Economic Growth In India Research Articles

Relationship between justice and economic growth: the effects of rule of law and democracy

ABSTRACT This study analyses the effects of justice on economic growth. In this context, the study investigates the impact of justice on per capita income in 43 middle-income countries between 2005–2021 with Parks-Kmenta, Beck-Katz estimators and the extended mean group estimator (AMG). Rule of law and democracy variables are used as justice indicators. National income per capita is used as an indicator of economic growth, and national income, fixed capital investments, fertility rates, public expenditures, education expenditures, life expectancy and openness to internationalization are used as control variables. The findings show that the rule of law has a positive effect on per capita GDP in Albania, Armenia, Ecuador, Jordan, Malaysia, North Macedonia, South Africa, Thailand and El Salvador. Democracy only has a positive effect on GDP per capita in Turkey. The study contributes to the limited literature on the relationship justice and economic grow. It differs from the literature by analysing the effects of the rule of law and democracy both on a country group basis and country-specific effects.

A Comprehensive Study on the Effects of Microfinance Institutions’ Activities on Economic Growth of India

India has supported social banking for a long time. Policy directions to rapidly expand rural branches, mandate credit allocations for priority sectors (including agriculture), deliver large subsidy oriented credit programmes to serve marginal communities and poor households and control interest rates have been tried for over 35 years. For these purposes, microfinance industry is set to reach new heights. With superlative growth numbers in a period of economic downturn, the sector has come to attention of a wider range of investors. The rapid growth of the microfinance sector in the last few years has completely changed its complexion and nature. The growth has transformed microfinance: from being a sub-set of the development sector it has become a sub-set of the financial services industry. In the last two years competition amongst microfinance institutions (MFIs) as well as with the Self Help Group (SHG) movement has emerged India. This paper discusses the role of microfinance industry in country‟s economic growth in terms of its GDP. It also discusses the changed scenario in the competitive environment and the issues in microfinance institutions. Karl Pearson‟s coefficient of correlation is used to determine the role of microfinance in country‟s growth, which state a very high correlation between these two.

IMPACT OF VOCATIONAL EDUCATION ON ECONOMIC GROWTH: AN ANALYSIS OF THE INDIAN ECONOMY

Vocational education can be seen as an important tool in leveraging India’s demographic dividend. Given the labor surplus in terms of the young population, it is important to examine how vocational education and training can serve as a critical driver of economic growth. This study aims at examining the impact of vocational education and training on economic growth in India, using the framework of the augmented Solow growth model by decomposing human capital into vocational education, along with primary, secondary and higher education. Using an ARDL model based on the annual data from 1990 to 1991 and 2019 to 2020, the study analyzes the short-run and long-run impact of vocational education. The results indicate that in the case of India, the impact of vocational education on economic growth is both a short-run and long-run phenomenon exhibiting a stable positive relation. Other control variables used in this study, such as Investment, Population, Openness and Inflation are found with a significant impact on economic growth. The study suggests that it is necessary to upgrade vocational education programs to create high-quality workers with a view to improving productivity and macroeconomic outcomes in India.

Income level as a differentiating factor in assessing the impact of migration on economic growth

Aim. To study the nature of the impact of migration on economic growth depending on the level of gross domestic product (GDP) per capita and the direction of migration flows.Objectives. Study of theoretical approaches to the research of the impact of labor migration on economic growth; analysis of factors that differentiate the assessment of the impact of migration flows on economic growth indicators; collection and analysis of statistical information for the development of econometric models for assessing the impact of migration on economic growth.Methods. The authors used general scientific methods of research, such as deduction, analysis, synthesis. Statistical methods of data analysis were applied, linear regression models were built.Results. The research shows that the impact of migration on economic growth in countries with different levels of GDP per capita is due to different factors. For developed economies, the positive factors of the impact of immigration on economic growth are replenishment of scarce labor resources; improvement of labor force quality due to structural changes caused by the transition of the permanent working-age population to new professional fields. For countries with a low level of GDP per capita we can identify a number of positive factors of the impact of emigration (with a negative balance of migration growth) on economic growth. In particular, the outflow of excess labor force creates conditions for reducing unemployment; remittances of migrants support effective demand in the consumer market, contribute to the development of the banking system and investment in the country of origin; the expansion of social ties leads to the development of human capital, increasing the potential for innovation.Conclusions. The value of correlation coefficients in the constructed regression models indicates that there is a weak correlation between the variable characterizing the volume and nature of migration in the country (the ratio of migration balance to population) and the variable characterizing economic growth (GDP per capita at purchasing power parity) only for the group of high-income countries. There is little statistical dependence of these variables for other groups of countries. With regard to econometric modeling of the impact of migration on economic growth, this means that it is necessary to develop separate models for each group of countries depending on the level of GDP per capita and the direction of migration flows.

