Do Foreign Inflows Contribute to Economic Growth of India: An Investigation using ARDL Approach?
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Author: Ravinder , Vijender Pal Saini and Poonam
Author Address: Research Scholar, Assistant Professor, Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar-125001 (Haryana)
Keywords: ARDL, debt, economic growth, FDI, remittances.
JEL Codes: C22, B23, D92, F02.
Abstract
The study analyses the association between various kinds of foreign inflows and India's economic growth using yearly data from the World Bank from 1975 to 2019. The ADF test was applied to check the incidence of integrating effects in the data, and the ARDL model estimates long and short-run relationships. The results approved a long-run association between external inflow and economic growth in India. ARDL test results suggested that foreign inflows play a vital role in enhancing economic growth. The influence of FDI and foreign aid on economic growth was positive and substantial in the long and short run. The results suggested that personal remittance and external debt negatively influenced the growth of the economy in the long and short run.
Description
Indian Journal of Economics and Development
Volume 18 No. 1, 2022, 131-139
DOI: https://doi.org/10.35716/IJED/21268
NAAS Score: 5.15
Indexed in Clarivate Analytics (ESCI) of WoS
Indexed in Scopus
UGC Approved