Economic Growth In India Research Articles

Empirical Analysis of the Relationship between Unemployment and Economic Growth in India: A Study Using Okun's Law

The study examines the correlation between real GDP and unemployment in India, utilising the Okun’s Law structure. Unemployment has been a critical challenge in various developing nations, demanding concerted efforts for mitigation. Okun's Law stands as a pivotal economic principle aimed at comprehending the intricate relationship between unemployment and its consequential impact on a country's Real GDP growth rate. Therefore, this research paper aims to primarily investigate the administration of Okun's Law within the context of India's economy spanning a three-decade period from 1992 to 2022. The central focus revolves around assessing whether Okun's Law remains empirically valid within the Indian economic landscape over this extended timeframe. Additionally, the study aims to look forth and understand the specific periods or instances where deviations from the expected relationship occurred and also seeks to elucidate the underlying factors contributing to these deviations. Utilising empirical data and rigorous statistical analysis, this study undertakes a comprehensive examination of India's economic performance vis-à-vis Okun's Law. The analysis extends to explore the divergence from this economic principle during certain temporal periods, aiming to uncover the nuances and factors behind these deviations

The Correlation between Economic Convergence and Health Indices in Developed Countries.

Economic convergence signifies diminishing income disparities among global or regional economies and their eventual disappearance. It is also linked to economic growth and key health indicators. We aimed to assess the association between economic convergence and key health indicators in developed countries called G7 (USA, UK, Germany, France, Italy, Japan, and Canada). We examined G7 health and economic indicators from 2000 to 2021 using panel data analysis. We compared balanced and unbalanced panel datasets to address missing data and applied suitable methods to handle missing health indicators. Little's MCAR test (X 2 = 3.2872, P - value = 0.3494) confirmed random missing data in the unbalanced panel, enabling us to impute missing values as missing observations were below 5%. Unit root tests on balanced and unbalanced panel data validated the health convergence hypothesis, showing no unit roots in economic growth rate, current health expenditure, and female and male population indicators (P<0.05). Interestingly, the hypothesis for hospital bed counts in the unbalanced panel, differing from the balanced panel, offers new insights into addressing incomplete health data. While G7 have economic similarities, their health indicators diverge (excluding hospital bed counts). Variations in health indicators stem from healthcare system structures, funding mechanisms, resource allocation, and health investments, even among economies of similar size. Therefore, G7 member states should develop tailored national health policies based on their specific circumstances and priorities, utilizing economic convergence data for effective health resource planning.

Corruption and Environmental Damage: Evidence from Panel Data in ASEAN-6

Environmental damage is a topic of great concern among researchers and receives special attention in global circles. One of the major contributors to environmental damage is the emission of greenhouse gases, such as carbon dioxide. In this research, the influence of corruption on carbon emissions in six ASEAN countries is investigated, using indicators of economic growth, renewable energy, and urbanization. The Fixed Effect Model is used as the method of analysis, and the research data used is from 1996 to 2019, based on its availability. The research findings suggest that there is an existence of Environmental Kuznets Curve (EKC) in the form of an inverted U relationship. Renewable energy has a negative effect, while urbanization has a positive effect on carbon emissions. Additionally, control of corruption has been found to have a positive effect on carbon emissions. Based on these findings, it is essential to promote maximum economic growth, use renewable energy, limit urbanization, and increase control of corruption to help mitigate carbon emissions and environmental damage.

On the Impacts of Government Size on Economic Growth in India: Some Evidence from Smooth Transition Autoregression Model

This article examines the threshold effects of government size (measured as a percentage share of government final consumption expenditure in GDP) on economic growth from a non-linear perspective. We apply a smooth transition autoregression (STAR) model to estimate the threshold level of government size and its impact on economic growth in India for the period spanning from 1971 to 2019. The empirical results reveal that the relationship between government size and economic growth is non-linear. The study finds a statistically significant positive relationship between the size of the government and economic growth below the estimated threshold level of government size of 10.45 per cent. Above the 10.45 per cent threshold level, government size has a deleterious impact on economic growth. The results also reveal that the transition from one extreme economic phase to another is gradual. The findings of our study recommend that policymakers can enhance India’s economic growth by restricting government size to the estimated threshold level or by reducing the size of the government when it lies well above the threshold level. JEL Codes: JEL H00, JEL E6, JEL E62

India's Odyssey to Sustainable Energy Triumph-Assessing the Impact of Access to Energy and Renewable Power in the Indian Electricity Sector

