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Working Papers | 1983

India-Asean Economic Relations

Parasher Pradnya

This paper highlights the salient features of economic relations between India and the five member countries of the ASEAN (Association of South-East Asian Nations) grouping, namely, Indonesia, Malaysia, Philippines, Singapore and Thailand since 1970. The paper is divided into four sections. Section I deals with the survey of trade relations; Section II with the survey of investment relations with special reference to the joint industrial ventures; and Section III with the survey of "other" economic relations (such as shipping, tourism and banking). Section IV speculates on some of the prospective areas of expanding economic cooperation between India and the ASEAN countries. Besides analysing the recent trends in the exports, imports and balance of trade of India with each of the member countries of the ASEAN grouping in detail, we have also computed and analysed the behaviour of three types of analytical measures to survey the trends in the trade relations of the countries concerned. These measures are: (1) Kojima indices of trade (export and import) intensities; (2) Grubel-Lloyd indices of movements in intra-industry trade; and (3) Trade Reciprocity Index developed by us. A survey of the economic relations between India and the ASEAN countries leads us to the conclusion that there is a large scope for expanding economic cooperation among these countries in the years to come especially in the area of investment cooperation involving exports of Indian technology, consultancy, management and banking services.

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Working Papers | 1983

Analysis of Two-Unit Parallel Redundant System - A Review

N. Ravichandran

Ever since Gaver (1963) made an attempt to analyse a two unit parallel redundant system, several attempts have been made by many applied probabilists, engineers to analyse two-unit parallel redundant systems. While various authors have analysed systems with different assumptions on the failure and repair time distribution of the units, the solution to the case where both the failure and repair time distributions are arbitrary does not seem to be easy. In this article a systematic review of the methods that are available to solve the above mentioned system is made. Also, it explains why this particular case is not solvable by the methods like Semi Markov Process and regenerative process etc. Finally, it provides expressions for the measures like reliability, mean time to system failure, and availability for the most general soluable case.

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Working Papers | 1983

Correlation Functions in Reliability Theory

N. Ravichandran and Subramanian R

The point process induced by the stochastic behaviour of a two-unit warm standby redundant repairable system is studied. Expressions for the product densities of the events corresponding to the entry into each of the states and the interval reliability are obtained. The reliability and availability are deduced as special cases.

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Working Papers | 1983

An Upper Bounding Heuristic for Nonlinear Integer Programs

Gupta Omprakash K and Ravindran V

Many optimization problems are formulated as nonlinear mixed integer programming problems. Often practioners, as well as theoreticians, are interested in finding an Upper bound on the objective minimum as fast as possible. An upper bound can be found by locating an integer feasible solution first and then evaluating the corresponding value of the objective function. Given that an algorithm A exists which can generate integer feasible solutions, this paper suggests a heuristic so that the computational efforts are reduced in locating an integer feasible solution. Using the branch and bound procedures, this heuristic is tested on a number of test problems and the corresponding computational results are reported.

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Working Papers | 1983

Spatial Underdevelopment, Small Towns and Public Policy: The Indian Experience

Ganapathy R S

The role of small towns in national development has assumed significant importance in recent times in the light of renewed interest in decentralised development strategies. Conventional approaches which viewed small towns as growth poles in a hierarchy of settlements with backward and forward linkages have proved to be of little value. There has been a relative and secular decline of small towns. This paper reviews the historical growth of small towns and their role in different national development plans in India, critiques the growth pole concept, attemps to provide alternative explanations about small towns and finally develops a self-reliant strategy for the development of small towns in the coming years.

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Working Papers | 1982

Management of Tax Expenditures: A Study of the Indian Case

Gupta Anand P

Considering the extensive use which policy makers in India make of the instrument of tax expenditures, what is needed is proper management of all tax expenditures. Four points are involved here. The first is concerned with identifying tax expenditures. In order to identify tax expenditures, one will have to take a careful look at the various provisions in a tax law. Not all provisions allowing exemptions, deductions, etc. constitute tax expenditures. It is only special provisions in a tax law which constitute tax expenditures. These special provisions really have nothing to do with the essentials of a tax, nothing to do with shaping the structural framework necessary to operate a tax. Instead, they are methods of spending government funds. The second point is concerned with measurement of tax expenditures. One way of measuring tax expenditures is to figure out the decrease in tax receipts caused by a tax expenditure provision. The other way of measuring tax expenditures is to figure out the amount of spending that would be required to provide an equal after-tax benefit to the tax payer. The third point is concerned with inclusion of the estimates of tax expenditures in the budget. If a government provides assistance through tax expenditures, its budget must include estimates of these expenditures. The fourth point is concerned with controlling tax expenditures. In order that tax expenditures are effectively controlled, it will be absolutely necessary to study in detail each of the tax expenditure provisions. When studying a tax expenditure provision, one will have to deal with questions such as: How much does this provision cost? Is the activity benefiting from this provision high on the national agenda? Is the tax route the better way of assisting this activity? Once the various tax expenditure provisions have been studied in this manner, one should be in a position to come up with a list of provisions which deserve to be eliminated.

