Economics at your fingertips  

How Does Human Capital Affect Economic Growth in India? An Empirical Analysis

Ayushi Parika and Bhanu Pratap Singh

MPRA Paper from University Library of Munich, Germany

Abstract: The study attempts to examine the relationship between human capital and economic growth in India. The study utilizes annual time series data for the period 1980 to 2017. Real Gross Domestic Product is used as a proxy for economic prosperity and the Human Capital Index is taken as a proxy for the level of human capital. Conventional sources of growth are controlled by physical capital, trade openness and inflation. Johansen Cointegration and Fully Modified Ordinary Least Square (FMOLS) techniques are applied to look into a long-run equilibrium relationship. Toda and Yamamoto (1995) Granger's causality test is used as a short-run diagnostic test for the long-run equilibrium relationship. The major findings of the study suggest human and physical capital is the major determinant of economic development in the long-run, whereas in the short-run the level of economic prosperity determines the level of human and physical capital, the volume of trade and fiscal space of the government.

Keywords: Human Capital; Economic Growth; India; FMOLS (search for similar items in EconPapers)
JEL-codes: I25 I28 O1 O15 (search for similar items in EconPapers)
Date: 2020-08-15
New Economics Papers: this item is included in nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (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:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2020-10-07
Handle: RePEc:pra:mprapa:102428