Department of Economics and Finance
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Item Do Institutional Quality and Trade Openness Influence Economic Growth? An Empirical Evidence from India(Springer, 2022-03) Giri, Arun Kumar; Mohapatra, GeetilaxmiThe study empirically examines the impact of trade openness and institutional quality on economic growth in India for the period 1990–2019. The study uses export plus imports as a ratio of GDP and composite governance indicators to measure trade openness and institutional quality, respectively. GDP per capita is used as the proxy for economic growth along with financial development, domestic capital, exchange rate, and inflation as other conventional determinants of economic growth. Autoregressive distributed lag (ARDL) co-integration approach along with the first-generation unit root tests is used in the present study to test empirical relationships. The results reveal that both trade openness and institutional quality exert a significant and positive impact on economic growth in both the long and short runs. Further, the interaction of trade openness and institutional quality is shown to have a significant impact on economic growth as well. The estimates also confirm that domestic capital and financial development have a significant positive influence on the economic growth of the country. The results further indicate that the exchange rate has a significant negative impact on economic growth in both long run and short run.Item Fiscal Policy, Economic Growth and Income Inequality: A Case of Indian Economy(The Romanian Economic Journal, 2017) Giri, Arun Kumar; Mohapatra, GeetilaxmiThrough this study, we try to evaluate the effects that the direct and indirect taxation and the subsidies provided by the Government have on income inequality. We use Gini coefficient as a measure of inequality and use annual data for Indian economy for years 1982-2015 and employ an ARDL-based bounds test approach for testing co-integration. We ascertain the stationarity properties for all the series, separately using the ADF test, the DF-GLS test and the KPSS test. We estimate the long-run and short-run coefficients and find that a long-run negative relationship exists between Gini coefficient and subsidy-related expenditure. The long-run coefficients of direct and indirect taxation terms are positive but are significant only at 10%. The short-run coefficients obtained from ECM show that a negative relationship exists between expenditure on subsidies and Gini coefficient. In short run, direct tax seems to have an insignificant positive coefficient while indirect tax seems to have a significant unbalancing effect. We employ the Granger causality tests to confirm direction of causality and find that there runs a unidirectional causality from direct tax, indirect tax and subsidy to Gini coefficient, while any causality from Gini to any series is largely insignificant. The results imply that the government should use the calculated hybrid of tools like direct and indirect taxation and subsidies to have an equalizing impact on the economy. Moreover, the significant causal relationship from subsidies to Gini opens up an opportunity for the government to improve the income distribution using targeted subsidies, for example the Aadhaar-linked Direct Transfer Benefits etc.Item Technological development, financial development, and economic growth in India: Is there a non-linear and asymmetric relationship?(Emerald, 2021-06) Giri, Arun Kumar; Mohapatra, Geetilaxmi; Debata, ByomakeshThe main purpose of the present research is to analyze the relationship between technological development, financial development and economic growth in India in a non-linear and asymmetric framework.Item The composition of public expenditure and economic growth in India: Evidence from auto regressive distributed lag approach(JER, 2016-08) Giri, Arun Kumar; Mohapatra, GeetilaxmiThe present study examines the role of various components of pub- lic expenditures on economic growth in India during the period from 1980 to 2013. The study used ARDL approach to examine the long run and the short run dynamic relationship. The VECM based Granger causality test is utilized to check the direction of causality. The results reveal that there exists a long run cointegrat- ing relationship between economic growth, developmental expen- diture, fiscal deficit and gross private investment. The ARDL es- timates show significant positive long run impact of development expenditure on economic growth. However, the non development expenditure and revenue expenditure reveal insignificant impact on economic growth. The causality test estimates indicate short and long run unidirectional causality running from development expen- diture and fiscal deficit to economic growth in IndiaItem Examining the Relationship Between Electricity Consumption, Economic Growth, Energy Prices and Technology Development in India(Sage, 2021-02) Giri, Arun Kumar; Mohapatra, GeetilaxmiThis article examines the empirical relationship between electricity consumption, economic growth, energy prices and technology development for India by taking annual time series data from 1981 to 2017. By using the ARDL bounds testing approach to co-integration, the study found long-run equilibrium relationship does exist among the variables. The article reports the existence of positive and significant impact of economic growth on electricity consumption, whereas technological development negatively affects electricity consumption in both the long run and short run. The Granger causality results