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Article
Publication date: 7 November 2016

Shruti Shastri and Swati Shastri

The purpose of the paper is to examine the linkages between exchange rate and interest rate in India using quarterly data from Q1 of 1996 to Q4 of 2014.

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Abstract

Purpose

The purpose of the paper is to examine the linkages between exchange rate and interest rate in India using quarterly data from Q1 of 1996 to Q4 of 2014.

Design/methodology/approach

Stationarity properties of data are checked using the Augmented Dickey–Fuller (ADF), Dickey–Fuller test with GLS de-trending (DF-GLS) and Kwiatkowski-Phillips-Schmidt-Shin (KPSS) tests and Perron’s unit root test with structural breaks. Johansen Juselius and Gregory Hansen tests are applied to assess cointegration, and block exogeneity test is used to detect causality among variables.

Findings

The study finds long-run relationship among interest rate, rupee–dollar exchange rate, capital flows, intervention, inflation differential, money supply differentials, output differentials and trade-balance differentials. However, the interest rate does not explain movements in the exchange rate, directly and indirectly, via capital flows. Intervention by the Central Banks to stabilize exchange rate does not have implications for movements in interest rate.

Research limitations/implications

The study finds capital flows to be insensitive with respect to interest rates and hence thwarts International Monetary Fund ’s (IMF) claim of using interest rates as a tool to stabilize exchange rate. The much-debated conflict between exchange-rate stabilization and control over interest rates also does not hold up to the empirical reality of India.

Originality/value

The study augments the existing literature by taking into account the problem of structural break in the relationship between interest rate and exchange rate. Three measures of interest rate are used to assess the robustness of results adding to their credibility compared to previous studies.

Article
Publication date: 6 August 2021

Swati Shastri, Shruti Shastri, Abhishek Pareek and Riddhi Sudhan Sharma

The purpose of this paper is to analyze the motivational drives of women entrepreneurs and highlight the challenges faced by women entrepreneurs operating micro, small and…

Abstract

Purpose

The purpose of this paper is to analyze the motivational drives of women entrepreneurs and highlight the challenges faced by women entrepreneurs operating micro, small and medium enterprises from an institutional perspective in Rajasthan – a patriarchal state in India.

Design/methodology/approach

The study is based on data collected from a questionnaire survey conducted from July 2018 to January 2019 on 347 women entrepreneurs operating in seven districts of Rajasthan. Descriptive and factor analysis were used to find the major motivations and challenges of the entrepreneurs.

Findings

The findings indicate that intrinsic factors, namely, growth, creativity, autonomy and rejecting stereotypical gender identity are primary motivations driving women entrepreneurship in Rajasthan. Further, institutions pose challenges rather than offering a motivational drive to female entrepreneurs. The two most critical challenges, which the women entrepreneurs face are gender stereotypes and the lack of social capital. In patriarchal societies, entrepreneurial roles are considered masculine than feminine. Furthermore, cultural norms reflected in gender-specific role distribution result in the problem of work-life balance. The lack of both bonding and bridging social capital in terms of family support and networks, respectively, also reflects an unfavorable informal institutional environment.

Originality/value

The study adds to the sparse empirical literature on the motivations and challenges of women entrepreneurs in the Indian context. This study explores the motivations and challenges of female entrepreneurs from an institutional perspective for India in general and Rajasthan, in particular, using a large, heterogeneous sample using factor analysis.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 16 no. 4
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 9 April 2019

Swati Shastri, Shruti Shastri and Abhishek Pareek

The purpose of this paper is to explore the motivations and key challenges women entrepreneurs experience in running small businesses in the Jaipur city of Rajasthan.

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Abstract

Purpose

The purpose of this paper is to explore the motivations and key challenges women entrepreneurs experience in running small businesses in the Jaipur city of Rajasthan.

Design/methodology/approach

A purposive sample of 13 women entrepreneurs from a cross-section of enterprises is selected. A qualitative methodology based upon semi-structured, in-depth, exploratory interviews with female entrepreneurs is used which enables the respondents to give voice to their individual experiences.

Findings

The study reveals that pull factors including the urge for creativity, innovation, self-identity and independence, and to serve the society are the main motivations for female entrepreneurs to start their venture. From the institutional theory perspective, the challenges of female entrepreneurs originate mainly from informal institutions. A significant challenge is that their ability as a professional entrepreneur is not recognized and acknowledged by the society. Furthermore, the cultural norms reflected in the gender-specific role distribution result in the problem of work–life balance. The challenges emerging from the formal institutions do not appear to be pervasive and gender specific.

