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1. How Does Urban Rail Development in China and India Enable Technological Upgrading?

Author:
Emmanuel Theodore Asimeng and Tilman Altenburg
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The socioeconomic wellbeing of urban areas depends on a well-functioning transportation system that makes it easier for people to access goods and services. Whereas most urban areas in emerging economies are expanding in size and human population, high motorisation and inadequate public transport services have resulted in congestion, traffic accidents and increasing transport-related greenhouse gas (GHG) emissions. Urban rail development can help address the current transportation problem because trains can move a large number of people at high speed, provide reliable services, contribute to lower GHGs and have a low accident rate. However, urban rail is expensive and requires many technical and technological capabilities often unavailable in emerging economies because they are technology latecomers. This paper examines how two emerging economies, China and India, have adopted industrial policies to develop local capabilities for urban rail technology. The paper shows how the Chinese government has moved from purchasing urban rail technology from multinational companies (MNCs) to the current situation where it has developed local capabilities, owns rail technology patents and competes with the same MNCs on the international market. The paper also demonstrates how India is gradually improving the local manufacturing of rail subsystems as opposed to importation. Overall, the paper suggests a pathway to industrial policy adoption that demonstrates how emerging economies can catch up with urban rail technology development to address their local transportation needs.
Topic:
Development, Industrial Policy, Science and Technology, Multinational Corporations, Urban, and Railways
Political Geography:
China, India, and Asia

2. Industrial Policies in India: Did They Work?

Author:
Raavi Aggarwal
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
This article analyses relationships between the implementation of state-level industrial policies in India and manufacturing sector economic performance (employment and gross value added), utilising data from the Annual Survey of Industries conducted by the Government of India. I employ panel data fixed-effects regression models to evaluate the associations between the industrial policy and state-industry specific performance over the 2007-08 to 2014-15 period, incorporating potential effects of the state government's political alignment, infrastructure provision and educational expenditure in the state. The results provide evidence of a positive correlation between industrial policy implementation and firm output and employment, by around 12.6 - 14 per cent. However, subsequent introductions of an industrial policy are negatively associated with employment and are uncorrelated with industrial GVA. This analysis has implications for economic policy in light of the Central Government's plans to implement a revised industrial policy at the national scale.
Topic:
Economics, Industrial Policy, Employment, and Manufacturing
Political Geography:
India

3. Dynamics of Inflation "Herding": Decoding India's Inflationary Process

Author:
Urjit R. Patel and Gangadhar Darbha
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Compared to immediately preceding years, that is, its own recent history, India's inflation became unhinged (thereby reversing creditable performance) from as far back as 2006. The paper puts forward an empirical framework to analyze the time series and cross-sectional dynamics of inflation in India using a large panel of disaggregated sector prices for the time period, 1994/95 to 2010/11. This allows us to rigorously explore issues that have been, at best, loosely posed in policy debates such as diffusion or comovement of inflation across sectors, role of common and idiosyncratic factors in explaining variation, persistence, importance of food and energy price changes to the overall inflation process, and contrast the recent experience with the past. We find, interalia, that the current period of high inflation is more cross-sectionally diffused, and driven by increasingly persistent common factors in non-food and non-energy sectors compared to that in the 1990s; this is likely to make it more difficult for anti-inflationary policy to gain traction this time round compared to the past. The paper has also introduced a novel measure of inflation, viz., Pure Inflation Gauges (PIGs) in the Indian context by decomposing price movements into those on account of: (1) aggregate shocks that have equiproportional effects on all sector prices; (2) aggregated relative price effects; and (3) sector-specific and idiosyncratic shocks. If PIGs, in conjunction with our other findings, for example, on persistence had been used as a measure of underlying (pure) inflationary pressures, the monetary authorities may not have been sanguine regarding the timeliness of initiating anti-inflationary policies.
Topic:
Development, Economics, Industrial Policy, International Trade and Finance, and Monetary Policy
Political Geography:
South Asia and India

4. Intellectual property and e-commerce in India: Prepare for opportunity

Publication Date:
05-2012
Content Type:
Working Paper
Institution:
Economist Intelligence Unit
Abstract:
The loosening of administrative restrictions on licensing and related remittances in 1991 led to an increase in the number of international licensing agreements in India. Many foreign companies involved in India use a combination of exporting, licensing and direct investment.
Topic:
Corruption, Crime, Industrial Policy, Intellectual Property/Copyright, and Foreign Direct Investment
Political Geography:
South Asia and India

5. India's Growth in the 2000s: Four Facts

Author:
Arvind Subramanian and Utsav Kumar
Publication Date:
11-2011
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper marks the first attempt at examining the growth performance across Indian states for the 2000s, a period also marked by the global financial crisis. Four key findings are reported. First, consistent with the fact that the 2000s was the best ever decade for Indian macroeconomic performance, growth increased across almost all major states in 2001–09 compared to 1993–2001. Second, nevertheless, there is a continued phenomenon of divergence or rising inequality across states: On average the richer states in 2001 grew faster in 2001–09. Third, during the crisis years of 2008 and 2009, states with the highest growth in 2001–07 suffered the largest deceleration. Since states with the highest growth were also the most open, it seems that openness creates dynamism and vulnerability. Finally, although the demographic dividend—a young population boosting economic dynamism—was evident before 2000, there is little evidence that there was any dividend in the 2000s. Demography alone cannot be counted on for future economic growth.
Topic:
Demographics, Development, Economics, Industrial Policy, International Trade and Finance, and Social Stratification
Political Geography:
South Asia and India

