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Modelling the Nexus between transport infrastructure and economic growth in India

Author

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  • Rudra P. Pradhan

Abstract

The paper explores the Nexus between transport infrastructure and economic growth in India over the period 1970-2007. Using cointegration and error correction model (ECM), the paper finds a unidirectional causality from transport infrastructure to economic growth. It also finds a unidirectional causality from transport infrastructure to gross capital formation and then bidirectional causality between economic growth and gross capital formation. The paper at the end suggests increasing transport infrastructure along with gross capital formation will lead to more economic growth in India. Therefore, a suitable transport policy should be retained to boost economic growth and to maintain sustainable economic development in the country.

Suggested Citation

  • Rudra P. Pradhan, 2010. "Modelling the Nexus between transport infrastructure and economic growth in India," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 11(2), pages 182-196.
    • Handle: RePEc:ids:ijmdma:v:11:y:2010:i:2:p:182-196
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    Citations

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    Cited by:

    1. Maparu, Tuhin Subhra & Mazumder, Tarak Nath, 2017. "Transport infrastructure, economic development and urbanization in India (1990–2011): Is there any causal relationship?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 319-336.
    2. Yuee Gao & Xin Zou & Rujia Chen & Yanli Ma & Chengjiang Li & Yaping Zhang, 2020. "Freight Mode Coordination in China: From the Perspective of Regional Differences," Sustainability, MDPI, vol. 12(7), pages 1-24, April.
    3. Pradhan, Rudra P., 2019. "Investigating the causal relationship between transportation infrastructure, financial penetration and economic growth in G-20 countries," Research in Transportation Economics, Elsevier, vol. 78(C).
    4. Maparu, Tuhin Subhra & Mazumder, Tarak Nath, 2021. "Investigating causality between transport infrastructure and urbanization: A state-level study of India (1991–2011)," Transport Policy, Elsevier, vol. 113(C), pages 46-55.
    5. Jayanthakumaran, Kankesu & Verma, Reetu & Liu, Ying, 2012. "CO2 emissions, energy consumption, trade and income: A comparative analysis of China and India," Energy Policy, Elsevier, vol. 42(C), pages 450-460.

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