IOSR Journal of Economics and Finance (IOSR-JEF)

Volume 1 - Issue 3

Paper Type : Research Paper
Title : A Survey on Area, Production and Productivity of Groundnut Crop in India
Country : India
Authors : Dr. B. Madhusudhana
: 10.9790/5933-0130107      logo

Abstract: This survey has been carried out to discuss the ground nut area, production and productivity in India, Andhra Pradesh State and Anantapuram district. It analyzed the area, production and productivity of groundnut crop at national level, state level and district level during 1996-2000 to 2001-2008. The present comparative analysis of groundnut production in A.P and in Anantapuram district during 1996-2000 to 2001-2006. The groundnut crop area, production and productivity at national level, state level and Anantapuram district level of during 1996-2000 to 2001-2006 were collected and presented graphically. Based on the results collected some conclusions are made about the improving the production of groundnut crop.

Keywords: Area, Groundnut, Production, Productivity, Rain field

[1] Kalamkar, S.S., (2006), Prospects of Contract Farming in India in the Context of Globalisation, Indian Journal of Agricultural Marketing, Vol, 20, No, 3, September-December, p.25.

[2] GOI (2008) Economic Survey of India 2008, Government of India, New Delhi.

[3] Patel, G.N., and N.L. Agarwal, (1993), Price Behaviour of Groundnut in Gujarat", Indian Journal of Marketing, Vol.7, No.2, July- December, p.144.

[4] Pant, D.C. and Pradeep Pal, (2004), Comparative Economics of Agro-processing units for Groundnut in Southern Rajasthan, Indian Journal of Agricultural Marketing, Vol, 18, No.1, January-April, p.50-57.

[5] Margaret Digly and Gretton, R.H. (1965), Cooperative Marketing for Agricultural Products, Agricultural Development, Paper No.53, FAO; (Rome Food and Agricultural Organisation, pp. 5-17.


Paper Type : Research Paper
Title : An Empirical Assessment of the Relationship between Inflation and Investment in Nigeria
Country : Nigeria
Authors : Olufunke Bosede Olufemi, Adeleke Omolade, Obasuyi, F.O.T
: 10.9790/5933-0130813      logo

Abstract: This study examined empirically the impact of inflationary rate on the level of investment in a developing economy a case study of Nigerian Economy 1970- 2008. The study adopted co-integration and error correction model as the estimating techniques. The empirical results showed that there is a long run relationship between inflationary rate and investment in Nigeria. Unlike some developed nations where inflation has direct relationship with the investment, in Nigeria, low rate of inflation and increased national income would promote investment. The policy recommendation is that Nigeria government should strive to curtail inflation to the minimum while accelerating the growth of the national income in her quest to boost investment.

Key Words: Inflation Rate, Investment, Developing Economy.

[1] Anyawu, J.C. and Oaikhenan, H.E (1995) "The Modern Macro Economic Theory and Application in Nigeria" Jonnane Educational Publishers Limited, Onisha, Pp. 159 -185
[2] Arunwarlds W.C. (1951) "Depreciation as cause of inflation in African Countries: an Empirical Analysis".
[3] Bhatia R.J. (1960). "Inflation, Deflation and Economic Development IMF Staff Papers
[4] Clarke J.N (1936) Acceleration Principles and its Application. American Economic Review.
[5] Durnace, J. (1975) "The Impact of exchange rate uncertainty on the level of investment" economic Journal 109, C55-C67
[6] Eckstein. C (1958), "Foced Investment Decisions in UK manufacturing: the importance of Tobins Q Output and Debt", European Economic Review, 39, 919-941.
[7] Friedman M. (1958), "What price Guild Posts" in Shuttz G. and Alber RZ (Eds) guidelines, informal controls and the market place, University of Chicago Press, Chicago, 17-39
[8] Iyoha, M.A (1975) "Inflation and Openness" In less Development Economics, A cross Country Analysis" Economic Development and Cultural Change Vol. 22, No. 1, October 1973.
[9] Odoko F. O (2003). Contemporary Economic Policy Issues CBN Publication.
[10] Osakwe et al (1982), Nigeria and the IMF, Heinmann Books Nigeria. Ibadan


Paper Type : Research Paper
Title : The Effect of Macroeconomic Factors on Indian Stock Market Performance: A Factor Analysis Approach
Country : India
Authors : Rakesh Kumar
: 10.9790/5933-0131421      logo

Abstract: This paper, based on the average monthly data (January, 2001 to May, 2013) of 12 macroeconomic variables, uses the data reduction technique-factor analysis to derive the factors which determine the performance of stock market in India. The Principal Component Technique after using orthogonal rotation extracted three factors labeled intuitively as Macro Environment, Industrial Performance and Policy Rates. It has been established that industrial performance play significant role in influencing the stock market. Though some impact of policy rates cannot be denied but it does not seem sustainable. Market rely more on optimistic macroeconomic environment call for state's prudent efforts to maintain macro stability. Besides, stock market responds to performance of the firm specific factors and unforeseen events in the economy.

