Uniraj Economics

B.A.(Pass)______________________________________________________________________________ Economics Concepts and methods 1. 2. 3. 4. P.A.Samuelson & W.Nardhans: Economics (Latest Edition) Laxmi Narayan Nathuramka: Arthic Avedharnaya avam Vidhiya Mehta and Madanani: Elementry Mathematics for Use of Economics M.L.Chhipa and Shankarlal: Arthic Avedharnaya avam Vidhiya Economy of Rajasthan 1. Ashok Bapna (ed): Industrial Potential of Rajasthan 2. LAXMI NARAYAN NATHURAMKA: RAJASTHAN KI ARTHAVYAVASTHA 3. MOHAN SINGHAL:RAJASTHAN KI ARTHAVYAVASTHA References: 1. 2. 3. 4. 5. 6. 7. Directorate of Economics and Statistics, Government of Rajasthan, State Income of Rajasthan Government of Rajasthan, Five year Plan Documents Government of Rajasthan, Budget Studies Government of Rajasthan, Statistical Abstract of Rajasthan Government of Rajasthan, Reports of Desert Development Commisioner Directorate of Agriculture, Government of Rajasthan, Agriculture in Rajasthan Directorate of public Relations, Government of Rajasthan, Land Reforms in Rajasthan Micro Economic Theory Books Recommended : 1. 2. 3. 4. D. Salvator : Micro Economics, harper-Collins, 1991 H.L. Ahuja : Advanced Economic Theory, S. Chand and Company, New Delhi. H.L. Ahuja : Uchchatar Arthik Siddhant, S. Chand & Co., New delhi Laxminarayan Nathuramka : Vyasti Arthshastra, College Book House, Jaipur. Reference Books : 1. R.H. Leftwitch : price System and Resource Allocation (Hindi & English) 2. Samuelson and Nordhans : Economics 3. J.P. Gould and C.E. Ferguson : Micro Economic theory Revised by J.P. Gould and e.P. Lazer, All India Traveller Book Seller. Delhi. Indian Economy Books Recommended : 1. 2. 3. 4. 5. 6. R.H. Leftwitch : Price System and Resource Allocation (Hindi & English) Samuelson and Nordhans : Economics Agarwal A.N. : Indian Economy Nathuramka Laxminarayan : Bhartiya Arthvyavastha. Govt. of India : Economic Survey (Hindi & English) Gott. of India : Five Year Plant (Latest) 7. Misra S.K. and V.K. Puri : Indian Economy. 8. Rudra Dutta & Sundaram : Indian Economy (Hindi & English) 9. R.B.I. : Report on Currency and Finance (Latest) Application of Mathematics in Economics Book Recommended : 1. J.M. Henderson and R.E. Quandt, Micro Economic Theory : A Mathematical Approach, McGraw Hill, London, Third Edition (Relevant Chapters for Section A & B). 2. B.C. Mehta and G.M.K. Madnani, Mathematics of Economists, Sultan chand and Sons, New Delhi, (Relevant Chapters for Section-C) 3. L.N. Nathuramka-Arthashastra Men Ganit Ke Prayog, College Book House, Jaipur Feference Books : 1. B.C. Metha, mathematical Economics : Micro Economic Models, Sultan Chand & Sons, New Delhi (Relevant Chapters for Section A & B) 2. Alpha, C. Chiang, Fundamental Methods of Mathematical Economics, McGraw Hill, Tokyo Macro Economic Theory Book Recommended : 1. G. Ackley, Macroeconomic Theory, 1988. 2. Dembourh, Macroeconomic Theory, 1988. 3. Rana and Verma, Macroeconomic Analysis, Vishal Publishing House. QUANTITATIVE METHODS FOR ECONOMICS Book Recommended : 1. B.C. Mehta and G.M.K. Madnani, Elementray mathematics for use in Economics, Laxmi Narain Agrawal, Agra. 2. S.P. Gupta, Statistical methods, Sultan Chand and Sons, New Delhi. Book Reference : 1. Hall and Knight, Higher Algebra. 2. A.L. Nagar and R.K. Das. Basic Statistics, Oxford University Press, Bombay. INDIAN ECONOMIC THINKERS Book Reference : 1. Ganuguli B.N. (1977), Indian Economic Thought : A 19th century Perspective, Tata McGraw Hill, New Delhi. 2. Gupta, J.N. Ed. (1971), R.C. Dutta - Life and Works London. Kautilya (1951), Arthashstra, Translated by R. Sharma Shastry, Mysore, Kulkarni S. A., (1987), Translated by M. Tapasvi, Ekatm Artniti, Suruchi Prakashan Delhi. 3. Kautilya (1951), Arthasthasra Transleted By. R. Sharma Shastry Mysore. 4. Kulkarni S.A., (1987),Translated By M. Tapasvi Ekatar Arthniti, Suruchi Prakashan, Delhi B.A.(Hons)______________________________________________________________________ Paper 1 : Micro Economic Theory 1. Books recommended : 1. J.P Gould and C.E Ferguson, Micro Economic Theory, All India Traveller Book Seller, New Delhi. 2. H.L Ahuja, Advenced Economic Theory, S. Chand and Company, New Delhi. 3. H.L Ahuja, Uchhttar Arthik Sidhant, S. Chand and Company, New Delhi. Books for Reference : 4. Richard A Bilas :Vyashti Arthastra. McGraw Hill Books Company, Tokyo. 5. Richard A.Bilas, Micro Economic Theory. Sahaum's outline series. 6. Salvotra, Micro Economic Theory. Sahaum's outline series Paper-II : Mathematical Methods for Economics 1. Books Recommended : 1. B.c Mehta and G.M.K Mahani.Mathematics for Economics Sultan Chand and Sons. New Delhi. 2. L.N Nathurarnka, Arthshastra me Ganit ke Prayog (Hindi). College Book House Jaipur 3. Alpha C. Ching, Fundamental Methods of Mathematical Econics. McGraw Hill, Tokyo. 4. Dewling, Mathematics for Economicsts, schaum's outline series McGrew Hill Book, Company, Delhi. Paper III : History of Economic Thought Books Recommended : 1. Alexander Gray, Development of Economic Doctrine. 2. L.H Heney, History of Economic, Thought. 3. V.C Sinha, Arthik Vicharo ka Itihas PaperIV : Economy of Rajasthan Books Recommended : 1. L.N Nathuramka, Economy of Rajasthan, College Book House, Jaipur. 2. Laxmi Narain Nathuramka; Rajasthan ki Arthvyavastha (Hindi). 3. Ashoke Bapna, (e.d) Economics Development of Rajasthan. Reference Books : 4. Directorate of Ecomomics and Statistics, Govt. Of Rajasthan,State Income of Rajasthan. 5. Govet. of Rajasthan, Five years Plan Documents 6. Govet. of Rajasthan, Budget Studies. Paper V : Macro Economic Theory P. Mishra & V.O. Chapters. A.K. Bombay. 4. Ganguli : Public Finance. . Bhatia : Public Finance. 4.T. Musgrave : Theory of Public Financee R.Gupta : Satistical Method. Sunderama : Indian Economy. 3. 1986 P. Swami : Antarrashtriya Arthshastra. 2.) Paper VI : Indian Economy Boks Recommended : 1. 4. Shapiro : Macro Economic Analysis(Latest Ed.M.Salvatore : International Economics. Kailash Nath Nagar : L. (Latest Ed.L. Klwin : Applied General Statistics.New Delhi. A. D.J.) Paper VII : International Economics Books Recommended : 1. 1990.C. Agarwal : India Economy. Sankhyiki ke Mool Tatva.F. Paper IX : Public Finance REcommended Books : 1.N. 2. 5.O.K.Agarwal : Bhartiya Arthvyavastha.S. Government of India : Economic Survey (Latest Ed.. Puri : Indian Economy.N. New Delhi.A. 7 and8. 3. S. 7. 4. MacMillan. Bo Sodersten and Geoffrey Reed : international Economics. 1994-95.) H.D. Musgrave and Musgrave : Public Finance in theory and practice. F. Vaish & Sudama Singh : Anterrashtriya Arthshastra Paper VIII : Statistical Methods of Economics Books Recommended : 1.(Latest Ed. A Statistical Outline of India. Cowden & S. 3.Books Recommended : 1. Oxford University Press. 5.) S. 4.L. Latest Ed. M. Lindert : International Economics. D. Lect : International Economy Kundu & Ray : International Economics. Rana and Verma : Macro Economic Analysis(LatestEd. A. 2. Meerut Reference Books : 1. Wiley Easter Ltd. 6.K. S.A. R. 6. 3. : National Income Statistics (Latest Issue) Welfared Beckman : An Intorduction to National Income Analysis. Ellsworth and C.P. (Latest Ed. K. 2. 2. Scientific Publications. Tata Services Ltd.) Rudra Dutta and K. Nagar and R. Jodhpur. Das : Basic Statistics. E.Croxton. 5. Meenakshi Prakashan.) C. 1. 2.) Laxmi Narayan Nathurama : Bhartiya Arthvyavastha. 3. 2. Prentic Hall of India. (Latest Ed. L. M. Deward T. chs.C. Reference : 1. Metha : Mathematical Economics : Micro Economic Models (reevant chs. Paper XI : Money and Financial System Book Recommended : 1. Jhingan : Economic of Development. 1013. N.B. Mathematics for economists (relevant chs. Reports of the committees to Review the working of the Monetary system (April. D. 5-8. Dowling : Mathematics for economists Schaum's outline Series (relevant chs. 1991). Quandt. 3. Chiang : FundamentalMethods of Mathematical Economics. 2. B.) Paper XII : Mathematical Economics Book Recommended 1. W. Alpha C. 6. 4.M.5. 2.E.) .L. for section "C") 2. Prem Prakash Sharma : Sarvajanik Vitt Ke Siddhant. VIII.S. Government of India. B.C. (relevant chs. Toor : Non-Performing Advances in Banks (Skylork. chs. 4. Madnani.M. 1-7. 18. (relevant chapters for sections A & B).D. Reference Book : 1.M. 1-10. Metha & G. Lewis : Development Planning 2. 3rd Ed. Microeconomic Theory : A Mathematical Approach.N.A. Paper X : Development Economics Book Recommended : 1. 1985).K. S. 5. J. Henderson & R.) 3. J. Lebargen : Economic Development. Goldfeld : The Economics of Money and Banking (Latest Ed.) Chs.) Reading in Indian Public Finance (Relevant Chapters). Report of the committtee(Narasimahan) on the Finance system (Nov. 15-20. Latest edition). 3rd Ed. chs. Dwivderi : (Ed. Economic & Functional Classification of Centeral Government Budget. Chandler amd S. Gupta : Monetary Economics. E. 3.V. A ECONOMICS There shall be nine papers in all.Each paper except paper-VII (Comprehensive Economics) will contain nine questions having three questions in each section.A Previous Paper-I : Micro Economics Theory Paper-II : Macro Economics Theory Paper-III : Quantitative Methods for Economics For M.A (Previous)ant the other for M.Income and Substitution effects.Determinants of demand.A Final paper-IV : Public Finance paper-V : International Economics Paper-VI : Development Economics Paper-VII : Comprehensive Economics Optional Papers Candidates will be required to select any two optionals-One for M.___________________________________________________________________________ DISTRIBUTION OF PAPERS M.Elasticities of demand.Normal. Section'A' Theory of Consumer Behaviour-Cardinal and ordinal utility approaches.A(Final) examination from the following: Optional(i) : Agricultural Economics Optional(ii) : Co-operation:Theory & Practice Optional(iii) : Industrial Economics Optional(iv) : Public Enterprises & Public Unilities Optional(v) : Labour and Industrial Relations Optional(vi) : Demography Optional(vii) : Advanced Indian Economy Optional(viii) : Indian Banking System Optional(ix) : International Finance Optional(x) : History of Economic Thought Optional(xi) : Mathematical Economics Optional(xii) : Econometrics Optional(xiii) : Survey Methods COMPULSORY PAPERS FOR PREVIOUS PAPER-I:MICRO ECONOMIC THEORY Duration : 3 Hours Max.Prices.Candidates are rquired to attempt five questions in all selecting at least one question from each section.Complementary and substitute goods.M.A.The Revealed preferce .seven will be compulsory papers and the rest two will be opotional papers. Compulsory Papers For M.Market Demand Curve.Marks : 100 Note: The paper will contain nine questions having three questions in each section.Derivation or Individual Demand Curve.Candidates are required to attempt five questions in all selecting at least one question from each section.Inferior and Giffen goods. Equilibrium of a firm (Chamberlin Model). 5.Bergson Social Welfare Function. Exploitation of Labour (Joan Robinson and Chamberlin approaches) and Trade Union.Inc.Joshi:Theory of Value. Ahuja:Advanced Economic Theory.Roy Choudhary:Micro Economics. J. D.Third edition. Structure-Perfect competition and its relevance.Measurement of Monopoly power..Bilateral Monopoly.Koutsoyiannis:Modern Micro Economics.Capital deepening and Labour deeping technology through Isoquants. P. K. 3. 23-26. 4. Jaipur. D.L.Chapters 1-8. H.McGraw-Hill Book Co.Chand & Co. Welfare Economics-Pareto optimality Criterion.Barla . Hal R.M.New Delhi. Ltd.S.Laws of returns and returns to scale..C.chamberlin. Reference Books: 1.Candidates are required to attempt five questions. 2.New Delhi.A.Theory of Second Best.Economics of scale. Different Market.Kinked demand curve and Stakelberg Models) and Collusive Oligopoly (Cartels and price Leadership). Section'C' Pricing of factors and factors of production-Ractor pricing in competitive and imperfect competitive markets. Production:Production function-Law of variable proportions. 4.Chand & Co. Consumer Surplus and its reformulation. Oligopoly-Non-collusive oligopoly (cournot. Layard and A.Externalities.Marks : 100 Note:The paper will contain nine questions having three questions in each section.Empirical cost function (Stigler Survivor Method). National Book House.Maximization of social welfare and the point of Bliss.Welfare Maximization.principle of Hall and Hitch Theory of limit pricing. H.Discrimination of Monopoly with illustrations. Section'B' Theory of cost-short run costs.L. A. C. Ahuja.long run costs.G.Walters:Micro Economic Theory.Impact of Monopoly on Economic Welfare.Salavatore:Micro Economic Theory Harper Collins.hypothesis..all selecting at least one question from each section.Uchchatar Arthik Siddhant (Hindi) S. 3.. Consumer behaviours under uncertainty (elementary approach).New Delhi.Salvatore:Micro Economic Theory. Full cost pricing.S.New Delhi.R.Tata McGraw-Hill Publishing Co. Books Recommended: 1. Excedss capacity according to Chamberlin.Monopolistic Competition-Product differentiation and demand curve.Kaldor-Hicks Compensation Criterion.New Delhi.Expansion path and Isolines.14-20. Section'A' .Distribution and Welfare.Three stages of production.McGraw-Hill..Schaum's Outline Series. 2.Bertrand.Affiliated East-West Press Pvt.New Delhi.MacMillan. PAPER-II:MACRO ECONOMIC THEORY Duration : 3 Hours Max. Uchchatar Vyashti Arthshastra.Isoquants and optimum factor combination. 5. Varian:Micro economic Analysis (Indian print). Monopoly-Impact of taxes on price and output.London. price level.changes in the value of money.The complete Classical model of determination of employment and output.Keynesian model for the determination of income. 10.Value of Money. 5.consumption.The Real Balance Effect.wage and employment.Money Multiplier.Central Bank and Commercial Banks.wages and employment. . Books Recommended 1. M. R.):Nacri-Economic Theories. Present relationship amongst the Treasury.Branson and James M. 7.interest rate). 7.Stock and flow variables and their inter-relationship.Domestic monetary policy in India since 1981-Its role effectiveness in various situations.G. J. Reserve Bank of India:Monthly Bulletin.Interest and money. Martin Bailley:National Income and the Price Level.saving.Keynesian criticism of the Classical theories.government and foreign trade sectors. Money supply.Relative Income permanent Income and. M.Concepts.Macmillan India Ltd.investment. Reserve Bank of India:Annual Reports-1998 onwords. Henson:Guide to Keyw. 6.The Quantity Theory of Money and its variants including the Friedman's reformulation of the Quantity Theory. M.saving. 8. 2.1966. Note:Use of non-prigrannabke cakcydatir us oernutted. Dadle Dillard:A Guide to Keynes. 8.Evans:Macro Economic Activity. national income.)Readings in Macro Economics.investment.investment.employment.F.M.its determinants.. 6. Uma Datta Roy Choudhary:National Income Accounting.investment. Reserve Bank of India:Report on Currency & Finance. Section'c' Macro economic equilibrium-relative roles of monetary and fiscal policies.g.K.Litvack:Macro Economics.Hicks and Kaldor.Muller (Ed.Surry (Ed.interest rate.Macro Economics (Eng. 4.interest rate. Section'B' The Classical Theories of saving.J.price and wage flexibility and full employment.wages.Post-Keynesian Theories of Money Demand. Barret:Macro Economic Policy.production. 3.Problems of aggregation in the construction of Macro Economic variables.Stabilization policy:prospects and problems.Basic Concepts & Methodology.Vaish:Samashti Arthshastra (Hindi).Keynes:The General Theory of Employment . Phillips curve. Gardner Ackley:Macro Economic Theory(Latest Ed.The control of inflation and recession in developing and developed economies.C.Instruments of monetary policy and their relative effectiveness in various situations.High powered money. 5. 9.Macro Economic variables(e. Rosalind Lavacic:Macro Economics. Weilliam H.) 4. KC Rana and KN Verma:Macro Economic Analysis. Edward Shapiro:Macro Economic Analysis(latest Ed.Delhi.) Reference Books: 1.Say's Law.Business Cyclesmodels of Samuelson.Real and nominal quantities. M.C.Fleming-Mundell open economy model.) 2.2and3 3. Structure of National Accounts-transactions of consumption.IS-LM analysis.Life Cycle Hypothesis.components and measurement of national income.The consumption function hypotheses:Absolute Income.Chap.Aggregate Demand and Aggregate supply curve-analysis. Mode Geometric Mean and Harmonic Mean. Partial Differentiation of Functions involving two independent variables.college Book House.