Value added tax (VAT) accounts for 39% of tax revenue in Bangladesh, yet overall revenue mobilization has fallen to 6.6% of GDP (the lowest in South Asia) while inequality continues to rise. This study assesses Bangladesh’s VAT structure through the lens of tax justice using a mixed-methods approach (business survey, n = 359; key informant interviews; secondary data). Simulation results indicate that reducing the standard VAT rate from 15% to 10% could be revenue-neutral if the VAT gap is reduced by 8.5% under an optimistic elasticity scenario ( ε = −3.5); however, under more realistic elasticity assumptions ( ε = −0.5 to −1.5), the required reduction ranges from 10.6% to 11.7%, underscoring the need for complementary compliance-enhancing measures. Regression and propensity score matching analyses reveal that VAT training significantly improves compliance, with an average treatment effect of 0.535 standard deviations ( p < .01), while government incentives and inspection frequency also positively influence compliance behaviour. To improve fairness and revenue performance, we recommend consolidating the eight slabs into a simplified three‑tier structure (standard, reduced, zero), with a long‑term goal of two tiers; removing exemptions for non‑essential services; mandating electronic fiscal devices nationwide; and redirecting VAT revenue toward targeted transfers for low‑income households. JEL Codes: D63, H22, H25, H26, O23
During 2016–2018, India terminated many of its Bilateral Investment Treaties (BITs). This paper examines econometrically the effects of BIT termination on India’s outward foreign direct investment (OFDI). The difference-in-differences (DID) estimator is applied to quarterly, country-wise data on India’s OFDI from 2015Q1 to 2019Q4, employing a staggered DID research design. Data on India’s OFDI have been taken from the overseas direct investment database of the Reserve Bank of India. An adverse effect of BIT termination on India’s OFDI is found. Confirmation of this finding is obtained by estimating a gravity model from annual OFDI data for 2011–2019. The results show that the termination of BITs during 2016–2018 led to a substantial decline in India’s OFDI of about 40%–60%. The results of the study indicate that technology-seeking OFDI was unaffected, whereas market-and natural resource-seeking OFDI was affected. JEL Codes: C31, C33, K33, F21
Poverty analysis in Bhutan has remained largely descriptive, with limited use of predictive modelling. This study applies a combined regression and classification framework to the Household Consumption and Expenditure Survey 2025 Public Use File, covering 5,883 households across all 20 dzongkhags. Four survey-weighted regression models predict log per-capita food expenditure, interpreted through SHapley Additive exPlanations; weighted XGBoost performs best (cross-validated R ² = 0.705), with total expenditure, household size and a low-expenditure indicator the dominant determinants, consistent with Engel’s law. For poverty classification against the national poverty line (Nu. 6,204 per capita per month), we train five models, including a survey-weighted logistic baseline, on low-cost structural characteristics only, deliberately excluding expenditure-derived features to prevent target leakage. The linear support vector machine and the logistic baseline achieve receiver operating characteristic–area under the curve (ROC-AUC) = 0.960 under repeated stratified cross-validation, and a tuned random forest attains 0.855 recall for the poor class on held-out data. A single expenditure-aggregate feature inflates ROC-AUC to 0.993, illustrating the risk of leakage. Poor households are larger and concentrated in rural and eastern dzongkhags. The results support a proxy means test instrument for social-protection targeting under Bhutan’s 13th Five-Year Plan. JEL Codes C45, C53, D12, I32, I38, O12
India’s economic environment is undergoing significant disruption, characterized by a fast-expanding services sector and a manufacturing sector striving for global competition. This research article investigates the symbiotic link between these sectors in the Indian context, arguing that expanding intermediate services is critical for driving innovation and increasing manufacturing productivity. This study shows how intermediary services, such as logistics, design and research and development assistance, help to generate new ideas and allow the manufacture of more complex items. These services play an important role in improving the efficiency and effectiveness of industrial processes, resulting in enhanced productivity and income levels. Intermediate services foster the progress of the manufacturing sector by integrating sophisticated technology and techniques, hence facilitating the creation of high-value goods and services. This study provides a detailed examination of India’s unique economic trajectory, highlighting the significance of policies that recognize and promote the interconnectedness of the services and manufacturing sectors. Recognizing the critical role of intermediate services in driving industrial development, we advocate for tailored policies that encourage the expansion and integration of these services. By maintaining this symbiotic connection, India may achieve long-term economic progress, harnessing the assets of both sectors to move the country toward a brighter future. JEL Codes: O14, O53, L63, C23
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