Key Words: Arbitrage Pricing Theory, Stock Market, Macro Environment, Data Reduction, Factor Analysis, Factor Scores,.

[1] Aggarwal R, (1981): "Exchange Rate and Stock Prices: A study of U.S. Capital Market under Floating Exchange Rates, Akron Business and Economic Review, 12(3), 7-12.
[2] Cattell, R. B. (1966). "The Scree Test for the Number of Factors", Multivariate Behavioral Research, 1(2), 245-276.
[3] Chen N. (1983): "Some Empirical Tests of the Theory of Arbitrage Pricing", The Journal of Finance, 38 (5) 1393-1414.
[4] Chen, Roll R. & Ross S. A. (1986): "Economic Forces and the Stock Market", Journal of Business, 59 (1), 383-403.
[5] Connor G. & Korajczyk R. (1986): "Performance Measurement with the Arbitrage Pricing Theory: A New Framework for Analysis", Journal of Financial Economics, 15(3), 373-394.
[6] Dhrymes P.J. et.al. (1984): "A Critical Re-examination of the Empirical Evidence on Arbitrage Pricing Theory", The Journal of Finance, 39 (2), 323-346.
[7] Erdinc Altay (2003): "The Effect of Macroeconomic Factors on Asset Returns: A Comparative Analysis of the German and the Turkish Stock Markets in an APT Framework", Univ., Wirtschaftswiss. Fak.
[8] Fama E. F. (1981): "Stock Returns, Real Activity, Inflation, and Money", The American Economic Review, 71, (4), 545-565.
[9] Garret & Priestley (1997): "Do Assumptions about Factor Structure Matter in Empirical Tests of the APT? Journal of Business Finance and Accounting, 24(2), 249-260.
[10] Kryzanowski L. & To M. (1983): "General Factor Models and Structure of Security Returns", Journal of Financing and Quantitative Analysis, 18 (1), 31-52.



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Paper Type : Research Paper
Title : Optimal Bank Capital – The Nigerian Experience
Country : Nigeria
Authors : Dr. Agbaeze E. K., I. O. Onwuka
: 10.9790/5933-0132234      logo

Abstract: The question of what constitutes an optimal bank capital has generated so much controversy among bank regulators and practitioners for decades. The new Basel recommendation – Basel III framework, has once again thrown up the question of what level of bank capitalization would be considered optimal to the front burner of national and international discourse. This study provide empirical evidence using selected bank performance indicators in Nigeria to show that optimal bank capital is a misnomer unless there is a sound macroeconomic environment. The study shows that performance of banks did not improve substantially after the 2005 recapitalization exercise. It was also evident from the study that Nigerian banking history has demonstrated the futility of using bank recapitalization as a regulatory tool. There is therefore a veritable ground to question the primacy and pride of place accorded to capital by regulatory authorities among the factors that enhances banking system stability. We therefore recommend that the Central Bank of Nigeria should focus their attention in promoting monetary stability and sound macroeconomic environment to enable banking business to thrive in Nigeria.

Keywords: Bank Capitalization, Macroeconomic Environment, Monetary Stability

[1] Bank for International Settlement, "An assessment of the long-term economic impact of stronger capital and liquidity requirements", Basel Committee on Banking Supervision, Bank for International Settlements (2010a).

[2] Jenkins, R. "The Capital Conundrum", Speech Presented at the Annual Conference of the International Centre for Financial Regulation, Berlin (2011).

[3] Miles, D., Pillonca,V., and Baker M., "What should equities and bonds be worth in a risky world", Morgan Stanley research paper, September (2005).