Higher Education and Economic Growth Nexus: Evidence from India

The study attempts to explore the causal relationship shared between Indian economic growth and higher education sector. Time series data for the period 1980-81 to 2021-22 has been considered for the analysis by making use of Auto Regressive Distributive Lag Model.

THE RELATIONSHIP BETWEEN FDI AND ECONOMIC GROWTH IN INDIA. A TIME SERIES APPROACH

Foreign Direct Investment (FDI) has gained importance after the second world war. In broader sense Foreign Direct Investment incorporates the establishment of up to date and advanced facilities, mergers and acquisitions, investing the profits earned from other overseas business activities, providing loans to other companies etc. In narrow sense the Foreign Direct Investment means investment in the country other than the investors own country. FDI can be better understood by studying the real reason that why the companies have shown interest in investing abroad rather than exporting and outsourcing their products to domestic firms. In due course of time many theories and approaches were developed to explain FDI. Although several researchers have tried to explain the phenomenon of FDI, we cannot say there is a generally accepted theory, every new evidence added some new elements and criticism to the previous ones. FDI in India is playing a noticeable role in the growth and development of the country. India is one of the important countries of the world which is able to receive substantial amount of FDI. The present study has made an effort to see the relationship between the FDI and Economic growth in India. GDP has proxies for economic growth. First the Johansen cointegration test result shows the long run relationship between variables and the Granger causality test result exhibits that there is unidirectional Granger causality between FDI and GDP. Next the Multiple Regression model result presents that the estimated coefficients on FDI & exports have a positive relationship with GDP. Therefore, it is statistically revealed that FDI and Exports are instrumental in influencing the level of economic growth in India. India is having certain drawbacks like Weak infrastructure, Complicated tax structure, Restrictive labor laws, Bureaucracy and Corruption. Unless and until these challenges are met with, India will never compete with China regarding FDI inflows. KEYWORDS: Foreign Direct Investment, Gross Domestic Product, Economic Growth.

Reassessing the role of technology for economic growth: A comparative study of Asian developing economies

The role of technology in stimulating economic growth needs to be reexamined considering current heightened economic conditions of Asian developing Economies. This study conducts a comparative analysis of technology proxied by R&D expenditures alongside macroeconomic variables crucial for economic growth. Monthly time-series data from 1990 to 2019 were analyzed using a vector error correction model (VECM), revealing a significant impact of technology on the economic growth of India, Pakistan, and the Philippines. However, in the cases of Indonesia, Malaysia, Thailand, and Bangladesh, macroeconomic indicators were found more crucial to their economic growth. Results of Granger causality underlined the relationship of R&D expenditures and macroeconomic variables with GDP growth rates. Sensitivity analyses endorsed robustness of the results which highlighted the significance and originality of this study in economic growth aligned with sustainable development goals (SDGs) for developing countries.

