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An Empirical Growth Model for India: 1954-1994

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Abstract

The aim of this paper is to investigate the determinants of economic growth in India for 1954-1994. We include indicators of both financial and trade policies as determinants of real per capita income. We emphasise the complementarity of these policies and assess their joint impact. Investment in physical capital and human capital are also considered and in addition, the impact of both oil shock and droughts during 1973-75 and 1979-82 is examined. Our analysis of time series data suggests that liberalisation of finance and trade and the development of Human Capital have had a positive and statistically significant impact. Our results also suggest that the second oil price shock and droughts from 1979-82 were more disruptive than the earlier episode of 1973-75.

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  • Daly V. & Siddiki J., 2001. "An Empirical Growth Model for India: 1954-1994," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 141-154, July - De.
    • Handle: RePEc:ers:journl:v:iv:y:2001:i:3-4:p:141-154
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    Cited by:

    1. Jalal Uddin Siddiki & Oliver Morrissey, 2006. "Capital inflows and the demand for money in South Asian countries," Economics Discussion Papers 2006-4, School of Economics, Kingston University London.

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    Keywords

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    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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