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The Dynamics of Demographic and Macroeconomic Variables in India
Abstract
The theory of economic growth is one of the principal branches of macroeconomics that tries to highlight the factors that have influenced the long-run trend of the growth of an economy. One of the leading issues in the literature on India's economic growth has been the manifold effects of inflation and employment among many others. The present paper aims to examine the relationship between economic growth rates, inflation, employment, and population growth in a Simultaneous Equations System (SES) framework, with an exclusive focus on the experience since economic liberalization in 1991. The literature on this subject has up till now analyzed the determinants of these endogenous variables disconnectedly. Not only does this paper endeavour to ascertain the existence of endogeneity among these variables but also highlight a multitude of factors that are connected in this regard. This paper comes to a close by discussing the possibilities for developing strategies that are overtly concerned with productive employment generation.
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