AN ANALYSIS OF GST IMPLEMENTATION AND TRENDS IN REVENUE COLLECTION FROM 2017-18 TO 2023-24

India’s Goods and Services Tax (GST), implemented on July 1, 2017, revolutionized the country's indirect tax system by replacing a complex array of taxes with a unified consumption tax. This study analyzes the implementation, features, and trends of GST from fiscal year 2017-18 to 2023-24, utilizing secondary data from the Economic Survey of India 2023-24. The total GST revenue has shown significant growth, rising from ₹5,39,601 crores in 2017-18 to ₹15,18,127 crores in 2023-24. The GST structure operates under a dual system, with Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) being key components, alongside the Integrated Goods and Services Tax (IGST) for inter-state trade. High-contributing states like Maharashtra and Karnataka have strengthened their positions, while states like Himachal Pradesh and Uttarakhand face challenges. The analysis also reveals fluctuations in revenue due to the COVID-19 pandemic, with a robust recovery in subsequent years. Key findings underscore the need for targeted interventions in lower-performing regions, improvements in tax administration, and policy adjustments to address the declining share of cess. This research highlights the pivotal role of GST in enhancing tax compliance and broadening the tax base, laying the groundwork for sustainable economic growth in India. KEY WORDS: Goods and Services Tax (GST), Tax Compliance, Indirect Taxation, Economic Growth, Public Finance

A multi-criteria measurement and assessment of human capital development in EU-27 countries: A 10-year perspective

In today's global economy and across various types of organizations, human capital is a fundamental resource that determines their existence and development. This is particularly important in the context of ongoing climate-technological transformation processes based on innovative solutions. The role and importance of personal resources are well understood in the EU-27 countries, which base their future on competent human capital. This paper addresses this critical and timely topic by assessing human capital in the EU-27 countries over the period 2013–2022. The research aims to evaluate these countries' human capital potential, distinguishing between the "new EU-13" and the "old EU-14" countries, and to measure the effectiveness of its development during the study period. A crucial part of the research was to determine the impact of human capital on selected indicators of economic growth, innovation, and sustainable development. To achieve these objectives, an original research methodology was developed, employing the COPRAS method to determine the human capital assessment index and the equal weights and CRITIC methods to establish the weights of indicators characterizing the studied human capital. The impact assessment of this capital, along with innovation and unemployment on economic growth, was conducted using an econometric model. Meanwhile, correlations between the human capital assessment index and the indicators characterizing innovation, economic growth, and sustainability were analyzed using Spearman's non-parametric tests. The results show significant variation in human capital between the EU-27 countries and between the "old EU-14" and "new EU-13" groups. The Netherlands, Denmark, and Sweden achieved the best results in terms of human capital development, while Greece, Romania, and Bulgaria had the weakest outcomes. In contrast, Cyprus, Malta, and Portugal recorded the greatest progress during the review period. These results offer extensive opportunities for multidimensional inference and can be used to assess the current state of the EU-27 economy. They should also inform the development of strategies for individual countries and the EU-27 as a whole.

A Community Response to Tourism Focusing on the Home Stay Program in Goriganga Valley Munsyari , Pithoragarh Uttarakhand , India

In most mountainous regions of the world, people have limited possibilities for generating income. Agriculture forestry, animal husbandry Home stay back bone of local economics, The Himalayan Mountain in all its length adnbreath has been a famous destination as well as international tourist. Its snowy peaks, glaciers, passes, alpine grasslands, its wilderness, might river and many there unsurpassed natural constructs have been inspiring the adventure and explorers. The tourism industry in India has grown enormously and is becoming a major source of economic growth in India. Is paper focuses on studying the possibilities of home- stay programs and the willingness of the residents in Uttarakhand on such programs. Considering the tourism perspective of India, home-stay programs are rather unusual. Only Ladakh Autonomous Region in Jammu and Kashmir are the two examples. is research is a combination of qualitative and quantitative approaches through household survey, an average treatment, community economic development analysis, observations, interpretative analysis, and ethnographic understanding of Johar valley, Munsyari Pithoragarh District, Uttarakhand. E results show that the tourism industry has not brought economic benefits for the households involved in the industry; however, this could be owing to the community not being involved in tourism development. In addition, most of the villagers considered that the home-stay program could create opportunities for jobs and improve the income of the local community. In the mountain tourism industry, tourist guides, dhabawals are the main successful tourism operations. In the study area, we found private entrepreneurship, but the home-stay program has not yet been developed. is research paper expects to assist making decisions to initiate an extensive home-stay program under the “Endogenous Tourism” program with some re-evaluations of not only the previously mentioned village of Uttarakhand, but also other remote locations in India, considering the colorful and cultural-rituals of rural living in India.

