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Bharali, Priyanka
- Macro Economic overview of Growth and Inequality in Assam Using Time Series Analysis
Authors
1 Department of Economics, Assam Women’s University, Jorhat, Assam, 785 004, IN
2 Department of Economics, Dibrugarh University, Dibrugarh, Assam, 786 004, IN
Source
Indian Journal of Economics and Development, Vol 4, No 3 (2016), Pagination: 1-6Abstract
Background/Objective: Concentrating on Assam, this study makes an attempt to investigate the growth-inequality dynamics of the state taking account of factors like government expenditure on health and education.
Methods/Statistical Analysis: The study adopts time series analysis to test the relationship among income inequality, economic growth and social sector variables like education and health in Assam. The data over the period 1981-82 to 2011-12 is used in an ARDL framework to look into co integration and error correction mechanism.
Findings: The results derived are suggestive of the presence of a long term relationship between income inequality and economic growth, given the government expenditure on education and health. The findings show that government expenditure on education in Assam have the desired redistributive effect in narrowing the inequalities with time, but the results for government expenditure on health are alarming. Further, the results support the validity of Kuznet's 'Inverted U hypothesis' in case of Assam.
Application/Improvement: Government commitment towards provision of social services like government expenditure on education and health should be further streamlined to ensure that the expenditure is redistributive in dealing with income inequalities in the state.
Keywords
Economic Growth, Income Inequality, Kuznet's Hypothesis, Time Series Analysis, ARDL Co Integration.Full Text
- Technical Efficiency, Subsidy and Financial Performance: A Case Study of BVFCL, Namrup
Authors
1 Department of Economics, Dibrugarh University, Dibrugarh, Assam – 786004, IN
Source
Indian Journal of Economics and Development, Vol 7, No 3 (2019), Pagination: 1-9Abstract
Objective: Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) is situated in Namrup, Assam in India. The objective of the study is to analyse the performance of the unit both in terms of production and financial terms. Thus, efficiency of the unit in using its inputs and financial performance is reported here.
Methods: The study is based on secondary data collected from the annual reports of BVFCL from 2003-2013. Output is measured in terms of gross value added and it is deflated by WPI. Capital is calculated using perpetual inventory method and labour is the total number of employees during that period. Time series framework has been used for making the analysis. Cobb Douglas Production Function has been estimated for stochastic production function. In deterministic frontier any shortfall in observed output from maximum output is attributed to technical inefficiency, but in reality it is affected by random factors also; so stochastic production function has been used as it considers all factors.
Findings: In the production function only labour variable is significant, indicating overuse of labour. The technical efficiency of the unit is on a declining trend. Subsidy is positively correlated with amount of production and cost of production. BVFCL is the only fertilizer unit in entire North Eastern Region (NER), the declining efficiency of the unit is due to age old technology used. The financial performance of the unit does not show any better picture since over the time the subsidy burden is rising. The increase in production has been accompanied by increased cost of production and subsidy as the unit fails to use modern methods and technology.
Application: The study reflects that the use advance methods of production will improve efficiency and productivity of the unit, which in turn will help to meet the increase subsidy burden.
Keywords
Time Series, Stochastic Production Function, Technical efficiency and Financial Performance.Full Text
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