(Interpretation) Analysis of Time Series-Components. PAPER-III QUANTITATIVE METHODS FOR ECONOMICS Duration : 3 Hours Max.Graphical solution.Macroeconomics. homogeneity and Goodness of Fit). Reference Books: .K.Applications of Integral Calculus in Economics (Derivation of Total Cost function. (test of Independence.Definite Integrals. Section'B' Probability-Basic concepts and calculation of simple probability problems.M.2000 13. F-test.Jaipur.Madnani:Mathematics for Economists. S.Standard deviation. Kailash Nath Nagar:Sankhyiki Ke Mool Tatva (Hindi) Meenakshi prakashan.Fisher's Ideal Index and tests for Good Index Number.consumer's surplus and producer's surplus). Skewness-Kral Pearson's coefficient.Simplex Method involving two variables for maximization only.New Delhi. Prabhat Patnaik.L. First order difference equation and its applications in Economics (Cobweb Model and Income Determination). 4. Sampling Distribution of x2 (chi Square) and F and their prooperties.Mathematical Expectation.Dasgupta. 3.9. 11. Books Recommended 1. Testing of Hypothesis-Basic concepts.SFisher and R Startz:Macroeconomics. Section'C' Simple Differentiation.Oxfor University Press. 2.determination of nature of goods).sultan chand & sons.Determination of seasonal variation.C.Candidates are required to attempt five questions in all selecting at least one question from each section. (withour proof).Sultan Chand & Sons.Meerut.Ahuja:Samashti Arthshastra (Hindi).profit maximization.Integration-One variable case. Solution of Simultaneous Equations by Cramer's Rule.Trend by moving average methodsand least squares method. Correlation and simple regression. Rudi Dornbusch.saving function.Marks:100 Note: The paper will contain nine questions having three question in each section.consumption function.Macro Economics(Eng. Laxmi Narain Nathuramka:Arthshastra Mein Ganit Ke Prayog (Hindi). Index numbers-Cost of living indes. Section'A' Measures of Central Tendency Mean. Poisson and Normal Distributions.Matrices (Multiplication and Inverse).).Tata mcGra-Hill Edition.calculation of different elasticities.P.K.Macroeconomics Analysis. A. H. 10. Applications of differential calculus in Economics (Utility Maximization. Raghbendra Jha:Contemporary Macroeconomics. Dispersion-Quartile deviation.coefficient of Variation.Gupta:Statistical Methods. test (Significance of Mean and Difference between means).Determinants.(Emphasis on interpretion). B. 12. Binomial.Median. Maxima and Minima with and without constraints.Mehta and G.New Delhi. Linear Programming-Formulation.c2 test. Alpha C. Edward T.Effects of Public Expenditure on production and distribution.A. F.D. New Delhi. 4. New Delhi.Recent Tax Reforms.Candidates are required to attempt five questions in all selecting at least one question from each section. Section'A' Nature and Scope of public finance. H.prentice Hall of India.McMillan.justice in taxation. section'C' Major trends in public expenditure in India(growth and composition). 3.Wagner's Law.Public Budgets. Public Revenue-Buoyancy and elasticity of a tax.F Croxton. A.Musgrave:Public Finance in Theory and practice.Major Taxes.K.G. 4.Optimal Budgeting.A.Dowling:Mathematics for Economists. 5. A.Musgrave and P.Musgrave:Theory of Public Finance.Schaum. Theory of public debt:Economic effects of public debt. Prem Prakash Sharma:Sarwajanik Vitt Ke Siddhant(Hindi). COMPULSORY PAPERS FOR FINAL PAPER-IV:PUBLIC FINANCE Duration : 3 hrs.Allen:Mathematical Analysis for Economists.Effects of Commodity taxation on production..Private public and Merit goods. R.Oxford University press.L.Tokyo.Finance Commissions and revolution of resources to Rajasthan.Bowen.Fiscal policy in under-developed countries. 3.Klein:Applied General Statistics.Chiang:Fundamental Methods of Mathematical Economics.Non-tax revenue..Ganguli:public Finance. Public Expenditure-A positive approach.Jha:Modern Theory of public Finance.L.Effects of direct taxation on production(viz.Bhatia:public Finance. Sharma:statistical Methods of Economic Analysis. Nagar and R. Cowden & S. . Das:Basic statistics. Section'B' Shifting and Incidence of taxes under Monopoly and perfect Competition. 6.B.Internal and External public Debt of India. Nagar & P.labour supply and saving rate)and distribution. S.Equiproportional. Marks : 100 Note:The paper will contain nine questions having three questions in each section.neutral.McGraw-Hill Book Co. R.Main trends in the Revenue of the Central and State Government in Inida.Salient features of the Indian Tax System.Criteria for resource transfer from the centre to states.Distribution and Stabilization functions.Burden of public debt on present and future generations.Progressiveness of a tax system and its measurement.Lindhal and Samuelson's Models. Fiscal Federalism-Theory and problems.Ability to pay Approach. R.sOutline series. R.McGraw-Hill.Loans and saving as sources of finance for development.problems of centrestate financial relations in India. Fiscal Policy:Objectives.D. 2.London.Theory of Social Goods.L.Balanced Budget Multiplier.Principle of Maximum Social Advantage.S Chand & Co.compensatory and functional finance.1.S.D. 5.Equi-marginal and least aggregate sacrifice principles. Books Recommended 1.New Delhi. 2.Role of Government in the Economic activity-Allocation.Automatic and built-in-flexibility. Max. Economic Integration-Theory of custom union.causes of disequilibrium and remedies.Haberler and Ricardo. Factor Endowments and Hecksher-ohlin Theory-Factor price Equalisation.Optimum Tariff).brain drain and role of MNC's.arbitrage.Devaluation and Marshall Lerner condition.Export Instability and economic development.McGraw-Hill 1990.Irwin.2000.1990 Herbert G.Monetary approach and portfolio Balance approaches of exchange rate determination. Section'C' Foreign Exchange Market:functions.Linderdett:International Economics.offer curves. Economic Growth and International Trade.Kenen:The International Economy. Balance of payments-Accounting.Meade's General Equilibrium of trade.Complementary Trade theories. Reference Books: 1.community indifference curve.Quota versus tariff.III ED.MacMillan.PAPER-V:INTERNATIONAL ECONOMICS Duration:3 Hours Max. International Resource Movements and Multinational Corporations-Labour and Capital Movements and their effects. Section'B' Free Trade versus protection.3rd ed.Import Substitution versus export promotion.III edition. Empirical Tests of Ricardo and Heckscher-Ohlin Theories.Latest Edition.Other Trade Restrictions (Quota.Mill. Trade and Economic Development-Terms of Trade.Stolper-Samuelson theorem. Books Recommended: 1.price flow mechanism. Dominick Salvatore:International Economics.Cambridge University press.Trade Indifference Curve.hedging.III EdI.Euro-currency market.Richard D. 3. Section'A' The Law of comparative Advantage-The Mercentalists. D.Growth of factors of production.MacMillan.speculation.The political Economy of protectionism and strategic trade policy.Role of the World Bank/WTO..Foreign Exchange risks.Elasticity and absorption apoproaches.future and options. The standard theory of trade-production functions.Grubel:International Economics.current trade problems of developing countries. 4.Irwin. Peter M.View of Adam Smith. Exchange Rate and Exchange rate theories..1994.Marks:100 Note:The paper will contain nine questions having three questions in each section.adjustment under gold standard. Peter B.Non-traiff barriers and the new protectionism). . 2.Technical progress.Rybezynski Theorems. Classical theory of comparative Advantage.Purchasing power parity theory.Salvatore:Schaum's outline series on Theory and Problems of International Economics.Regional Trading blocks. Bo Sodersten and Geofrey reed:International Economics.1977.Trade offer curves.Candidates are required to attempt five questions in all selecting at least one question from each section. 2.Spot and Forward rates.Tariff(partial Effects. Fixed and Flexible Exchange Rates-Case for and against fixed flexible exchange rates. prentice Hall of India(Latest Ed.Harrod-Domar.* M. 4. Chacolidades:International Economics. 7. 5.K.M.1990.Yotopoulous and J.Chakravary:Economic Development and planning.plan models of India.Sen (Ed.) 4. 9.Lewis model and the Renis-Fei Extension. G. Five year plans of India.Jhingan:Vikas Ka Arthshastra.Economics of Growth and Development(Eng. 6.).International trade and development Two-gap models.Nargent:Economics of Development. S. PAPER-VI:DEVELOPMENT ECONOMICS Duration:3 Hours Max.A.Denison & Chenery. The Economic Survey-Government of India.Social cost Benefit Analysis.Oxford University Press.Domestic and external resources. Lewis:Development Planning.) P.) Michael P.II ed.organization.Robert Heller:International Trade. Books Recommended 1.K.Todaro:Economic Development in the Third world (Latest Ed.approach of planning.1987 3. Section'C' Financing of economic development.Capital-output ratio.Thirlwal:Growth and Development with special reference to Developing Economies(Latest Ed.Investment Criteria. Human Development Report(Latest).Ingredients of development-Land.labour and human capital.Puri:Vikas Ka Arthshastra (Hindi). W.Marx (Classical).Solow(Neoclassical)..physical capital.Meier:Leading Issues in Economic Development(Latest Ed. 2. 7.B.technological change scale. H.):Growth Economics. 5.Kindleberger:Economic Development(Latest Ed. 2.Bardhan. . P. Section'A' Meaning and measurements of economic development and human development.). 10.Kuznets:Modern Economic Growth.Marks:100 Note:The paper will contain nine questions having three questions in each section.Theory & Empirical Evidence.Candidates are required to attempt five questions in all selecting at least one questions from each sections. S. 3. Section'B' Development Planning:Balanced and unbalance stategies.past performance and current issues of Indian planning. 4. 6.Dutta Chaudhary and T Krishnan:Development and Change.3.Chakravarty:Development Planning-The Indian Experience. Accounting prices.L. A.M. 8.) Bruce Herrick and Charles P.Structural features and process of change-empirical studies of Kuznets.C. World Development Report (Latest). M.NPV.A. International Economics(Eng.Mishra and V.programming. A. S. 5.Growth models-Ricaardo.P. Vaish and Sudama Singh:Antarrashtriy Arthshashtra (Hindi).K.Applications of Input-Output Analysis in Planning programming.Choice of techniques. Reference Books: 1.) S.IRR. Inter-linkages between land.credit structure and marketing.labour and capital markets.A. Three short essay type questions(not more than 150 words of 4 marks each.PAPER-VII:COMPREHENSIVE ECONOMICS Duration:3 Hours Max.Agricultural growth in Rajasthan.collective and state farming.Terms of trade between agriculture and nonagriculture.Concept of cost.Inter-regional variation in growth of output and productivity.Institutional change and technological changes.Interdependence between agriculture and industry-Some empirical evidence.Agricultural price policy in India. OPTIONAL PAPERS PAPER(I):AGRICULTURAL ECONOMICS Duration:3 Hours Max. Questions in each part will be set in the following pattern: a.Traditional agriculture.Supply of inputs-irrigation. Institutional changes-Land reforms.Production functions in agriculture.Characterstics of factor markets.Stabilization and support policies.Subsistence/traditional agriculture and its modernization.Candidates required to attempt five questions in all selecting at least one question from each section. Section'A' Agriculture in growing economy.Role of public price and distribution policies.Farming system-traditional commercial. 14 questions-Objective type of one mark each. 12 questions-Short answers(not more than 50 words) of two marks each.Farm budgeting.Cropping pattern changes in India.power.resource use efficiency. c.Marks:100 Note:The paper will contain nine questions having three questions in each section.Organized and unorganized capital market.seed .Uncertainty and crop insurance. There will be internal choice only in the short essay type questions. Section'C' Behaviour of agricultural prices.Agricultural markets and marketing efficiency.Each part will be of 50 marks part-I will cover current theory portion of all compulsory paper of M. Farm size and productivity relationship in Indian agriculture.Supply of individual crops and aggregate supply.Tenancy and crop sharing.Demand and supply of agricultural products and cobweb cycles.cooperative.changing importance of agriculture. and part-II will cover Indian Economics and Current International Economic issues. Section'B' Factors of production.Supply price relationship.Market and marketable surpluses.prices and Income stability.Marks:100 Note:There will be two parts of the paper.Role of capital and agricultural credit.Mobility of land and segmentation in labour markets. Agricultural growth in India. b. Marks:100 Note:The paper will contain nine questions having three questions in each section. S.S.Israeli.costs and Returns in India.Bhalla:Agricultural Development in India. 4.l. PAPER(III):INDUSTRIAL ECONOMICS Duration:3 Hours Max. 6. 3. Books Recommended: 1.Future lines of major reforms. B.Candidates are required to attempt five questions in all selecting at least one question from each section. .Role of cooperative in rural development and rural industrialization with special reference to Rajasthan. T.Bardhan:Land. 2. Books Recommended: 1. Krishna Bhardwaj:Production and conditions in Indian Agriculture.Tyagi and G.-II. 5.Mathur:cooperatives in India (English & Hindi Ed.fertilizer.Labour and Rural Poverty in India.S.Effective management reforms for strengthening the Movement in India. PAPER(II):CO-OPERATION (THEORY AND PRACTICE) Duration:3 Hours Max. Dillon:Agricultural production Functions.Hajela:principles.N.Marks:100 Note:The paper will contain nine questions having three questions in each section.K.Heady and J.dairy and consumer cooperatives.B.Need for a deofficialisation programme.D. T.Rao:Agricultural Production. Pranab K. 5.H.pricing of inputs problem of mobilization of resources from agriculture.Chinese and Japanese economies. 2.Kulkarni:The Theory and practice of cooperation vol.cooperative structure:primary.S.Goel:Cooperative Management and Administration. Section'C' Cooperative Management:Role of cooperative department electec non-officials and cadres of cooperative personal cooperative laws and management. C.state policy and cooperative movement.Candidates are required to attempt five questions in all selecting at least one question from each section.central and apex level cooperatives and the inter-relationships.H. Section'A' Fundamental principles of cooperation-Traditional and reformulated once.Sahaya:Management of Co-operative Enterprises National Council of cooperative Training. D.Sinha & R.problems and practice of cooperative. 3.Growth of vasted interests and their eradication.) B. 4. E. Role of Co-operatives in overall development of Denish.R.Shultz:Transforming Traditional Agriculture.W. Section'B' Cooperative Movement in India:Present major trends and unresolved problems of credit marketing. S. Section'B' Location of Industries. PAPER(IV):PUBLIC ENTERPRISES AND PUBLIC UTILITIES Duration:3 Hours Max.Sivayya and V.Bain:Industrial Organisation. 6. 2.Kuchchhal:Financial Management.R. S. 5. J. 3. J. Section'A' Difference between public and private activities.Alternative strategies for Industrialization. R.industry and market.Capital goods v/s consumer goods.Bhagwati and P.Foreign collaboration in technology imports. Chenery and Clark:Inter-Industry Economics M.Industrial finance in India.Import substitution v/s Export promotion in newly industrial countries and their experience.Ahluwalia:Industrial Growth in India:Stagnation since the mid-sixties.cement.B. Books Recommended: 1.A.Rationale and objectives public enterprises in India Central and state enterprises.National Productivity council. 3.company corporation.K. Industrialization and development.Industrial development in Rajasthan.V.joint sector.Industrial concentration and MRTP Act.Effective study of the steel. Industrial sector in India. Reference Books: 1. Hay and Morris:Industrial Economics:Theory and Evidence.Public sector in India:rationale and performance. Section'C' Industrial growth in India.holding companies.business house. W.selection criterion.Desai:Indian planning for Industrialization. 