Impact of Urbanization on Air Quality in Largest Сities of Kazakhstan

In the context of the rapid growth of urbanization and industrialization of Kazakhstan, the air pollution problem in large cities is becoming increasingly urgent. It is essential to assess the impact of economic growth on the environmental situation, as this allows us to develop strategies to improve air quality and ensure sustainable development. Thus, this study examines the impact of urbanization and economic growth on air pollution across four major cities in Kazakhstan from 2016 to 2022. Statistical methods were used to analyze the relationship between pollution levels and economic indicators, including gross regional product (GRP) and industrialization. The study covers the period from 2016 to 2022 and is based on data on concentrations of critical pollutants collected from the National Bureau of Statistics of the Republic of Kazakhstan. National monitoring sources collected air quality data, including PM2.5, PM10, SO2, NO2, and CO concentrations. Statistical analyses, as correlation and regression models, were applied to establish relationships between pollution levels and economic growth indicators. The study found significant correlations between economic activities and air pollution levels. In Almaty, a 10% increase in GRP corresponds to a 5% increase in pollutant concentrations. Almaty experienced the highest average PM2.5 concentration at 42 µg/m³, exceeding permissible norms by 20%. Other cities showed varied levels of pollution influenced by specific economic and industrial profiles. The results underscore the pressing need for effective urban management and strategic policy-making to mitigate the adverse effects of economic development on air quality.

Volatility Index, Exchange Rate, Economic Growth On Stock Indexes

This study aims to analyse the effect of economic growth on the stock price index in Indonesia and Malaysia during the COVID-19 pandemic. Using regression analysis, this study measures the relationship between economic growth and the stock price index, focusing on both countries' fiscal and monetary policies. The results show that economic growth has a positive and significant effect on the stock price index in Indonesia and Malaysia, reflecting investors' optimism towards the economic outlook. Economic stimulus policies and monetary measures the government and central bank take are essential in supporting economic recovery and stock market stability. This research provides important insights for investors in making more informed investment decisions based on economic growth indicators. This study also emphasises the importance of responsive and coordinated economic policies to support economic growth and stock market stability in times of crisis.

Assessing the Economic Contributions of Islamic and Conventional Banks in Asian OIC Countries

This study explores the differential impacts of Islamic and conventional banks on economic growth within Asian member countries of the Organization of Islamic Cooperation (OIC). Utilizing a dataset of 1,846 observations from eight OIC countries, panel regression techniques are employed to assess the effects of these banking models on key economic growth indicators: GDP growth and GDP per capita growth. The analysis reveals that Islamic banks have a significantly greater positive impact on both GDP growth and GDP per capita growth compared to conventional banks. The findings highlight that Islamic banking principles, such as risk-sharing and asset-backed financing, contribute to a more stable and inclusive financial environment, enhancing overall economic development. The results underscore the importance of promoting Islamic banking alongside conventional banking to foster sustainable economic growth. Policymakers and financial regulators should consider incorporating the strengths of Islamic banking into regulatory frameworks to improve financial stability and resilience. Future research should investigate the long-term impacts of Islamic and conventional banking on economic growth across different regions and economic conditions, as well as the interplay between regulatory environments and financial sector performance.

