Development Macroeconomics: Essays in Memory of Anita Ghatak (Routledge Studies in Development Economics)

333 Pages·2009·2.53 MB·English

by  Anita Ghatak

Development Macroeconomics
This work brings together a number of relevant chapters on macro-,
monetary and development economics from many eminent economists from
all over the world who are closely associated with the works of Late Professor
Anita Ghatak of Greenwich University, UK who was an expert in the field of
macroeconomics and econometrics. It comprises a variety of chapters which
are highly significant in the analysis of macroeconomic policies both in
developed and in transition economies.
There are several main topics covered in this book such as the test of
new theories of economic growth and convergence and the use of dynamic
and rigorous time-series econometric methods for analysing money
demand functions in transition economies. Also included are estimations of
international transmissions of shocks using GDP forecasts and a thorough
analysis of the implications of public debt. This work details the meaning of
economic development and the comparative analysis of the recent growth
of India and China, also the modelling of the macroeconomics of poverty
reduction and the monetary policy rules in transition economies. Lastly,
the research analyses the Asian financial crisis, the impact of migration on

investment and economic growth and international consumption patterns.
All the papers are based on original research and their findings will be of
major interest to policymakers as well as students, teachers and researchers
of macroeconomics and economic development.
Subrata Ghatak is Professor of Economics at Kingston University, UK.
His successful textbook, Introduction to Development Economics, is also
published by Routledge.
Paul Levine is a Foundation Research Professor at Surrey University, UK.
Routledge Studies in Development Economics
1 Economic Development in the 8 Public Sector Pay and Adjustment
Middle East Lessons from five countries
Rodney Wilson Edited by Christopher Colclough
2 Monetary and Financial Policies in
9 Europe and Economic Reform in
Developing Countries
Africa
Growth and stabilization
Structural adjustment and economic
Akhtar Hossain and Anis Chowdhury
diplomacy
3 New Directions in Development Obed O. Mailafia
Economics
Growth, environmental concerns and 10 Post-apartheid Southern Africa
government in the 1990s Economic challenges and policies for
Edited by Mats Lundahl and the future
Benno J. Ndulu Edited by Lennart Petersson
4 Financial Liberalization and
11 Financial Integration and
Investment
Development
Kanhaya L. Gupta and
Liberalization and reform in
Robert Lensink
sub-Saharan Africa
5 Liberalization in the Developing Ernest Aryeetey and
World Machiko Nissanke
Institutional and economic changes
in Latin America, Africa and Asia 12 Regionalization and Globalization in
Edited by Alex E. Fernández Jilberto the Modern World Economy
and André Mommen Perspectives on the Third World and
transitional economies
6 Financial Development and
Edited by Alex E. Fernández Jilberto
Economic Growth
and André Mommen
Theory and experiences from
developing countries
13 The African Economy
Edited by Niels Hermes and
Policy, institutions and the future
Robert Lensink
Steve Kayizzi-Mugerwa
7 The South African Economy
Macroeconomic prospects for the 14 Recovery from Armed Conflict in
medium term Developing Countries
Finn Tarp and Peter Brixen Edited by Geoff Harris
15 Small Enterprises and Economic 26 Endogenous Development
Development Networking, innovation, institutions
The dynamics of micro and small and cities
enterprises Antonio Vasquez-Barquero
Carl Liedholm and Donald C. Mead
27 Labour Relations in Development
16 The World Bank Edited by Alex E. Fernández Jilberto
New agendas in a changing world and Marieke Riethof
Michelle Miller-Adams
28 Globalization, Marginalization and
17 Development Policy in the Twenty- Development
First Century Edited by S. Mansoob Murshed
Beyond the post-Washington
consensus 29 Programme Aid and Development
Edited by Ben Fine, Costas Lapavitsas Beyond conditionality
and Jonathan Pincus Howard White and Geske Dijkstra
18 State-Owned Enterprises in the 30 Competitiveness Strategy in
Middle East and North Africa Developing Countries
Privatization, performance and A manual for policy analysis
reform Edited by Ganeshan Wignaraja
Edited by Merih Celasun
31 The African Manufacturing Firm
19 Finance and Competitiveness in An analysis based on firm surveys in
Developing Countries sub-Saharan Africa
Edited by José María Fanelli and Dipak Mazumdar and Ata Mazaheri
Rohinton Medhora
32 Trade Policy, Growth and Poverty in
20 Contemporary Issues in Development Asian Developing Countries
Economics Edited by Kishor Sharma
Edited by B.N. Ghosh
33 International Competitiveness,
21 Mexico Beyond NAFTA Investment and Finance
Edited by Martín Puchet Anyul and A case study of India
Lionello F. Punzo Edited by A. Ganesh Kumar,
Kunal Sen and Rajendra R. Vaidya
22 Economies in Transition
A guide to China, Cuba, Mongolia, 34 The Pattern of Aid Giving
North Korea and Vietnam at the The impact of good governance on
turn of the twenty-first century development assistance
Ian Jeffries
Eric Neumayer
23 Population, Economic Growth and
35 New International Poverty Reduction
Agriculture in Less Developed
Strategies
Countries
Edited by Jean-Pierre Cling,
Nadia Cuffaro Mireille Razafindrakoto and
24 From Crisis to Growth in Africa? François Roubaud
Edited by Mats Lundal
36 Targeting Development
25 The Macroeconomics of Monetary Critical perspectives on the
Union Millennium Development Goals
An analysis of the CFA franc zone Edited by Richard Black and
David Fielding Howard White
37 Essays on Balance of Payments 46 Trade, Growth and Inequality in the
Constrained Growth Era of Globalization
Theory and evidence Edited by Kishor Sharma and
Edited by J.S.L. McCombie and Oliver Morrissey
A.P. Thirlwall
47 Microfinance
38 The Private Sector After Communism Perils and prospects
New entrepreneurial firms in Edited by Jude L. Fernando
transition economies
Jan Winiecki, Vladimir Benacek and 48 The IMF, World Bank and Policy
Mihaly Laki Reform
Edited by Alberto Paloni and
39 Information Technology and Maurizio Zanardi
Development
A new paradigm for delivering the 49 Managing Development
internet to rural areas in developing Globalization, economic
countries restructuring and social policy
Jeffrey James Edited by Junji Nakagawa
40 The Economics of Palestine 50 Who Gains from Free Trade?
Economic policy and institutional Export-led growth, inequality and
reform for a viable Palestine state poverty in Latin America
Edited by David Cobham and Edited by Rob Vos, Enrique Ganuza,
Nu’man Kanafani Samuel Morley and
Sherman Robinson
41 Development Dilemmas
The methods and political ethics of 51 Evolution of Markets and Institutions
growth policy A study of an emerging economy
Melvin Ayogu and Don Ross Murali Patibandla
42 Rural Livelihoods and Poverty
52 The New Famines
Reduction Policies
Why famines exist in an era of
Edited by Frank Ellis and
globalization
H. Ade Freeman
Edited by Stephen Devereux
43 Beyond Market-Driven Development
53 Development Ethics at work
Drawing on the experience of Asia
Explorations – 1960–2002
and Latin America
Denis Goulet
Edited by Makoto Noguchi and
Costas Lapavitsas
54 Law Reform in Developing and
44 The Political Economy of Reform Transitional States
Failure Edited by Tim Lindsey
Edited by Mats Lundahl and
Michael L. Wyzan 55 The Assymetries of Globalization
Edited by Pan A. Yotopoulos and
45 Overcoming Inequality in Latin Donato Romano
America
Issues and challenges for the twenty- 56 Ideas, Policies and Economic
first century Development in the Americas
Edited by Ricardo Gottschalk and Edited by Esteban Pérez-Caldentey
Patricia Justino and Matias Vernengo
57 European Union Trade Politics and 65 Work, Female Empowerment and
Development Economic Development
Everything but arms unravelled Sara Horrell, Hazel Johnson and
Edited by Gerrit Faber and Jan Orbie Paul Mosley
58 Membership Based Organizations of
66 The Chronically Poor in Rural
the Poor
Bangladesh
Edited by Martha Chen,
Livelihood constraints and
Renana Jhabvala, Ravi Kanbur
capabilities
and Carol Richards
Pk. Md. Motiur Rahman,
59 The Politics of Aid Selectivity Noriatsu Matsui and
Good governance criteria in World Yukio Ikemoto
Bank, U.S. and Dutch development
assistance 67 Public–Private Partnerships in Health
Wil Hout Care in India
Lessons for developing countries
60 Economic Development, Education
A. Venkat Raman and
and Transnational Corporations
James Warner Björkman
Mark Hanson
68 Rural Poverty and Income Dynamics
61 Achieving Economic Development in
in Asia and Africa
the Era of Globalization
Edited by Keijiro Otsuka,
Shalendra Sharma
Jonna P. Estudillo and
62 Sustainable Development and Free Yasuyuki Sawada
Trade
Shawkat Alam 69 Microfinance: A Reader
David Hulme and Thankom Arun
63 The Impact of International Debt
Relief
70 AID and International NGOs
Geske Dijkstra
Dirk-Jan Koch
64 Europe’s Troubled Region
Economic development, institutional 71 Development Macroeconomics