2.Industrial finance money and capital-markets. Different forms of public enterprises-Departmental. K.Candidates are required to attempt five questions in all selecting at least one question from each section.Location of Industries in India.Characteristics of public utilities-Legal and economic aspects various public utilities-railways.Industrial sickness.Utton:Industrial Concentration. 4.Barthwal:Industrial Economics:An Introductory Textbook.Business Organization in private and public corporate sectors.Small scale industires. 5.development banks.Marks:100 Note:The paper will contain nine questions having three questions in each section.Isard:Methods of Regional Analysis-An Introduction to Regional Science.Industrial policy in India.Strength and structure of Indian corporate sector.S.Inter-regional variations in industrial development.road and air transport. .Das:Indian Industrial Economy.Independence of industrial sectors. Productivity Trends in Cement Industry in India.water-supply. Isher J.Industrial project.Theories and measures of location.electricity telephones.firm.C. 4.public enterprise and public utilities.TV and broadcasting public operations of utilities Regulation of public utilities.Policy making for Industrial growth.electronics and textiles industries.Backward and forward linkages.Section'A' Concept of plant. growth and characteristics.Minimum .Concept of unemployment and under employment.public or cooperative.Section'B' Principles of public utility rate making-marginal cost and full cost pricing.V.Rural labour market and rural-urban migration.V.Types of unemployment. Employment in organized and industrial sectors in India-its size.Theoretical and institutional labour Economics.Turvey and D Anderson:Electricity Economics T. Non-competing groups and segmentation in labour markets.old and new theories.Concept of a fair rate of return to cost and value of service as standards of reasonableness.Sampson:public utilities.Ramnathan:Meaning of public Enterprises.Kain wohli:The urban Transport problem. PAPER (V):LABOUR AND INDUSTRIAL RELATIONS Duration:3 Hours Max.Marks:100 Note:The paper will contain nine questions having three questions in each section.State reputation of wages.Investment in human capital. 4.Recent change with regard to PSUs. E.Ramnathan:Finances of public Enterprises.Theory of individual labour supply and demand for labour.Economic analysis and benefit cost estimation. R Turvey:Economic Analysis and public Enterprises. V. 4.Haris and R.Ramnathan:Structure of Public Enterprises in Inida.objective of rate makingdiscriminatory pricing.Todaro Harris Hypothesis. 3.J. Refrence Books: 1. 2. Planning and investment decisions. V.Public sector enterprises in Rajasthan.Duedley:Transport Economics Public Policy.Achievements and problems profitability and resource mobilization by public enterprises. 3. Definition of working force and labour force.financial structure and financial analysis. Books Recommended: 1.Estimates of unemployment in India and Rajasthan. Mayer.Troxe:Economics of public utility.A detailed study of Rajasthan state Electricity Board and Rajasthan Road Transport corporation. 2.fairness and functional efficiency.ownership-private. Section'B' Government and labour market. R Turvey:Public Enterprises R. 5. Section'A' Labour Economics-Importance.V. Pagrum P.railway rates and electricity tariffs finding of public utilities.Candidates are required to attempt five questions in all selecting at least one question from each section.Financial ratios and rate or return. Section'C' Growth of public sector in India. 5.Functions and characteristics of labour market with special reference to developing economics. V.Wage determination.Labour legislation and social security. Dunlop:Industrial Relations system.Composition of population in India.Factors affecting fertility. R.wages for industrial and agricultural workers wage and income policy.Relationships of age.Concept of Human Development. PAPER(VI):DEMOGRAPHY Duration:3 Hours Max. Labour unions-Their role and functions. Trade union movements in USA.Factors effecting mortality. Books Recommended: 1.Candidates are required to attempt five questions in all selecting at least one question from each section.Family planning.Labour unions and collective bargaining economic impact of unions.vital registers and recortds of migration.Female participation in work force.gross and non reproductive rates.Marks:100 Note:The paper will contain nine questions having three questions in each section.Measurement.fertility rate.Mortality change and population growth.Fertility measures-crude and specific rates.composition and female participaation in India.Projection of population in India.Russia and India. Section'C' Industrial disputes and grievances causes of unrest.sex and other compositional traits to economic and special organization. 3.Roberts:Trade union in a free society. Workers participation in ownership and management-concepts and Indian experience.Incidence and implications of unemployment and underemployment with special reference to India.Effects of birth death and migration rates upon population.C. Section'C' Theories of demographic transition.study of fertility attitudes by special survey.reproductive rate and population growth in India. Composition of population-social economic composition.Machinery for industrial and disputes in India since 1980 critical study of existing machinery of industrial relations in India. B.Industrial Labour and Industrial Relations in Rajasthan. V.census.NFH surveys(objectives and findings).Mortality rate. 4. Section'A' Morality Measures-Grade and specific rates.Continuous population registration. 2.Mhetras:Labour participation in Management. Books Recommended .Industrial relations factors determining industrial relations collective bargaining in India.Life tables. Implication of population change for capital formation and employment in developing countries.G.Indian Census.Employment and manpower planning-Its significance and problems. Section'B' Basic principles of measurement of population growth-Estimates.N.A study of occupation.Subramanian:Labour Management Relations in India.Methods of population presentation.occupational and industrial composition of work force in relation to regional and International differences in economic development. Economically active population-Basic concepts and definitions impact of demographic process on the composition and size of the labour force. A.Candidates are required to attempt five questions in all selecting at least one question from each section. section'C' Indian Planning . 2. 5. labour force.Strategy and objectives Development policies Saving and investment rates.) Rudradutta and Sundram Bhartiya Arthshastra (Latest Ed. Farn price policy. Agricultral finance progrees and emerging trends. India's balance of payments position in recent years. 4. Concentration Rations policy for imporving income and wealth distribution in India.Major monetary and banking trends problem of inflation Black money.unemployment.K. Fiscal development .1 and 2 PAPER(VII):ADVANCED INDIAN ECONOMY Duration:3 Hours Max.) Laxmi Narayan Nathuramka : Bhartiya Arthshastra(Latest Ed. Industry-Recent trends in industrial growth. Human Development Report (Latest). Indian industries.Srivastava:Arthik Evam Samajik Janananki Shastra(Hindi). borrowing. Books Recommended : 1. D. Resource mobilization for planning . Monetary and credit policies Main issues in banking development.N. 3. technological changes. Food situation and food policy. G.Marks:100 Note:The paper will contain nine questions having three questions in each section.1. Recent changes in indusrial policy and licensing policy and licensing policy.Role of taxation. Agriculture-Institutional changes.Main trends in imports and expors foreign trade policy-Import substitution and export promotion. Economic growth during plan period Recent economic reforms in India. section'A' Demographic aspects-Population growth. 3. deficit financing and administered prices for plan financing . Jeevan Chandra pant:Janaki (Hindi).Bogue:Principles of Demography.) A. occupational distribution.S.) .). 5. National income-growth and composition regional distribution. 6. Long term fiscal policy for India. Coale and Hoover:population Growth and Economic Development in Law Income Countries.Barclay:Techniques of population Analysis. Mahboob-Ul-Haq:Reflections in Human Development.W. Rudradutt and Sundram : Indian Economy (Latest Ed. O. 7. poverty. 4. N Agrawal : Indian Economy (Latest Ed. Concentration feconomic power in private sector and MRTP Act. Role of public financial institutions Role of multinationals in development. Agrwal : Bhartiya Arthshatra (Latest Ed.Public sector industriesGrowth problems of pricing and measurement.Trends in taxation and public expenditure at the central level. 2. 8. Institutional framework of Indian economy and its structural changes during plan period. Issues in measurement and policy options. Central State Financial relations. section'B' Foreign Trade . Income inequalities in Indian. Foreign capital and technology transfer to India. National Family Health Survey. Present and future HRD needs for bank employees in India Recruitment. 3. Priority sector advances and advances to weaker sections and their problems of recovery. Skylark.T. Globalisation and Financial Markets McMillan. New Delhi.Kinds. 2.III. Bhole: Impacts of Monetary Policy. Development Banks . Paper (VIII): INDIAN BANKING SYSTEM Duration 3 Hours Max. Refrence Books: . Emergency of social banking and its progress. Books Recommended : 1. Training and appraisal of bank officials since 1990s. Mishra and Puri : Indian Economy.S.) K.Marks : 100 Note: The paper will contain nine question having three questions in each section Candidates are required to attemp five questions in all selecting at least one question from each section. New Delhi. contribution to economic growth and price stability and overall effectiveness. L. liberalization and competition among banks (New challenges for indian Commercial Banks). 5. N. New innovations related to banking business.Non-performing assets of commercial adequacy. Kurion C.Refrence Books: 1.Rangarajan: Perspectives on Indian Economy. 1996 5. role and achievements of all India development banks for industries and foreign trade. The Economy : An Interpretative Introduction. Sage Publications.A critical review of the contribution of major credit cooperatives commercial banks and regional Rural banks including that of the NABARD. 3. Kapila Uma (Ed. section'C' Money and capital markets in India-Features. 4.): Indian Economy since Independence Academic Foundation.II. 6. 4. Bimal: The Indain Economy: Problems and Prospects. 2. S.M. Cost and pricing of banking services. New Delhi. Jalan. instruments availability of funds and major problem of principal market-partners. Gupta: Monetary Planning for India (Latest Ed.B. Academic Foundation. Management problem of commercial basnks during the last one decade. Yher: Non-Perfoming Advances in Banks. RBI's monetary and credit policies as enforced since the beginning of the 1990. Kapila Uma )Ed. Rural Banking .): Recent Development in Indian Economy Pt-I. G.s their objectives.Rao: Management of Commercial Banks. section'B' Internationalisation of banking service in India-de-regulation. Harendra Badhav (Rd. section'A' Indian Banking System as on the eve of bank nationalization.) Challenges to Indian Banking Commpetition. Books Recommended : 1. IMF and problem of international Liquidity. IMF: International Capital Markets. Reddy. exchange trading.) A Financial Sector for the 21stCentury Oxford. Prentice Hall.Marks: 100 Note: The paper will contain nine questions having three questions in each section. I. Development Prospects and policy Issue. USA. University Press. International capital movements . Croom Helm Ltd. Monetary and Financial Sector Reforms in India. Principles of International Financial Management. Foreign Direct Investment. 4. determination of equilibriur exchange rate. Refrence Books: . its causes and remedial measures. Asian Dollar Markets and International Bond Markets. Daniel R. theories of exchange rate and exchnge rate systems. Harold James: International Monetary Cooperation since Biretton Wood. Lovi-Maurica: International Finance. Regional BlocksMultilateralism and World Trading System. 2. International Financial System and Globalization-developments in Exchange Markets.1995 & 1996 RBI Report on trend and Progress of Banking in India (Latest Ed.Bops equilibrium and adjustment mechanism (automatic and policy) Trends in India's Balance of Payments and growth of foreign exchang reserves since the beginning of the 1990s. 4. WTO and its impact on differect sectors of the economy. Foreign portolio investment and financial instability.V. Candidates are required to attempt five question in all selecting at least one question from each section.meaning. Peter B. Y.meaning. 6. arbitrage and specu lation. 3. section'A' Finance Function . Englewood cliffs. Bo Soderster and Geofrey Reed: International Economics MacMillan.B. Orlin: International Financial markets. instruments of payments. Theory of international reserves.1.components. Hanson and Kathuria (ed. New Delhi. IMF..) 3. Open Economy Macro Economics .Cambridge University Press. 5. Eurocurrency markets. Foreign exchange rate. functions. Grabbe J.classification and role in developing nations.A. PAPER (IX):INTERNATIONAL FINANCE Duration : 3 Hours Max. Kenen (Ed): Managing the World Economy: Fifty Years after Bretton Wood.1994. 1991. 2. UBSPD. International Monetary Systerm and alternative international monetary standards. exchange risk. 7. 9. Bulletin: Annual Special Issues. section'B' Foreign Exchange Market . Balance of payments . Pater Kenen: International Economics. Report of the Commitee (Narsimham) on the Financial System Nov. Optimum currency areas. John Millar (Ed) Curing World Poverty. McGraw-Hill.1994. Long term borrowing from World Bank Asian Development Bank and Aid India Clup nations and its overall impason Indian economy. Kinds. section'C' Global Business Finance. Kane: Principles of International Finance. disequilibrium in Bops.Structure. 8. Inc.Sources and Uses. NJ. section'C' Karl Mark . Concept of Surplus.Marks : 100 Note: The paper will contain nine question having three questions in each section Candidates are required to attemp five questions in all selecting at least one question from each section.Scientific socialist. BIS: Annual Reports. Ricardo-Principles of Polictical Economy and Taxation. . Quesnay's Table Economic. the invisible hand doctrine.Adam Smith. PAPER (X): HISTORY OF ECONOMIC THOUGHT Duration 3 Hours Max. Modern revival and interpretation (Sraffa). Gide and Rist: History of Economic doctrine.1. Proudhob. world Bank: Anuual Reports ADB: Annual Reports.C.L.Haney: History of Economic Thought. the rise of mathematical Economics. Modern revival of Adam smith. 6.S. J.Efforts at scientific socialism. Organic composition of capital. Distribution theory -different rents. Rangaswami: Aiavangar: Aspect of the ancient Economic Thought. Eric Roll: History of Economic Thought. Classical school. Evaluation of socialist thought -Utopian. Rehabilitation by Cairsness. 3. World Bank: Annual Conference o0n Development Economics.C. Mill-four prepostions and capital demand and supply bi-furcation wage fund. dynamics and econometrics)Critical evaluation of the development of economic thought Indian economic thought . growth theory taxation and role of Government. 2. H. Wealth of Nations. Differences with say on determination of value. IMF/World Bank: Special Issue of Finance and Development of Financial Market. The German Historical School and the development of Marginalism. Profits and wages. Twentieth century economic thought-main features (only the rise of Keynesianism. Physiocrates. Kumarappa: Gandhian economic Thought.Kautiya and Gandhi Books Recommended : 1. Revival of Marx in Economics. 5. Stationery State Version non-com peting groups. 5. Laissez faire. Sinha: Arthik Vicharon Ka Itihas K. Malthus's theory of population and theory of under-competition. section'A' Mercantalism. The neo-classical school. 2.Socialism Saint Simon. Critiques of Adam Smith. Own Blane. 3. 6. 7. Senior and the four postulates. Socialist and the nationalist school Re-statement of the classical position. J. 4. section'B' Crititics of the classical school -Sismondi.Fourier. V. Reserve Bank of India: Monthly Bulletin Reserve Bank of India: Report on Currency and Finance. 