Disaggregate Analysis of Savings and Investment, Foreign Capital Inflows and Growth in India

The paper tests for the short-run dynamic effects of savings and investment on Gross Domestic Product (GDP), consistent with the Solow-Swan model; and the long-run effects of savings and investment on GDP growth, in line with the endogenous AK models of growth for India from 1950 to 2005, taking int...

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Bibliographic Details
Published in:The Asia Pacific journal of economics & business 2011-06, Vol.15 (1), p.27
Main Author: Verma, Reetu
Format: Article
Language:English
Subjects:
Bias
Econometrics
Economic growth
Foreign investment
GDP
Gross Domestic Product
Growth models
Households
Impact analysis
Investments
Lagrange multiplier
Savings
Studies
Time series
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Summary:The paper tests for the short-run dynamic effects of savings and investment on Gross Domestic Product (GDP), consistent with the Solow-Swan model; and the long-run effects of savings and investment on GDP growth, in line with the endogenous AK models of growth for India from 1950 to 2005, taking into account structural breaks. The results, which are robust in both the short and long run, provide no evidence for either of the two growth models in India. [PUBLICATION ABSTRACT]
ISSN:1326-8481