ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Developing EconomiesSubscribe to Developing Economies

Private Sector Participation in Solid Waste Management and Regulatory Strategy

In most developing countries, waste is managed by government bodies who allocate a large amount of resources but rarely obtain the desired results. Taking this problem into account, this article explores the relationship between environmental policy and firms engaged in solid waste management by studying the case of four firms in the SWM industry in India. Five factors could have an impact on SWM firms in India—demand for waste, awareness among waste generators, segregation as a habit, encouraging decentralisation, and state support. Appropriate policy measures to create awareness about the demand for waste can become a powerful addition to the existing tools since market forces can drive the waste management activity more effectively.

Inflation and Terms-of-trade

This paper argues that, over the longer run, the intertemporal path of inflation in an economy is affected by secular changes in the inter-sectoral terms-of-trade, which in turn, is closely linked to the stages of structural change. This linkage is investigated through simple devices of consumer choice and growth. Results imply that monetary authorities’ inflation targets should optimally account for such secular changes in the terms-of-trade, over and above the terms-of-trade shocks observed typically in developing economies.

Trade Liberalisation and Income Convergence

This paper analyses the effect of liberalisation on per capita income convergence between countries. The 1980s and 1990s saw many developing countries open up their economies. Some of these economies continued to lag behind; however, most of them saw rapid growth post liberalisation. To identify the effect of trade on convergence rates, a single difference approach is followed, comparing convergence patterns pre- and post-liberalisation. The convergence measure is estimated between a set of developing countries and their most active trading partners. The results do not reflect any significant change in the rates of convergence for the developing countries pre- and post-liberalisation.

Market Reforms and Industrial Productivity

This paper brings out the factors that determine micro level firm level productivity in the context of a developing economy that had undertaken policy reforms towards a freer market. It econometrically tests a few hypotheses on the basis of firm level panel data for a set of Indian industries. One of the strong results of the paper is that firm level outward orientation of exports and imports contributes significantly and positively to firm level productivity. This finding supports one of the propositions of the new growth theory that developing economies benefit significantly from free trade with developed economies through free flow of new ideas and technologies and externalities.
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