ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by Manoj Kumar AgarwalSubscribe to Manoj Kumar Agarwal

Foreign Direct Investment, Trade Openness, and Economic Growth

Foreign direct investment has a positive and significant impact on economic growth in the short run, whereas that of trade openness is both in the long and short run. The economic growth of India is caused by FDI, trade openness, and exchange rate, separately as well as together, in the short run. The findings advocate for measures and regulations to manage FDI and prioritise human capital development, financial sector enlargement, and trade expansion as well as improved trade policy reforms to eliminate numerous trade restrictions to ensure sustained long–run economic growth in the country.

Impact of Public Debt on the Economic Growth of Subnational Economies in India

This study examines both the short- and long-run impact of public debt on the economic growth of Uttar Pradesh during the post-reform period of 30 years by employing the vector error correction model. The empirical analysis revealed that the increase in public debt-to-gross state domestic product ratio and interest payments burden would have an adverse impact on the long-run economic growth of UP, while having no significant impact on the short-run growth. It is also notable that the effective interest rate has negatively correlated with the gross capital formation in UP, and the latter has shown significant positive long-run association with the economic growth. In order to attract investments and economic growth, the state Government of UP should continue a countercyclical fiscal stance that would help in adhering to fiscal sustainability rules by smoothing out the repercussions of the COVID-19 pandemic.

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