Determinants of Inclusive Growth in India : An Ardl Approach

This study investigates determinants of inclusive growth in India during 1991 to 2017. Using ARDL approach this study finds that inclusive growth is cointegrated with infrastructure, FDI, and exports. The results confirm a long-run equilibrium relationships among them and also revealed that infrastructure, FDI, and export have positive impact on inclusive growth. In short-run, results identify unidirectional causality from infrastructure to inclusive growth and bidirectional causality between inclusive growth and FDI and infrastructure and FDI. These findings suggest that infrastructure development along with FDI fosters inclusive growth in India. Policymakers should incorporate it to their policy design for promoting inclusive growth