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Papers presented at the 90th Annual Conference of Indian Economic Association, held at Srinagar during 25-27 October 2007.
Papers presented at the 90th Annual Conference of the Indian Economic Association, held at Srinagar during 25-27 October 2007.
This volume examines the opportunities and challenges in Foreign Direct Investment (FDI) and trade, particularly service trade, for developing and emerging economies in a globalised world. Using comprehensive case studies from India, Pakistan, Bangladesh, Association of Southeast Asian Nations (ASEAN) and other South Asian Association for Regional Cooperation (SAARC) countries, it explores various channels through which trade and FDI affect the process of economic growth and development. In particular, it determines growth trajectories impelled by service trade (such as telecommunications, transport, finance and distribution), where developing countries are playing an increasingly significant role. It also discusses value chains and production networks in the backdrop of the financial crisis of 2008. Combining theoretical and empirical tools, rigorous methodology and latest data, this work will serve as an important resource for formulation of international trade and economic policies in developing countries. It will be of special interest to students, researchers and policy makers dealing with international trade and FDI, and those in economics, commerce, business & management and political science.
What changes are occurring at the macro and the sectoral levels, how the labour market changes are taking place and what impact is felt on the low income households are some of the questions that the present volume focuses on. It begins by examining the sectoral composition of growth, revisiting the issues related to industry-services balance, and also brings out the spatial dimension of growth. On the one hand the industry does not seem to have played a major role in the context of employment generation as imported technology is by and large capital intensive in nature. On the other hand, the services-led growth is seen to have reduced the pace of poverty reduction. Given the services-led growth the possible impact of trade in services on employment both in the formal and informal sectors have been worked out, indicating limited positive spill-over effects. The labour market outcomes are brought out with great details suggesting that rapid economic growth in India could not result in productive employment generation on a large scale. The gender dimensions of employment are brought out to verify if reduction in labour market inequality can result in improving the position of women in other spheres encompassing the decision making process both within the household and outside the household. Issues relating to urbanisation and rural-urban migration are also covered to understand the dynamics of urban poverty and to bring out the challenges of population transfer given the spatial concentration of growth. The job search practices pursued by the low income households are often pursued in terms of informal networks. What problems are associated with such mechanisms in experiencing improvements in wellbeing levels are covered in the present volume. On the whole, the volume offers an explanation of limited poverty reduction in a situation of rapid economic growth on the basis of an inter-disciplinary framework though efforts are being made to keep the methodology quantitatively rigorous.