Eurasian Journal of Business and Economics

16

Authors: Parminder SINGH, Amarjeet SINGH

The present study endeavors to analyze the rate of total factor productivity growth and technical progress of Indian Agriculture between the period 1971 to 2004, using a Data Envelopment Analysis. It has been observed that that the productivity growth of Indian agriculture is negative, thus confirms that the entire output growth is contributed by input growth. The decomposition of productivity growth into efficiency change and technical progress reveals that the efficiency change is positively contributing towards the growth of productivity whereas, the negative growth of technology restrict the potential productivity growth in Indian agriculture. Further, it has also been observed that efficiency change is insignificant whereas, the technical change is of Hicks non-neutral type in Indian agriculture.

45-56

Authors: Aloysius Ajab AMIN & Dariya AINEKOVA

Kazakhstan’s economy has performed very well for almost the past decade – growing on an average annual growth rate of 9%. Furthermore, over this period there has been rapid increase in production in all the sectors of the economy. Can this economy continue to grow at such a high growth rate in the long run? The scanty existing literature on the topic suggests that growth is driven by exports from the extractive industry, while growth accounting studies on Kazakhstan’s economy reveal little contribution of total factor productivity to growth. In theory, the total factor productivity (TFP) growth rate and long-run growth rate, or the steady state growth rate are equal. Hence, we examine this premise because it is as interesting and useful as policy input. In investigating the long run growth rate, we used parametric (econometric) methods with extended production functions to include learning by doing through trade (openness). We find the estimates of the TFP steady state growth rate to be around 3 percent. This study gives us better insight into the economic growth of the country, although with transitional economies like Kazakhstan’s, there are huge institutional changes.

79-102

Authors: Vidhisha VYAS, Krishnan NARAYANAN & A. RAMANATHAN

M&A turned out to be significant form of corporate restructuring in post globalization period in Indian industries. The phenomenon is considered to be the most important strategy for gaining competitive advantage for firms. This study attempts to find out the determinants of M&A in Indian pharmaceutical industry. We use the PROWESS database provided by the Center for Monitoring Indian Economy for the period of 2001-2010. The results of the Logit analysis suggests that large and multinational affiliated firms are investing more in M&A activities. Similarly, firms reporting excess capacity and high R&D investments are relying heavily on M&A to restructure and consolidate their position in the industry.

119-128

Authors: Tayfur BAYAT , Selim KAYHAN & Mehmet SENTURK

The aim of this study is to analyze causality between budget deficits and its ratio to gross domestic product and interest rate in the Turkish economy during years between 2006 and 2011. By doing so, we investigate the validity of crowding out view against the Ricardian equivalence hypothesis. To this end, we employee the conventional Toda-Yamamoto (1995) linear Granger type causality test and Hacker and Hatemi-J (2005, 2006) bootstrap process-based Toda-Yamamoto linear Granger type causality test. In this regard, we use Kwiatkowski, Phillips, Schmidt and Shin (1992, KPSS) and Elliot, Rothenberg, Stock (1996, DF-GLS) unit root tests. Analysis results show that there is no causal relation between budget deficits, budget deficit ratio to gross domestic product and nominal interest rate. Results reveal the existence of Ricardian equivalence hypothesis. Rational household predict that there is no difference between payment time of taxes and they know that expansionary fiscal policies financed by loan do not affect aggregate demand and capital allocation in a full-employment economy via nominal interest rate channel. Results of empirical analysis support Ricardian equivalence hypothesis and imply that there is no effect of financing type of budget deficit on nominal interest rate.

141-164

Authors: George BERULAVA &George CHIKAVA

This paper aims to shed light on the determinants of household labor supply by conducting comparative study and by applying the collective labor supply model. On the basis of data from Generations and Gender Survey (GGS) we tested parametric restrictions imposed by two alternative (unitary and collective) household labor supply models on Georgian, French and Romanian data sets. Our comparison of household labor supply behavior and patterns reveals some similarities, but also several differences across countries. First, the study results suggest that own and partner’s wages, and distribution factors are important determinants of household labor supply in all countries in this study. Second, we found some similarities in the preference structures and in the impact of personal and demographic characteristics on the household behavioral patterns across countries. Third, the study results show that the household labor supply patterns across countries differ substantially. Fourth, we found that collective model is not equally applicable for describing household labor supply in different labor market regimes. For France and Romania, the evidence supports appropriateness of the collective household labor supply model, while in Georgia household labor supply behavior cannot be adequately described by either unitary or collective model.