scholarly journals Growth and infrastructure investment in India: Achievements, challenges, and opportunities

2013 ◽  
Vol 58 (196) ◽  
pp. 51-70 ◽  
Author(s):  
Aswini Mishra ◽  
Kunapareddy Narendra ◽  
Bibhu Kar
Keyword(s):  
Economic Growth ◽  
Resource Constraints ◽  
Public Investment ◽  
High Rate ◽  
Rate Of Return ◽  
Infrastructure Investment ◽  
Gdp Growth ◽  
Private Partnership ◽  
Challenges And Opportunities ◽  
Very High

The paper analyses the recent scenario of infrastructure investment in India, with the recognition that inadequate infrastructure is one of the major constraints on India?s ability to sustain high GDP growth. It conducts an overview of the trends in infrastructure investment from the 10th Five Year Plan onwards, and tries to examine the linkage between infrastructure and economic growth. The results exhibit a very high rate of return and also highlight that, since resource constraints will continue to limit public investment in infrastructure in other areas, Public Private Partnership (PPP) project-based development needs to be encouraged wherever feasible.

scholarly journals Education for Growth: Why and for Whom?

2001 ◽  
Vol 39 (4) ◽  
pp. 1101-1136 ◽  
Author(s):  
Alan B Krueger ◽  
Mikael Lindahl
Keyword(s):  
Economic Growth ◽  
Measurement Error ◽  
Educational Attainment ◽  
National Level ◽  
High Rate ◽  
Rate Of Return ◽  
Income Growth ◽  
Gdp Growth ◽  
Education Data ◽  
Cross Country

This paper summarizes and tries to reconcile evidence from the microeconometric and empirical macro growth literatures on the effect of schooling on income and GDP growth. Much microeconometric evidence suggests that education is an important causal determinant of income for individuals within countries. At a national level, however, recent studies have found that increases in educational attainment are unrelated to economic growth. This discrepancy appears to be a result of the high rate of measurement error in first-differenced cross-country education data. After accounting for measurement error, the effect of changes in educational attainment on income growth in cross-country data is at least as great as microeconometric estimates of the rate of return to years of schooling. Another finding of the macro growth literature—that economic growth depends positively on the initial stock of human capital—is not robust when the assumption of a constant-coefficient model is relaxed.

scholarly journals The Nexus Between Internal Investment and Economic Growth in Kenya

2020 ◽  
pp. 29-93
Author(s):  
Andrew K. Kamenju ◽  
Olweny
Keyword(s):  
Economic Growth ◽  
Risk Premium ◽  
Forecast Error ◽  
Public Investment ◽  
Investment Decisions ◽  
Public Private Partnership ◽  
Domestic Investment ◽  
Private Partnership ◽  
Real Gdp ◽  
The Government

Countries with a high investment GDP ratio benefit from better, competitive products and services. Which increases capital stock for production, more employment, and income; in turn reducing social and income disparities. The Kenyan government envisaged a sustained economic growth of 10% by investing in priority sectors; to become an industrialized middle-income country by the year 2030; though un-achieved to date. To examine the nexus between internal investments and economic growth, the study used annual time-series observations from the years 1996 to 2017; where internal investments are from the government; private domestic; and public-private partnership; and exogenous variables were rates of real interest; social discount; commercial lending interest; and the country risk premium on lending for investment decisions. The inference used stationarity; cointegration; significance; causality; variance decomposition of forecast error; and impulse response function. Stationarity tests suited the ARDL model which also supports small size observations. Findings were; a significant and positive influence on economic growth from lags of real GDP, government, private domestic, except public-private partnership investments. Anticipation for growth lies with; significant pairwise causality (real GDP with public investment); significant block exogeneity (public investment); endogeneity (real GDP), and exogeneity (public investment) influence; and short-run private domestic investment recovery. Keywords: ARDL, Economic Growth, Public Investment, Private Domestic Investment, Public-Private Partnership Investment, Investment Decisions.