Advocating ‘eco-village’ for sustainable development: The dayalbagh way of life

<p class="MsoNormal" style="line-height: 120%; layout-grid-mode: char; mso-layout-grid-align: none; punctuation-wrap: simple; margin: 12.0pt 0cm 6.0pt 0cm;"><span lang="EN-US" style="font-size: 10.0pt; line-height: 120%; mso-fareast-font-family: 'Times New Roman'; color: black; mso-themecolor: text1; mso-font-kerning: 0pt; mso-fareast-language: JA;">India as a country has its identity deeply rooted in its rural culture. Whether we talk about agriculture, tradition, food, art, or music, the rural society of India has always proven itself a representation towards the national front. The Dayalbagh society in Agra city of Uttar Pradesh (India) is engaged to strengthen the nation’s roots through education, technology, sustainability, management, innovation, research, and most importantly, selfless service. The major potential for economic growth in India lies in the development of its rural areas. This article is an attempt to spot the outlook of a society that has its inception for the past 100 years and is continuously making efforts to glorify the message of sustainable development, environmental protection, and rural development through its effective plans in designing an eco-village-based society. Based on the narrative description approach, this article highlights the efforts and strategies employed by the Dayalbagh society to promote sustainable development, environmental protection, and rural development. The focus is on how society integrates education, technology, sustainability, management, innovation, research, and selfless service to achieve these goals. The Dayalbagh society’s initiatives have taken into consideration economic, social, environmental, and human aspects, demonstrating significant contributions towards sustainable development and rural empowerment. The philosophy and successful practices of the Dayalbagh society can inspire and guide others in developing action plans for effective environmental protection and sustainable rural development. By adopting such approaches, other organizations, decision-makers, and individuals can contribute to the overall growth and well-being of rural areas in India.</span></p>

The Impact of Political Stability on Regional Economic Growth in India: A Comparative Study of State-Level Development

This study explores the intricate dynamics of Indian politics, focusing on the interplay between historical legacies, electoral processes, and socio-economic factors shaping contemporary governance. As the world's largest democracy, India offers a unique perspective on political evolution influenced by colonial history, diverse cultural contexts, and rapid economic changes. The analysis covers the historical foundations of India's political system, the impact of major political parties and leaders, and the role of elections in determining policy outcomes. Key areas of focus include the influence of caste and religion on voting behavior, the effects of political campaigns and media, and the evolution of political alliances. The study also addresses current challenges such as corruption, governance inefficiencies, and the impact of globalization on domestic politics. Findings indicate that while India's democratic institutions are resilient, significant disparities in political representation and governance persist, highlighting the need for reforms to enhance transparency and address socioeconomic divides. This examination provides valuable insights into the complexities of democratic governance in a diverse and rapidly evolving society. Additionally, the study underscores the role of regional politics and local governance structures in shaping national policies. It highlights how regional parties and state-level leaders influence broader political trends and contribute to the complexity of India's federal system. By incorporating these perspectives, the analysis offers a comprehensive understanding of how local and national forces interact, shaping the overall political landscape of India

Green Growth in India: Balancing Economic Development with Environmental Sustainability

Rapid economic growth in India has resulted in major urbanization, industrialization, and the growth of the middle class, but it has also seriously impacted the environment by causing pollution, deforestation, and a rise in greenhouse gas emissions. The idea of "Green Growth" has gained importance in addressing these issues by advocating for a development strategy that strikes a balance between the requirements of the economy and environmental sustainability. The term "green growth" is an economic approach that aims to increase economic output while protecting the environment and maintaining natural resources. The focus is on "decoupling" economic growth from environmental deterioration, which permits economic growth to occur without the corresponding increase in pollution and depletion of resources. This strategy calls for implementing sustainable industrial and agricultural practices, increasing energy efficiency, and encouraging clean and renewable energy sources. Green Growth also requires strong policy frameworks that support sustainable practices and incentivize green investments.

The Relationship between Tourism, Financial Development and Economic Growth in MP

Tourism and economic growth in India from 1960 to 2014 are examined in this research, takinginto account the relative importance of financial development in that time period. It has been shown thatboth the long-term and short-term development of India's economy is enhanced by inbound tourism. Alsofound is a long-term one-way Granger causality between tourism and economic development.Furthermore, the outcomes of the Granger causality test indicated a one-way association between twovariables ranging from GDP growth to tourist development. The findings support the rise of economicdriventourism in MP.