[4] Institute for International Finance, Interim Report on the Cumulative Impact on the Global Economy of Proposed Changes in Banking Regulatory Framework‟ (2010)


Paper Type : Research Paper
Title : Unorganized Laborers in Dhanbad –Jharia Coal Mines
Country : India
Authors : Shaswati Mukherjee, Dr (Prof).S. N. Choudhuri (R&D)
: 10.9790/5933-0133539      logo

Abstract: Coal sector is a giant and huge sector in India's economy which employs thousands and thousands of laborers in this mining sector, but they hide within them a100 years old history of oppression a story that has never been documented or given much importance in independent India .Yet it is this oppression that has led to labor unrest and resulted in some of the gruesome stories between these unorganized laborers and the mine managers. Unlike the organized sector, in this sector we deal with laborers who have not acquired a high profile, tasted the benefits that can be gained from organization or derived the advantages flowing from high visibility. The large portions of labor force working in the coal mines of India plays vital role in any scheme of industrialization and the development of the country in general. India has many coal mines which employs about sixty lakh of unorganized laborers either directly or indirectly. The wages that the unorganized laborers get are meager and this is clearly not enough to satisfy the growing aspirations of a community that is utterly marginalized and feels alienated. It is this socio-economic struggle that goes out of control .At times there are labor troubles in mines.

[1]. Coal labor in India-A close look.
[2]. Coal Mining in India-Sanhati weekly.
[3]. Unorganized Labor Market in India.
[4]. News Today – Dhanbad.
[5]. Indian Labor Law.
[6]. Report of the National Commission on Labor-Chapter seven.
[7]. Labor Rights and Labor Standards for Migrant Labor in India-Dr. W.N.Salve
[8]. Coal Resource of India-Coal Wing, Geological Survey OF India, Kolkata.


Paper Type : Research Paper
Title : Study on nature of inflation and its relationship with GDP growth rate: a Case Study on Bangladesh
Country : Bangladesh
Authors : Mahjabeen Ferdous, Ellina Mahbuba Shahid
: 10.9790/5933-0134049      logo

Abstract: The rapid rise in food prices has been a burden on the poor in developing countries. In many countries such as in Bangladesh, food price inflation is higher than aggregate inflation and contributing to underlying inflationary pressures. Losing the purchasing power and increasing the cost of production indicates the high rate of inflation. Sometimes high inflation has adverse impact on growth through a variety of channels. It will increase uncertainty in investment and withdrawal of saving for consumption support. In south Asia- Bangladesh, Pakistan has experienced double digit inflation rate. However inflation and growth rate called real GDP growth rate have positive and negative relationship depending on situation. Due to supply gap for natural disaster cause rapid growth of inflation rate mainly contributed by food price and regression analysis reflect a positive relationship with inflation and GDP. Inflation fluctuates all the time because of the fluctuation of the money supply. But in recent years, we came to know that international affairs are influencing to increase the inflation rate. So M3 expansion and global price hike also contrite to inflationary pressure. Consistent budget deficit and exchange rate deteriorate the economic growth which directly relates with inflation and also can increase unemployment as a result of high inflation due o increased production cost resources may be reduced. So authority may work on inflation control for the clear future signals.

Keywords: Annual Average CPI (Consumer price index) inflation, Food Inflation, GDP (Gross Domestic Production), Inflationary pressure, money supply.

[1] Fisher, S., and Modigliani, F., 1978, Towards an Understanding of the Real Effects and Costs of Inflation., Weltwirtschaftliches Archiv, 114: 810-833.
[2] Davis, RG., 1991, Inflation: Measurement and Policy Issue., Federal Reserve Bank of New York Quarterly Review, 16: 13-24.
[3] Forsells, M, and Kenny, G., 2002 a. The Rationality of Consumer Inflation Expectations: Survey-Based Evidence for the Euro Area., Working Paper No. 163, European Central Bank.
[4] Gomez, J., 2002, Wage Indexation, Inflation Inertia and the Costs of Disinflation. Banco de la Republica.
[5] Wai, U Tun, 1959, "The Relatioship between Inflation and Economic Development: A Statistical Inductive Study," Staff Papers, International Monetary Fund, Vol. 7 (October 1959), P. 302


Paper Type : Research Paper
Title : Women Empowerment through Micro Finance In Srivaikundam Taluk –Tuticorin District
Country : India
Authors : V. Raja Rajeswari
: 10.9790/5933-0135055      logo

Abstract: The term micro finance refers to the practice of providing financial services such as micro credit, micro savings or micro insurance to poor people to alleviate poverty. Small loans are given to start the business of their own. These loans generate employment and income. Income from these businesses started with micro credit enables the borrowers to enjoy better housing, health care and education. When they earn additional income, they get hope for a better future. The global repayment of micro loan is higher than 95 percentages, which allows micro finance institutions to relend these funds to even more clients. By giving a hand up, micro finance enables one to break the cycle of poverty with in a single generation itself. From this study, it can be concluded that the women empowerment is greatly improved through the assistance of microfinance. It is also noted that the Self Help Groups (SHGs) can provide the expected benefits to the rural women folk if training is given on soil conservation, social forestry, dairy development and other allied occupations like horticulture, livestock, rearing, poultry keeping and fisheries.

