India And South Asia: Economic Developments in the Age of Globalization

Contents......Page 7
Tables and Figures......Page 9
Acknowledgments......Page 13
South Asia in World Focus......Page 15
South Asia ’s Development Challenges......Page 17
Author Contributions to This Book......Page 21
References......Page 26
Part I Introduction......Page 27
1 South Asia at a Glance A Taxonomy of Growth Challenges......Page 29
The Development Challenges of South Asia......Page 30
Notes......Page 54
References......Page 55
Additional Works Consulted......Page 57
2 The Political Economy of South Asia......Page 58
India ’s Policies Toward the Subcontinent:The Political Dimension......Page 59
India ’s Policies Toward the Subcontinent:The Economic Dimension......Page 65
U.S.Policy Toward the Subcontinent:Political Aspects......Page 69
U.S.Policy Toward South Asia:The Economic Dimension......Page 72
China ’s Policies Toward South Asia:Political Factors......Page 75
China ’s Policies Toward South Asia:Economic Factors......Page 76
Concluding Comments:A Political Economy of South Asia?......Page 77
Notes......Page 79
Part II Macroeconomic Performance and Issues in Economic Growth......Page 85
3 India ’s Economic Growth Miracle in a Global Economy Past and Future......Page 87
Historical Perspectives......Page 89
Theory of Economic Growth and Development......Page 93
Innovation-Based Economic Growth......Page 101
Growth Strategies......Page 104
Summary and Concluding Remarks......Page 114
References......Page 116
4 Twin De .cits in South Asian Economies Observations and Empirical Evidence......Page 119
Twin De .cits:Theoretical Perspective and Empirical Evidence......Page 120
Bangladesh......Page 122
India......Page 127
Pakistan......Page 128
The Historical Trend of Twin De .cits in South Asia......Page 130
Empirical Results......Page 134
Concluding Remarks......Page 139
References......Page 140
Why Does the Fiscal De .cit Matter?......Page 142
The Fiscal De .cit:What Does It Measure?......Page 144
Sustainability of the Domestic Fiscal Debt......Page 147
The Fiscal De .cit Experience in South Asia......Page 148
The Fiscal De .cit Situation in India......Page 149
Toward More Sustainable Fiscal De .cits in South Asia......Page 155
Conclusions......Page 162
References......Page 163
Theoretical Literature on the Effects of Foreign Capital......Page 165
Theoretical Literature on Debt Issues......Page 172
Conclusion......Page 175
References......Page 176
7 Foreign Investment and Economic Growth A Case Study of India......Page 178
Foreign Direct Investment and the Developing Countries......Page 180
Foreign Direct Investment in India......Page 183
Concluding Remarks......Page 193
References......Page 197
8 Human Capital Investment and Development in South Asia......Page 200
The Neoclassical Growth Theory......Page 201
Human Capital and Economic Growth:The Evidence......Page 203
Human Development in South Asian Countries......Page 204
Determinants of Schooling......Page 210
Evaluating the Programs of the Educational Sector......Page 213
Conclusion......Page 218
References......Page 219
What Is Poverty?......Page 222
Extent of Poverty in Pakistan......Page 225
Steps Taken by the Government to Alleviate Poverty......Page 227
Impact of IMF/World Bank Structural Adjustment Programs on Poverty in Pakistan......Page 229
Poverty Trends in Other South Asian Countries......Page 231
Poverty in South Asia:A Comparison with Other Regions......Page 233
Conclusion......Page 234
References......Page 235
Part III Globalization,Trade,and Development......Page 237
Importance of Trade in the South Asian Economies......Page 239
Volume,Composition,and Direction of South Asian Trade......Page 240
Evolution of South Asian Trade Policies and Priorities......Page 243
Engagement in the World Trade Organization......Page 247
Canada ’s Trade Relations with South Asia......Page 252
Notes......Page 257
References......Page 259
11 Regional Economic Cooperation Under SAARC Possibilities and Constraints......Page 260
Free Trade in South Asia:The Empirical Evidence......Page 261
The Experience of Preferential Trade in South Asia......Page 266
The Political-Economy Relations in South Asia: Is There a Role for SAFTA?......Page 272
Conclusion......Page 274
Notes......Page 275
References......Page 276
12 Repositioning SAFTA in the Regionalism Debate......Page 278
The Debate on RTAs......Page 279
South Asian Perspective on RTAs......Page 285
Concluding Remarks......Page 288
References......Page 290
Web Sites......Page 292
13 Market-Oriented Policy Reforms and Export-Led Industrialization The Sri Lankan Experience......Page 293
The Policy Context......Page 294
Manufacturing Performance......Page 301
The Role of Foreign Direct Investment......Page 310
Conclusions......Page 314
Notes......Page 315
References......Page 316
14 Globalization and Economic Development......Page 317
Drivers of Globalization......Page 325
Globalization of the Labor Market......Page 327
Globalization of Capital Markets......Page 329
The Case Against Globalization......Page 334
Implications of Globalization for South Asia......Page 336
Conclusions......Page 340
Notes......Page 342
References......Page 344
Part IV Corruption in Governance and Its Effects......Page 347
15 Decentralization of Governance and Development......Page 349
Departures from the Fiscal Federalism Literature......Page 351
Adapting the Theory of Decentralization for Developing Countries......Page 354
Empirical Evaluation of Decentralized Delivery of Public Services......Page 360
Decentralization and Local Business Development......Page 365
Conclusion......Page 367
Notes......Page 368
References......Page 369
16 Governance Issues in India......Page 372
Corruption Perception Index......Page 373
Broad Governance Indicators......Page 375
Bribe Payers Index......Page 382
References......Page 384
17 Corruption in South Asia Causes and Consequences......Page 386
Corrupt Agents......Page 387
Corrupt Governments......Page 390
Reform in Empirical Research......Page 393
Conclusions......Page 400
References......Page 401
18 Military Expenditure in South Asia A Case Study of Economic Irrationality......Page 406
The Changed Security Environment......Page 408
Milex in South Asia......Page 409
Some Economic and Social Consequences of Arms Races......Page 413
Is Milex Decision Making Economically Rational?......Page 415
The Case for Demilitarization......Page 417
References......Page 420
About the Editor and Contributors......Page 423
Index......Page 427