4.Marshall. Break down of capitalism. separable and additive. Factor Market Elasticity of factor demand and Marshall's four rules. elasticity form and important results. 3. Books Recommended : 1. dynamic closed and open input .Engel Aggregation Condition and Cournot Aggregation Condition. Sultan Chand & Sons. Linear Expenditure System. Mehta: Mathematical Economics: Micro Economic Models. London. Slutsky Equation . RGD Allen.output models. Restrictions on demand functions Theory of firm: Production fuction-A well behaved production function. INput-Output Analysis-Concepts of static. Maximization of utility.Marks: 100 Note: The paper will contain nine questions having three questions in each section. Optimization behaviour of a firm-profit maximization constrained cost minimization and constranined output maximization.Derivation of labour supply function. . section'C' Macro Economic Models Keynesian theory of income determination concept of Multiplier derivation of IS and LM functions Multiplier-Accelerator interaction. Linear Programming Simplex method Duality theorems problem of Degeneracy. Homogeneous production function. Elasticity relations in demand theory . Stakelberg and market sharing models.M. Monopoly: Profit Maximization and sales revenue maximization Multi-Plant Monopolist price discrimination effect of various taxes (Lumpsum tax profit tax specific tax and ad-valorem tax) on output and price of a monopoly firm. Roy's Identity.PAPER (XI): MATHEMATICAL ECONOMICS Duration : 3 Hours Max. Lagged adjustment -Cobwed Model Consumer's surplus and producer's surplus. Derivation of demand functions-Ordinary and compensated demand functions. Theory of Games: Two person-constan sum games.L. Stability of equilibrium-Marshallian & Walrasian Stability Conditions. homogeneous and homothetic. section'A' Theory of Consumer Bohaviour . Effects of specific and ad valorem taxes. 2. New Delhi. Candidates are required to attempt five question in all selecting at least one question from each section. Income and Leisure .C. Hawkings-Simon conditions of viability Determination of gross output and value added. direct and indirect.Maximin and Minimax Pure and mixed strategies Note: Use of non-prorammable calculator is permitted. Duopoly Collusion. Henderson and R. McGraw-Hill.2 and n-commodity cases. Types of Utility functions . Solow and Meade. Mathematical Economics. Cobb-Douglas and CES Production Functions. B. Cournot. section'B' Elasticity of substitution (s) derivation of its expression and calculation of value of s for CDPF and CESPF Special cases of CESPF Derivation of Cost and input demand function Perfect Competition: Market demand and supply function Determination of price and output of a firm. Quandt: Micro Economic Theory: A Mathematical Approach. J.Concavity of a Utility Function Convexity of an indifference curve. Trade Cycle models of Samuelson and Hicks Growth Models: Harrod-Domar Kaldor. . 2.Refrence Books: 1. Kagakusha. heteroskedasticity and specification error.G.A. Derivation of Order and Rank conditions. Refrence Books: . Candidates are required to attempt five question in all selecting at least one question from each section. forecasting and Control. 3. Forecasting. J. Macro Economic Theory: A Mathematical Tratement.S. 4. G. Tokyo. McGraw-Hill London. Mehta and G.New Delhi. adaptive expectations and partial adjustment models Almon approach. R. Estimation of regression parameters by Ordinary Least Sqyares (OLS) method and maximum likelihood method.Johnston: Econometrics Methods(3rd edition). 3. B. Alpha C Chiang : Fundamental Methods of Mathematical Economics. Madnani: Mathematics for Economists. 5. section'B' Violation of basic assumption-Autocorrelation.multicollinearly.S.S.Kmenta: Elements of Econometrics. Identification problem. Sultan Chands & Sons.M. Properties of estimator.C. Estimation of simultaneous equations model-Ordinary least squares (OLS) Indirect Least Squares (ILS) and two stage least squares (2SLS) methods. Evans: Macro Economic Activity: Theory. Agrawal: Kimat Siddhanton Ka Ganitiya Vishleshan. section'A' Nature and scope of Econometrics. matrix notation) -Estimation of regression parameters by least squares methods. models fixed effect and Random effect. Test of significance. Various functional forms of regression models. Dummy variable. Applied Econometrics: Estimation of Demand. Mehtodology of Econometric Research Random Variables. Aitken estimator. McGraw-Hill. section'C' Simultaneous equations model: Stuctural form and reduced form. confidence interval and Anaylsis of Variance.B. D-W statistics. Properties of estimators. General linear model (n variables. Damodar Gujrati: Basic Econometrics. R. Maddala : Econometrics. Statistical Inference. Distributed lag models-Koyck approach. Jaipur. 2.K. Simple linear regrassion model (2 variables). Panel data-pooling of cross section and time series data. PAPER (XII): ECONOMETRICS Duration : 3 Hours Max.Marks: 100 Note: The paper will contain nine questions having three questions in each section. Michael K. Books Recommended : 1. Publishers. 4. Note: Use of non-programmable calculator is permitted. Cost of Production Functions. H. J.D. Test of significance. Allen. relatives effeciency of WR and WOR. Techniques and Applications. Estimates of Poverty and Consumption by NSSO.Johjnston and J. J. Application in the estimation of elasticities and growth rates. Rubinfield : Econometric Methods and Econometric Forecasts. Sampling and non-sampling errors. Properties of Expoection and Variance. section'C' Regrassion analysis with one and two explanatory variables Multiplicative and additive models. Effeciency. 3. Gain in precision. monetary and trade statistics.(4th edition). Rao and Millar : Applied Econometrics. R. exponential and parabolic curves.C. Sukhatme. Murthy : Sampling Methods. 2. H. Errors of Type I and II. G. Cluster sampling. Books Recommended : 1. section'B' Sampler Designs : Simple Random Sampling with & without replacement. Random number tables and their uses in samples with equal probability (Simple random sampling) and proportional to size. Greene: Econometric Analysis. Michael D. Testing of Hypothesis.N. Candidates are required to attempt five question in all selecting at least one question from each section. proportional optimum and Neymann allocation. Indian official statics.K. M. B. Practical problems in planning. Principles Sample Surveys. unit roat Analysis. H. execution and analysis of survey.Theil: Principles of Econometrics. Concept of Sampling Distribution and simple uses of t. Stratified Samplings. sources of data on national income and its components. Note: Use of non-programmable calculator is permitted.V.Marks: 100 Note: The paper will contain nine questions having three questions in each section. Intrilligator : Econometric Models. 7. section'A' Sampling Methods. 4.Z. Growth and elasticity equations Estimation of regression parameters and their standard errors Interpretation of estimated with all the summary statistics viz. Madnani : Artthmiti .S. Point and Interval Estimators.Thomson . 5.K. 4. 6. Stages of Survey. Standard errors.and X2 (chi Square) Mathaematical Expectation and Variance.V. Growth and models.Avdharnayen Evan Vidhiya. Pindyck and D.1. Gupta and V. Sykhantme and C. Simple econometric analysis of time series.Anderson. PAPER (XIII): SURVEY METHODS Duration : 3 Hours Max. Dinardo: Econometric Methods. Consistency and Sufficiency. 2.Basic Econometrics Statistics for Business and Econmomics. 5.NFHS Surveys. 3.M. Systematic sampling. price indices. public finance. S. Cochrance: Sampling Techniques.Ashok : Sampling Theory of Surveys with Applications. P. Kapoor : Fundamentals of Applied Statistics. Two stage sampling. Damodar Gujarati.Suweenly Williom. properties of estimators: Unbiasedness. In order to accommodate decline in level. we refer to various dimensions of its personality. particularly in economics literature. sometimes in many scientific treatises and very often in colloquy. Even when we refer to development of a child. use positive terms only.ECONOMIC GROWTH AND DEVELOPMENT Introduction Economies grow and develop. They aregrowth and development. It is used to describe a unidimensional change. and they progress and prosper. normally a distinction is made between the two. may be. and there are economies that experience continuous decay. as in the case of size of a balloon. There are phases when they decline too. You may find that. When we do not refer to dimensional aspects we use the . We will leave them to historians. economic historians. temporary phenomenon. If one considers long stretches of human history. It is maintained along the following lines. one knows that economies (civilizations) disappeared altogether. we will not have occasions to use them. We shall not consider too distant a past either. two have survived. You might have noticed that the word ‘growth’ is used to describe increase in stature or size. Because we shall primarily look at nations and countries as economies. Let us take a normal view. and use terms such as ‘economic growth’ and ‘economic development’. We shalloften try to distinguish ‘economic’ from ‘noneconomic’ though there are cases where it becomes difficult to do so. which have been used to describe changes as well as to prescribe changes. We shall. We will not take into account such long stretches of time. We shall then accept decline as an occasional. therefore. we use phrase ‘negative growth’ and to describe perverse tendencies. we may use words ‘dedevelopment’ or ‘maldevelopment’ though. Of the positive terms. words ‘growth’ and ‘development’ are used in interchangeable fashion. as in the case of stature of a child or a uniform expansion in all directions. they expand and advance. But. taking all activities together. we look at a twenty-year period and use yearly figures for flow of output of goods. be taken as a long-term tendency reflected by increase in flow of final goods and services produced by the economy. therefore. Some economists feel that it is growth of per capita GDPFC. the GDPFC for 1999-2000 and 2000-01 are Rs.00. they would accompany each other. Shall we use nineteen year-to-year figures of growth rate. and call its growth as economic growth. If there is a general tendency of growth but there are occurrences of decline.00. But. the point is that the prices should relate to only one common year so that we measure only the change in flow of output. Suppose you look into a recent issue of the National Accounts Statistics published by the Central Statistical Organisation and find that at 1993-94 prices. hotels and hospitals grow. Let us measure it at factor cost and write it in its abbreviated form GDPFC. The growth rates calculated on yearly basis would differ from year to year. This is a flow of goods and services produced during the year 2000-01. Monsoon may widely fail in certain years and economy may get derailed for a while. not a mix of change in output and change in prices. Suppose.10. In order to see that we measure the ‘real’ change in flow. The prices may belong to 2000-01 or 1999-2000 or to 1993-94. But the point to be noted is that economic growth is a long-term phenomenon about the change in total economic activity of an economy. how to summarise the nineteen figures? If we adopt the latter. some of which may be negative. while the potential of economy to produce is continuously increasing. In most cases. Some economists put too much emphasis on supply potential and ignore demand conditions. If so. 20 or 50 years then we often add words ‘per annum’ or ‘per year’ to growth rate. Internal demand may for a variety of reasons fail to make full use of the potential.000 crore respectively. In economies that depend to a large extent on external trade conditions in other countries may affect the realisation. The GDPFC in 2000-01 was around Rs 17. This is a positive change.000 crore and Rs. measured in value terms. The growth rate is often expressed in terms of per cent per annum.60.word ‘growth’. that should be used to gauge the growth of an economy.000 crore. Economic Development . which is measured in terms of GDPFC at constant prices. Shall we then say that. we are often quick to point out certain features that are not captured by word ‘growth’. to describe the change? Or. Such GDPs are said to be measured at constant prices. The growth in flow called GDPFC in absolute terms is Rs. good to make an analytical distinction between the two. Would it not be a good idea to speak of general tendency and ignore abnormal fluctuations around the general tendency of increase?Economic growth should. It is. we should compute the magnitude of flows in both the years in the same prices. The total quantum of goods and servicesproduced in an economy in a given year is referred to as Gross Domestic Product. In relative terms it is 6 per cent and it is called growth rate. They define economic growth as long-term increase in production potential of the economy.colleges and universities. should we just compare the initial figure with the final figure? If we adopt the former. Let us look at it from the view point of production. if ever. the rates of growth will be negative in certain years. we should know the measure of the flow last year. If we prepare a whole series for 10. the potential is sometimes not realised? There could be various reasons for occasional decline. therefore. people talk of growth without development or development without growth. not GDPFC. We may be interested in knowing whether the flow this year is larger than the flow last year. There may be cases when one is dominant and the other is dormant. that growth takes place without development or development takes place without growth. it is possible that one of these (initial or final) figures is just ‘abnormal’ as it does not fall in line. Even schools and institutes. there could be a negative change also. Economic Growth Let us take here a comprehensive view of the economy.10. In such cases. It is rare.000 crore.60. Some pointed out necessity of attitudinal changes in people – a leap from traditional value system to modern value system. Two. if employed or should get remunerative prices for what one produces. Institutional changes could mean emergence of new institutions in governance. not with decrease. from production of goods to production of services. Then. Looking from a distance. In this concept. the cause of such worry is said to be large and increasing population. the nature may not be able to assimilate it. And structural change was understood in terms of composition of GDP and industrial distribution of labour. present production technology makes use of non-renewable (exhaustible) natural resources such as fossil fuels (coal. There may not be enough trees around us to clean our atmosphere and we may have to suffer from various health problems. One. But. gas and petroleum) or even of renewable natural resources (such as forests. In short. therefore. if self-employed. (more content follows the advertisement below) ADVERTISEMENT In this context. especially if all the three. it would be strange to call the result ‘development’ even if per capita income doubled. which are brought to our notice. but makes no significant dent on basic problems of underdeveloped countries. The issue is whether the level of development. from agriculture to manufacturing. a variety of sweeping changes took place in Europe. Sustainable development may. something more than economic growth. from manufacturing to automatic production. smoke and other poisonous gases. They called it structural change. In developed countries. here is a reference to conscious attempts made to develop an economy by adopting a strategy. Mass poverty was one particular problem we attributed to the colonial rule and wanted to secure self-governance in order to eradicate it. more non-renewable natural resources get exhausted and our environment become further polluted. If non-renewable natural resources deplete fast. Clean air and clean water may not be available to us. If one or two of these central problems have been growing worse. there may come a point when it may become impossible to continue with the level of development reached. if