A Spearman Correlation Approach To Interrelations Between Population And Economic Sectors Of The Indian Economy

The new economic reforms, commonly referred to as LPG (Liberalization, Privatization, and Globalization), were implemented with the objective of transforming the Indian economy into a globally competitive one. The economic growth of India has generated a business environment that is facilitating rapid economic expansion, despite occasional fluctuations. There have been studies on the structural transformation of Indian Economy pre and post-liberalization in the past research. Few researchers have also emphasized the causes and consequences, pros and cons and impact of these changes on the growth of Indian Economy. However, studies on the correlation between population growth and the growth of economic sectors of Indian economy have found very scarce space in academic research. Hence the researcher in this paper has provided a Spearman correlation approach to analyze the interrelations between population and economic sectors of the Indian Economy. The researcher has found a very strong negative correlation between Agriculture, forestry, fishing, value added (% of GDP), and population of India from 1961 -2022. However there is a moderate positive correlation between the industry (involving construction), value added (% of GDP), and population of India from 1961-2011. The researcher has also found a strong positive correlation between Services, value added (% of GDP), and the population of India from 1961-2022.

Resilience of developing economies to external shocks: empirical evidence from CEMAC countries

PurposeThis study aims to investigate the effects of three significant events – the 1994 CFA currency depreciation, the 2008 Global Financial Crisis (GFC), and instances of political coups – on the relationships between FDI inflow, economic growth, and governance within the Central African Economic and Monetary Community (CEMAC) countries. It seeks to evaluate how these events influence the linkages between FDI, economic growth, and governance, to aid the understanding of responses to external shocks and internal political disruptions.Design/methodology/approachThe study employs a panel Vector Autoregression (VAR) analysis using data from 1990 to 2019 by exploring the dynamic relationships among FDI inflow, economic growth, and aggregate governance indicators within the CEMAC sub-region. The analysis was conducted utilizing the EViews software package, facilitating robust examination through the introduction of the Bayesian VAR to facilitate the interpretation of parameters and the data.FindingsThe results indicate that, contrary to initial hypotheses, growth and governance do not emerge as determinants for attracting FDI within the CEMAC sub-region. However, governance stands out as a crucial determining factor for economic growth. Furthermore, the study suggests that the 1994 CFA currency depreciation, the 2008 GFC, and instances of political coups did not significantly impact FDI, growth, and governance within these countries. Despite the potential vulnerability of the CEMAC countries to external shocks, the effects of these events on the dynamics of FDI, economic growth, and governance were not apparent. Notably, political instability, as evidenced by coups, emerges as a significant factor shaping the interactions between FDI, growth, and governance in CEMAC countries.Research limitations/implicationsThese findings have significant implications for policymakers and stakeholders in the CEMAC countries. Understanding that governance has a central role in driving economic growth places great importance of prioritizing governance reforms to foster sustainable development. Moreover, the identification of political instability as a key determinant affecting the relationships between FDI, growth, and governance emphasizes the need for political stability and effective governance structures to attract and sustain FDI inflows as well as foster economic growth.Originality/valueThis study contributes to the existing literature by offering insights into the linkages between FDI, economic growth, governance, and external shocks within the CEMAC sub-region. By examining the specific impacts of the 1994 CFA currency depreciation, the 2008 GFC, and political coups on these dynamics, the study provides original perspectives on the resilience of CEMAC countries to external and internal disruptions.

AN IMPACT ANALYSIS OF TOURISM AND ECONOMIC GROWTH IN INDIA

The tourism sector exerts a substantial and diverse influence on India's economic growth. Renowned for its rich cultural heritage, historical landmarks, and natural splendor, India has emerged as a favored destination for both domestic and international travelers, drawing millions annually. The study aims to highlight the following factors: per capita GDP, international tourist receipts, trade openness, and gross capital formation. The study employs the Heteroscedasticity Test, Normality Test, Breusch-Godfrey Serial Correlation LM Test, and CAGR (Compound Annual Growth Rate) to examine the contribution of tourism to economic growth in India, comparing major countries from 2003 to 2020. The paper aims to provide an impact analysis of the relationship between economic growth and tourism in India, examining the multifaceted dimensions of this symbiotic relationship.