The pattern and causes of economic growth in India

Basu, Kaushik; Maertens, Annemie

doi:10.1093/oxrep/grm012

Cited by 86 publications

(18 citation statements)

References 14 publications

(17 reference statements)

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“…4 As regards country-level studies, Heckman and Pagés (2004) draw on a methodology similar to the EW index to conclude that, in the case of Latin America, labour market regulations represent an inequality-increasing mechanism, and that it is generally young, uneducated and rural workers who lose out. These findings are supported by Basu and Maertens (2007), who draw on the EW index to argue that labour regulations constitute one of the main barriers to further economic growth in the Indian economy. Their paper contends that reforms are needed and recommends a labour market system characterized by flexible contracts, a minimal welfare safety-net for unemployed workers, and capacity for swift dispute resolution.…”

Section: Impacts On Employment Performancesmentioning

confidence: 66%

The World Bank's “Employing Workers” index: Findings and critiques - A review of recent evidence

Lee¹,

McCann²,

Torm³

2008

International Labour Review

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his note reviews a growing body of literature on the "Employing Workers" T index (EW index) developed by the World Bank as part of its "DoingBusiness" indicators (DB indicators). This controversial project represents an important attempt to measure "business regulations" and their enforcement across 178 countries, and provide a guide for evaluating regulations that directly impact on economic growth, allowing for cross-country comparisons and identification of good practice (World Bank, 2008). The key product of the DB project is an "ease-of-doing business" index. It is made up of ten sub-indices including the EW index, which measures the cost of labour market regulations. This index is a composite indicator based on measures of three elements: difficulty of hiring; rigidity of working hours; and difficulty of firing. 1 Since the DB project was launched in 2004, the World Bank's assessment of existing regulations in developing countries has been predominantly negative. Rigid labour market policies are blamed for poor labour market performance, such as low productivity, high unemployment and informal employment, while a more flexible regulatory framework is perceived to be associated with increased growth and employment creation. In a sense, then, this project can be understood as providing an empirical basis for the "augmented Washington Consensus" (Rodrik, 2005), which attributes much of the failure of the "Washington Consensus" in developing countries to the rigidity of their labour markets.

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Section: Impacts On Employment Performancesmentioning

confidence: 66%

The World Bank's “Employing Workers” index: Findings and critiques - A review of recent evidence

Lee¹,

McCann²,

Torm³

2008

International Labour Review

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“…India, widely seen as one of the success stories of globalization, has significantly accelerated its economic growth since the inception of economic reforms in 1991 (Basu and Maertens 2007;Basu 2008;Panagariya 2010). The country is one of the fastest growing economies in the world and host to some of the largest foreign investment inflows in recent years (UNCTAD 2010).…”

Section: Introductionmentioning

confidence: 99%

Social and Community Development Practice

Pawar¹

2014

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“…The 1980s industrial policies could not be sustained over a longer period, as they relied on huge deficit financing and excessive foreign borrowings. According to Basu and Maertens (2007) argue that, "If India wants to sustain and raise even higher its current growth, the main bottlenecks in the Indian economy will need to be addressed. These are infrastructuressuch as roads, expensive freight rates, power supply, ports and airports, labour and bankruptcy regulations, and the high level of corruption" (Basu and Maertens, 2007: 164).…”

Section: Economic Reforms Of 1991 and Industrial Growthmentioning

confidence: 99%

“…There seems to be a gap in the literature because most research has chosen to highlight the overall GDP growth rates of the Indian economy (Basu and Maertens, 2007;Srinivasan, 2005), but little has been written about the industrial sector's importance, performance and near stagnation in overall job creation since economic reforms were launched in 1991. India's industrial sector has languished at around 16% of GDP, which is much less than that of China or any other country at India's stage of economic development.…”

Section: Introductionmentioning

confidence: 99%

Challenges for Industrialisation in India: State versus Market Policies

Siddiqui¹

2015

RWE

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The study is important because there currently seems to be a gap in the literature, since most published research has highlighted India's overall GDP growth rates. Little academic research has been done on the importance and performance of industrial sectors in a developing economy like that of India. The industrial sector there has languished at around 16% of GDP, which is much less than that of China or of any other country at India's stage of economic development.The neoliberal reforms of 1991 in India removed tariffs and barriers to foreign trade and investment. India reduced the role of state and public sector, and dismantled controls, while increasing the role of the market and private sector within the economy. As a result, foreign capital investment and foreign exchange reserves improved. However, job expansion did not occur and there has been no corresponding decline in the share in agricultural employment. Even the much heralded IT sector's dramatic expansion over the last two decades has provided jobs directly to less than a million people.This study argues that it would be misleading to think that a large country like India could industrialise and modernise its economy whilst the unequal distribution of land and rural assets, and the dismal performance of the agricultural sector remains. This study concludes that more than two decades have passed since the neoliberal reforms were launched, but industrial growth has still not witnessed rapid expansion, especially in manufacturing areas. It seems, then, that neoliberal policies have failed to create jobs and thus improve the living conditions of a significant proportion of the population.

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The pattern and causes of economic growth in India

Cited by 86 publications

References 14 publications

The World Bank's “Employing Workers” index: Findings and critiques - A review of recent evidence

The World Bank's “Employing Workers” index: Findings and critiques - A review of recent evidence

Social and Community Development Practice

Challenges for Industrialisation in India: State versus Market Policies

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