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Economic Growth in India Revisited

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  • Sushil Kumar Haldar

    (Sushil Kumar Haldar, Reader, Department of Economics, Jadavpur University, Kolkata-700032. Email: sushil.haldar@gmail.com/ haldarsk2002@yahoo.co.in.)

Abstract

This article tries to examine the relevance of the three distinct types of the growth models, namely, physical capital accumulation-led growth, export-led growth and Lucas-type human capital accumulation-led growth in India taking a long-time series data from 1950–51 to 2003–04. Employing the Johansen's cointegration and error correction model, we find that human capital investment plays a crucial role both in the long run as well as in the short run. The export-led growth hypothesis is partially valid whereas the physical capital investment-led growth appears to be insignificant in our findings.

Suggested Citation

  • Sushil Kumar Haldar, 2009. "Economic Growth in India Revisited," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 10(1), pages 105-126, January.
    • Handle: RePEc:sae:soueco:v:10:y:2009:i:1:p:105-126
    DOI: 10.1177/139156140901000105
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    Cited by:

    1. Sulekha Hembram & Souparna Maji & Sushil Kr. Haldar, 2019. "Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 184-204, September.
    2. Gargi Bhattacharya & Sushil Kr. Haldar, 2015. "Does demographic dividend yield economic dividend? India, a case study," Economics Bulletin, AccessEcon, vol. 35(2), pages 1274-1291.
    3. Parika, Ayushi & Singh, Bhanu Pratap, 2020. "How Does Human Capital Affect Economic Growth in India? An Empirical Analysis," MPRA Paper 102428, University Library of Munich, Germany.
    4. Sulekha Hembram & Sushil Kr. Haldar, 2020. "Is India experiencing health convergence? An empirical analysis," Economic Change and Restructuring, Springer, vol. 53(4), pages 591-618, November.
    5. Biru Paksha Paul & Anupam Das, 2012. "Export-led Growth in India and the Role of Liberalisation," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 6(1), pages 1-26, February.
    6. Bosede Comfort Olopade & Henry Okodua & Muyiwa Oladosun & Oluwatoyin Matthew & Ese Urhie & Romanus Osabohien & Oluwasogo Adediran & Olubunmi H. Johnson, 2020. "Economic Growth, Energy Consumption and Human Capital Formation: Implication for Knowledge-based Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 37-43.

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    More about this item

    Keywords

    JEL: O47; JEL: O53; JEL: C32; Aggregate Investment; Export; Human Capital Expenditure; Cointegration; Error Correction;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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