Revisiting India’s Growth Transitions

Authors

Deepankar Basu, Department of Economics, University of MassachusettsFollow

Working Paper Number

2020-01

Publication Date

2020

Abstract

This paper reconsiders two questions relating to India’s economic growth: structural breaks in growth and the impact of equipment investment on aggregate economic growth. First, statistical tests of structural change show that economic growth in post-independence India has witnessed four structural breaks: in 1964-65, in 1978-79, in 1990-91, and in 2004-05. However, substantial growth accelerations, i.e. increase of more than 1.0% per annum in the growth rate of per capita real GDP, occurred only at two points: 1978-79 and 2004-05. Second, to analyze the impact of equipment investment on growth, I use an ARDL bounds testing methodology. I find a positive and statistically significant long run positive impact of private investment in equipment and machinery on the growth rate of real GDP.

DOI

https://doi.org/10.7275/16097049

License

UMass Amherst Open Access Policy

Recommended Citation

Basu, Deepankar, "Revisiting India’s Growth Transitions" (2020). UMass Amherst Economics Working Papers. 284.
https://doi.org/10.7275/16097049