The Relationship between MSMEs and Job Quality: Evidence from Granger’s Causality Test
DOI:
https://doi.org/10.15410/aijm/2022/v11i1/167663Keywords:
ARDL, Causality, Job Quality, MSMEs, PCI, PRODPCAbstract
Indian economy is considered as one of the largest economy in the world, where MSMEs (Micro, Small and Medium Enterprises) are considered as primary source of employment generation and economic development. The growth of the sector has led to the growth of the economy which has further led to the growth of job creation. Better the job quality, stable will be the MSMEs. Thus it is necessary to study the relationship between MSMEs and job quality. Causality test using secondary data was used in the study. PCI (Per Capita Income) and PRODPC (Per Capita Production) were the two variables considered in the study. PCI was used as a proxy variable for the Job quality. ARDL (Autoregressive Distributed Lag) cointegration technique was used to study the long and short run dynamic integration of PCI and PRODPC. The results confirm the bidirectional causality between PRODPC and PCI.
Downloads
Metrics
Downloads
Published
How to Cite
Issue
Section
References
Ahmad M. F., & Sanu, M. S. (2016). MSMEs and inclusive growth in India: Current Scenario and Future Prospective. Intellection: A Biannual Interdisciplinary Research Journal. 2016; Vol. 4, No. 2, pp. 86–98.
Bargal, H., Dashmishra, M., & Sharma, A. (2009). Performance analysis of small scale industries - A study of pre-liberalization and post-liberalization period. International Journal of Business and Management. 2009; Vol. 1, No. 2, 55.
Bhavani, T. A. (1991). Technical efficiency in Indian modern small scale sector: An application of frontier production function. Indian Economic Review. 1991; pp. 149–166.
Bray Brooks (2008). “SME Development in China: SME Industrial Cluster and Its Perspective,†in Lim (2008a).
Chhibber, Ajar (2009). “India Manages Global Crisis But Needs Serious Reforms for Sustained Inclusive Growthâ€, Stanford Centre for International Development (SCID) Tenth Annual Conference on Indian Economic Policy Reform Oct 21-23, 2009 Stanford University, Landau Economics Building.
Davis, Junior R. Gaburici, & Angela (2001). The role of Govt. MSMEs development in Transition Economics’’, International Small Business Journal. 2001; Vol. 19, pp. 63. The Sage Publication.
Doli and Cowling (1998). Investment climate and firm performance in developing economies. Economic Development and Cultural Change. 1998; Vol. 54, No. 1, pp. 1–31. https://doi.org/10.1086/431262
Dhar, P. N. & Lydall, H. F. (1961). The role of Small Scale Enterprises in Indian Economic Development. Bombay: Asia Publishing House.
Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association. 1979; Vol. 74, No. 366a, pp. 427–431. https:// doi.org/10.2307/2286348 https://doi.org/10.1080/01621459.1979.10482531
Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: representation, estimation, and testing. Econometric: Journal of the Econometric Society. 1987; pp. 251–276. https://doi.
org/10.2307/1913236
Goldar, B. N. (1988). ‘Relative efficiency of small scale industries in India’, in Suri, K.B. (Ed.), Small Scale Enterprises in Industrial Development, New Delhi: The Indian Experience, Sage Publications.
Granger, C. W. (1988). Causality, cointegration and control. Journal of Economic Dynamics and Control. 1988; Vol. 12, No. 2-3, pp. 551– 559. https://doi.org/10.1016/0165-1889(88)90055-3
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control. 1988; Vol. 12, No. 2-3, pp. 231–254. https://doi.org/10.1016/0165-1889(88)90041-3
Jeshvin V, Hariharasudhan H, Gopinath S. (2012). Investigation of critical issues in a Micro and Small Scale Industries in India, Advanced Materials Research, Key Engineering Materials II, 2012; pp. 1138–1141. https://doi.org/10.4028/www.scientific.net/AMR.488489.1138
Keshab Das, (2008). Micro, Small and Medium Enterprises in India: Unfair Fareâ€, Working paper No.181, Gujarat Institute of Development research.
Lee, Chew-Ging, (2009). Foreign direct Investment, pollution and economic growth: evidence from Malaysia. Applied Economics. 2009; 41:13, 1709-1716.
Mali, (1998). Development of Micro Small and Medium Enterprises of India Current Scenarios and Challenges. SEDME Journal, 25(4).
Narayan, P.K and Nielsen, Ingrid and Smyth, Russell, (2008). Panel data, cointegration, causality and Wagner’s law: Empirical evidence from provinces, China Economic Review. 2008; 19(2), 297-307.
Pesaran, M., Y. and Smith, R.J., (2001). Bounds testing approaches to the analysis of level relationship. Journal of Applied Econometrics, 2001; Vol16, pp. 289-326.
Sierdjan Koster, Shailendra Kumar Rai (2008). Determinants of Micro and Small Enterprises Growth. Journal of Small Business and Enterprise Development. 2008; Vol. 24, Iss 1, pp. 105-118.
Subrahmanya, (2004), ‘Small Industry and Globalization: Implications, Performance and Prospects’, Economic and Political Weekly. 2004; Volume XXXIX, No.18, pp 1826-1834.
Zamora Elvira A. (2010). A management of technology framework for MSME Success and Sustainability, Philippine Management Review. 2010; Vol. 17. pp. 21–51.