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Full-Text Articles in Social and Behavioral Sciences
Revisiting India’S Growth Transitions, Deepankar Basu
Revisiting India’S Growth Transitions, Deepankar Basu
Economics Department Working Paper Series
This paper reconsiders two questions relating to India’s economic growth: structural breaks in growth and the impact of equipment investment on aggregate economic growth. First, statistical tests of structural change show that economic growth in post-independence India has witnessed four structural breaks: in 1964-65, in 1978-79, in 1990-91, and in 2004-05. However, substantial growth accelerations, i.e. increase of more than 1.0% per annum in the growth rate of per capita real GDP, occurred only at two points: 1978-79 and 2004-05. Second, to analyze the impact of equipment investment on growth, I use an ARDL bounds testing methodology. I find a …
The Real Exchange Rate And Development. Theory, Evidence, Issues, And Challenges, Firat Demir, Arslan Razmi
The Real Exchange Rate And Development. Theory, Evidence, Issues, And Challenges, Firat Demir, Arslan Razmi
Economics Department Working Paper Series
This paper surveys the theoretical and empirical literature on the effects of the real exchange rate (RER) on international trade, economic development and growth. We summarize the main conceptual issues, discuss the relevance of the RER as an instrument of development policy, provide an overview of the macroeconomic and microeconomic mechanisms that link the RER to trade and long run growth and development, analyze the challenges – especially the disconnect between theory and data -- that often arise in empirical applications, and present new avenues for future research. In the process, we present some updated estimates and illustrative figures. The …