Infrastructure development and economic growth in India

Sahoo, Pravakar; Dash, Ranjan Kumar

doi:10.1080/13547860903169340

Cited by 165 publications

(113 citation statements)

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“…However, this coefficient is significant only at the 10% level, indicating that capital formation is the ultimate engine of economic growth in India. 16 This finding is also consistent with the results of Sahoo and Dash (2009) for India and Sahoo et al (2010) for China, who find a positive effect of capital formation on economic growth. Although the positive effect of capital on economic development has been well documented in the literature, surprisingly, the positive effect of a negative shock in capital formation on economic growth is found in India.…”

Section: Cointegration Resultssupporting

confidence: 82%

“…Increased life expectancy and a lower fertility rate due to an ageing population are accepted as the most important demographic factors that reduce the number of young workingage people participating in the total labour force, which explains this insignificant effect (Yenilmez, 2015). This reduced participation further increases the proportion of the older people 16 The role of capital formation in economic growth and development has been well established in the field of macroeconomics (Aschauer, 1989;World Bank, 1994;Sahoo and Dash, 2012;Sahoo et al, 2010). in the labour force and thereby limits the growth of the total labour supply in the economy. Such a negative shock in the labour force does not have any effect on economic growth, which may be due to the increasing retirement age in India.…”

Section: Cointegration Resultsmentioning

confidence: 99%

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Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

et al. 2017

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This paper investigates the asymmetric relationship between energy consumption and economic growth by incorporating financial development, capital and labour into a production function covering the Indian economy from 1960Q 1 -2015Q 4 . The nonlinear autoregressive distributed lag bounds testing approach is applied to examine the asymmetric cointegration between the variables. An asymmetric causality test is also employed to examine the causal association between the considered variables. The results indicate cointegration between the variables in the presence of asymmetries. The asymmetric causality results show that only negative shocks in energy consumption have impacts on economic growth. In the same vein, only negative shocks in financial development have impacts on economic growth. By contrast, symmetrically, capital formation causes economic growth. Finally, over the study period, a neutral effect exists between the labour force and economic growth in India. The implications of these results for growth policies in India are also discussed.Keywords: Financial Development, Energy, Growth, India, Asymmetries JEL classification: O13 Acknowledgements: We would like to thank the editor, Professor Richard Tol (University of Sussex, Brighton, UK), as well as the three anonymous reviewers, for their valuable comments and suggestions that helped us improve our paper significantly. We also thank the participants at the 7 th International Research Meeting in Business and Management (IPAG, Nice, France, 11-12 July 2016). We are also grateful to Jawad Kazmi for his technical assistance. The authors' are responsible for any remaining errors or shortcomings. IntroductionThis study uses quarterly data to investigate the relationship between energy consumption and economic growth in India over the 1960-2015 period. Financial development (measured by domestic credit to the private sector), 1 capital formation and labour force 2 are also included in the Cobb-Douglas production function. This study's main contribution to the existing literature on the energy-growth nexus concerns its examination of the potential asymmetric relationship between the variables. Taking this asymmetry into account is important because a positive or negative variation on one variable does not have the same impact on the other variable. The existence of an asymmetric relationship between two variables can be caused by numerous factors, one of which concerns the complexity of economic systems and the mechanisms that generate the variables under study. This complexity may induce various channels through which one variable affects another. In our case, the relationship between energy consumption and economic growth has been found to be very complex because previous studies have shown four possible impact channels: the growth, conservative, feedback and neutrality hypotheses. 3 On the one hand, the relationship between energy consumption and financial development can also be very complex because numerous impact channels can exist between them...

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Section: Cointegration Resultssupporting

confidence: 82%

Section: Cointegration Resultsmentioning

confidence: 99%

Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

et al. 2017

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“…Following Calderón and Chong (2009) and Sahoo et al (2010), the indicators used to represent infrastructure quantity-related measures for the transport sector were freight air transport, air transport passengers carried, and the length of the total roads network. For quality measures of infrastructure, paved roads were used as a proxy.…”

Section: Impact Of Infrastructure On Economic Growthmentioning

confidence: 99%

The Impact of Infrastructure on Trade and Economic Growth in Selected Economies in Asia

Ismail

Mahyideen

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel.:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org © 2015 Asian Development Bank Institute ADBI Working Paper 553 Ismail and Mahyideen AbstractInfrastructure plays a key role in facilitating trade, especially since recent trade liberalization in Asia has resulted in significant tariff reductions. This study quantifies the impacts of both hard and soft infrastructure on trade volume for exporters and importers in the region as well as on various economic growth indicators.Results demonstrate that improvements in transport infrastructure (i.e., the road density network, air transport, railways, ports, and logistics) have resulted in increased trade flows. Information and communications technology (ICT) infrastructure has also enhanced trade, as the numbers of telephone lines, mobile phones, broadband access, internet users, and secure internet servers are found to have positive trade effects for both exporters and importers in Asia. Thus, although more attention has traditionally been given to hard infrastructure, the impact of soft infrastructure on trade flows must also be more thoroughly examined.

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“…Egert et al (2009), Sahoo et al (2010, Jan et al (2012) in their research suggest that there is a positive relationship between the availability of infrastructure and economic growth with a per capita income approach. Seneviratne and Sun (2013) in their work on infrastructure and income distribution in the ASEAN-5 show that better infrastructure, in terms of quality and quantity, will reduce income inequality, while the relationship between investment and income distribution is weak.…”

Section: Introductionmentioning

confidence: 99%

Infrastructure, economic growth and inequality in Indonesia land borders

Prasetyo¹,

Priyarsono²,

Mulatsih³

2013

ejem

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The purpose of this study is to analyze the impacts of infrastructure on economic growth and inequality in Indonesia land borders. Using static panel data regression and panel two stage least square (2SLS) estimation methods, this study shows that social infrastructure can raise per capita income. The social infrastructures being discussed are number of high schools and number of health facilities. Telecommunication facility can also raise per capita income. In addition, income inequality is found to be positively influenced by income per capita growth and industry sector laborer. It also suggests that infrastructure has indirect relation with income inequality through per capita income.Keywords: Land borders, infrastructure, economic growth, inequality JEL classification numbers: C23, C36, O15, O40, O53, I30, R11 DOI: http://dx.doi.org/10.20885/ejem.vol5.iss2.art3 Abstrak Tujuan penelitian ini adalah untuk menganalisis dampak infrastruktur terhadap pertumbuhan ekonomi dan ketimpangan di perbatasan darat Indonesia. Menggunakan metode estimasi regresi data panel statis dan panel two stage least square ( 2SLS), penelitian ini menunjukkan bahwa infrastruktur sosial dapat meningkatkan pendapatan per kapita. Infrastruktur sosial yang dibahas adalah jumlah sekolah tinggi dan jumlah fasilitas kesehatan. Fasilitas telekomunikasi juga dapat meningkatkan pendapatan per kapita. Selain itu, ketimpangan pendapatan ditemukan secara positif dipengaruhi oleh pertumbuhan pendapatan perkapita dan buruh sektor industri. Paper ini juga menunjukkan bahwa infrastruktur memiliki hubungan tidak langsung dengan ketimpangan pendapatan melalui pendapatan per kapita.

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Infrastructure development and economic growth in India

Cited by 165 publications

References 34 publications

Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

The Impact of Infrastructure on Trade and Economic Growth in Selected Economies in Asia

Infrastructure, economic growth and inequality in Indonesia land borders

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