pollution level is too high. Some other economists believe that development is distinctly different process than growth and covers other dimensions of change besides growth. However. For them. we find that production structure of the economy has changed: from hunting-gathering to settled agriculture. present production technology (along with disposal practices of waste) pollutes atmosphere and water bodies with garbage. we have a cause to worry about. This was a reflection of changing demand for goods and services on the one hand and changing demand for labour by production technology in different sectors on the other. economics takes most of its lues from the economic history of the West during the last two centuries or so. It means that if we continue growing our economies the way we do. we could defineeconomic development as economic growth accompanied by rise in productivity. it only means that its relative importance has changed and that this might have occurred with increase in all activities in a broad sense. In order to accommodate this thought. Most of the mainstream economists believed that all economies in the West traversed the same path and believed that other economies would also follow the same path. is sustainable. as also in capital market and money market. require the preservation of stocks of resources. Development is.” Indeed. it is believed that reduction in inequality will reduce poverty and will lead to reduction in unemployment too. then beyond doubt this has been a period of development for the country concerned. They defined economic development as economic growth with structural change in favour of nonagricultural activities. Structural change meant relative increase in terms of proportion of non-agriculture/nonprimary output and concomitant changes in proportion of employment of labour in non-agricultural activities (and also in that of allocation of capital and land). what use are the efforts or the strategy? This implies that development has to be related to welfare of people. Sustainable Development In recent years an important issue has arisen. There were attempts to emphasize technological dimension of development. Many economists felt disillusioned and started showing their anguish. Early economists working in the field of development economics took notice of change in the composition of output and deployment of labour in activities. future generations may not have enough stock for its use. animals and water) to such an extent that their regeneration becomes difficult. transformation in structure of economy in terms of composition of output of goods and services or even in deployment of labour force. Keeping this in view. just not concerned with description of economic history. During this period. Nature has some assimilative capacity. including environmental resources and exhaustible natural . The more goods you produce. When they did not find it happening they pointed out that institutional changes are equally important. However. Developments in the fifties and sixties did not perceptibly change the scene in these crucial areas. One such Western economist who had been dealing with problems of development asserted in a World Conference in Delhi: “The questions to ask about a country’s development are: What has been happening to poverty? What has been happening to unemployment? What has been happening to inequality? If all three of these have declined from high levels. largely in positive direction.Some economists hold a view that the economic development is not much different fromeconomic growth. If the strategy brings in growth in capacity to produce more and in actual output. there are two facts. One is entitled to one’s wages when one is employed. some economists prefer to define economic development as economic growth with redistribution of resources in favour of the relatively worse off. It is to be pursued as a deliberate mechanism of deliverance of the masses from poverty and idleness in a relatively short period of time. (more content follows the advertisement below) ADVERTISEMENT Whole human history may be thought of as a succession of developments or changes. It was suggested much earlier that welfare of people depends on the size of the cake as well as its distribution. development is nothing but the level of per capita income achieved in a particular year. and technology making use of machines and power instead of men and cattle. litter. Still others hold that. the major cause of worry about sustainability of development is supposed to be a wasteful consumption style and in many developing countries. even in a developing country where it is fairly low. both are processes of long-term increase in per capita income. It does not mean services were not produced. this structural change has to take place along with increase in output of all (or majority of) goods. say thousand years ago. however. that is. economic development could be defined as economic growth plus. It was pointed out thateconomic growth should be accompanied by rise in productivity. which may broadly be categorized as technological and institutional. If that scourge still persists on a large scale. One should get adequate wages. emergence of institutions in terms of variety of banks. the suggestion is that the income should get redistributed in favour of relatively worseoff. and basic liberties.resources. The message is that the pattern of growth may have to be changed in certain economies and in others. However. With increasing concern for human rights. This argument is acceptable in the sense that life cannot be separated into economic and non-economic compartments. One can add availability of food. class or regional lines. Some do point out that there would then be no mining and no industry. education facilities. thequality of life also will not be good. Physical Quality of Life Index. The definition of sustainable developmentcan. Those who suggest the other line. food production and resource depletion were to continue unchanged. clothing. Indicators of Development Introduction You may recall that we have defined economic development as a process but also referred to it as a level. the level reached may have to be maintained rather than substantially enhanced. political rights and civil rights or some indicators reflecting these rights should be added to the quality of life. luxuriant cars and palatial houses. in this conception. Therefore. it is captured through per capita income. Many analysts do not segregate environment. When any process is conceived as multi-dimensional. it is always prudent to be cautious. clothing. some attempts have been made to measure the level. The idea of ‘quality of life’ enriches the concept of ‘standard of living’. This report definessustainable development as that level which takes care of the needs of the present generation without compromising the needs of the future generations. freedom of choice. After all. legal aid and security to the list of clean water. welfare. But the quality of life idea adds the dimensions. . Most of us would not prefer to be put in prison for any considerable period even if food. which may enhance productivity through efficiency. In fact. it would be a good idea to incorporate these indicators of well-being and welfare. Before constraints loom large. if the air is polluted or if we do not get safe drinking water. in this view. Concerned with environmental degradation. you may note that growth is a quantitative change between two levels of development or levels of development at two points of time. If our surroundings are littered. industrialization. expensive clothing. For comparison between two economies. often manifestation of high income. Some people also think that certain rights. If quality of air. the whole purpose of consciously developing a society is to raise the level of well-being and welfare of its people. health care. We can think about quality of life in terms of its constituents too. a world commission was set up in the recent past. We shall discuss four alternatives to measure the level ofdevelopment: Per Capita Income. point out that the items listed above are determinants of well-being. it is not a bad idea to apply restraint. it becomes difficult to adequately capture its character through any index. quality of water and quality of sanitation are not good. caste. there exists no such term. Quality of Life One shred of quality of life is already indicated in earlier section on sustainable development. which is generally thought of in terms of rich food. A study in 1972 had tried to show that limits to growth on the planet will be reached sometime in next hundred years if present growth trends in world population. These rights should also be included in this set of well-being indicators even though they do not fall in the economic category. In societal terms. they suggest that it does not respect national boundaries. clean air and clean surrounding in order to define the quality of life. Most people would agree that development is a process and the process is multidimensional. shelter and healthcare provided in the prison is far superior to what we normally get outside. shelter. which produced a report in 1987 under the title ‘Our Common Future’. We normally discussed development as process not as level. which people enjoy in certain societies. it is said that. which are all indices of well-being. If ozone layer withers. whole humanity will suffer from its consequences. which we often resort to. It is indeed difficult to determine the path that is sustainable or to find out whether the path is unique. global warming will take place. therefore. on future development of technology. our attention would be focussed on the level of development achieved at a given point of time (given year). Irrespective of where green house gases are produced. Human Development Index and Quality of Life Index. (more content follows the advertisement below) ADVERTISEMENT In this subunit. are denied in others. The items listed above lead to better health. One should also be interested in distribution of well-being along gender. Many analysts hold that a society with somewhat overall lower literacy rate but equality between male and female literacy rates is better than another that has somewhat higher overall literacy rate but has gross inequality between male and female literacy rates. there is another shred of thinking which is not altogether unrelated to it. which at times may not be captured through monetary valuation. However. But such a comparison is often made. There is little reliance. However. pollution. no matter how much of many desirable goods we are able to buy from market. Growth is basically an inter-temporal comparison. be modified as a path of development in which options of future generations are not compromised by the path taken by the present generation. It simply makes us cautious about our choice over consumption style and efforts in inventing technology and perhaps restraining growth in population. then we will not have a good life. NNPFC divided by population is popularly known as per capita income. A suggestion was also made to deduct the social cost of harmful effects in terms of variety of pollutions that many economic activities entail. our NNPFC has grown a little more than eight fold over the last fifty years but the population has also almost trebled during this period. Indicator s of Development ADVERTISEMENT The following three suggestions have been made for correcting the weaknesses of the measure of per capita income: (more content follows the advertisement below) ADVERTISEMENT • • • Distribution of national income over individuals is an important dimension. GNP is somewhat less than GDP. which cannot be ignored. In our case. it becomes necessary to find out the size of population. we get gross national product (GNP). It has been argued that the welfare of a society depends on what is the size of the cake and how it is distributed over people. Most of the limitations arise from the numerator whatever it may be. is not the total welfare that the people look for. if we want to compare the welfare of people at two points of time or of two economies at the same point of time. which are nonmarketed. Otherwise a country like Canada. These concepts do not account for the economic activities performed inside the household. Then. per capita income has grown less than three times. Still further. which is often used to categorise countries as developed/ underdeveloped countries or high/ middle/low income countries. Such a division (deflation/normalisation) is needed even to assess the progress over time. therefore. foreigners have property in our economy and some foreigners do work here. the command of people over goods is somewhat different than GDP. As a result. valued at constant prices. The population of India may be 30 times that of Canada. otherwise. national incomes should be divided by sizes of their respective populations. for which development is pursued. As a result. could be found to be poorer than India. we earn wage income or property income outside the country. been argued that its value needs to be added to the national income in order to make it yield a better measure of welfare. should be divided by the size of the population. From the view point of welfare or well-being of the people. both. Bulk of women’s household work gets ignored. even though imperfectly. Our living conditions can be expected to have become better by a factor of three rather than by a factor eight. Over time. which it can measure. It does not adequately capture activities performed even outside household. So. we should subtract that amount of capital. However. we should take account of consumption of fixed capital in the process of production. is considered a rich country. With this in view. Similarly. while it is equally important fromthe point of view of well-being and welfare of people.Per Capita Income Gross domestic product is supposed to measure the level of output produced by the economy during an accounting period. eat away the whole of our fixed capital. In short. We may further note that it is this indicator. which we think has been consumed in the process of production. For example. In order to render international comparisons meaningful. we shall. GNP or NNP. it is suggested that the NNPFC. We shall use a particular version of net national product known as net national product at factor cost and designate as NNPFC. according to many. may be the ultimate aim of all activities. which. However. It is also pointed out that economic welfare. GDP and GNP are not very different. Net national product is also known as the national income. Adjusting for these incomes. GDP. It may be noted that GNP better represents the entitlement of the nationals of a country (individuals and their collectivities) while GDP actually shows the output of the activities carried out within the economic boundaries of the country. . per capita national income has come to be increasingly used. people have come to enjoy more leisure. it helps us to compare the development of India with that of the USA or with that of Pakistan for any given year as also our own development over time. We should ensure that the capital stock is kept intact during the year. there are economies where GNP and GDP are quite different. We have our property outside our own national economy and some of our nationals work in other countries. activities for which there does not exist market do not adequately get accounted for. In the case of large countries and countries having little interaction with other countries for factors of production. In the case of international comparison. what we shall get is known as Net National Product (NNP). Now. namely. It helps us to compare the level of development of the country in 2001 when we are 100 crore with that in 1961 when we were 43 crore only. which by all standards. But. It has. As production is valued in terms of market prices. one day. have to be considered together. National income and its distribution. it is very often pointed out that its scope is quite limited. per capita incomes of different countries have to be brought to a common currency. low infant mortality and good literacy levels. finally. literacy have undisputedly been accepted as parameters of quality of life.Evolution of Alternative Measures These corrections. life expectancy shows the output. (more content follows the advertisement below) ADVERTISEMENT They should create no problems in international comparison. urbanisation and modernisation. Even income is in a way an input. The levels in Sri Lanka are comparable to their counterparts in developed countries. 