issues and Challenges in Practices

This essay intends to analyse the debate about responsibility in the discourse of global justice. The topic is inspired by the statement of Thomas Pogge who argues that the minor outcome in promoting global justice is generated by a deep ethical problem on the question of responsibility rather than a technical problem such as taxation and liberalisation policy (2001a). He argues that many global problems would be solved if only the affluent countries perceived their roles in sending foreign aid as a responsibility and not as charity, which is how many communitarians perceive it. This ethical debate will be the concern of my essay. The main agenda is to find the most convincing argument for ethical guidance in the current world. Analysing through the lense of Bertrand Russell’s (1961) parameter of ‘commendable ethics,’ this essay validates Pogge’s position that foreign aid from affluent states is part of negative responsibility and therefore commendable as an ethical guide in promoting global justice.

Trade policy and health implication for Pacific island countries

Purpose The purpose of this paper is to examine the effect of trade policy pertaining to imported processed food on poorer health outcomes of people’s in the Pacific island countries. Design/methodology/approach Using an extended gravity model, the paper adopts the OLS time varying importer/exporter effects method and a Pseudo Poisson maximum likelihood estimator on a cross-sectional panel data set of 215 countries and territories. The estimation procedure controlled for 11 Pacific island countries between 2003 and 2013. Findings The empirical findings revealed a positive and statistically significant relationship between trade liberalisation and increased processed food imports in the Pacific island countries. The findings also reveal that the access ratio (kg/person) to selected imported processed food high in salt to Pacific island countries has increased significantly over time. Originality/value While much of the trade literature reveals positive impact of trade on the prosperity of nations, this study makes a new contribution in terms of supporting a negative impact of trade liberalisation policy on people’s health in small island developing states.