Purpose: The purpose of this paper is to comprehensively examine the challenges hindering India's sustainable energy development, focusing on access to electricity, competition within the energy market, and the pivotal role of technology transfer and energy storage in overcoming growth hurdles. Theoretical Reference: The theoretical framework revolves around the intersection of Indian legislation and energy access, emphasising the significance of competition law in fostering a fair and inclusive energy landscape. The paper also draws on the theoretical foundations of technology transfer and energy storage as catalysts for sustainable growth in the renewable energy sector. Method: The methodology involves an in-depth analysis of India's renewable energy sector, exploring the impact of monopolies, anti-competitive practices, and the rapid expansion of solar power facilities. The study considers the role of competition law, technology transfer, and energy storage as key components in navigating the challenges of sustainable energy development. Result and Conclusion: The results underscore the interconnected nature of technology, energy storage, and competition legislation in India's energy revolution. The conclusion highlights public policy imperatives, emphasising demand-side management, resolution of contractual disputes, and the imperative need for efficient and cost-effective energy storage systems. The paper concludes with a call for a policy framework encouraging private sector participation and capacity building in the power sector. Implication of Research: The implications of this research extend to shaping public policy imperatives in the electricity sector, emphasising the need for demand-side management, resolution of disputes, and a policy framework to promote private sector participation. The research highlights the significance of these imperatives in developing efficient and cost-effective energy storage systems and achieving 'Round the Clock' renewable power. Originality/Value: The originality and value of this research lie in its comprehensive examination of the interconnected challenges and solutions in India's renewable energy sector. The findings contribute to the discourse on public policy imperatives, technology transfer, and competition law, offering insights that can guide policymakers, regulators, and businesses in fostering a competitive, sustainable, and resilient energy system. The study provides valuable guidance for maximising the benefits of renewable energy, ultimately contributing to increased energy access, sustainability, and economic growth in India.

Dynamics of Economic Growth and Education in India: The ARDL Approach

To attain maximum benefits of the demographic dividend which India can enjoy due to its huge working-age pollution, it is crucial to have a highly educated and skilled labour force. In this context, the current analysis focuses on understanding the potential impact of education on the nation's economic well-being. The study attempts to examine the relationship between education and economic growth of India using time-series data from the period 1980-81 to 2019-20. The dependent variable is Real GDP per capita, while the independent variables include total labour force, gross capital formation and gross enrollment ratios at the primary, secondary, and higher education levels, with labour force and gross capital formation as control variables. The study employs the Autoregressive Distributed Lag (ARDL) methodology to explore the dynamics of the association among the concerned variables in short and long run. In the short run, gross capital formation and primary education show a positive and significant relationship with India's economic growth. ARDL Bounds test confirms the existence of a long run relationship existing between economic growth and the independent variables. Secondary and higher education are found to have statistically significant impact on economic growth of India in the long run which discloses the relevance of education for economic well-being of the nation. Consequently, it is recommended that the government focuses on promoting post-elementary education.

The Effects of External Debt on the Economic Growth of India during Various Crisis Periods: A Markov- Switching GARCH Model Approach

This article seeks to investigate the impact of the volatility of the external debt burden on the economic growth of India. The MS (Markov - Switching) - GARCH model is the cornerstone in studying the effects of external debt on the economic growth that is simulated herein. This article applies a MS - GARCH model that allows not only unobserved variables within an observed model but also uses a robust algorithm to reach strong optimization (convergence) through iteration in a dynamic system in the estimation procedure. This article considers the period from Q2 2004 to Q4 2022 with 74 sample observations. Considering various crises like the global financial crisis, the Euro crisis, and the COVID-19 pandemic that occurred during the study period, the results identify two regimes based on conditional volatility. One is the global financial recession period (regime-1) and another is the post-global financial recession period (regime-2). The findings show that the conditional volatility as well as the variance in the volatility of economic growth due to the external debt of India is much stronger in the global financial recession period (regime-1) than in the post-global financial recession period (regime-2). It implies that the Euro crisis and the COVID-19 pandemic are having less impact on external debts in India. The transition matrix indicates the greater probability of the economic growth rate settling down in regime 2 when it is already in regime 2, as it is considered to be a much calmer period. Finally, the results of the stable probabilities suggest that the economic growth rate of India is much more stable in regime 2 than in regime 1. This article puts forward relevant policy implications for coming out from the debt overhang scenario in India.

Does FDI in the Secondary and Tertiary Sectors Accelerate Economic Growth in India? : An Empirical Analysis

Does FDI in the Secondary and Tertiary Sectors Accelerate Economic Growth in India? : An Empirical Analysis

Dynamics of energy consumption, financial development, trade openness and economic growth in India: an autoregressive distributed lag bounds cointegration approach

Dynamics of energy consumption, financial development, trade openness and economic growth in India: an autoregressive distributed lag bounds cointegration approach

Banking Sector Performance and Economic Growth in India: An Empirical Study

Banking Sector Performance and Economic Growth in India: An Empirical Study

Is the Influence of International Oil Price Changes on Economic Growth Significant in India?

