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Research Article

JCR. 2020; 7(18): 2020-2026


INFLUENCE OF POPULATION, INFLATION, PER CAPITA INCOME ON ECONOMY OF INDIA

Tahsin Zaman Khan, Dr. Mohammad Shahfaraz Khan, Abdullah Akhtar, Dr.Ataur Rahman Faro.

Abstract
The present study examines the influence of inflation, population and per capital income on Indianís economy using
data from 1980-2017 gotten from world bank database. The study made use of estimation techniques of ADF for
stationary test, Johansen Co-integration and unrestricted VAR using Eviews 9.0. software. The result of the study
reveals a long run causality from Inflation, Population as well as Per Capita Income to GDP of India which implies a
long run association among the variables: Inflation, Population as well as Per Capita Income with respect to GDP.
Also, no short run causality existed from population to Indianís GDP. Furthermore, short run causality did not exist
from Inflation and Per Capita Income to Indianís GDP. This paper concludes that on the long run, Inflation, Per
Capita Income (GNI) and Population influence the economy growth of India.

Key words: Inflation, Per Capita Income, Population, GDP



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