Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/227892
Authors: 
Basu, Deepankar
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 2020-01
Abstract: 
This paper reconsiders two questions relating to India's economic growth: structural breaks in growth and the impact of equipment investment on aggregate economic growth. First, statistical tests of structural change show that economic growth in post-independence India has witnessed four structural breaks: in 1964-65, in 1978-79, in 1990-91, and in 2004-05. However, substantial growth accelerations, i.e. increase of more than 1.0% per annum in the growth rate of per capita real GDP, occurred only at two points: 1978-79 and 2004-05. Second, to analyze the impact of equipment investment on growth, I use an ARDL bounds testing methodology. I find a positive and statistically significant long run positive impact of private investment in equipment and machinery on the growth rate of real GDP.
Subjects: 
India
economic growth
structural change
ARDL bounds testing
JEL: 
O11
O47
O53
Document Type: 
Working Paper

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