The study investigates the effects of stakeholder engagement on environmental sustainability orientation (ESO) and financial performance in commercial banks in Nepal. Adopting a convenience sampling method, a cross-sectional survey was conducted among employees of a commercial bank, collecting data from 217 respondents. The causal research design was followed to investigate the hypothesized relationship using partial least squares structural equation modelling (PLS-SEM). The study revealed that stakeholder engagement significantly improves the bank’s ESO and financial performance. Additionally, the empirical results assert the strong mediating role of ESO in the relationship between stakeholder engagement and financial performance. This study offers empirical evidence by highlighting the importance of integrating sustainability into banking operations; the research underscores the potential for banks to achieve long-term success while fulfilling sustainability responsibilities. This empirical study contributes valuable knowledge to the field and lays the foundation for further inquiry into the intricate relationships among stakeholder engagement, ESO, and financial performance in the banking sector. JEL Codes: G21, G30, M14, Q56, Q01, O16, O53
This study investigates the spatial distribution and key drivers of multidimensional poverty (MDP) across Indian districts, employing data from the National Family Health Survey (NFHS-5) 2019–2021. Significant regional inequalities are revealed, with poverty concentrated in specific areas of Uttar Pradesh, Bihar, Jharkhand, Chhattisgarh, Odisha and parts of Assam. Spatial econometric modelling identifies critical socio-ethnic factors (including Muslim and Scheduled Tribe populations, rural residence, primary-sector employment and education levels) and infrastructural determinants (such as access to all-weather roads, school infrastructure and health insurance) as major drivers of MDP. The findings, based on the Spatial Error Model, highlight the interconnectedness of these factors and the need for comprehensive, spatially targeted interventions. Addressing regional disparities through integrated infrastructural improvements and social programmes is essential for effective poverty alleviation. Specifically, the study recommends prioritizing investments in primary healthcare, insurance coverage, electricity, school infrastructure and road construction to reduce MDP and promote more inclusive development in India. JEL Codes: O12, R12, O15, I32, C21, I38
This study examines how far labour reforms help create new formal manufacturing-sector small and medium-sized enterprises (SMEs) in India, while accounting for the contributions of improved infrastructure and the trade orientation of states. The basic data source is the Annual Survey of Industries for 2009–2018. A state-level panel data set is analysed econometrically, which shows significant beneficial effects of labour reforms, particularly in regions with relatively abundant power. JEL Codes: J08, L25, L26, L60
The European Union (EU) introduced the carbon border adjustment mechanism (CBAM) in July 2021 with a view to incentivize firms exporting to the EU to reduce CO 2 emissions in their production processes and penalize those firms that do not. Initially, as part of the CBAM, a carbon tax was to be imposed on six imported items, including cement, fertilizer and steel, and this was to be effective from 1 January 2026. Whilst apparel is not in this list as yet, the EU plan is to include all products imported into the EU by the time the CBAM comes into full force in 2030. Since apparel is the single most important export item of Bangladesh—accounting for more than four-fifths of the country’s exports—and since the EU accounts for more than half of Bangladesh’s global export of apparel, this new development and the resulting trading scenario are of crucial significance for Bangladesh. It is thus important to understand the likely implications of EU–CBAM for Bangladesh’s exports of apparel to the EU market. The analysis focuses on the state of CO 2 emissions by Bangladesh’s apparel sector and presents an estimation of the carbon tax that may be imposed by the EU on imported apparel from Bangladesh. The article cautions that this could have significant ramifications for Bangladesh’s export competitiveness in the EU market, particularly at a time when Bangladesh will be navigating the challenges of least developed country graduation and the consequent loss of preferential market access in the EU. The article offers a number of policy recommendations to navigate these emerging challenges in this connection, including the need to proactively pursue green energy policies and incentivize carbon-reducing and environment-friendly production processes and practices by Bangladesh’s export-oriented apparel producers. JEL Codes: F18, Q56, Q58, L67, Q42
