ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By T N Srinivasan

Determinants of Export Decision of Firms

This paper contributes to the more recent strand in the analysis of trade flows that uses data on exports of individual firms. In all countries of the world, relatively few firms participate in world trade, thus suggesting that besides country level barriers to trade, characteristics of a firm such as its size and productivity are relevant for participation in trade. Using firm level data, this study attempts to model and estimate the decision of Indian firms on their participation in trade. Firm heterogeneity is an important determinant of the decision to export. Exporting firms are significantly larger, more r&d-intensive, low wage-intensive, more productive and more profitable than non-exporting firms. The multinomial results reveal that the probability of survival of new firms in export markets is lower when compared to those which have been exporting in the previous years.

Price Indices and Inflation Rates

With inflation shooting up, it is an appropriate time to critically discuss the quality of India's inflation statistics. This article first discusses the official wholesale and consumer price indices and the impact of not regularly incorporating new products and changes in quality, and related deficiencies. It also draws on an official United States commission report that studied the implications of productivity changes for measuring inflation. The paper concludes with suggestions for revising the procedures for collecting and compiling price information and also recommends preparation of a new producer price index to replace the official Wholesale Price Index and, in addition to the consumer price indices, the compilation of an annual "cost of living index".

Poverty Lines in India: Reflections after the Patna Conference

In assessing India's experience with the definition and use of poverty lines, one has to keep in mind their normative and monitoring roles. After reviewing the evolution of poverty lines in India from a historical perspective and critically discussing some issues relating to current official poverty lines, this paper assesses whether it makes sense to anchor these lines in average energy norms. It concludes with a new approach to the measurement of poverty, besides providing some suggestions for broadening its conception and commenting on some of the current poverty alleviation policies.

China, India and the World Economy

Among countries with at least 10 million people in 2003, China and India have been growing very rapidly since 1980. Their rapid growth has had a significant impact on the world economy. After describing the two basic channels, namely, import demand and export supply, through which the growth of a country influences growth of the rest of the world and vice versa, the paper turns to its theme, namely, the influence of the growth of China and India. China is integrated to a greater extent than India with the world economy. Although India has succeeded in becoming a major destination of global outsourcing and in exports of information technology enabled services, it lags behind China in the competition to become a global manufacturing hub, though it is catching up. India's advantage over China lies in its vibrant democracy and the legal and financial systems. The paper concludes that whether or not India overtakes China in the next two decades, it is clear that both countries will be economic powerhouses in the medium term, and undoubtedly, their growth will have significant impacts on the world economy.