Abstract: |
The aim of this study is to investigate the growth experiences of India in
relation to the experiences of around one hundred countries in the world
during the last half-century by exploiting the inferences drawn from the
cross-country growth regressions. This study obtains the following findings.
First, the outcome of growth regression supports the conditional convergence
hypothesis. In contrast, both India's growth rate and income level have
increased, breaking the convergence hypothesis. Second, the growth regression
shows life expectancy at birth, investment ratio and external openness
contributes to economic growth. In India these three were improved. Third, the
growth regression suggests human capital has a non-linear effects on economic
growth and that the schooling years beyond 3 years raise the growth rate. In
India both schooling years and growth rate have increased. Fourth, the growth
regression shows that total fertility rate has a negative effect on the
growth. In India the growth rate increased as the total fertility rate
declined. Fifth, the growth regression shows that government consumption
reduces the growth rate. Contrary to the regression results both India's
growth rate and government consumption have increased. Sixth, the growth
regression suggests inflation has a negative effect on growth rate. However,
there are no clear relationship between inflation and growth in India.
Seventh, the growth regression shows the improvement of terms of trade
contributes to economic growth. The same was observed in India where terms of
trade fluctuated over time. Finally the growth regression supposes that
democracy and economic growth have a non-linear complex relationship and that
the relationship differs depending on the position of the distribution of
growth rates.There are no clear relationship between democracy and growth in
India where the India's status of democracy has hardly varied. JEL
classification: O11, O47, O53 Key words: economic growth, growth regression,
India. |