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Impact of Agriculture Land and Population Density on Economic Growth: An Empirical Evidence from India

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  • Deepak Kumar
  • Kamaljit Singh
  • Sunil Phougat

Abstract

India is an agrarian economy and stands 2nd in the world population. India is in sixth place in the list of the most significant economies globally and 3rdin the purchasing power after the United States and China. However, India still has many growing concerns like a declining share of agriculture in the GDP, rapid increment in the population, unemployment, and others. The present study investigated the linkage between agricultural land, population density, and economic growth in India. The data from 1970 to 2019 was analysed using a vector error correction model (VECM) and Granger causality test. Further, the variance decomposition (VDC) and impulse response function (IRF) was employed for a detailed explanation of the variables’ relationship and innovation responses of explanatory variables. The Granger causality test results suggested that agricultural land and the gross domestic product have a neutral relationship. The population density and gross domestic product support the feedback hypothesis. Additionally, population density affects agricultural land, whereas agricultural land does not affect population density. From a policy perspective, policymakers should frame strategies to decide the nation’s comprehensive significance of population density. Too high populace density diminishes the natural endowment per capita. However, it facilitates infrastructure development, prompting an ideal populace density for economic development.

Suggested Citation

  • Deepak Kumar & Kamaljit Singh & Sunil Phougat, 2022. "Impact of Agriculture Land and Population Density on Economic Growth: An Empirical Evidence from India," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 180-195.
    • Handle: RePEc:bas:econst:y:2022:i:4:p:180-195
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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