Impact of Public and Private Infrastructure Investment on Economic Growth: Evidence from India

2020 ◽  
Vol 12 (2) ◽  
pp. 119-138
Author(s):  
Nishija Unnikrishnan ◽  
Thomas Paul Kattookaran
Keyword(s):  
Economic Growth ◽  
Public Investment ◽  
Impulse Response Function ◽  
Decomposition Analysis ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Public And Private ◽  
Long Run ◽  
The Impact

Literature presents contradictory views regarding the impact of public and private investment on the economic growth of a country. India being a developing country, where the major share of investment is by public sector, the question which props up is what among public and private investment is contributing more towards the economic growth of the country. In this framework, the gross domestic product (GDP) can be fairly explained as a function of public infrastructure investment and private infrastructure investment. Johansen’s co-integration was used to test the long-run relationship between the variables over the period from 1961–1962 to 2016–2017. A vector error correction model (VECM) along with an impulse response function and variance decomposition analysis was done to measure the impact of public infrastructure investment and private infrastructure investment on the GDP. Based on the empirical evidence discussed earlier, it was evident that both public and private infrastructure investments have a significant impact on the economic growth of the nation. Findings which came up in this study correlate to majority findings of past literature that, when compared with public investment, it is private investment which is capable of giving a better impetus to economic growth.

scholarly journals The Linkage between Public, Private Investment and Economic Growth—Evidence for the Developing ASEAN and Asian Countries

2017 ◽  
Vol 3 (4) ◽  
pp. 580 ◽  
Author(s):  
Nguyen Thi Canh, PhD. Prof. ◽  
Nguyen Anh Phong, PhD.
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Positive Impact ◽  
Public Investment ◽  
Private Investment ◽  
Public Private Partnership ◽  
Long Term Effects ◽  
Private Partnership ◽  
The Impact

<p><em>This study used a quantitative method to assess the impact of public investment on private investment and economic growth based on data from 18 developing countries over a 21-year period (1995-2015) by applying PVAR model combined with GMM. The findings show that all public investment and public-private partnership investments affect private investment as well as affect economic growth but the effects vary cyclically, by time period, and by group of countries.</em></p><p><em>For the ASEAN developing countries, public investment crowds out private investment in short term and crowds in private investment in the medium and long term, but it crowds out public-private partnership investment. For the developing countries in Asia, public investment has a positive impact on economic growth with the inverted U-shaped pattern which stimulates growth in the short and medium term, but in the long-term effects of stimulation growth tend to decrease.</em></p>

Recovery will depend on Greek cooperation with lenders

2020 ◽  
Keyword(s):  
Economic Growth ◽  
Public Investment ◽  
Gdp Growth ◽  
Growth Estimate ◽  
Debt Sustainability ◽  
Content Type ◽  
Constructive Dialogue ◽  
Surveillance Report ◽  
Positive Assessment ◽  
Primary Surplus

Subject Greece’s relationship with its creditors. Significance The first annual GDP growth estimate for 2019 has fallen short of expectations. This is partly counterbalanced by the positive assessment of reform progress given in the European Commission’s fifth Enhanced Surveillance Report. Yet investor trust remains fragile, hinging on the Greek government’s ability to meet economic and financial targets consistently and to maintain a constructive dialogue with its international creditors. Impacts In 2020, investors’ flight to safety could undermine demand for Greek bonds. Cheaper borrowing has improved debt sustainability, supporting government attempts to renegotiate primary surplus targets with creditors. Under-execution of planned public investment could restrict economic growth in 2020.

scholarly journals Infrastructure Investment with Public-Private Partnership (PPP) and Economic Growth in Developing Countries in Asia

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
P.J. Atapattu
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Public Private Partnership ◽  
Infrastructure Investment ◽  
Literacy Rate ◽  
Private Partnership ◽  
Positive Effects ◽  
Perpetual Inventory Method ◽  
Infrastructure Investments

