Open Access
Research Article
The linkage between inflation and economic growth : Evidence from India
Anup Kumar Srivastavaanupkumar.srivastava@sharda.ac.inSharda School of Business Studies Sharda University Greater Noida Uttar Pradesh 201310 IndiaView full profile → , Himani Guptahimanigupta8476@gmail.comDepartment of Management Jagannath International Management School Vasant Kunj Delhi 110070 IndiaView full profile → , *Hari Shankar ShyamCorresponding authorharishankar.shyam@sharda.ac.inSharda School of Business Studies Sharda University Greater Noida Uttar Pradesh 201310 IndiaSchool of Business Studies Sharda UniversityGreater Noida, Uttar Pradesh, 201310, IndiaView full profile → , Manisha Guptamanisha.gupta1@sharda.ac.inSharda School of Business Studies Sharda University Greater Noida Uttar Pradesh 201310 IndiaGreater Noida, Uttar Pradesh, IndiaView full profile →
* Corresponding author · click or hover a name for details
- Published Online:
- 31 Dec 2022
- Article type:
- Research Article
- Language:
- EN
- Article no.:
- JIOS-1293
- Pages:
- 25–40
Abstract
Even though the country’s economic numbers showed improvement, a re-calculation revealed a substantial decrease in growth. As a result, the economy of a country is struggling, which is a grave worry. A drop in revenues, a reduction in economic activity and job losses are all the outcomes of such a decline. In addition to economic development, inflation is a critical component of the economy. Purpose of the Study: While some studies found that economic expansion does not directly affect inflation, foreign investment and other economic issues, further research discovered the opposite. This research explored the effect of inflation on economic growth and determined a positive link between inflation and economic development in India. The study uses quarterly time-series data to analyze the impact of inflation on economic growth from the first quarter of the 2011-2012 financial year to the first two quarters of the 2020-2021 financial year. Methodology: To complete this study, the time-series data was used during the time span 2011-2021. Several econometric methods are employed to research this kind of connection, including the Augmented Dickey-Fuller (ADF) unit root test, ARDL, Johansen co-integration and Granger-causality test. Finding: A positive connection in the context of inflation and economic growth was found in the research. The study indicates a very strong, obvious inverse relationship between the two.
Keywords
Subject Classifications
91
References
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