Economic Policy Uncertainty and Economic Growth in India PDF Download

Author: Sanjai Bhagat
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
Economic and political commentators in India have repeatedly noted their concern about the recent slow-down in the Indian economy. Several recent papers have provided evidence that increase in the economic policy uncertainty (EPU) has played a significant role in the slow-down and the increase in unemployment in the U.S. In this paper we construct a measure of economic policy uncertainty for India and study its impact on the Indian economy. We find Indian GDP and Indian fixed investment are negatively related to EPU in India. More relevant, the economic magnitudes of these relations are quite significant. For example, if the economic uncertainty in India were to decrease today to the level observed in 2005, India's GDP growth would increase by 0.56%, and fixed investment growth would increase by 1.36%. Additionally, we document a negative correlation between the Bombay Stock Exchange (BSE) index and EPU in India.

Author: Raktim Ghosh
Publisher: Emerald Group Publishing
ISBN: 1804559369
Category : Business & Economics
Languages : en
Pages : 193

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Book Description
As businesses, consumers, and investors make key financial decisions amid Economic Policy Uncertainty (EPU), there is the danger that many might freeze investment projects and hiring, leading to contractions of the economy. This book examines this and makes important recommendations.

Author: Rahul Anand
Publisher: International Monetary Fund
ISBN: 1475531184
Category : Business & Economics
Languages : en
Pages : 18

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Book Description
This paper documents the recent slowdown in investment in India and explores its underlying causes. The sharp investment deceleration has sparked an intense debate about the role of interest rates, as well as business confidence and economic policy uncertainty. Our results suggest that while explaining aggregate investment activity better than nominal interest rates, real interest rates account for only one quarter of the explained investment downturn. In addition, standard macro-financial variables do not fully explain the recent investment slump. Using a new measure of economic policy uncertainty, the results suggest that heightened uncertainty and deteriorating business confidence have played a key role in the recent investment slowdown.

Author: Bruno S. Sergi
Publisher: Emerald Group Publishing
ISBN: 180382753X
Category : Business & Economics
Languages : en
Pages : 317

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Book Description
This volume focuses on core topics of economic disruption caused by the Covid-19 pandemic: changes in socio-cultural relationships, behavioural patterns and psychological attitudes governing human interaction, and government policies to stabilize the Indian economy and contribute to sustainable growth.

Author: Robert K. Dixit
Publisher: Princeton University Press
ISBN: 1400830176
Category : Business & Economics
Languages : en
Pages : 484

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Book Description
How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made. In so doing, they answer important questions about investment decisions and the behavior of investment spending. This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.

Author: Ms.Elif C Arbatli
Publisher: International Monetary Fund
ISBN: 1484302362
Category : Business & Economics
Languages : en
Pages : 48

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Book Description
We develop new economic policy uncertainty (EPU) indices for Japan from January 1987 onwards building on the approach of Baker, Bloom and Davis (2016). Each index reflects the frequency of newspaper articles that contain certain terms pertaining to the economy, policy matters and uncertainty. Our overall EPU index co-varies positively with implied volatilities for Japanese equities, exchange rates and interest rates and with a survey-based measure of political uncertainty. The EPU index rises around contested national elections and major leadership transitions in Japan, during the Asian Financial Crisis and in reaction to the Lehman Brothers failure, U.S. debt downgrade in 2011, Brexit referendum, and Japan’s recent decision to defer a consumption tax hike. Our uncertainty indices for fiscal, monetary, trade and exchange rate policy co-vary positively but also display distinct dynamics. VAR models imply that upward EPU innovations foreshadow deteriorations in Japan’s macroeconomic performance, as reflected by impulse response functions for investment, employment and output. Our study adds to evidence that credible policy plans and strong policy frameworks can favorably influence macroeconomic performance by, in part, reducing policy uncertainty.

Author: Bimal Jalan
Publisher: Penguin UK
ISBN: 9351187799
Category : Literary Collections
Languages : en
Pages : 243

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Book Description
A lucid and brilliantly-argued book on India's recent economic reforms Nearly fifty years after independence, India remains a very poor country. It ranks near the bottom in terms of per capita income, and is similarly placed in the Human Develoent Index which measures social well-being. Economic growth in India has been less than half that of China or even other countries in Asia. And governments, at the Centre as well as in the states, are close to insolvency. The reason for our spectacular underachievement lies in the continuation of policies which had a certain validity as a response to the colonial experience, but which have long outlived their usefulness. The global economic scene has changed dramatically since they were formulated, and we must respond to the new realities. Bimal Jalan, the well known economist and present Governor of the RBI, in this lucid and well-argued book, makes a case for governments doing what they alone can best do, and less of what they cannot do effectively.

Author: C. James Hueng
Publisher: W.E. Upjohn Institute
ISBN: 0880996765
Category : Business & Economics
Languages : en
Pages : 133

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Book Description
Policymakers and business practitioners are eager to gain access to reliable information on the state of the economy for timely decision making. More so now than ever. Traditional economic indicators have been criticized for delayed reporting, out-of-date methodology, and neglecting some aspects of the economy. Recent advances in economic theory, econometrics, and information technology have fueled research in building broader, more accurate, and higher-frequency economic indicators. This volume contains contributions from a group of prominent economists who address alternative economic indicators, including indicators in the financial market, indicators for business cycles, and indicators of economic uncertainty.

Author: Shankar N. Acharya
Publisher: Oxford University Press, USA
ISBN:
Category : Business & Economics
Languages : en
Pages : 258

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Book Description
"This collection provides a rare 'insider' account by one of the key members of the top economic policy team that was instrumental in India's reform journey during the 1990s. The book brings a unique ringside perspective to the macroeconomic management and structural reforms of that crucial decade in India's economic development."--BOOK JACKET.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1475511310
Category : Business & Economics
Languages : en
Pages : 76

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Book Description
The IMF's 2012 Annual Report chronicles the response of the Fund's Executive Board and staff to the global financial crisis and other events during financial year 2012, which covers the period from May 1, 2011, through April 30, 2012. The print version of the Report is available in eight languages (Arabic, Chinese, English, French, German, Japanese, Russian, and Spanish), along with a CD-ROM (available in English only) that includes the Report text and ancillary materials, including the Fund's Financial Statements for FY2012.