Originality/value

The unique contribution of the study is to provide evidences on the motivations and challenges of women entrepreneurs in Rajasthan based on qualitative data derived from in-depth interviews. Furthermore, the study is the first attempt to view the motivations and challenges of female entrepreneurs from an institutional perspective for India in general and Rajasthan in particular.

Details

International Journal of Sociology and Social Policy, vol. 39 no. 5/6
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 26 December 2022

Divya Tiwari and Shruti Shastri

The purpose of this study is to the role of bonding and bridging social capital of women entrepreneurs in dealing with the business crisis induced by the COVID-19 pandemic.

Abstract

Purpose

The purpose of this study is to the role of bonding and bridging social capital of women entrepreneurs in dealing with the business crisis induced by the COVID-19 pandemic.

Design/methodology/approach

A total of 24 women entrepreneurs from Deoria district from the state of Uttar Pradesh in India are selected through the snowball sampling technique. Out of these 24 female entrepreneurs, 14 belong to some network and 10 are not a part of any network. A qualitative methodology based upon in-depth personal interviews is used to get insights about the personal views of the female entrepreneurs on the role played by their bonding and bridging social capital to deal with the problems during the current business crisis.

Findings

Contrary to the general belief that women-owned businesses succumb easily to business crises and respond to reduce risks, the findings suggest that women business owners confidently faced the adverse business conditions. The bonding social capital of women entrepreneurs provided emotional support and motivation through internal interactions and responsibility sharing, and business networks (bridging capital) facilitated identification of new opportunities. The respondents emphatically mentioned the role of peer entrepreneurs as sources of information and resources.

Originality/value

To the best of the authors' knowledge, this is the first study in the Indian context that seeks to investigate the role of bonding and bridging social capital during the business crisis induced by the current pandemic using qualitative data generated through in-depth interviews.

Details

Continuity & Resilience Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2516-7502

Keywords

Article
Publication date: 1 July 2022

Kanika Garg and Shruti Shastri

The purpose of this study is to investigate the impact of the gender of the firm owner on the export behaviour of firms in the Indian context.

Abstract

Purpose

The purpose of this study is to investigate the impact of the gender of the firm owner on the export behaviour of firms in the Indian context.

Design/methodology/approach

The present study utilizes the data from World Bank’s Enterprise Survey. The survey provides information on 9,281 firms located in different regions in India. Binomial logistic regression is employed to examine if the owner’s gender matters for the firm’s export-related decisions (export propensity, export mode, export intensity and export market diversification) as a direct or moderating factor controlling for other possible determinants of export activity.

Findings

The findings of the study reveal that firms with a majority of female ownership are less likely to export. However, once the firms indulge in exports, their choice of export mode and export intensity is not affected by the owner’s gender. The gender of the firm owner plays an important role in export market diversification as it is observed that the firms owned by the majority of women have concentrated export markets.

Practical implications

The findings advocate the integration of gender perspective into export promotion policies in India. In light of the findings that the gender of the firm owner entails a heterogeneous impact on different dimensions of export, the key areas requiring policy interventions are female entrepreneur’s export participation and export market diversification.

Originality/value

This study augments the previous scholarship by focusing on the intersection of the gender of firm owner and export propensity along with other unexplored dimensions of export behaviour in female entrepreneurship literature viz. mode of export, export intensity and export market diversification.

Details

International Journal of Gender and Entrepreneurship, vol. 14 no. 3
Type: Research Article
ISSN: 1756-6266

Keywords

Article
Publication date: 21 February 2020

Shruti Shastri, Geetilaxmi Mohapatra and A.K. Giri

The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017.

Abstract

Purpose

The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017.

Design/methodology/approach

This study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables.

Findings

The findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India.

Practical implications

The findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth.

Originality/value

To the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

Details

International Journal of Energy Sector Management, vol. 14 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 11 May 2020

Deepti Singh and Shruti Shastri

The purpose of this paper is to examine the nexus among public expenditure allocated to education, educational attainment at secondary level and unemployment rate in India…

Abstract

Purpose

The purpose of this paper is to examine the nexus among public expenditure allocated to education, educational attainment at secondary level and unemployment rate in India for the period 1987–2017.

