Economic Growth
 
Income inequality in a globalising world
Miguel Niño-Zarazúa , Laurence Roope , Finn Tarp
Posted on: 17 Feb 2017

Since the turn of the century, income inequality has risen to be among the most prominent policy issues of our time. This column looks at inequality trends in recent decades. While relative global inequality has fallen, insufficient economic convergence, together with substantial growth in per capita incomes, has resulted in increased absolute inequality since the mid-1970s. The inclusivity aspect of growth is now more imperative than ever.
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Justice delayed is development denied: The effect of slow courts on economic outcomes in India
Amrit Amirapu
Posted on: 22 Aug 2016
Topics:   Economic Growth

India´s formal judicial system is infamously slow, even for a developing country. What is less well established is whether this matters to economic outcomes. This column uses state-level variation in the speed of courts coupled with the fact that certain industries rely on contract enforcement more than others: to show that slow courts in India have a substantial negative impact on output and employment growth in the formal manufacturing sector.
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Painful spillovers from slowing BRICS growth
Raju Huidrom , Ayhan Kose , Franziska Ohnsorge
Posted on: 08 Jun 2016
Tags:   BRICS

A synchronous growth slowdown has hit emerging markets, especially the BRICS, since 2010, with the potential for significant adverse spillovers to the rest of the world. This column estimates that a 1 percentage point decline in BRICS growth could reduce global growth by 0.4 percentage points, and growth in other emerging markets by 0.8 percentage points, over the following two years.
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Does democracy cause growth?
Daron Acemoglu , Suresh Naidu , Pascual Restrepo , James Robinson
Posted on: 03 Jun 2016

Many analysts view democracy as a neutral or negative factor for growth. This column discusses new evidence showing that democracy has a robust and sizeable pro-growth effect. It finds that a country that switches from non-democracy to democracy achieves about 20% higher GDP per capita over the subsequent three decades.
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Has the recession which began in 2012 ended?
Ajay Shah
Posted on: 04 Sep 2015
Topics:   Economic Growth

The high growth rates visible in the new GDP data suggest that the recession which began in the first quarter of 2012 has now ended. Based on analysis of data on firms, investment and Balance of Payments, this column argues that the new GDP data does not square with other data which indicates slow growth and a continuation of the 2012 recession.
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Creating a services value chain between India and Thailand
Tanu M. Goyal , Arpita Mukherjee
Posted on: 08 Jul 2015

In the past two decades, India has signed several bilateral and regional comprehensive free trade agreements with Southeast Asian countries, which are likely to enhance services trade, investment and cooperation in the region. This column explores the prospects for creation of a services value chain between India and Thailand. It contends that integrating services may facilitate growth in Indian manufacturing by supporting production networks.
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Land acquisition, industrialisation, and displaced households
Saumik Paul , Vengadeshvaran J. Sarma
Posted on: 01 Jul 2015

Does industrialisation on acquired land benefit those displaced? Evaluating the long-term livelihood effects of the first Special Economic Zone in the state of West Bengal, this column finds that the impact on displaced households is mixed. While they are more likely to be employed in the industrial zone, their returns to education are lower than that of other households.
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Growth and inequality: The contrasting stories of India and Brazil
Alexandre de Freitas Barbosa , Gerry Rodgers
Posted on: 29 Jun 2015
Tags:   Brazil

The development paths of India and Brazil are, in some ways, mirror images of one another. While growth and inequality were both high in Brazil until 1980 and then declined – first growth declined in the 1980s, and later inequality – the reverse is true for India. This column compares the experiences of the two countries, examining their patterns of growth and inequality and the factors that underpin them.
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Private investment and income disparity across Indian states
Jagannath Mallick
Posted on: 03 Jun 2015

Liberalisation reforms in India in the 1990s offered private investors the freedom to choose their investment location in the country. This column finds that income disparity across low-income states in India increased in the post-reform period, while it reduced across middle-income states. This is largely explained by private investment, which in turn depends on human capital and infrastructure of states.
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Where is India’s growth story headed?
Ila Patnaik , Madhavi Pundit
Posted on: 25 May 2015

The global financial crisis and domestic policy paralysis led to a decline in firms’ investment activities and investors’ business confidence in India. Could this have affected the economy’s long-term growth? This column contends that institutional capacity for reform and the right policy action can render the negative investment shock temporary, and ensure that the trend growth of output remains strong.
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