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Working Papers | 1982

Research on Rural Savings in India

Desai B M

Rural savings are determined by both 'ability' and 'incentives' to save. All except two studies reviewed emphasize 'ability', though some qualitatively analyze 'incentives'. This relative neglect is justified when positive substitution effect of the 'incentives' is off-set by its negative income effect. Such 'total' effect does not necessarily arise. 'Incentives' variable can be incorporated in both cross-sectional and time-series models, as shown in the two exceptions. Past time-series estimates of rural savings are characterized by reporting, measurement, and analytical weaknesses. Some of these lead to underestimation of these savings. This, however, does not mean that all of the additional savings are mobilizable by the financial institutions. This is because rural households hold their savings ion monetized as well as non-monetized forms. Moreover, some of the monetized savings are held in the form of physical assets. Thus, only those monetized savings which are invested in financial assets of the informal rural financial market can be considered as potentially mobilizable by the financial institutions. To identify appropriate policies by these institutions, further literature may be developed by promoting and researching programmes with better rates of return on financial savings, besides those with opportunities to transact other businesses.

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Working Papers | 1982

Transfer of Technology in Informal Sector: A Case of Power Ghanis in a Tamil Nadu Village

Moulik T K and Purshotham P

In the initial phases, improved technologies have always been difficult to popularise among the target adoptors. To overcome this constraint, the authorities charges with the task of popularising them have opted to offer different kinds of incentives to the prospective adoptors. Such incentives are often in the form of grants, institutional loans at highly subsidized rates of interest, tax exemptions and subsidized tariffs. In the case of institutional subsidized loans, the criterion employed to identify the beneficiaries is the creditworthiness of the prospective beneficiary-in other words his resource position. Such a policy bypasses ruthlessly, the resource poor individuals though they may be willing to take the risk and motivated. Most often the technologies are more productive than traditional ones. Thus, their adoptors enjoy considerable advantage of returns over non-adoptors. If such technologies are passed on to a select and resourceful section among people having a common profession, they are likely to generate income inequalities and wealth disparities in due course. Also, their return advantage character could displace the non-adoptors from their profession. More often, such displaced individuals have to either give up the profession and find employment avenues elsewhere such as in agriculture labouring or seek daily wage jobs with the successful adoptors of improved technology who establish stability, expand their operations and acquire a sizeable proportion of market share of the activity. In other words, a definite structural retrogression takes place in the economic position of the people in the profession. The pivotal factor leading to the above course is the policy regarding the incentives and the criterion chosen to grant and their administering. It is therefore imperative on the part of the technology transfer policy formulation agency to have a critical thinking on all these factors before it finalises the policies and draws up programmes for their execution. The following case which deals with popularisation of improved (power) ghanis in a Tamil Nadu village is an empirical illustration of the above phenomenon.

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Working Papers | 1982

Designing Developmental Organisation: Search for an Indian Theory

Gupta Ramesh

Much has been written on bio-gas plants as a solution to energy crisis and for overall benefits to the rural community. In the review of literature the strategy adopted by the government of India to encourage setting up small-sized individual farm-based units or large-sized community plants through subsidy has been examined. The social-cost benefit analysis of individual as well as community plants has been worked out. Many technical, operational and management difficulties are pointed out. However, there has been hardly any study investigating whether large sized bio-gas plants could be run on a commercial basis and whether rural entrepraneures could be attracted towards this entreprise. This paper attempts to study the strategy of setting up of bio-gas plants on a commercial basis by rural entrepreneures. The cost-benefits-analysis in the paper shows that bio-gas plants particularly of large size are commercially viable propositions. The working paper goes into the details of various senarios in which prices of important variables such as bio-gas, menure and cowdung are vaired considering the practical situations.

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Working Papers | 1982

Bio-Gas Plants - A Challenge to Rural Entrepreneurs

Desai D K

Much has been written on bio-gas plants as a solution to energy crisis and for overall benefits to the rural community. In the review of literature the strategy adopted by the government of India to encourage setting up small-sized individual farm-based units or large-sized community plants through subsidy has been examined. The social-cost benefit analysis of individual as well as community plants has been worked out. Many technical, operational and management difficulties are pointed out. However, there has been hardly any study investigating whether large sized bio-gas plants could be run on a commercial basis and whether rural entrepraneures could be attracted towards this entreprise. This paper attempts to study the strategy of setting up of bio-gas plants on a commercial basis by rural entrepreneures. The cost-benefits-analysis in the paper shows that bio-gas plants particularly of large size are commercially viable propositions. The working paper goes into the details of various senarios in which prices of important variables such as bio-gas, menure and cowdung are vaired considering the practical situations.

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