Estimating impact of infrastructure development on economic growth in India Online publication date: Sat, 21-Mar-2015
by Harishankar Vidyarthi; Chandan Sharma
International Journal of Business Continuity and Risk Management (IJBCRM), Vol. 5, No. 4, 2014
Abstract: This study aims to analyse the impact of infrastructure development (electricity, railway, roadways and telecommunications) on economic growth of India for the period 1971 to 2010. We empirically examine the impact of infrastructure at sectoral level as well as aggregate level on economic growth. We utilise Johansen cointegration test, fully modified ordinary least square (FMOLS) and Granger causality test based on vector error correction model (VECM) to examine the long run relationship, income elasticity coefficients and direction of causality respectively. Results of the cointegration test indicate for presence of a long run relationship between economic growth and infrastructure development. The effects of infrastructure indicators on income are estimated to be quite large and it varies from 5% to 21%. Overall, our findings indicate that infrastructure is a crucial determinant of economic growth in India.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Continuity and Risk Management (IJBCRM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook