New evidence on the relationship between public and private investment in India

Anirudha Barik () and Asit Mohanty ()
Additional contact information
Anirudha Barik: Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi
Asit Mohanty: Professor in Finance, Xavier University, Bhubaneswar

Economics Bulletin, 2019, vol. 39, issue 3, 1989-2001

Abstract: The purpose of this paper is to examine the long run relationship between public investment and private investment in India. To this end, we employ the autoregressive distributed lag (ARDL) – bounds test approach, using data for the period 1980-81 to 2015-16. Finally, an error correction model is estimated to show the short-run dynamics along with the speed of adjustment to the equilibrium relationship among the variables. The estimated results suggest that public investment crowds in private investment in India. Furthermore, the speed of adjustment parameter indicates that adjustment process towards long run equilibrium is relatively high and CUSUM and CUSUMSQ tests confirmed that the models are stable over the sample period.

Keywords: ARDL; Public Investment; Private Investment; India (search for similar items in EconPapers)
JEL-codes: E2 E6 (search for similar items in EconPapers)
Date: 2019-09-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I3-P187.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-19-00118

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().