reform and social welfare in the Essays in memory of Anita Ghatak
Western Balkans Edited by Subrata Ghatak and
William Bartlett Paul Levine

Development Macroeconomics
Essays in memory of Anita Ghatak
Edited by Subrata Ghatak and Paul Levine
First published 2009
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
270 Madison Avenue, New York, NY 10016
Routledge is an imprint of the Taylor & Francis Group,
an informa business
This edition published in the Taylor & Francis e-Library, 2009.
To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.
© 2009 selection and editorial matter; Subrata Ghatak and Paul Levine,
individual chapters; the contributors
All rights reserved. No part of this book may be reprinted or
reproduced or utilised in any form or by any electronic,
mechanical, or other means, now known or hereafter
invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in
writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging- in-Publication Data
Development macroeconomics : essays in memory of Anita Ghatak /
edited by Subrata Ghatak and Paul Levine.
p. cm.
Includes bibliographical references and index.
1. Developing countries—Economic policy. 2. Macroeconomics.
3. Development economics. I. Ghatak, Anita. II. Ghatak, Subrata,
1939– . III. Levine, Paul.
HC59.7.D3747 2008
339.50917′4—dc22
ISBN 0-203-88216-4 Master e-book ISBN
ISBN 10: 0–415–44834–4 (hbk)
ISBN 10: 0–203–88216–4 (ebk)
ISBN 13: 978–0–415–44834–5 (hbk)
ISBN 13: 978–0–203–88216–0 (ebk)
Contents
List of tables and figures xi
List of contributors xv
Acknowledgements xxii
1 Introduction 1
SUBRATA GHATAK AND PAUL LEVINE
PART I
Growth, economic development and poverty 7
2 On the convergence and divergence of economies 9
PHILIP ARESTIS AND MALCOLM SAWYER
3 Anatomy of the growth and transformation of the
economies of China and India 26

SRIKANTA CHATTERJEE
4 On measuring economic development 49
TARADAS BANDYOPADHYAY
5 The Asian crisis and macroeconomic development 68
WILLY SPANJERS
6 A macroeconomic policy approach to poverty reduction 95
SUSHANTA K. MALLICK