The changes in the price of oil by creating supply-side shocks, inflation risks, and exchange rate risks, generate havoc in the development process of oil-importing countries like India. In this perspective, this study examined the degree and direction of connection among the price of oil and economic growth in India while controlling for the influences of exchange rate, real interest rate, rate of inflation, net inflows of foreign direct investment, and trade openness. The work uses the auto-regressive distributed lag bounds test approach and provides evidence in support of the negative effect of oil price changes on the long-run growth of the Indian economy when net inflows of foreign direct investment and foreign exchange rate exert statistically significant negative effects on this relationship. However, trade openness has a statistically significant positive effect. It is further observed that this long-run relationship has a convergence tendency towards the equilibrium value through short-run adjustments, thereby making the estimated relationship stable. The implication is that international oil price fluctuations can be used to predict the country's long-run economic growth. Besides, a policy effort is required to promote alternative energy consumption at home to keep oil demand under control. Furthermore, trade policies are required to be revisited to boost exports by the country to accommodate the negative effects of increases in the price of oil at the international level on economic growth.

Empirical Analysis of Impact of Financial Inclusion on Economic Growth in India

Empirical Analysis of Impact of Financial Inclusion on Economic Growth in India

The Synergy among Exports, Foreign Direct Investment and Economic Growth in India: Auto Regressive Distributed Lag Bounds Testing Approach

The Synergy among Exports, Foreign Direct Investment and Economic Growth in India: Auto Regressive Distributed Lag Bounds Testing Approach

Study on Venture Capital Investments and its ability to stimulate Innovation and Spur Economic Growth in India

Study on Venture Capital Investments and its ability to stimulate Innovation and Spur Economic Growth in India

Deep Learning Based Detection of Toxic Mushrooms in Karnataka

Mushrooms are fungi that play significant roles in ecosystems, food, and medicine. However, distinguishing toxic mushrooms from non-toxic ones is challenging, as their visual characteristics can be misleading. Deep learning, a subset of artificial intelligence, offers a promising approach to detecting and classifying mushrooms based on their toxicity. By training deep neural networks on datasets of labelled mushroom images, it becomes possible to create models capable of accurately differentiating between toxic and non-toxic mushrooms. Mushrooms are fungi that play significant roles in ecosystems, food, and medicine. However, manually distinguishing toxic mushrooms from non-toxic ones is a challenging and time-consuming task. This research work is to help the local farmers and exporters to identify the difference between the toxic and the edible mushroom which will eventually boost production and will directly have an impact on the economic growth in India. This paper compared different deep learning algorithms such as Support Vector Machine (SVM), Resnet50, YOLO V5 and Alexnet, which have been found to be the most useful in classifying the mushrooms effectively as toxic and non-toxic respectively. The patterns in the images of the mushrooms have been predicted through the above classifiers. The validation techniques show SVM to be the most effective with an accuracy of 83%.

Forecasting Monthly Export Price of Sugarcane in India Using Sarima Modelling

Sugarcane is the primary agricultural industry that sustains and promotes economic growth in India. In 2018, the majority of India's sugarcane production, specifically 79.9%, was allocated for the manufacturing of white sugar. A smaller portion, 11.29%, was used to produce jaggery, while 8.80% was utilized as seed and feed components. A total of 840.16 million metric tonnes of cane sugar was shipped in the year 2019. The primary objective of this research is to determine the most suitable forecasting model for predicting the monthly export price of sugarcane in India. The input consists of a time series with 240 monthly observations of the export price of sugarcane in India, spanning from January 1993 to December 2013. The SARIMA approach was employed to predict the monthly export price of sugarcane and it is concluded that the SARIMA (0, 1, 1), (0, 0, 0)12 model is the best-fitted one by the expert modeler method. As a result, the fitted model appears to be adequate. The RMSE and MAPE statistics are used to analyze the precision of the model.

