Determinants of economic growth in India: A time series perspective
Indian is one of the fastest growing economies of the world and recent growth rate of the Indian economy has been decelerated. To better understand the growth process, an empirical model using time series approach has been used. The study has used quarterly observations of Real Gross Domestic Produc...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2020-06-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1466.pdf
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| Summary: | Indian is one of the fastest growing economies of the world and recent growth rate of
the Indian economy has been decelerated. To better understand the growth process, an empirical
model using time series approach has been used. The study has used quarterly observations of
Real Gross Domestic Product (GDP) at factor cost, Foreign Direct Investment (FDI) inflows to
India, Gross Fixed Capital Formation (GFCF), GDP Deflator, Trade Openness and Real Effective
Exchange Rate (REER) from 1996-97 to 2017-18 to analyse direction of relationship among these
variable. It is observed that the Trade Openness affects GDP positively but Trade Openness is
negatively impacted by GDP where as FDI inflow to India has a positive impact on Trade
Openness. Further, the REER has negative impact on FDI inflows whereas it is found that GFCF
has positive impact on REER. GDP is the major variable that influences the other variables under
study. FDI inflow is the outcome of GDP growth. To make the FDI beneficial, the government
must improve the absorptive capacity of the country and change the policy related to FDI. |
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| ISSN: | 1841-8678 1844-0029 |