Infrastructure is an important factor of economic growth in developing countries, and economic growth is constrained by the inadequacy of infrastructure, as financing is expensive. The advantage of Public-Private Partnership (PPP) in infrastructure is well recognized, allowing financing for expensive infrastructure investments. This study examines the importance of PPP for infrastructure to economic growth in nine developing countries in Asia. The estimated period is from 1990 to 2015 using panel data with fixed effect. The dependent variable is GDP, and independent variables are PPP infrastructure stock, non-PPP infrastructure stock, labor force and literacy rate as a proxy variable of quality of labor. This study estimates PPP infrastructure stock using the Perpetual Inventory Method and controls for the external effect of the Asian Economic Crisis in 1998.This study finds positive effects of PPP infrastructure stock on economic growth. PPP infrastructure stock is an addition to the existing infrastructure stock. The result of this study encourages more PPP investment in developing countries in Asia for economic growth.KeywordsEconomic Growth, Developing Countries, Infrastructure Stock and Public-Private Partnership in Infrastructure

Oil, Rates and Inflation

2005 ◽  
pp. 4-20
Author(s):  
E. Yasin
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Raw Materials ◽  
Gdp Growth ◽  
Business Activity ◽  
Demand For Money ◽  
Percentage Points

Currency inflow in Russia from raw materials exports allows taking into account high business activity to assimilate growing money supply transforming it into economic growth. Fall in business activity as a result of pressure on business led to saturation of demand for money. This considerably increases the danger of inflation growth and requires sterilization of excess money supply including the usage of the Stabilization Fund. According to the author's estimates, corresponding losses in GDP growth will equal 1-2 percentage points per year.

Economic Growth and Macro Variables in India: An Empirical Study

2015 ◽  
pp. 42-59
Author(s):  
Saba Ismail ◽  
Shahid Ahmed
Keyword(s):  
Economic Growth ◽  
Growth Rates ◽  
Trade Openness ◽  
Capital Formation ◽  
Gdp Growth ◽  
Fdi Inflows ◽  
Domestic Capital ◽  
The Government ◽  
Macro Variables ◽  
Determinants Of Economic Growth

The research objective of this paper is to explore the empirical linkages between economic growth and foreign direct investment (FDI), gross fixed capital formation (GFCF) and trade openness in India (TOP) over the period 1980 to 2013. The study reveals a positive relationship between economic growth and FDI, GFCF and TOP. This study establishes a strong unidirectional causal flow from changes in FDI, trade openness and capital formation to the economic growth rates of India. The impulse response function traces the positive influence of these macro variables on the GDP growth rates of India. The study also reveals that the volatility of GDP growth rates in India is mainly attributed to the variation in the level of GFCF and FDI. The study concludes that the FDI inflows and the size of capital formation are the main determinants of economic growth. In view of this, it is expected that the government of India should provide more policy focus on promoting FDI inflows and domestic capital formations to increase its economic growth in the long-term.

Tax revenue and economic growth in developing country: an autoregressive distribution lags approach

2020 ◽  
Vol 7 (54) ◽  
pp. 205-217
Author(s):  
Mnaku Honest Maganya
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Testing Procedure ◽  
Gdp Growth ◽  
Bounds Testing ◽  
Causality Test ◽  
Significance Level ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
The Government

AbstractTanzania, like most other developing countries, faces numerous economic challenges in striving to achieve sustainable economic growth and development through taxation. In the literature, the debate on how effective taxes are as a tool for promoting economic growth and economic development remains inconclusive, as various research have reported mixed effects of tax on economic growth. This article investigates the effect of taxation on economic growth in Tanzania using the recently developed technique of autoregressive distributed lag model (ARDL) bounds testing procedure for the period from 1996 to 2019. Various preliminary tests were conducted including stationary tests as well as the pair-wise Granger causality test. According to the results obtained, domestic goods and services (TGS) taxes are positively related to GDP growth and are statistically significant at 1% level. Income taxes, on the other hand, were found to be negatively related to GDP growth and to be statistically significant at 5% level. The pair-wise Granger causality results indicated that there is bidirectional Granger causality between TGS and GDP growth at 1 % significance level. The government should aim at growing, nurturing and sustaining tax base to positively drive economic growth even further.

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