Factors that have enhanced the significance of HRP

A. Impact of Government legislation on Coal Industry:

Govt. of India allocated new coal blocks to mostly private companies and very few govt. companies got. When the private players have not initiated work why the GOI has not cancelled their allocation. 2. In the e-auction policy of coal sector, Traders were allowed along with consumers. These traders are auctioning at higher rate and selling to consumers at still higher rate. Ban traders from e-auction participation. 3.All of us know that at this rate of mining the coal reserves will evaporate early. Why the GOI is not encouraging other renewable energies such as solar, wind, mini-hydel etc. So that coal can be conserved. Give incentives in monetary terms but not land to solar, windenergy etc. 4. When GOI has poured hundreds of crores of rupees in coal sector for producing more coal, why the GOI has not thought of movement of coal(despatches). 5. GOI is issuing licenses for setting up Thermal power plants without looking into the availability of coal. Now a day all the coal producing countries are reducing the production levels to conserve coal. But we are increasing our production! SO a rational thinking is necessary.

B. Effects of Productivity Growth on the Dollar/Euro Real Exchange Rate

The euro greatly depreciated against the dollar during the period 1995-2001. This decline has often been associated with relative productivity changes in the United States and the euro area over this time period. During this time period in particular, average labour productivity accelerated in the United States, while it decelerated in the euro area. Economic theory suggests that the equilibrium real exchange rate will appreciate after an actual or expected shock in average labor productivity in the traded goods sector. Such an equilibrium appreciation may be influenced in the medium term by demand side effects. Thus, productivity increases raise expected income, which leads to an increased demand for goods. However, the price of goods in the traded sector is determined more by international competition. By contrast, in the non-traded sector, where industries are not subject to the same competition, goods prices tend to vary widely and independently across countries. The work of Harrod (1933), Balassa (1964), and Samuelson (1964) show that productivity growth will lead to a real exchange rate appreciation only if it is concentrated in the traded goods sector of an economy. Productivity growth that has been equally strong in the traded and non-traded sectors will have no effect on the real exchange rate.

This paper analyses the impact of relative productivity developments in the United States and the euro area on the dollar/euro exchange rate. This paper then provides evidence on the long-run relationship between the real dollar/euro exchange rate and productivity measures with and without the oil prices and government spending variables. Importantly, to the extend that traders in foreign exchange markets respond to the available productivity data stresses the importance of reliable models.

C. Technological Advances Telecommunications Sector

and

Challenges

in

the

REMARKABLE PROGRESS in telecommunications technology has had, and will continue to have, an enormous impact on telecommunications manufacturing and service industries. In particular, digital technology that integrates transmission, switching, processing, and retrieval of information provides opportunities to merge various service modes into an integrated whole. This digitalization, merging the communications and computation functions, has been made possible by dramatic advances in device and material technology, including integrated circuits and optical fibers. As the role of digital processing increases, systems and services become more intelligent and labor-saving on the one hand, and more software-intensive on the other. Satellites and optical fibers, among other technologies, contribute significantly to the globalization of telecommunications services. Standardization and interoperability of systems have become global issues, as have compatibility of regulatory measures that ensure free trade in telecommunication products and services. Because telecommunications are now indispensable to socioeconomic activities, reliability and security of telecommunications services have emerged as central issues. In our information age, information retrieval is gaining in importance, while concerns are surfacing about the integrity and authenticity of the information to be provided, as well as the protection of privacy. These diverse issues are important to the future of telecommunications industries.

