Theoretical and Applied Economics
No. 2 / 2023 (635), Summer
Does the effectiveness of money supply and foreign direct investment determine the industrial growth performance in India?
Central University of Rajasthan, Ajmer, India
Praveen SAHU
Central University of Rajasthan, Ajmer, India
Abstract. Industry is a primary engine in determining India’s overall economic growth. This study empirically investigated the effects of money supply and foreign direct investment on the industrial growth performance in India by using the method of a multivariate VAR model. The results of the multivariate VAR model indicate a positive effect of foreign direct investment inflows and a negative effect of money supply on industrial growth performance in the long run. Moreover, it is proven that there is a bidirectional causal relation between industrial growth and foreign direct investment inflows and a unidirectional causal relation from money supply to industrial growth in India. Accordingly, the study recommends that an expansionary money supply will improve industrial growth performance over the short run but not in the long run. In contrast, the amount of foreign direct investment will improve the industrial growth performance over the short-run as well as the long-run.
Contents
The future of money and the money supply
Implications of migration policies on reducing income inequalities and poverty in Europe
The green and digital transition through innovation, SME competitiveness, and economic resilience: Evidence from the European Union economies
An analysis regarding the transition from quantitative easing to quantitative tightening in the Euro Area
Modern leadership in business organisations during economic disruption
Does the effectiveness of money supply and foreign direct investment determine the industrial growth performance in India?
The effect of poverty and income inequality on CO2 emission based on Environmental Kuznets Curve analysis: Empirical evidence from selected developing countries
Can renewable energy sources pump the economy
Evolution of growth theory: from Harrod to Romer
Role of information systems for management in multispeciality hospitals to improve performance: A conceptual framework
Measuring stock market uncertainty
Frequency domain causality analysis of financial development and economic growth in Côte d’Ivoire
Theoretical framework to introduce rainfall index-based futures contracts in India
Quest of dynamic linkages between monetary factors and food inflation in India
Does foreign direct investment contribute to reducing unemployment in Algeria?
An enquiry into extreme price movements of the cryptocurrencies in the backdrop of COVID-19
Effect of inflation on the growth and development of the Pakistan economy: An empirical analysis