SPRING 2016
VOLUME17, NUMBER1

SYNCHRONIZING U.S. STATES' STRATEGIC PLANS TO INCREASE EXPORTS TO EMERGING MARKETS

Jayati Ghosh, Denise M. Lucy, and Francoise O. Lepage

The United States seeks to increase and expand exports to emerging markets. The majority of U.S. firms (98 percent) are small to medium sized enterprises (SMEs) with only 1 percent engaging in exporting. The Federal and State Governments encourage SMEs to expand exporting through the National Export Initiative (NEI) and NEI/NEXT initiatives. This paper examines NEI’s progress and strategies by leading U.S. exporting states, export activity to BRICSA, states’ alignment with NEI and the extent to which NEI has facilitated federal and state collaboration. Further, it reviews NEI/NEXT objectives and strategies to internationalize U.S. business practices.


https://doi.org/10.51240/jibe.2016.1.1          PDF

INVESTIGATING THE EFFICIENCY OF THE INDIAN CURRENCY MARKET: A PERSISTENCE PERSPECTIVE

Soumya Guha, Atreyo Chatterjee, Mousumi Bhattacharya, and Sharad Nath Bhattacharya

The presence of long range persistence and its impact on policy decisions are examined in the Indian Forex market during the period between 2000 and 2015. Hurst-Mandelbrot's Classical R/S Statistic, Lo Statistic, Robinson's Estimate have been computed. Long memory in volatility and absolute return series of each currency pair were evidenced but the logarithmic return series of all these currency pairs indicate proclivity towards the “random walk” hypothesis. Therefore, currencies are not systematically over- or under-valued, which provides justification for passive index investment in these currencies. However, possibilities of speculation/hedging activities could not be ruled out which may call Reserve Bank’s intervention and interest smoothing behavior with potentials for impaired price discovery.


https://doi.org/10.51240/jibe.2016.1.2          PDF

AN ECONOMETRIC INVESTIGATION OF THE DETERMINANTS OF SUSTAINABLE WELLBEING OF COUNTRIES

K. G. Suresh and Pratyush Banerjee

In this study, we intended to analyze the socioeconomic, political and environment factors affecting the sustainable wellbeing of nations (measured by the Happy Planet Index), for a sample of 108 countries for the year 2009.The empirical evidence showed that Human Development Index (HDI), Carbon emission, political freedom and colonial background of nations are significant predictors of the sustainable wellbeing of nations. HDI has a direct effect on HPI of nations, while the level of carbon emission is negatively related with HPI. The HPI levels among different political regimes are different, while the countries without colonial background are better off in terms of achieving sustainable wellbeing than countries with colonial background.


https://doi.org/10.51240/jibe.2016.1.3          PDF

WHICH INDIAN INDUSTRY BENEFITS FROM FDI? A PANEL CO-INTEGRATION APPROACH

S. Mahalakshmi, S. Thiyagarajan, and G. Naresh

Economic liberalization or market reforms have become the buzz word in economics all over the world in the recent years. Among various aspects of economic liberalization, foreign capital, particularly inflow of foreign direct investment (FDI) has been viewed as a main engine for economic development in the world economy. Thus this paper attempts to analyze the impact of FDI inflows on the performance of various Indian industries. Using Panel Co-integration tests namely Pedroni Residual Co-integration, Kao Residual Co-integration test and Johanson Fisher panel co-intergration tests, the presence of co-integration between FDI inflows and the performance variables of selected industries have been tested. The results of the paper reveals that there is a long run relationship between industry performance indicators and FDI only in case of services, telecom, computer software and hardware, real estate and automobile industries and in case of majority of other industries, there is no long run relationship between industry performance indicators and FDI inflow.


https://doi.org/10.51240/jibe.2016.1.4          PDF

INFRASTRUCTURE INVESTMENT AND ECONOMIC GROWTH: EVIDENCE FROM INDIA

Naliniprava Tripathy, Maram Srikanth, and Lagesh Meethale Aravalath

This study examines the long-run and short-run relationship between investment in infrastructure and economic growth in the Indian economy by using Auto Regressive Distributed Lag Model, Error Correction Model, and Granger Causality Test. The study reports that there is no short-run relationship among gross domestic product, gross domestic capital formation, revenue of the governmentand exports. However, the study finds that unidirectional causality exists between employment and gross domestic product; gross domestic productandinflation. It implies that employmentlevel in organised sector and inflationinfluence the economic growth in India for a short period. The study finds that there is a long-run relation exists between economic growth, domestic investment, inflation and government revenue. Therefore, emphasis should be placed on capital formation, government income and inflation to accelerate growth and development in the Indian economy. The error correction term is indicating that long term relationship is stable and any disequilibrium created in short termwill be temporary and will correct over a period. However, it is suggested to maintain balance among inflation,gross domestic product, employment, exports, savings, investment and government revenue to keep an economy growing. These findings have important policy implications since an economy built on investment in infrastructural development.


https://doi.org/10.51240/jibe.2016.1.5          PDF