Principle indicator which facilitates other indicators to thrive and play their role in growth and development.

1. States & Markets
Dynamic theme as a World
Indicator
By
Abhijit Pathak

2. State & Markets
Principle indicator which facilitates other
indicators to thrive and play their role in
growth and development.

3. Indicators Shaping States
&Markets Are
• Economic activity - facilitates growth of the economy, helps
in reduction of poverty. Economic activity may be
determined by the govt regulations, tax rates, credits etc.
• Financial system- stock markets & banks are the source of
finance. Lower economy are more relied on banking
structure where as higher economy enjoys confidence of
investors, so it is more stock market oriented.
• Open economy, effective macroeconomic policies, protection
of investors, acute legal system facilitates financial markets.

4. Continued…
• Tax revenue- required to cover public
expenditures. Low ratio tax revenue shows
weak administration and subjected to evasion
of taxes.
• Military expenditure- higher military
expenditure shows failure of foreign
diplomacy and belligerency towards
neighbours disrupts the growth of the
economy.

5. Continued..
• Infrastructure- nature of infrastructure offered
by the economy also define the kind and
quantity of investment received by the
economy.
• High technology exports- shows the
advancement of infrastructure and nature of
economy whether the product oriented or
supply oriented.

6. Major changes in last few
decades

7. Continued _________

8. Electricity consumptions
many inferences

9. Regressive taxation bane for lower
incomes and boon for investors.

10. Global Links
• Present world is composed of open economy
which is mainly characterized with trade of
goods & services, financial flows and
movement of people.
• Global links measures the size and direction of
flows and pick out the few indicators which
decides the flow.

11. Components of global links
• Trade in goods.
• Tourisms.
• Migration & personal remittances.
• Equity inflows.
• External debt.

12. Major highlights in last few years

13. Relying on domestic non- banking funds
shows the churning feature of economy.

14. World recession showed moderate
effects on middle income economies

15. Reduction in debt ratios shows
recovery and boom of exports

16. Defeat of communal harmony disrupts
developmental activities.

17. Commodity prices fall means existence
of recession in world markets