The existing literature on Indian growth finds no evidence of convergence across states. This represents a puzzle given the relatively free flows of capital, labor and commodities across state borders. We use a new data set of district level income and socio-economic data to explore the...

Paper reviews India's growth performance since independence. Phrases suchas "Hindu Rate of Growth," sometimes make a telling comment and expose obscureeconomic data to a wider audience, but they can just as readily obscure reality byfocussing attention on the wrong issue. There is nothing in the...

We study the sectoral allocation of public infrastructure investments in the agriculture and manufacturing sectors in India. In addition to the changing employment and output shares of these two sectors, the capital output ratio in agriculture in India has fallen, while it has risen in...

This paper uses the standard one-sector neoclassical growth model to investigate why China’s consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts that the price of capital may have been significantly...

Studies on Indian manufacturing have been unable to provide consistent estimates of productivity and its growth rates. This paper performs detailed and exhaustive set of accounting exercises for the period 1970-2003 using production function, index number and envelopment analysis methods. TFP...

This paper answers the puzzling questions that why under the similar set of economic conditions service sector in India grew while manufacturing could not and how economic reforms in 1990s accelerated the productivity growth. The paper provides a very innovative and convincing explanation. Two...

At the backdrop of expanding economies and in the race of attracting higher investments and enhancing exports, it becomes important to analyze the relationship between Foreign Direct Investment (FDI) and growth in terms of output of the economy. A number of studies have been conducted for...

This study investigates the causal relationship between exports, imports and economic growth in India during 1970-71 to 2013-14. Following time series properties, Johansen cointegration test confirms the existence of long-run relationship between variables. Results of multiple Granger causality...

A brief look at the prime macroeconomic variables affecting economic growth in the country confirms the key role of the Gross Domestic Savings in the process. This paper is an attempt to study the causal relationship between domestic saving and economic growth and the overall trend in gross...

This paper tries to concentrate on the issue of convergence under neoclassical paradigm across Indian states through the passage of human capital education variables during the period between 1960 and 2005. The paper tries to address the issue in a broad landscape of cross section, pooled and...