1960 US $ Percentage of salaried and wage earners to total economically active population While at your level. were not the values of particular societies as there could be non-market. he could find only three which could have universal appeal as ends in themselves and meet the criteria laid down. raised: whether inputs can be taken as development indicators. it was natural for researchers to try to develop such indices as would capture these social dimensions. and the OECD developmenteconomists. they selected only 16 as it was found that many of the indicators were reflected through others. Composite index should be simple to construct and easy to comprehend and should lead itself to international comparison. and 3. attempts have been made in the recent past to construct indices. He. some attempts have been made to develop some alternative indicators of economic welfare and of social development. They also included enrolment rates. Basic Literacy (BL). such efforts seem to measure development as an activity rather than as an end. A question was. While hospital facilities indicate inputs. It implied that economically less developed countries are simply underdeveloped versions of industrialised countries. which may. which have both used longevity and literacy as basic constituents. an idea of the variables that were included in such attempts could be of some interest. electricity consumption and steel consumption per head. It is important to remind at this stage that these indices were developed in the international context and were used for ranking different countries according to numerical value of achievement in descending order. There is. therefore. broadly. indeed. literacy rate shows the output. however. non-industrial or non-plan ways to develop. Quality of Life Indices We may recall the constituents of quality of life in the previous chapter. These are: 1 Life Expectancy (LE). the things that you directly enjoy. 2. Moreover. Morris David Morris perused the variables adopted by several UN Committees. He further proposed that indicators chosen should reflect results and social distribution of results and should not reflect values of specific (Euro-American) societies. political and economic variables (indicators) impinging upon industrialisation. These are important indicators and are considered by many as the ends in themselves. Therefore. an attempt to measure quality of life and we will make reference to it towards the end. However. non-urban. The indices are simple arithmetic averages of normalised aggregates for society/groups. did not leave many people satisfied and national income or its per capita variant as indicators of welfare have been in use for long though with reservations. It overlooks the diversity among the underdeveloped countries and the differences in social organisation in different economies. If you have better sanitation. viz. Researchers and policy-makers were not very happy with such alternatives to nationalincome as welfare measures as they did not find the approach suitable to produce a meaningful social indicator. Out of hundred and odd indicators. In fact. purportedly based on aims and objectives of development or outcomes of thedevelopment process rather on the means thereof. Choice of Indicators Morris. Physical Quality of Life Index Towards the end of the seventies of the past century. number of villages electrified and availability of post offices also got their way into it. proposed a set of criteria for developing a composite index of development. He found that most of the indicators were inputs to development process rather than result of the development process. freedom. environment. longevity and Foreign trade per capita. These indicators reflected the belief that there exists only one course of development. While enrolment rate indicates an input. the UNRISD. education. etc. which they thought. they listed as many as 73 indicators though. We shall be studying two popular indices. be called indices of quality of life. At one stage. .. people tried to develop such indices as would encompass social. Search for better indicators of social development has continued. There is an UN institution called United Nations Research Institute for Social Development(UNRISD). it is not necessary to go into the nitty-gritty of the ways the indices were developed.. Infant Mortality (IM). Physical Quality of Life Index (PQLI) and Human Development Index (HDI). you have better health and you require less of hospital facilities. Length of metalled roads. Based on these parameters. They went on enlisting indicators. They were generally indicated as health. reflected some or the other dimension of development. which were the results of the development efforts. We often read in the newspaper that Sri Lanka has a fairly high life expectancy. in the last few decades. The variables included are per capita income. So did the character of agricultural organisation. therefore. tried to look for those indicators. then. Our own state Kerala has done wonders on literacy front as well as on demography front. made to develop composite index ofdevelopment. hospital beds and number of doctors per lakh of population. In this institute. This view has certain biases and value-bias of Europe. however. Attempts were. Tamil Nadu is also faring well. In case. has been ranking various countries according to the level of human development index. These three indicators are averaged to give what is called the Physical Quality of Life Index (PQLI): PQLI = (1/3) (LEI + IMI + BLI ) Choice of Minimum and Maximum Values As in the case of life expectancy and infant mortality. Morris chose the best and worst levels in each of the three cases. Whosoever is born will die. first the minimum values are subtracted from their respective actual values and then. each of the levels should.70. for positive indicators: Actual Value – Minimum Value Achievement Level= ––––––––––––––––––––––––––––––– Maximum Value–Minimum Value For the negative indicator of infant mortality. infant mortality and the proportion of children. The conversions from values to indices are linear. which need not hold us. infant mortality rate in terms of per thousand and basic literacy rate in terms of percentage. first the actual value has to be subtracted from the maximum value and then the gap has to be divided by the range. But. For converting the actual levels of a positive variable into normalised indicators. Normally. the figure for life expectancy at age one was not available. another index came into being. Whether a country should have a higher rate of basic literacy through formal channels or non-formal channels is not important. Morris suggested that life expectancy at age one should be used instead of life expectancy at birth. in the case of negative indicator of infant morality. viz. (ii) Infant Mortality Indicator (IMI).These three indicators could be improved in a variety of ways. there exist no natural minimum and maximum values. the best is represented by the minimum and the worst by the maximum. We may call them (i) Life Expectancy Indicator (LEI). This is also almost universally accepted. it could be worked out by using a formula. therefore. Further. now. life expectancy at birth is the index used. For example. is not really important. three such indicators. Put the actual values of the country in the expressions below and obtain the component indices as also the Physical Quality of Life Index. In the case of positive indicators of life expectancy and basic literacy. Whether a country should attain higher life expectancy through better medical facilities or better sanitation or better nutrition. Since 1990. an agency of the United Nations. it would be an interesting idea to look at the GDP/GNP from a fresh . Now. there is a technical issue. They cannot be simply added. The PQLI is. The expressions are given below: Actual Life Expectancy at Age 1 – 38 LEI = ––––––––––––––––––––––––––––––––––– 39 229 – Actual Mortality Rate IMI = –––––––––––––––––––––––––––– 220 Actual Literacy Rate – 0 BLI = ––––––––––––––––––––––– 100 suppose for India. Try step by step and you will find that LEI is 0. the United Nations Development Programme (UNDP) has been publishing every year a report called Human Development Report. Normalisation of Indicators We know that life expectancy is measured in terms of years. IMI is 0. Infant mortality refers to deaths before age one. Maximum Value – Actual Value Achievement Level=––––––––––––––––––––––––––––––– Maximum Value–Minimum Value Index Construction There are. one has to choose reasonable values. In other words. Before the human development index is described. infant mortality rate is 70 per thousand live births and adult literates constitute to be 55 per cent of adult population.72 and BLI is 0. there exist no natural minimum or maximum values for other indicators. the best is denoted by the maximum and the worst by the minimum. Morris chose the following set of values They may need revision in the light of recent experience of countries. In other words. But it is universally accepted that a country should have high life expectancy. (more content follows the advertisement below) ADVERTISEMENT This report. maximum life expectancy could now be raised to 85 years. is accepted but those who have been born should not die as children in infancy. life expectancy at age one is 70 years. the gap so obtained is divided by the range (between the maximum and the minimum). Therefore.82. This is the point generally accepted. about 0. After a lot of considerations. Human Development Index Only ten years passed since the PQLI was developed. which relates life expectancy at birth. therefore. But a country should try to attempt for higher level of literacy is the point. For the purpose of comparison. be normalised. while basic literacy rate can have a natural zero for minimum and 100 for maximum. besides discussing various aspects of human development. and (iii) Basic Literacy Indicator (BLI).55. It is quite possible that most of the countries excluded were above India. The weight assigned to adult literacy rate (ALR) is 2/3 while that for combined enrolment ratio (CER) is 1/3. Thus. .8 or below 0. These reports do contain more information on human development than are available in compilation of HDI. This could be reflected through mean years of schooling or enrolment ratio. It may be noted that ALRI and CERI are just ALR and CER respectively. These indices are published in Human Development Report. But at the same time. Per capita incomes are first converted into purchasing power parity dollars (PPP$). it has been argued. it is an equi-weighted average of : 1.5 and 0. ALRI. at an interval of five years since We should notice that our HDI is improving since the mid-seventies. Educational attainment is literacy plus. it has become a country with medium human development. 2. brought out annually by the UNDP.goods and services. it is suggested.angle. We should also notice that India’s rank improved by 2 from 123 in 1988 to 121 in 1990 while the HDI value actually fell. not at age one. Prior to 2000. In other words. we can write only one formula for computing the component indices (CI): Actual Value of the Component– Minimum Value of the Component CI = –––––––––––––––––––––––––––––––––––––------------------------------Maximum Value of the Component– Minimum Value of the Component where CI stands for LEI. It will not be out of place to inform that some scholars have done interstate comparison for India while some state governments have come out with state-level exercises for humandevelopment index. It is difficult to capture them. Standard of Living Index (SLI) where the sub-indices were to be calculated by the same old method of the PQLI. It is possible because of change in methodology and components used. mean years of schooling have been replaced by combined enrolment ratio. returns to additions in income are diminishing as income goes on increasing. Per capita national income is the simplest measure of resources at the command of people. per capita incomes of different nations have per force to be brought to some common denominator. The UNDP has been categorising various countries ascountries with high human development. there are many things which people desire. For living a decent life. The second step concerns with the fact that the returns to a dollar of income is not the same throughout the whole range of income. and 4 respectively. There could be many other ways to accomplish this feature. The increase in returns should diminish as income increases and should eventually become zero. The Index Human Development Index is broadly an average of social aggregates/averages of longevity. education (including literacy) and general standard of living (represented by per capita income). Minimum and Maximum Values After a lot of debate over years and following the norms for various components. India’s rank improved by 13 while number of countries dropped by 12. It is pointed out that these measures are measures of activity and they concentrate on production of commodities -.5. In 2000. Later on. Standard of living = log (PCI in PPP$) You know very well that. Since March 2002. India was considered as low human developmentnation. Life Expectancy Index (LEI) 2. In other words. We can notice that the data compilation takes time. depending upon whether a country had HDI value above 0. educational attainment index may be given as: EAI = (2/3) ALR + (1/3) CER Standard of living is represented here by a transformation of per capita income. logarithms of 10. Since this exercise has basically been conducted for international comparison. and 10000 are 1. 