6. The Political Economy of India's Climate Agenda

Author:
Noriko Fujiwara
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This Working Document complements the CEPS Policy Brief, Understanding India's climate agenda, and elaborates on three key issues related to the country's energy challenges: access to energy, the future emissions trajectory and energy subsidies. This study looks into the making and framing of the country's domestic climate agenda from a political economy perspective. As long as both GDP and primary energy demand keep growing at the current rates, it may be concluded that the country's future, absolute greenhouse-gas emissions are also likely to grow but remain relatively low. Moreover, India's emissions intensity is expected to continue declining in line with the recent voluntary pledge by the Indian government. The study takes note of the national action plan launched in India, and the adoption of a flexible approach in international negotiations while maintaining a preference for several core principles, including equity. Lastly, the study explores the possibility for addressing issues such as international and intra-national equity in the context of the long-term EU–Indian partnership.
Topic:
Climate Change, Development, Economics, Energy Policy, and Industrial Policy
Political Geography:
India

7. How Do the BRICs Stack Up? Adding Brazil, Russia, India, and China to the Environment Component of the Commitment to Development Index

Author:
David Roodman
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The Commitment to Development Index (CDI) ranks 21 of the world's richest countries on their dedication to policies that benefit the five billion people living in poorer nations. Moving beyond simple comparisons of foreign aid, the CDI ranks countries on seven themes: quantity and quality of foreign aid, openness to developing-country exports, policies that influence investment, migration policies, stewardship of the global environment, security policies and support for creation and dissemination of new technologies.
Topic:
Environment and Industrial Policy
Political Geography:
Russia, China, Europe, India, Asia, and Brazil

8. Manufacturing, Services and Premature Deindustrialization in Developing Countries: A Kaldorian Analysis

Author:
Ajit Singh and Sukti Dasgupta
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper uses a Kaldorian framework to examine the evidence of deindustrialization in developing countries at low levels of income, the jobless growth in these economies and the fast expansion of the informal sector. The questions are specifically examined for the Indian economy, using state level data but the analysis has a wider application for economic policy in developing countries.
Topic:
Development, Economics, Industrial Policy, and Third World
Political Geography:
India

9. Origins and Growth of the Software Industry in India

Author:
Rafiq Dossani
Publication Date:
09-2005
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
The paper explains the evolution of India's software industry. Domestic entrepreneurship emerges as the key factor for origination, survival and innovation in a hostile industrial policy environment. The maturing of the industry required a shift to a supportive government policy; maturation was also critically enabled by the modularization of the programming function through new technologies. These changes favored domestic firms that provided programming services. Later policy and technological changes induced transnational entry and led to higher value-added output. The paper shows that technologically sophisticated industries can develop even when many conditions typically present elsewhere are missing. We provide conditions under which this may happen and show their effect on subsequent developments.
Topic:
Industrial Policy and Science and Technology
Political Geography:
India and Asia

10. Industrial Location and Spatial Inequality: Theory and Evidence from India

Author:
Somik V. Lall and Sanjoy Chakravorty
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We argue that spatial inequality of industry location is a primary cause of spatial income inequality in developing nations. We focus on understanding the process of spatial industrial variation—identifying the spatial factors that have cost implications for firms, and the factors that influence the location decisions of new industrial units. The analysis has two parts. First we examine the contribution of economic geography factors to the cost structure of firms in eight industry sectors and show that local industrial diversity is the one factor with significant and substantial cost reducing effects. We then show that new private sector industrial investments in India are biased toward existing industrial and coastal districts, whereas state industrial investments (in deep decline after structural reforms) are far less biased toward such districts. We conclude that structural reforms lead to increased spatial inequality in industrialization, and therefore, income.
Topic:
Development, Economics, Industrial Policy, and Political Economy
Political Geography:
South Asia and India

11. Went for Cost, Stayed for Quality?: Moving the Back Office to India

Author:
Rafiq Dossani and Martin Kenney
Publication Date:
07-2003
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Will the next great wave of globalization come in services? Increasingly, components of back-office services, such as payroll and order fulfillment, and some front-office services, such as customer care are being relocated from the U.S. and other developed countries to English-speaking, developing nations especially India, but also other nations such as the Phillipines. Though moving service activities offshore is not entirely new, the pace has of late quickened. The acceleration of this offshoring is intertwined, though not synonymous, with another phenomenon, namely an increasing willingness by firms to outsource what formerly were considered core activities. The importance of the fact that a substantial number of service activities might move offshore is that it was service jobs that were thought to be the future growth area for developed country economies as manufacturing relocated to lower labor cost regions offshore. This is especially important, because these services commonly known as "business processes" (BPs) are among the fastest growing job categories in the US (Goodman and Steadman 2002). Should these jobs begin to move offshore, a new tendency may be underway in the global economy that will be as important or more important than the relocation of manufacturing offshore, and might necessitate a rethinking of government policies across a wide spectrum.
Topic:
Economics, Globalization, and Industrial Policy
Political Geography:
United States, South Asia, and India