Design/methodology/approach

The study employs autoregressive distributed lags (ARDL) bound testing approach suggested by Pesaran et al. (2001) to find the long-run relationship among the variables. The causal linkages are investigated through block exogeneity test based on vector error correction model.

Findings

The empirical results indicate that educational attainment proxied by gross enrolment ratio at secondary level of education negatively affects unemployment rate in long run as well as in short run. However, public expenditure on education is ineffective in influencing both educational attainment and unemployment rate.

Originality/value

The study is the first empirical effort to identify the causal nexus among public expenditure on education, educational attainment and unemployment in the context of India.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0396

Details

International Journal of Social Economics, vol. 47 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 15 June 2018

Shruti Shastri, A.K. Giri and Geetilaxmi Mohapatra

The purpose of this paper is to assess the sustainability of current accounts for five major South Asian economies, namely, India, Pakistan, Bangladesh, Sri Lanka and…

Abstract

Purpose

The purpose of this paper is to assess the sustainability of current accounts for five major South Asian economies, namely, India, Pakistan, Bangladesh, Sri Lanka and Nepal, for the period 1985–2016.

Design/methodology/approach

The study employs the intertemporal solvency model of Hakkio and Rush (1991) and Husted (1992). Autoregressive Distributed Lag bounds test, Gregory and Hansen’s test and Carrion-i-Silvestre and Sanso’s test are used to assess the cointegration between current account inflows and outflows. The coefficients of long-run relationship are obtained using dynamic ordinary least squares. Besides the econometric investigation, the study also examines some other indicators such as the composition of current account, size of external debt, etc., to shed further light on the sustainability of current accounts.

Findings

The study finds support for the long-run relationship between the current account outflows and inflows for all the countries. The estimates of slope coefficient indicate strong sustainability in case of India, Bangladesh and Nepal, whereas weak sustainability holds for Sri Lanka and Pakistan underscoring the need for policy interventions. In a comparative perspective, the current accounts in India, Nepal and Bangladesh conform more to a sustainable behavior in terms of the size of deficits, external debt stock and compliance to the intertemporal budget constraint.

Originality/value

The study employs econometric techniques allowing for structural breaks in the assessment of current account sustainability. Besides using the intertemporal model, the study also examines factors such as composition of current accounts, size of external debts, etc., to evaluate sustainability.

Details

South Asian Journal of Business Studies, vol. 7 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 14 June 2019

Shruti Shastri

The purpose of this study is to revisit the twin deficit hypothesis (TDH) and provide insights into the transmission mechanism connecting budget deficits and current…

Abstract

Purpose

The purpose of this study is to revisit the twin deficit hypothesis (TDH) and provide insights into the transmission mechanism connecting budget deficits and current account deficits for five major South Asian countries, namely, India, Bangladesh, Pakistan Sri Lanka and Nepal for the period 1985-2016.

Design/methodology/approach

This study uses a multivariate framework including real interest rate, real exchange rate and real gross domestic product to avoid the possibility of incorrect inferences caused by omission of relevant mediating variables. The long-run relationship and causality are investigated through the autoregressive distributed lag bounds testing approach and Toda Yamamoto approach, respectively, for each individual country. The robustness of the results is assessed with the help of Westerlund’s cointegration test and group mean fully modified ordinary least squares (GM-FMOLS), group mean dynamic ordinary least square (GM-DOLS) and common correlated effect mean group (CCEMG) estimators in the panel framework.

Findings

Both time series and panel evidences indicate long-run relationship between budget balance (BB) and current account balance (CAB) together with the mediating variables. The results indicate bi-directional causation between the two balances for India and Bangladesh, TDH for Pakistan and Sri Lanka and the reverse causation from CAB to BB for Nepal. Regarding the transmission mechanism, the results indicate the absence of the causal chain postulated by Mundell–Fleming, which predicts that BB causes CAB via interest rate and exchange rate. A CCEMG estimate of the import demand function reveals a positive government spending elasticity of imports suggesting that BB affects CAB by direct impact through demand.

Originality/value

This study augments the twin deficit literature on South Asian countries by providing insights into the transmission mechanism connecting the BB and CAB. Moreover, the study provides robust evidences on the TDH by using both time series and panel data techniques.

Details

Indian Growth and Development Review, vol. 12 no. 3
Type: Research Article
ISSN: 1753-8254

Keywords

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