Industrialization has been validated, tested and predicted as a reliable and sustainable route to development. Being late industrializers, the developing world started small on this journey. As a result, the industrial sector in these nations grew as a cluster of micro, small and medium enterprises (MSMEs). Over the years, MSMEs have grown to become the face of industry in the developing world, including India. Within India, the MSME sector has organically been bifurcated into the formal and the informal sub-sectors. The present study is an attempt to analyze and evaluate the growth of the formal sector industrialization in the northern region of Jammu and Kashmir (J&K). The study covering 15 years explores the firm-level efficiency of the formal sector firms in J&K. The analysis validates a labour-intensive nature of the local industry and identifies the factors contributing towards its dim levels of efficiency. The analysis is concluded by making relevant and timely policy interventions. JEL Codes: D21, L25, O14
Central banks globally prioritize keeping inflation low and stable around a predetermined target because inflation volatility creates significant economic disruptions for the real economy, particularly affecting the population with fixed or limited income. To this end, the present article analyses the inflation trajectory in India since 1951-52. The descriptive analysis indicates that a fall in inflation and its volatility has strengthened the credibility of the monetary policy from a credit-targeting to a rule-based inflation-targeting framework. The study also examines the impact of potential macroeconomic determinants such as fiscal policy, monetary policy, output gap and trade openness on Consumer Price Index (CPI) and Wholesale Price Index (WPI) based inflation in the Indian context in an open economy framework for the period 1996-97Q1-2023-24Q4. Using the Brock–Dechert–Scheinkman (BDS) independence test, the study explicitly identified the non-linear nature of the determinants of inflation and applied the non-linear autoregressive distributed lag (NARDL) technique to evaluate their impact on inflation. The results reveal significant asymmetric effects of fiscal deficit on inflation with an inflationary impact on CPI inflation but dis-inflationary impact on WPI inflation. Trade openness exhibits an anti-inflationary response to CPI inflation and a positive response on WPI inflation. Further, a price puzzle is observed in the case of CPI. The findings emphasize the importance of effective fiscal consolidation and suggest the index-sensitive impacts of determinants of inflation in India. Wald tests and dynamic multipliers provide robustness to the results. JEL Codes: C22, E31, E42, E52, E58
This study investigates the Pradhan Mantri Ujjwala Yojana (PMUY), India’s 2016 initiative to expand liquefied petroleum gas (LPG) access, focusing on promoting clean cooking fuel and enhancing women’s health and empowerment. Using data from the National Sample Survey (NSS), 2020–2021, and the field survey in West Champaran district, Bihar, the research explores household fuel selection patterns ‘clean’ or ‘dirty’ through multivariate logistic regression. Findings indicate that household income, education and gender of the household head are critical determinants of LPG adoption. Moreover, increased LPG usage positively affects women’s health and empowerment. The study suggests that boosting LPG adoption should primarily address educational and affordability-related factors. JEL Codes: I12, I15, Q41
This article analyzes changes in monthly per capita consumption expenditure (MPCE) across Indian states between 2011–2012 and 2022–2023, using data from the National Sample Survey’s Household Consumption Expenditure Survey. During this period, rural MPCE grew by 40.4%, surpassing the 33.4% increase recorded in urban areas. Bihar posted the highest growth in both rural and urban segments. States with lower initial MPCE experienced faster growth, indicating a convergence in consumption levels across states in both rural and urban regions. The analysis highlights a persistent inverse relationship between total MPCE and the share of food expenditure. MPCE inequality remains more pronounced in urban areas and in non-food spending; however, it has declined over time, reflecting more inclusive growth—particularly for lower-income deciles. Overall, the findings suggest a broad-based rise in consumption, diversification of spending patterns and a gradual narrowing of well-being disparities, with food now accounting for less than 50% of total consumption. JEL Codes: D63, D31
Private investment plays a vital role in reducing poverty and fostering economic growth in developing countries through job creation and capital formation. This study investigates the key determinants of private investment in Sri Lanka over the period 1977–2019, employing the autoregressive distributed lag model. The findings indicate that economic growth, credit to the private sector and the real interest rate exert a significant and positive influence on private investment. Conversely, political instability caused by war, foreign direct investment and public investment negatively affect private investment. The error correction term is –0.93, signifying a rapid adjustment towards long-run equilibrium following a short-run shock. These results suggest that policymakers should leverage interest rate management and improved access to credit as mechanisms to boost private investment. Furthermore, ensuring political stability is essential to creating an investor-friendly environment that supports sustained private sector development and long-term economic progress in Sri Lanka. JEL Codes: E22, E43, O4, R42
