Impact of Inflation on Economic Growth in the Indian Economy
DOI:
https://doi.org/10.5281/zenodo.11080262Keywords:
inflation, economic growth, cointegration, error correction model, indian economyAbstract
This study explores the complex relationship between inflation and economic growth in India, focusing on both short- and long-term dynamics over the past three decades. The research employs a rigorous analytical framework, consisting of the Johansen cointegration test and the Error Correction model, to investigate the impact of inflation on economic growth in India for the period spanning 1980-2022. The findings of this study reveal a notable long-run negative relationship between economic growth and inflation in the Indian economy. This result contributes to the ongoing debate in economic literature regarding the influence of inflation on economic growth and provides valuable insights into the specific characteristics of the Indian economy.
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