Infrastructure and economic growth: an empirical examination
By: Sahoo, Satyananda.
Material type:
ArticlePublisher: 2000Description: p.323-48.Subject(s): Economic growth
In:
Reserve Bank of India Occasional PapersSummary: This paper explores the relationship between the gross domestic product and stock of infrastructural services in India by estimating a vector auto regressive (VAR) model for the period 1970-71 to 2000-01. Various stocks of infrastructure viz., transport, electricity, gas, water supply and communication facilities are included as inputs in the model whereas gross domestic product at factor cost is considered as output in a Cobb-Douglas production function framework. The estimated model is also used for forecasting by measuring the impulse responses of gross domestic product to one per cent standard deviation shock in the infrastructural sectors. From the impulse response analysis, it was found that though the initial impact of increase in the stocks of infrastructure is diminishing, it continues to have a positive impact on real output in the medium-to-long run. among all the infrastructural sectors, electricity, gas, water supply and communication sectors play a key role in explaining the movements in the gross domestic product. - Reproduced.
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | Volume no: 21, Issue no: 2-3 | Available | AR56582 |
This paper explores the relationship between the gross domestic product and stock of infrastructural services in India by estimating a vector auto regressive (VAR) model for the period 1970-71 to 2000-01. Various stocks of infrastructure viz., transport, electricity, gas, water supply and communication facilities are included as inputs in the model whereas gross domestic product at factor cost is considered as output in a Cobb-Douglas production function framework. The estimated model is also used for forecasting by measuring the impulse responses of gross domestic product to one per cent standard deviation shock in the infrastructural sectors. From the impulse response analysis, it was found that though the initial impact of increase in the stocks of infrastructure is diminishing, it continues to have a positive impact on real output in the medium-to-long run. among all the infrastructural sectors, electricity, gas, water supply and communication sectors play a key role in explaining the movements in the gross domestic product. - Reproduced.
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