This study undertakes a comparative analysis of the impact of international financial flows—specifically foreign aid, foreign direct investment (FDI) and remittances—on economic growth in South Asia (SA) and 45 other developing countries, using panel data for the period 1980–2016. The study also analyses the indirect influences of financial flows on growth mediated through key transmission channels, including political stability, trade openness and human capital (HC) for both groups. On controlling endogeneity, the results indicate that foreign aid discourages growth both in developing countries and SA. However, FDI and remittances promote growth in the two groups of countries, while their impact is higher in SA. Investigation of transmission channels reveals multiple significant roles of financial flows in impacting economic growth. Exploring the dynamic roles of international financial flows, the findings of the study offer a deeper understanding and insights to policymakers in the developing world. JEL Codes: O4, F35, F21, F24
Studies about the J-curve have primarily focused on the trade in goods, and the application of the concept in the trade in services is a relatively new area of research. This study attempts to contribute to the literature on the J-curve by testing for the presence of symmetric and asymmetric J-curves in India’s services trade with the world in six sectors: Commercial Services, Insurance, Goods-related Services, Charges for the Use of Intellectual Property, Travel and Other Business Services. The study finds evidence for a J-curve in all six sectors, with some supporting a symmetric J-curve and others supporting an asymmetric J-curve. JEL Codes : C22, F14, F31, G20
Using secondary data from the National Association of Farmer Producer Organizations, and the National Sample Survey’s (77th Round Survey) Situation Assessment Survey of Agricultural Households (2018–2019), this article analyses the growth of Farmer Producer Organizations (FPOs) over the last two decades. It also examines farmers’ participation in the FPOs and the factors that restrict the poor and marginalized farmers’ participation in these organizations. This study reveals that despite the remarkable growth of FPOs and the central government’s awareness mechanism, farmers’ participation in the FPOs is still quite dismal in India. There exists a host of factors, including a farmer’s education, gender, age and the size of operations, training and skill orientation, awareness of the minimum support price, and so on, which influence their decision to participate in the FPOs. Moreover, since the FPO participation in India is only limited to ‘technical advice’ and ‘input procurements’, instead of ‘marketing or sale of the final produce’, it is argued that demand-driven farmer welfare schemes would have been more useful for raising farmers’ income rather than supply-side interventions like the FPOs. JEL Codes: Q12, Q13, Q18
The study examines the factors that drive a firm to seek protection against unfair trade practices through anti-dumping (AD) mechanisms. By focusing on AD cases initiated in the chemical and pharmaceutical allied sectors, taken from the Directorate General of Trade Remedies (DGTR) website, we have identified 45 petitioners. The empirical strategy involves the construction of an unbalanced panel from 1995 to 2019, consisting of various firm-level and industrial-level characteristics such as GDP growth rate, firm age, firm size, profitability, research and development (R&D) intensity, export intensity and market concentration. We have also examined the firm’s past experience with AD activities and its impact on its probability of filing a new AD petition. The econometric analysis uses the binary choice Probit model (random effects). The findings reveal that firms during lower economic activities are more likely to file AD petitions. Lesser concentrated markets are more likely to seek AD protection. In addition to this, firms experiencing a decline in their profit margins have a higher likelihood of filing AD petitions. Notably, large firms are found to exhibit a greater likelihood of filing AD petitions. Lastly, the econometric findings suggest that firms in high R&D-intensive industries, such as the pharmaceutical sectors, are less likely to seek protectionist measures. JEL Codes: C33, F13, F14, L11, L21, L22, Y10