reveal the presence of unidirectional causality from economic growth and technological development to electricity consumption in India. Therefore, the present study suggests policy makers in India to increase investment in electricity infrastructure to support high economic growth in the country. Further, the policy makers and the government should encourage more technological innovation to minimise usage of fossil fuels and support the use of green energy. This action could help the economy achieve a sustainable economic growth with better environmental quality.Item Financial Development and Economic Growth: Evidence from Indian Economy(IJARS, 2012) Giri, Arun Kumar; Mohapatra, GeetilaxmiThis paper examines the relationship between financial development and economic growth in India from 1970-71 to 2008-09. Using a multi-variable VAR model, the competing hypothesis of supply-leading versus demand-following hypothesis is tested empirically. The results from Johansen and Juselius co integration test supports for the existence of long run equilibrium relationship exist among variables of financial development and economic growth for Indian economy. Further, the results from Granger causality tests based on vector error-correction models (VECM) suggests unidirectional causality running from financial development to economic growth. This result supports the supply leading hypothesis for Indian economy during the sample period. This finding highlights the importance of financial development in India’s recent growth.Item Economic growth, renewable and nonrenewable energy consumption nexus in India: Evidences from nonlinear ARDL approach and asymmetric causality analysis(Emerald, 2020-05) Giri, Arun Kumar; Mohapatra, GeetilaxmiThe purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017.Item Energy consumption, economic growth and CO2 emissions: empirical evidence from India(EEQEL, 2015) Giri, Arun Kumar; Mohapatra, GeetilaxmiThe Empirical Econometrics and Quantitative Economics Letters Volume 4, Number 1, (March 2015): pp. 17 32. ISSN 2286 7147 © EEQEL all rights reserved Energy consumption, economic growth and CO2 emissions: Empirical evidence from India Geetilaxmi Mohapatra1 and A K Giri2 1Assistant Professor, Department of Economics and Finance, Birla Institute of Technology and Science (BITS), Pilani-333031 Rajasthan, India E-mail Id: geetilaxmi@gmail.com 2Associate Professor, Department of Economics and Finance, Birla Institute of Technology and Science (BITS), Pilani-333031 Rajasthan, India E-mail Id: akgiri.bits@gmail.com ABSTRACT This paper examines the causal and co-integrating relationship between energy consumption, economic growth and CO2 emissions in a multivariate framework by including urbanization, trade openness and gross fixed capital formation as other control variables for an emerging economy like India. Using the annual data from 1971 to 2012, the paper applied the Auto Regressive Distributed Lag (ARDL) bounds testing approach to examine the existence of short run and long run relationship; and VECM Granger causality test for checking the direction of causality. Stationary properties of the variables are checked by using DF-GLS, PP and KPSS unit root tests. The bounds test result supports the existence of long run relationship among the variables. The results of ARDL test indicate that energy consumption and urbanization has positive impact on CO2 emissions while economic growth has positive impact on the energy consumption in the long run. The short run and long run causality results indicate the presence of unidirectional causality from energy consumption and urbanization to air pollution and short run causality from economic growth to energy consumption. The study concludes that for accelerating economic growth, expansion of the industrial output depending on energy consumption is needed, which puts pressure on the environmenItem Foreign aid, macroeconomic policies and economic growth nexus in India: An ARDL bounds testing approach(2016) Giri, Arun Kumar; Mohapatra, GeetilaxmiThe purpose of this paper is to examine the effectiveness of foreign aid on economic growth in Indian economy using annual data from 1970 to 2014. The cointegration test confirms a long run relationship between real GDP per capita and foreign aid for India. The study finds a positive and significant impact of foreign aid on economic growth in India both in long run and in short run. Our results provide strong evidence that effectiveness of foreign aid on economic growth is contingent on macroeconomic policy environment in India. The VECM results confirm short-run and long run unidirectional causality running from foreign aid, government expenditure and trade openness to economic growth in India. Further, the results of the variance decomposition approach indicate that economic growth in India mostly explained by foreign aid. Further, the impulse response function result indicates that there is positive response in economic growth due to shock stemming in foreign aid. The findings and the results are useful guidelines for major stakeholders, including donors and the government of recipient countries for designing framework for aid effectivenessItem The impact of financial development, economic growth and energy consumption on environmental degradation: Evidence from India(Emerald, 2015-08) Giri, Arun Kumar; Mohapatra, Geetilaxmihe purpose of this paper is to investigate the impact of financial development, economic growth and energy consumption on environment degradation for Indian economy by using the time series data for the period 1971-2011