D. A competitive business environment on rural retail business performance

Influences such as economic restructuring, intensified competition, government regulations, and technological advances have resulted in heightened environmental turbulence and uncertainty for small business firms. As noted by Covin and Slevin (1989), small businesses are particularly susceptible to environmental influences due to limited resources and the devastating consequences of poor managerial decisions. According to the authors, An environmental dimension which...serves as a threat to small firm viability and performance is hostility. Hostile environments are characterized by precarious industry settings, intense competition, harsh, overwhelming business climates and the relative lack of exploitable opportunities. Non-hostile or benign environments...provide a safe setting for business operations due to their overall level of munificence and richness in investment and marketing opportunities Porter (1980) contends that the business environment differs by industry. Ireland et al. (1987) predict that firms in different industry segments will apply different strengths to

gain competitive advantage. In a study investigating effective strategies in hostile environments for small manufacturing firms, Covin and Slevin (1989) found that business practices and organizational responses to the environment differed. Other research has shown that environments can affect a firm's strategies (McArthur and Nystrom 1991; White and Hammermesh 1981) and a characteristic of the industry in which the firm competes is a factor in firm profitability (Hansen and Wernerfelt 1989). Competitive Strategies and Business Performance According to Porter (1980), the ability of firms to survive in the business environment is dependent upon their selection and implementation of a competitive strategy that differentiates the firm from competitors. To cope with forces related to threats of entry, substitution, bargaining power of suppliers, and rivalry, Porter proposes the implementation of a generic competitive strategy (that is, cost leadership, differentiation, or focus) to outperform competitors.

E. Knowledge economy and knowledge worker on the enterprise investment innovation

In the knowledge economy era, as an important part of business financial management, investment management is influenced by the knowledge economy. Investment innovation is concerned with academic and practice of the profession. This paper not only affirms the significance of investment innovation for businesses to develop, but also discusses the key problems about business investment innovation through analyzing the effects of the knowledge economy on enterprises investment innovation. The paper suggests that enterprises should focus on human resources management, information technology, innovation management and new product development in the knowledge economy.

F. Impact of Labour Market Dynamics on the ReturnMigration of Immigrants

The majority of recent labour immigration to the Netherlands is temporary rather than Permanent. Across all immigrant groups, a substantial proportion leave the host country eventually, and many do so within 24 months. We have considered in this paper the individual labour market drivers of immigration durations. Despite this extent of temporary immigration, the interdependence of labour market events and immigration durations has received little attention in the empirical literature, mainly because of severe data limitations. We have addressed this gap using a unique Dutch administrative panel of the entire population of recent labour immigrants. Hence the usual concerns about immigrant data (small samples, missing covariates, latent migrant types, inaccurate measurement and recall) are absent, as we observe entry, exit, migration motive, and complete labour market histories. Moreover, the large size of the data enables us to estimate separate models for distinct immigrant groups, and we have shown the importance of controlling for observable migrant heterogeneity.

The principal methodological challenge arises, however, from unobservable heterogeneity that is correlated across the migration and the labour market processes. The timing of events method enables us to control for the selectivity of returnees, and thus to identify and estimate the causal eects of employment and unemployment histories on migration durations. Simpler models which ignore error correlations across labour market and migration processes are shown to exhibit substantial selection biases. Overall, we have found that, across all immigrant groups, unemployment dynamics shorten the migration duration, while employment spells following unemployment spell delay the return for all migrants except for those from the new EU countries. The causal impact of labour market dynamics is quantied in terms of migration durations in several experiments, focussing on the duration and timing of unemployment spells, and, in a counterfactual analysis, the eect of improved immigrant quality. These experiments show that the unemployment durations have a substantial eect, while the eect of dierences in timing and quality are relatively smaller.

G. Impact of growth of service economy on Finance sector

Over 46 percent of the service firms have a bank account to run the business and 30 percent have a business account that is separate from the household account. Corresponding figures for manufacturing firms are much lower at 33 and 20 percent, respectively. Similarly, financial accounts of the business are run separately from the accounts of the household for over 50 percent of the service firms but only 34 percent of the manufacturing firms. These findings suggest better banking habits among service firms. Service firms also score over manufacturing firms in the percentage of firms that use bank finance for their day to day operation (6 vs. 2 percent) and the same holds for microfinance (5 vs. 1 percent). Note that the percentage of firms using bank finance or microfinance in both the sectors is low so that it is difficult to make any definitive conclusions from the reported differences. At best these findings are indicative of better access to external financial institutions for service relative to manufacturing firms. This is further corroborated by the fact that fewer service relative to manufacturing firms report access to finance as major or very severe obstacle for running their business (44 vs. 53 percent).