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Private investment in India: regional patterns and determinants

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  • Jagannath Mallick

Abstract

This paper analyses private investment by type for 15 major states over the period from 1993–1994 to 2004–2005. This study is new in investigating the determinants of total private investment and domestic private investment at the state level in the Indian context by using generalized method of moments panel estimator. The results show that there is high variation in private investment across Indian states. The results obtained from the regressions show that private investment in the Indian states is explained by infrastructure, the gross fiscal deficit, market size and labour productivity. This paper contributes to the literature on regional development by empirically establishing the existence of simultaneity between private investment and income at the state level in Indian economy. Copyright Springer-Verlag 2013

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  • Jagannath Mallick, 2013. "Private investment in India: regional patterns and determinants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 515-536, October.
    • Handle: RePEc:spr:anresc:v:51:y:2013:i:2:p:515-536
    DOI: 10.1007/s00168-012-0537-x
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    Cited by:

    1. Jagannath Mallick & Sachi Satpathy, 2021. "Estimation of Women Beedi Workers in India and Their Socio-economic Condition," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 499-521, June.
    2. Jagannath Mallick, 2019. "The effects of government investment shocks on private investment: Empirical evidence from the developing economy," Indian Economic Review, Springer, vol. 54(2), pages 291-316, December.
    3. Dinh Thanh, Su & Hart, Neil & Canh, Nguyen Phuc, 2020. "Public spending, public governance and economic growth at the Vietnamese provincial level: A disaggregate analysis," Economic Systems, Elsevier, vol. 44(4).
    4. Vivekananda Mukherjee & Paramita Mukherjee & Saheli Bose, 2022. "Extortion, competition among states and private investment in a federation: evidence from Indian manufacturing sector," Economic Change and Restructuring, Springer, vol. 55(2), pages 973-1004, May.
    5. mallick, Jagannath, 2016. "Investigating the Relationship of Disparity in Income, Private investment and wage rate in Indian states: A Panel Cointegration Approach," MPRA Paper 87736, University Library of Munich, Germany, revised 09 Aug 2017.

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    More about this item

    Keywords

    E2; R11; C33;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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