Moderating Effect of Public Debt on Protective Expenditure and Economic Growth of Nigeria

This study evaluated the moderating effect of public debt on productive expenditure and economic growth in Nigeria for the period of thirty one years, from 1993-2023. Ex-post facto research design was adopted. Administrative expenditure and transfer payment are proxies for protective expenditure while real gross domestic product is indicator of economic growth. The data used in this study were secondary data derived from the Central Bank of Nigeria Statistical Bulletin while public debt data was sourced from Debt Management Office Annual Reports. The study used multiple regression analysis. The regression result revealed that administrative expenditure has positive significant effect on economic growth but when moderated by public debt showed significant influence on economic growth in Nigeria. Meanwhile, transfer payment has no significant effect on economic growth but when moderated by public debt revealed an insignificant effect on economic growth in Nigeria. The study concluded that administrative expenditure affect economic growth while, transfer payment has no effect on economic growth. The study recommended that Government should direct more of its protective expenditure towards administrative expenditure as they accelerate economic growth. Also, proper management of public funds allocated to the administrative operations as they have the potential of raising the nation’s production capacity and providing employment for citizens in the country.

Modern Tax Trends and Economic Growth in a Turbulent World: Insights from Developed and Developing Economies

The article examines recent trends in tax level and structure changes within developed and developing economies in relation to economic growth. The study’s significance stems from increasing geo-economic turbulence and emerging risks in the global economy, necessitating fiscal regulation. The analysis spans the period from 2009, post the Great Recession, to the present day. We tested the hypothesis that discernible patterns could be identified through statistical analysis regarding the relationship between tax indicators (level and structure) and economic growth indicators. However, no such clear patterns were found. In essence, it cannot be definitively concluded that reduced tax levels and/or increased indirect tax shares do explicitly foster national economic growth. Tax impact on economic growth varies significantly across developed and developing economies, presenting a complex and nuanced picture. The nature and strength of this influence are largely shaped by the specific circumstances of each location and period. In order to identify their unique impact, counterfactual analysis is required. In the course of further research, it is important to consider, firstly, the increased fiscal activism of the post-pandemic period: in this case, the research outcomes may be different from those obtained for the period already examined. Secondly, considering the ongoing processes of geo-economic fragmentation, it is recommended to re-examine the influence of taxes on economic processes. This investigation should adhere to the evolving framework of new macro-regions worldwide, rather than the conventional dichotomy of developed and developing economies. Participants within these macro-regions, interconnected through supply and value chains, will need to work together to align their tax rules and policies for mutual benefits.

Assessment of the Impact of Compulsory Insurance on Ensuring Economic Growth (the Case of the RA)

In the framework of this study, we have studied the works of many international authors related to the identification of the connections between the insurance market and economic growth, after which we have carried out our analysis using the Granger causality test model. The relationships between compulsory insurance and economic growth of the RA, using annual data throughout 2011-2022, have been examined in this paper. During the research descriptive statistical analysis and econometric models have been applied. The significance of the insurance-growth relationship has been better understood thanks to this study, which also includes other methods used in recent scientific publications. The following findings are the outcome of the research. • In Armenia we have a high correlation between voluntary and compulsory insurance sectors and economic growth indicators. • The Granger test has demonstrated a one-way causal relationship between GDP and voluntary insurance and bidirectional causality between compulsory insurance premiums and GDP variables. As a result of this research, the positive consequences of the introduction of a new type of compulsory insurance in the processes of ensuring economic growth have been substantiated.

Forecasting methods for financial support of military capability during the democratisation

Background . The progressive exhaustion of Ukraine's economy due to the war, which, among other things, led to industrial, demographic, and environmental crises, forced the Government to look for reliable external sources of financial borrowing and material and humanitarian support as well as implementing efficient mechanisms of internal financial sources. During the first year of the Russian-Ukrainian war, international financial support, together with the monetary policy of the National Bank of Ukraine in terms of the emission of funds, was crucial to stabilising the stagnating economy. However, in the following years, the Government pursued an exceptional external and internal borrowing policy, which led us to identify the main bases for verification of the impact of financial support on the development and maintenance of an adequate level of Ukraine's military capability in the context of democratisation, – an essential requirement for Euro-Atlantic integration. The purpose of the article is to make predictions and provide practical recommendations for continuing the relatively successful policy of the Government of Ukraine and the National Bank of Ukraine to attract external and internal borrowing to fill the state budget, allocate funds for the needs of the Ministry of Defence of Ukraine and use financial resources efficiently to ensure national and economic security. The object of the study is the financial support of military capability, i. e. trust funds and Western aid. Methods . To achieve the research objective, we used the method of analysis and hypothesis formulation based on observations of the phenomena that most accurately describe military and economic indicators. The hypothesis was confirmed and established on regression analysis, trends, and forecasts. Results . The indicator of financial support to the state budget from democratic governments is highlighted as well as national trust funds. The variance indicators of democratisation, economic growth and military expenditures are determined. The data of the above indicators are analysed using the double-squared method, and their forecasting was made. Conclusions . It has been found that financial support, due to the appropriate democratisation of public administration processes, is the primary basis for developing Ukraine's military capability.