Keywords: Micro finance; Women empowerment; Self help groups (SHGs); poverty.

[1] Chetne kalbagh, Women and Development, Discovery Publishing House, New Delhi, 1992.

[2] Dorienna Rowan, Development with Womem, rural publications, New Delhi, 2006

[3] Sharma K.C., " Micro Financing through SHGs", Indian Journal of Agriculture Economics, vol.56, No.3, 2001

[4] Indhu Rani K & Uma Devi D, "SHGs, Micro credit and Empowerment" , Social Welfare, Febraury, 2002.

[5] Vijayanthi K.N, "Women Empowerment through SHGs", Social change, vol.30, No.4, 2000

[6] Gurumoorthy T.R, "SHGs Empower Rural Women", Kurukshetra, vol.48, No.5, 2000.

[7] Karmakar K.G, Rural Credit and SHGs: Microfinance needs and concepts in India, Sage publicatuions, New Delhi, 1999

[8] Abraham Masloue(1954), " Motivation and Personality", harpwer and Row publishers incorporated, Newyork.
[9] Reserve Bank Of India, "Micro credit: A lifeline for the poor", http://www.rbi.org.in, accesed on 12 April 2008.

[10] Alesina, Alberto and Dani Rodrik, "Distribute politics and economic growth", Quarterly journal of Economics, 1994.


Paper Type : Research Paper
Title : Monetary Policy and Nigeria's Economic Growth.
Country : Nigeria
Authors : Adeleke Omolade, Sikiru O. Ashamu, Akinola Morakinyo
: 10.9790/5933-0135663      logo

Abstract: The study investigates impact of monetary policy on Nigeria's economic growth between 1970 and 2005. It adopts cointegration and error correction model. The gross domestic product is used as proxy for growth while bank rate, bank credit, monetary policy rate and exchange rate are used as monetary policy variables i.e the independent variables. The result shows that all the variables are integration of order one that is I(1). The cointegration result establishes a long run relationship between growth and monetary policy variables. The long run relationship further indicates that only the exchange rate has significant impact on the growth of Nigeria. However, the error correction model indicates that all the variables can jointly dictate the pace of Nigeria growth in terms maintain economic stability. It is recommended that policy makers to pay more attentions to monetary variables in their attempt to maintain economic stability.

Key words: Monetary policy, Growth, Long run relationship, economic stability. JEL Classification: E52 and E59

[1]. Ajayi S.I. and Ojo O.O. (1981). Money and Banking Analysis and Policy in Nigerian Content, George Allen, London.
[2]. Anyawu J.C. (1994), Monetary Policy and Institutions: HybridPublishers Ltd. Pg 86, Pg 140.
[3]. Alade and Ajayi (1997), Money and Banking, An Introduction to Analysis of Policy. John Wileyand Sons, Santa Barbara, 1977 Pg 425.
[4]. Baljit S. (2000), The General Roles of Monetary Policy in Developing Economy, VIKAS Publishers Hous PVT Ltd.
[5]. Bongton and wicker (1975), Money and Banking ContemporaryPractices, Policies and Issues Business Publications Inc. Texas, Irvin-Dorsey Ltd. Georgetown, Ontario Pg. 363.
[6]. Federal Republic of Nigeria (1986), Structural Adjustment Programme for Nigeria. July 1986 June 1988. Federal Government Printer Lagos.
[7]. Fescher S. (1986), Issues in Medium-term Economic Adjustment.World Bank Research Observer 1 (163 – 182).
[8]. Fisher (1996), Contemporary Economics, the Dryden Press, Hunsdale, Illinois Pg 143-145.
[9]. Friedman (1970), A Theoretical Framework of Monetary Analysis, Oxford University Press, London.
[10]. Friedman and Schwart (1989), Problems of Monetary Polcies in Underdeveloped Countries, Lavalvan Publishing House P.23.