The internal dynamic of Indian economic growth

Pulapre Balakrishnan, Mausumi Das and M. Parameswaran

Journal of Asian Economics, 2017, vol. 50, issue C, 46-61

Abstract: A stylised fact of India's economic history since 1950 is that the rate of growth of the economy has accelerated periodically and across policy regimes. In this paper we present a theoretical framework that can generate such a pattern due to cumulative causation through positive feedback. The growth process is then investigated using cointegration analysis. We are able to establish the existence of positive feedback which is at the centre of cumulative causation. We are also able to date the onset of this mechanism which has driven growth in India for close to half a century by now. This leads us to conclude that the internal dynamics are at least as important as the policy regimes to understand growth over the long term in this country.

Keywords: Economic growth; India; Cumulative causation; Increasing returns; Producer services (search for similar items in EconPapers)
JEL-codes: O11 O41 O47 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1049007816300501
Full text for ScienceDirect subscribers only

Related works:
Working Paper: THE INTERNAL DYNAMIC OF INDIAN ECONOMIC GROWTH (2014)
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:eee:asieco:v:50:y:2017:i:c:p:46-61

DOI: 10.1016/j.asieco.2017.03.002

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().