12. The Measure of India: What Makes Greatness?

Author:
Joydeep Mukherji
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
I join you tonight to consider India on the scales of greatness. In other words, to ask: by what standards do people regard a state as great? And how does India conform to those standards? I must say at the outset, that these are not questions on which I personally would fixate. Greatness in terms of power is not a standard that moves me as a human being. My impulse when looking at countries is to say, “what's so great about being great?” I think a country's taxi drivers tell us more about it than the number of nuclear bombs it might possess. The number of Ph.D. holders, engineers, and writers driving taxicabs in a country, and where they came from, tells me a lot about the country we're in and the country from whence they came. The taxi driver in Iran who complains bitterly about the ayatollahs and wants to talk about pop music and freedom, tells me something about Iran. The engineer who fled Nigeria for the opportunity possible in America, even if it's driving a cab, tells me something about Nigeria and the U.S. Great power has little to do with it.
Topic:
Economics and Industrial Policy
Political Geography:
America, Iran, South Asia, India, and Nigeria

13. India's Slow Conversion to Market Economics

Author:
Joydeep Mukherji
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
According to the Bible, Saul of Tarsus converted almost instantly to Christianity on the road to Damascus. Subsequently, he neither ate nor drank for three days. The conversion of the world's second largest country, India, to a new way of life based on free markets and private enterprise will not be so rapid or disruptive. Nevertheless, India's conversion to market economics will, like Saul's, be thorough and deep. It will increasingly affect all of us in the global village, in which Indians constitute 17% of the inhabitants.
Topic:
Economics and Industrial Policy
Political Geography:
South Asia and India

14. Privatization: From Policy Formulation to Implementation: The View from the Inside

Author:
Montek Singh Ahluwalia
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
It is both a privilege and a pleasure for me to deliver this year's Annual Fellows Lecture at the Center for Advanced Study of India. For many years in India, I used to receive an annual update on the activities of the Center when Dr. Francine Frankel visited Delhi and it is therefore particularly pleasant to visit the Center in person.
Topic:
Economics and Industrial Policy
Political Geography:
South Asia, India, and New Delhi

15. Creating an Environment: Developing Venture Capital in India

Author:
Rafiq Dossani and Martin Kenney
Publication Date:
05-2001
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
In the last decade, one of the most admired institutions among industrialists and economic policymakers around the world has been the U.S. venture capital industry. A recent OECD (2000) report identified venture capital as a critical component for the success of entrepreneurial high-technology firms and recommended that all nations consider strategies for encouraging the availability of venture capital. With such admiration and encouragement from prestigious international organizations has come various attempts to create an indigenous venture capital industry. This article examines the efforts to create a venture capital industry in India.
Topic:
Economics, Emerging Markets, and Industrial Policy
Political Geography:
United States, South Asia, and India

16. Opening Up to the World: India's Pharmaceutical Companies Prepare for 2005

Author:
Sean Eric Smith
Publication Date:
05-2000
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
In 2005, India will implement new intellectual property (IP) laws that recognize product patents on pharmaceuticals. Because India's 1970 Patent Act only recognizes process patents, Indian drug companies have been free to copy molecules from multinational companies (MNCs), to sell within India and other nonpatent conforming markets. New laws, such as the Exclusive Marketing Rights amendment to the 1970 Patent Act (ratified on April 19, 1999), will substantially alter this practice. This paper discusses what companies are doing to prepare for 2005 and beyond. As is the case today, Indian and MNCs alike will figure prominently in the future of the pharmaceutical sector, albeit in somewhat altered form. Although the new patent regime has the potential to reward MNCs at the expense of Indian firms, local companies will likely benefit from stricter laws. In fact, it is plausible that the 2005 laws will vault some Indian pharmaceutical companies into globally prominent positions.
Topic:
Industrial Policy and International Law
Political Geography:
South Asia and India

17. The Global Wave of Entrepreneurialism: Harnessing the Synergies of Personal Initiative, Digital Technologies, and Global Commerce

Author:
David Bollier
Publication Date:
01-1999
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Future historians may call this period the entrepreneurial age. Rarely has such an explosion of new business ventures, technological innovation, and cultural experimentation swept across diverse cultures of the globe simultaneously. Government leaders in Beijing and Singapore, Warsaw and Caracas, Moscow and London are looking to business mavericks to energize their economies. Multinational companies are eager to instill entrepreneurial values within their workforces to boost their competitiveness. On the periphery of such power centers, meanwhile, entrepreneurs large and small are remaking entire sectors of the economy and creating high-tech boomtowns in San Jose, California; Bangalore, India; Cambridge, England; Austin, Texas; and many other places.
Topic:
Industrial Policy and Science and Technology
Political Geography:
United States, India, London, California, Moscow, England, Singapore, Bangalore, Austin, and Texas