Journal of International Business and Economy

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Infrastructure Investment and Economic Growth: Evidence from India
Naliniprava Tripathy, Maram Srikanth, and Lagesh Meethale Aravalath
Volume 17, Number 1, Spring 2016 (pp. 91 ~ 111)

This study examines the long-run and short-run relationship between investment in infrastructure and economic growth in the Indian economy by using Auto Regressive Distributed Lag Model, Error Correction Model, and Granger Causality Test. The study reports that there is no short-run relationship among gross domestic product, gross domestic capital formation, revenue of the governmentand exports. However, the study finds that unidirectional causality exists between employment and gross domestic product; gross domestic productandinflation. It implies that employmentlevel in organised sector and inflationinfluence the economic growth in India for a short period. The study finds that there is a long-run relation exists between economic growth, domestic investment,  inflation and government revenue. Therefore, emphasis should be placed on capital formation, government income and inflation to accelerate growth and development in the Indian economy. The error correction term is indicating that long term relationship is stable and any disequilibrium created in short termwill be temporary and will correct over a period. However, it is suggested to maintain balance among inflation,gross domestic product, employment, exports, savings, investment and government revenue to keep an economy growing. These findings have important policy implications since an economy built on investment in infrastructural development.

Key Words: investment in infrastructure, economic growth, ARDL model, error correction model, unit root, Granger causality

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Guest Editors’ Introduction to Special Issue on Emerging Research in Business and Economics across Countries
Carlos Omar Trejo-Pech and John F. Manley
Volume 17, Number 2, Fall 2016, pp. 1 ~ 5
Which Indian Industry Benefits from FDI? A Panel Co-Integration Approach
S. Mahalakshmi, S. Thiyagarajan, and G. Naresh
Volume 17, Number 1, Spring 2016 (pp. 59 ~ 89)