1000. it was only adult literacy. With rising capabilities. Besides longevity and knowledge. HDR 2001 has calculated HDI values for differentcountries on uniform basis with same methodology by ensuring comparability across nations and over time. 3. standard of living is being captured by the log-transform of per capita income (PCI) in PPP$. life expectancy (reflecting health to some extent). To put it more concretely. Normalisation Since we are using only positive indicators in this index. knowledge and access to resources. Fortunately. Therefore. people need resources. To begin with. 100. CERI and SLI. we can see that India’s HDI value is improving since 1990 when it recorded its lowest value. adult literacy was complete but education level was still rising. HDI and India The United Nations Development Programme (UNDP) has been compiling humandevelopment indices for different countries for which it had access to relevant data. Presently. because infant mortality is not entering this index as a separate indicator. our Planning commission has also come out with a report known as National Human Development Report. Education Attainment Index (EAI) 3. Living long and healthy life is a capability and so is to be able to read and write. We can also notice Between the last two years. In highly developed countries.8. Despite these weaknesses. it became a combination of adult literacy rate and mean years of schooling. with medium human development and with low human development. In a way it is close to PQLI except that now the theoretical scaffolding is strong. each divided by 100. we have wider choices and development is what if not widening of choices! The idea has an added dimension that these capabilities cannot be accumulated. we find. at base 10. a non-physical entity will enter in the making of index and it will create problem for international comparison. The UNDP has tried other formulae in past but thought it proper to change to simple logarithm conversion. HDI=(1/3)(LEI+EAI+SLI) Components Life expectancy here refers to life expectancy at birth. Now. This idea was handled by the UNDP in a variety of ways. between 0. We should. instead focus on capabilities and measure improvement in capabilities of people. Perhaps we are improving on all fronts. the UNDP has finally fixed the following minimum and maximum values for various components ofHuman Development Index. which incorporated per capita income along with longevity and knowledge (redefined as educational attainment). The PQLI had a great technical flaw. In ‘socio-economic’ indicators. China and India come 10th and 12th best from the top. He thought that it represented the outcome of developments. Many scholars are not completely happy and have chosen to indicate an alternative. China scores better than India. Pakistan and Bangladesh but in ‘Political and Civil’ indicators. need to be incorporated in any such exercise. Governance will mean who will govern and under what laws. (more content follows the advertisement below) ADVERTISEMENT . Parthasarthy Dasgupta and Martin Weale suggested a way of combining some aspects of quality of life into an index. which is called Quality of Life Index. the HumanDevelopment Index. particularly social development. (ii) life expectancy at birth in years. this work was done from late 1970s to early 1990s. Though the story is a bit old. Third. The result was not a happy one. Mauritius comes the best and Sri Lanka. In both the pairs. while political rights are citizens’ right to play a part in governance of their country. the second best. Others did try to modify the GDP by adding the values of those things that were left out in the idea of GDP or subtracting the cost of the items that do not contribute to the welfare. urbanisation and industrialisation. Though. the last two could be said to be ‘political and civil’ indicators. They combined inputs with output. They feel that political and civic dimensions. Some other scholars and agencies thought that they should directly measure the development. which are no way less important. While the first four could be called ‘socio-economic’ indicators. Bangladesh and Pakistan. In one such contribution ‘On Measuring the Quality of Life’. (iii) infant mortality rate in per thousand live births. the UNDP considers it prudent to include it as proxy to the uncovered aspects of well-being. countries are ranked according to each of the indicators in ascending order from worst to best.Quality of Life Index Some economists still feel that. These are: (i) per capita income in PPP$. It was further found that the concept did not include many other aims and objectives of life except longevity and knowledge. using the data relating the results are interesting. These indicators are aggregated in a peculiar way. Growth and Structural Change in the Indian Economy Introduction In this chapter you will study the growth of and structural change in the Indian economy in the last fifty years since 1950-51 for which data on most of the macro aggregates are available on an annual basis. were not covered in this index. Second. He did not deliberately cover the monetary aspects which pose problem for international comparison. So came HDI. Dasgupta and Weale have considered six parameters what they have called living standards’ indicators or constituents of well-being. They considered all possible variables that impinged upon modernisation. it may hold even today. India scores better than China. Most of the variables were all on the side of inputs. Infant mortality and life expectancy both referred to the same demographic ground. Yet. though human development approach talks of many dimensions. There are objections to incorporation of income in HDI on many counts. He was conscious of the fact that many psychological aspects. the ranks for different indicators of country are added and thus for each country a rank-score is obtained. while Bangladesh and Pakistan come 26th and 30th from the top. First. Some economists developed composite indices taking into consideration the distributional aspects. if not environmental ones. the human development index encompasses only very few of them. (v) index of political rights in seven-point scale and (vi) index of civil rights in seven-point scale. We may note that civil rights are rights of individuals vis-a-vis the State. (iv) adult literacy rate in per cent of adult population. Morris developed what he called the Physical Quality of Life Index (PQLI). Of 48 countries listed. Concluding Remarks Intellectuals and policy-makers were not very happy with the use of GDP or its per capita variant as an indicator of welfare or development. though important ones.countries are again ranked according to their rank-scores. scores in ‘socio-economic’ indicators are found to diverge from those in ‘political and civil’ indicators. We shall calculate growth rate per annum by decades only. But we are and should be more interested to know whether growth rate itself has risen over time. Some would also like to find out how the production of output is divided between rural and urban areas of the country or between public and private sectors of the economy or between organised and unorganised sectors. If we include forestry and logging and fishing in this sector. the contribution of primary sector is found to be about 60 per cent. one of the notions of development was posed in terms of structural change along with growth. it is a little more than Rs 10. All such breakups have been used by scholars. generally it has been rising. We shall use two popular methods of calculation of annual rate of growth for long periods. then the contribution turns out to be 57-58 per cent.000).700 at 1993-94 prices (while in 1999-2000. that is. that is.We shall concentrate on the growth of gross domestic product at factor cost valued at 1993-94 prices. In 1950-51. Other factors such as land and capital are not given equal importance. We shall discuss all of them. in order to give you a feel about the general tendency of rise and occasional decline in a few years in comparison to their respective preceding years. In an earlier chapter. We can also calculate rates of growth for different plan-periods or different decades or for periods divided by significant events. by the time we got Independence. viz. Contribution of the service sector was thus around 30 per cent. Manufacturing contributed only around 10 per cent. handicrafts and other merchandise. We notice from the graph that there were occasional drops in the GDP which we do not notice in the abridged Table presented here. But we can appreciate developments since Independence better once we have a little hint about the scene on the eve of Independence. And. The contribution of agriculture sector (including animal husbandry and livestock) to the GDP was around 54 per cent by current prices and 50 per cent by constant prices of 1993. However. before the onset of industrial revolution in Britain. Even during the early British Raj. The rate of growth of per capita income during the hundredyear period before Independence. we were known for producing fine cotton fabric. our economy was primarily reduced to an agricultural economy and we used to export mainly raw materials and minerals for the British industries and even foodgrains while we might have been hungry ourselves.5 per cent per annum. Economy on the eve of Independence We had inherited an economy. In the past. also valued at 1993-94 prices. What do we mean by structure? Most people mean by it production structure. composition of output produced by the economy. if we add mining and quarrying and call the combined sector as primary sector. which can be taken as the simplest indicator of the level of living or development. Over the period of last fifty years. Some would like to find out how and where our labour is absorbed. from whatever scanty information is available. we give here a graphical presentation of the whole series. Growth of GDP since 1950-51 Growth of an economy is reckoned with growth in its GDP at constant prices. We shall consider the growth of per capita national income. It has further been noted that there were long spells when the economy actually stagnated or declined.94. average annual growth andcompound annual growth rate. Yet. But. which was basically geared to the interest of our colonial masters. was just 0. . We have now a complete series of gross domestic product at 1993-94 prices from 1950-51 onwards but we give here the GDP series at five yearly interval (see above table). our economy was an industrial economy by the standards of those days whereas the European economies had yet to usher in modern civilisation. it has increased more than eight times. Most of the people were engaged in agriculture—as cultivators on their own tiny holdings or as wage labourers on others’ fields. our per capita income was no more than Rs 3. there is a decline over the year in the previous row. However. (more content follows the advertisement below) ADVERTISEMENT The rate of growth got depressed in seventies but has definitely improved during the eighties and nineties. population size for each mid-year is interpolated. the rate of growth of population has started declining. Presently. Growth of Per Capita Income Per capita income is the ratio of net national product to the (mid-year) size of population. In fact. after a gap of five years. which helped change the productivity of the agricultural economy and diversification of the industrial economy of the country. of late. at constant prices of 1993-94. Generally. we have only decennial figures and. But. there is some rise in normal years.We present below the rates of growth of GDP for each of the decades and for the half century gone by in the following table. 1965-66 and 1966-67 were years of severe drought. in the case of population. therefore. We can remember that. that is. Population has been secularly rising in the last fifty years though. with a view to giving you an idea about the wider fluctuations in case of per capita income. though they gave us green revolution. In none of the years shown here. Annual per capita incomehas risen a little less than three times from a little less than Rs 3. Dividing net national product by the size of population. sixties and seventies. as the component of net factor income from abroad is small in comparison to the total. From Table. It means that 1965-66 was a particularly bad year. we notice that the rate of growth for the whole duration is conclusively more than 4 per cent per annum. it can be safely accepted that the rate of growth is close to six per cent per annum. per capita income is calculated. .000 in 2000-01. Some credit can be given to the policies adopted in the eighties and nineties on the growth front but credit should also be given to the base created during the fifties. can calculate only a single rate of growth of population. Net national product is likely to follow the pattern of gross domestic product. one can notice that there is hardly any rise in 1965-66 over 1960-61. Using this technique. we give here the graphical presentation.700 in 1950-51 to over Rs10. Changes in Production Structure of the Economy As an economy grows. In total. We are now quite comfortable with the overall performance of agriculture. manufacturing/ industry. We did not have exactly the same classification always. industry is accommodated in ‘mining (and quarrying). This is just a matter of convention. some swapping of activities is possible. increases but less than proportionately. as income increases. The manufacturing sector is further subdivided into registered and unregistered manufacturing. its production structure changes. now it is part of manufacturing. there are 18 categories. milk and meat and gives to industry the raw material needed particularly for consumer goods industries. There are many periods when agricultural production actually fell. One is agriculture. So. Since our Table does not include all the years. You may also note in your family that. It moves from agriculture towards manufacturing and structure changes. (more content follows the advertisement below) ADVERTISEMENT It moves from agriculture towards manufacturing and services. may be. We were most severely hit in agriculture in the consecutive years of 1965-66 and 1966-67. noodles. Moreover. other sectors included in primary sectors are small. if we club the sectors of electricity. There are. While new products gain entry with each major revision of national accounts. Absolute Contribution of Different Sectors It is easy to see that agriculture production has been continuously on increase and has increased about fourfold. it would be interesting for you to do your own exercises and develop your own views on contributions of different sectors. Industry as a sector does not occur in it. decline. But forestry and logging and fishing are clubbed with agriculture to make a broad sector of ‘agriculture. If we add the sector of mining and quarrying to this sector. two three-fold classifications in which economists discuss changes in production structure. Besides cultivation of crops. broadly speaking. You might have noticed that relatively well-off families spend proportionately less on food items and more on manufactured items. Our Central Statistical Organisation uses nine broad categories. Compared to agriculture. gave us green revolution. On the other hand. Bread. Yet. you should note that normally absolute amount of expenditure does not. in which total economic activity of the country is presented in the National Accounts Statistics. It is understandable. We often aggregate them on the basis of similarity of products or nature of activities. agriculture includes livestock and animal husbandry. But. Whenever we notice a fall in the gross domestic product. . will now reach after some processing and through long channel of distribution. it is difficult to discuss in terms of each single item. however. some of them even re-emerge. which used to directly reach the households. We know that hundreds of thousands of activities are always in operation in any modern economy. sauces and juices are good examples. sectors and sub-sectors. Six of them are further subdivided in two/three/four subcategories. however. For example. many agricultural products. Many activities emerge and some of them die down. called sectors. These years. gas and water supply and construction with manufacturing. earlier LPG gas was included in the sector of electricity. let us see how the production structure has changed. in a modified form. expenditure on items other than food increases more than proportionately. secondary and tertiary. It means activities ofmanufacturing and trade will increase. in fact. There may be differences between countries and within a country changes in classification may occur over time. the contribution of primary sector is found to have risen only four times. It implies that production structure should shift away from agriculture. gas and water supply. Industry may include manufacturing and mining and quarrying. and services and the other is primary. we can call it ‘secondary’ sector. a major reason is likely to be a fall in agricultural production as its contribution to GDP had been substantial. manufac-turing and electricity’. we can call it ‘primary sector’ as these activities are associated with nature. But. we had had two-three years of setback in each of the decade. While we shall highlight some salient features of production structure or composition of output. We should remember that agriculture gives us food. forestry and fishing’. we do not find any drop in agricultural production. depending upon whether manufacturing units are registered under Factories Act 1948. a sector may lose relative position. despite good rise in absolute terms. Annual construction activity also rose ten times. The share of electricity.4 to 13. Electricity. 