Even though quantifying the impacts of COVID-19 on jobs and employment has been studied in recent literature worldwide, not much research has attempted to investigate the impacts in terms of employment adjustment, especially during the initial outbreak of the pandemic. Using secondary survey data of 1,320 employees working in the tourism sector in Bhutan as a case study, our multinomial logit model estimations show that female workers were among the most vulnerable group to be asked to reduce some benefits from work, to receive only a partial salary or to leave without pay during the initial outbreak. However, when the situation became more severe (resulting in the laying off of employees), the tourism sector in Bhutan laid off male workers also. Negative impacts on their employment were likely to be found among workers with higher education, the relatively young and married workers. In addition, employment adjustments were also found to vary by tourism sub-sector during initial outbreaks. Workers in the entertainment sector seemed to experience the smallest hit from the initial outbreak since they still received some partial payments or were asked to only temporarily leave their jobs without receiving payment. Some sectors, especially tour guides, tour operations, river rafting and land transport, however, had to lay off their workers during the initial outbreak as those businesses rely mostly on international tourists. This study also discusses the policy recommendations to ensure employment stability during such a crisis in the future. JEL Codes: J23, M51, Z39
This article utilizes a rare Time Use Survey (TUS), focusing on Pakistan, to uncover productive labour market activities that often go unnoticed in mainstream labour force surveys (LFS). Leveraging rich time use data along with labour force classification question, we identify and analyse the invisible workforce. Moreover, employing the multinomial logit model, I examine the determinants—such as human capital accumulation (or lack thereof), mobility constraints and financial well-being—of the invisible labour force among women and men aged 10–74 years in Pakistan. The findings reveal significant gender disparities within the invisible workforce, with women constituting a staggering 88% of its members. These women predominantly engage in part-time work concurrently with other activities within their own dwellings, particularly in sectors such as textiles, crafts and animal husbandry. Furthermore, I uncover that the lack of human capital and mobility constraints significantly increase the probability of participation in the invisible workforce. This article tackles the challenge of accurately measuring women’s engagement in productive work by identifying and examining the ‘invisible workforce’ through a unique survey method. Notably, this TUS stands out as the only one available in the South Asian context that integrates LFS questions to identify and study the invisible workforce. The implications of these findings extend to the development of more inclusive measurement frameworks and the promotion of gender equality in labour force participation. JEL Codes: J21, J24, J16, D13
The article investigates the long-run impact of global and regional linkages through trade, foreign investment and digitalization on reducing carbon emissions in five South Asian economies, namely Bangladesh, India, Nepal, Pakistan and Sri Lanka. Based on the data from 2006 to 2021, the study uses the fully-modified OLS technique for estimation after controlling for endogeneity, non-stationarity, cross-sectional dependence and cross-sectional heterogeneity in the panel data. The article finds that exports and FDI inflows reduce consumption-based emissions for South Asia, thereby strengthening the idea that trade in environment-friendly goods and services and the transfer of cleaner technologies could facilitate better adaptation to climate change in the region. The positive impact of imports on emissions indicates that the region imports products with high energy usage. Regional linkages are also found to mitigate carbon emissions, providing ground for such linkages to encourage policy frameworks for countering climate change-related risks. The output and energy consumption are found to impact consumption-based emissions positively. The policy recommendation that emerges from the article is to integrate trade, investment and climate change policies to foster sustainable growth in the South Asian region. JEL Codes: F18, F13, Q43
To enhance manufacturing exports, India, a major player in the services segment, has recently created an enabling environment through the launch of several programmes, for example, the ‘Make-in-India’ and the production-linked incentive (PLI) schemes. As the firm-level evidence on the synergies between services input use (i.e., servicification) and manufacturing exports in the country is relatively scarce, the current analysis studies the relationship between them by using the CMIE-Prowess dataset over a period of 2000–2019, for both new and existing exporting firms. At the firm level, the article uses a two-step system generalized method of moments (GMM) estimator for studying the impact on export intensity, while a dynamic panel probit model is used to study the impacts on the decision to export. Apart from the analysis at the aggregate level, the influence of servicification is also judged for the low-tech and mid-to-hi-tech sectors separately and the disaggregated industry level. The observed positive relationship between servicification and manufacturing exports implies that the integration of competitiveness in the field of services with hi-tech manufacturing sectors can enhance India’s exports on the one hand and deepen firm-level global value chains participation on the other hand. JEL Codes: C23, F12, F14, F23, L25, L80