2. Thus. Its contribution rose 60 times in 50 years. it may be pointed out that public administration and defence. despite positive contribution. The share of manufacturing in GDP has gradually risen from 9 per cent to 17 per cent over the period. while agriculture contributed 50 per cent to the making of GDP in 1950-51. Secondary sector as a whole raised its contribution from about 14 per cent to more than 24per cent.7 per cent to 12. while the share rose from 4 per cent to 6 per cent. contributing less than Rs 500 crore at 1993-94 prices. Overall contribution of the secondary sector rose fifteen-fold.Manufacturing which contributed about Rs 12. gas and water supply. in 1950-51. The activity of construction. contributed to the tune of Rs. The share ofcontribution of activities of trade.7 per cent while that of community and personal services increased from 9. and canals. Let us look at the tertiary sector. the contribution of community and social services dominated the scene but it gradually gave way to trade but in the nineties sector of financial and business services emerged as close contestant. including public administration and defence rose only eleven-fold. gas and water supply were in nascent stage in the wee hours of Independence. Financial and business services including insurance and real estate also rose fifteen times while community. Within the broad category of community and social services. are now contributing more than 6 per cent. Thus. in the second half of the twentieth century while the contribution of primary sector to GDP rose to four fold that of secondary and tertiary sectors rose by fifteen fold each.500 crore in 1950-51. it contributes less than 25 per cent at the close of the century despite four-fold increase in its output. storage and communication rose from 3. Construction does not mean only houses but also roads and railway lines. during the first twenty years. among the sectors within tertiary sector. etc. dams. and also huts. Thecontribution of primary sector came down from close to 60 per cent to less than 30 per centover the period. which contributed to the tune of 3 per cent in 1950-51. It may be noted that. bridges and flyovers. The secondary sector is closely contesting the primary sector as far as its contribution to the GDP is concerned. The contribution of financial and business services increased from 6.3 per cent to 7.3per cent over half the century. hotel and restaurant business rose from 8-9 per cent to 14-15 per cent while that of transport. Relative Contribution of Different Sectors Relative contribution of a sector depends on its own performance as well as that of other sectors. during the last thirty years it fell back to 5 per cent. almost sixteen-fold increase over the period. However.4 per cent. social and personal services. Trade along with hotel and restaurant business rose fourteen-fold over the period while transport along with storage and communication rose eighteen-fold. the share of public administration and defence has risen from 1/3 to 1/2 over the period .5 per cent. which was hardly one third of oneper cent rose to close to 2.00.000 crore in 1999-2000. As a result. is considered to be slackening. But the presence of public sector in production. the net domestic product generated was 37. Though this ratio is not deteriorating over time. The drop in the share of agriculture is shared between secondary and tertiary sectors. transportation (bullock carts and tractors) are also part of rural activities and rural folk benefit from them. As a habitation diversifies its economic activities. 20 per cent.5 per cent.6 per cent points but just the reverse could be said to be the case with the urban area. Changes by Other Segregations of Production Three important divisions of activities are often discussed by scholars so far as productionstructure is concerned. When we look at the data for 1993-94. The overall movement seems to be away from primary/agricultural complex to secondary and tertiary sectors. gas and water supply accorded a very low rate of growth of 4 per cent per annum during the seventies. But the loss of 6. agricultural situation during sixties and seventies can be said to be bad as the rates of growth fell below that of population. (more content follows the advertisement below) ADVERTISEMENT We should take these rates with a pinch of salt as they crucially depend upon initial and final figures. which grew at the rate of 7. Therefore. a couple of exceptions to this observation. its contribution to net domestic product has reduced by 8. We have firm data on contribution . The seventies were bad for all sectors. division being made between public and private. Roughly speaking.7). we can afford a little lower growth rate in future. beyond public administration and control. was (more content follows the advertisement below) ADVERTISEMENT very little before Independence. better than during the nineties. which is a major reason for decline in its share. So long as it does not create bottleneck for raw material for industry and supply of foodgrains does not fall short of domestic demand.8 per cent per annum. it is high enough to make people move to urban areas even if unemployment rate is somewhat higher in urban areas. the growth of foodgrains production is somewhat slackening. All service sectors are growing faster in the nineties than they did in the eighties wherein performance was better than that in the seventies in terms of growth. Electricity. We do not have regular annual series of production output of the activities according to rural-urban division.45 times that in the rural area. we ought to produce enough foodgrains ourselves. Secondary sector as a whole did pretty well during the eighties. From the perusal of these statistics. there has been public sector. one would notice that in 1970-71 only 62. The CSO has made available such a division for the years 1970-71. The number of rural habitations is over 10 lakh. The third one is about organised and unorganised sectors.Growth of Different Sectors we can also derive a table giving us the rate of growth of different sectors. location being divided between rural and urban areas. Thus. Even if we import some agricultural produce. The rate of growth of primary sector has always been lower than that of secondary and tertiary sectors. one can see. we gather that while population proportion in rural area has reduced by about 6. per capita net domestic product in the urban area was 2.39 times that in the rural area. Manufacturing sector activity grew at twice the rate of agriculture.7 points in 19. which in 1950-51 used to be around 16 per cent. On the other hand. Division between Rural and Urban Areas Agriculture is the industry of the country-side and manufacturing is the industry of the town. trade (retail). There is not one broad sector of economic activities where public sector is altogether absent.2 points is not the same as gain of 6. net accretions to the two areas on per capita basis show that per capita net domestic product in the urban area is 2. 1980-81 and 1993-94 but only at current prices and for net domestic product. Foodgrains dominate in ouragriculture and we cannot afford to import it. and as time passes the share of tertiary sectors is increasing faster than the share of secondary sectors.8 points. In India. During the nineties. The second is on the basis of ownership of productionestablishments. Division between Public Sector and Private Sector Ever since there has been the state. in last fifty years. said Adam Smith. the number of villages is now about six lakh and a village may have more than one hamlet.7 per cent points. the number of towns has increased from 2800 to 3600 andpopulation living in them has increased from a little over 6 crore to 26 crore. Not only agricultural and pastoral activities are carried out in rural habitations. father of Economics. manufacturing (handicrafts). being a large country. There are. With the help of these figures.7 points in 80. We have computed only compound annual growth rates (Table 3. we gather some broad idea about the shift in activities. The nineties belong to the tertiary sector. The proportion of population living in urban habitation is now well over 25 per cent. it changes its status from rural to urban at some point meeting certain definitional marks. It has been increasing over time as we pursued a policy of state intervention in various sectors for variety of reasons. So was the case with construction.5 per cent net domestic product was generated in the rural area where more than 80 per cent population resided (and worked) while in the urban area population residing (and working) was less. One is the division regarding location of activities. Even in the sector of manufacturing its share has gradually increased from around 7 per cent in 1960-61 to around 20 per cent in 1998-99. however. Its role in transport has also plummeted to some extent yet it plays a great role. the growth rate of GDP was a little over 4 per cent per annum. it rose from 6. manufacturing accounts for 40 per cent and community and personal services. In agriculture its presence has increased but it predominantly seems to be irrigation as this activity is accounted for within the sector of agriculture. In financial sector too. They are made for each of basic four categories. Even 6. There is a variety of ways in which employment data is presented. Net domestic product was found divided between organised sector and unorganised sector in 25:75 ratio in 1960-61. rural female. we were able to grow at a rate close to 6. The share of public sector. People who are employed and people who employ as well as people who are self-employed are all treated as workers. with some fluctuation.5 per cent in 1960-61 to 17 per cent thanks due to nationalisation of 14 major banks. We should. (more content follows the advertisement below) ADVERTISEMENT Then. the proportion of organised sector went on increasing. Old. etc. Children should not be allowed to work. A further dose of nationalisation in 1975-76 led to its further rise to 27 per cent by 1980-81. are treated as unemployed. This proportion is higher in the case of male members and those living in villages. With passage of time. (However. shop or factory or engage themselves in some or the other activity on their own account. Per capita income grew at the rate of slightly more than 2 per cent per annum during the whole span of .of public sector in different production sectors since1960-61. The share in construction activity has increased from less than 5 per cent in 1960-61 to almost 16 per cent in 1998-99.. A cursory look suggests that the importance of public sector had been on increase with the passage of time in practically all sectors. People who are willing to work at the prevailing wage rate but are not employed. and reached around 30 per cent by 1980-81. They are supposed to maintain accounts. They work on somebody else’s farm. viz. comparable NSS data is available from 1972-73 only at an interval of five years . Its contribution in forestry and logging sector is drastically reducing. The railways are completely with the Government of India. we discussed the growth of GDP and PCI. We opt for the NSS data. the presence of public sector rose significantly. Concluding Remarks In this chapter. Factory Act. We noticed that. has increased close to 27 per cent though of late the speed of rise has slackened. over the span of fifty years. During the eighties and nineties. we tried to have some idea about the economy in the initial years of our Independence and emphasised that the first half of the twentieth century was bad in terms of growth as well as in terms of diversification of the economy. The reason is that poor people cannot afford to be unemployed. a large number comes from the educated lot). Despite the general feeling that a large number of people are unemployed. there is a man behind the machine. it has just shown its presence. Societies Act or Cooperative Act. However.5 per cent in 1960-61 should owe a great deal to the nationalisation of Imperial Bank as the State Bank of India.0 per cent per annum. The proportion of people working in total population in our country is around 40 per cent. Within organized sector. One classification is sectoral (or industrial) and the other is occupational. its share has been rising and it is expected to be around 40 per cent by the close of the century. Division between Organised and Unorganised Sectors Organised sector includes all public sector establishments and private sector establishments registered under one or the other act. first. It is in trade that public sector has withdrawn since 1980-81 when it participated to an extent of 8. Employment data is available from the census as well as the NSS. the percentage of people who are unemployed is not very large. The census data for 2001 is not yet available in as much detail as we need them in this chapter. sick and infirm should not be permitted to work. Public administration is purely a public sector activity and in fishing. Industrial Structure of Employment All able-bodied persons should work. Since then. rural male. state corporations play a significant role at least in passenger transport.5 per cent. Most of the mining activity is under public sector and it is now around 80 per cent. remember that statistics used by us do not include people engaged in activities carried out in homes and hearths by the members of the family/household. The rate of growth during the seventies was particularly low. such as Company Act. which was barely 9 per cent even in 1960-61. in the composition of the unemployed. urban male and urban female. Their numerical strength is known as work force. Even if production is almost mechanised. In road transport. 30 per cent while trade and finance may account for 25 per cent. Contribution of public sector grew from less than 10 per cent in 1960-61 to well over 25 per cent in 1998-99. Contribution of rural sector decreased from over 62 per cent in 1970-71 to about 54 per cent in 1993-94 while population of the sector reduced from 80 per cent to 75 per cent.) Sultan Chand & Sons. Samuelson The Hindu: Survey of Agriculture & Survey of Industry An Introduction to Economics . in order to find out as to how the composition of GDP in terms of sectoral contribution was changing. despite four-fold increase. Chand) (5) International Economics – M. K. The contribution of primary sector came down from 60 per cent to 27.Ghaham Bannock. . Baxter. Ahuja (3) Indian Economy since – 2005-06 • Independence .2000. Employment deceleration in primary sector is evenly shared between secondary sector and tertiary sector. C. Dhingra (2005 Ed. reduced from 50 per cent in 1950-51 to less than 24 per cent in 1999.Uma Kapila (4) Indian Economy (5) Pratiyogita Darpan – Indian Economy Economics Books for IAS Exam • • • • Dictionary of Economics . Economic : Main – Paper I (1) Advanced Microeconomic Theory . (For Mains I & II) (2) Modern Economics – 2005-06 . Then.fifty years.H. The employment in agriculture has declined from three-fourths in 1972-73 to three-fifths in 1999-2000. L. we studied absolute contribution and relative contribution of different sectors. Singh ( S. T. L. L Jhingan (3) Monetary Economics – M. Contribution of organised sector was about 25 per cent in 1960-61.5 per cent per annum. Ahuja (2) Macroeconomics – M. the absolute number reduced for the first time in 1999-2000.L.Paul A. we discussed how labour is being absorbed in different sectors. The contribution of secondary sector increased from 13 per cent to about 25 per cent while that of tertiary sector. from around 28 per cent to 48 per cent during the same period.H. Jhingan (6) Economics of growth & Dev. the rate was found to be more than 3. Stonier and D. Hauge . public sector vis-a-vis private sector and organised sector vis-àvis unorganised sectors.A. In the end. We noticed that contribution of agriculture to GDP. Jhingan (4) Public Finance .E. During the eighties and nineties.M.W. Jhingan Economic : Main – Paper – II (1) Indian Economy Environment & Policy ) • • I.S. which is expected to have risen to around 40 per cent. as also growth rate of different sectors.C. L.5 per cent. L. Ray Rees (Penguin) Economics (Read Relevant Chapters) . We also touched upon the contribution of rural sector vis-a-vis urban sector. K.Bakerman Economics Choice .L.co.Bo Soderston The Economic Times and Economical and Political Weekly.uk http://www.Edward Shepiro Indian Economy .study-aids.1-3 New Series only): Functions and Working (Read Relevant Chapters) . Day Public Finance . Dutt and KPM Sundaram Money Supply in India: Concepts.Bo Soderston National Income Accounting . Gupta International Trade .study-aids.Koutsweanik Banking .Kenneth Kurihara Economic Survey : Eighth Five Year Plan: New Industrial Policy .uk/essays.R.co.html http://www. I really recommend the following site for dissertation help and guidance: http://www.Mishra and Puri Macro Economic Analysis . 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