Public Infrastructure Investment and Economic Growth : A Sector Wise Investigation for India Using Westerlund Panel Cointegration Approach

The paper aims to empirically analyze the relationship between Public Infrastructure Investment and economic growth for India using yearly data for its twenty-eight states (excluding Telangana) over the time-period of 1999-00 to 2014-15. We have aimed to assess this eye catching issue after the recent focus of Indian government to devote a majority of public funds to finance Infrastructure. For all the states, we have taken Public Investment data for six major sub sectors falling under overall Infrastructure sector: Transport, Education, Sports, Art and Culture, Medical and Public Health, Water supply and sanitation, Irrigation, Energy/Power. The Per Capita Gross State Domestic Product is taken as an indicator to represent economic growth. For empirical analysis, we apply panel unit root and cointegration tests, and estimate a panel error correction model. The Per Capita Gross State Domestic Product along with Public Investment in analyzed sectors have a unit root at their levels suggesting that there is presence of long-term relationships among the variables for the whole sample. Finally, Granger causality tests are applied to check for the presence of causal relationships between Per Capita Gross State Domestic Product and Public Investment in different sub sectors of Infrastructure. The research study proposes that the state governments across India should focus upon private as well as foreign direct investment options which would ultimately help in improving the landscape of India’s Infrastructure sector

Examining the interlinkages between regional infrastructure disparities, economic growth, and poverty: A case of Indian states

This paper investigates the interlinkages between regional infrastructure disparities, economic growth, and poverty in the 21 major Indian States. An overall comprehensive index of infrastructure, the Composite Infrastructure Index (CII), is calculated for each Indian state using the Principal Component Analysis technique. In order to analyse the regional disparities between states in terms of infrastructure, they are ranked based on the calculated CII. We extend our analysis by evaluating the inter-relationship between the Composite Infrastructure Index, Per Capita Net State Domestic Product (PCNSDP), and poverty. The empirical analysis also proves that composite infrastructural growth and economic growth go hand in hand

Assessing the Impact of Public Infrastructure Investment on Economic Performance: the Case of India

The objective of this paper is to analyze the effects of Public Infrastructure Investment on the economic performance of the Indian economy. We have employed a Structural Vector Autoregressive (SVAR) approach for estimation of linear interdependencies of India’s output. For this study, we have categorized four composite infrastructure sectors which encompass ten major sub sectors of infrastructure. The analysis emphasized that special focus should be paid on Infrastructure Investment in transport sub sector of infrastructure because of its maximum positive returns on output. The policy implications of the results will aid the government to counter the economic and budgetary dilemma

ESG Disclosure and Firm Performance: An Asset-Pricing Approach

Disclosing information on environmental, social, and governance (ESG) parameters is voluntary for most firms across the world. Companies disclose their performance on ESG datapoints due to two main reasons—(i) to gain the trust of stakeholders through increased transparency and (ii) to comply with regulations imposed by governments and investment houses. Using a dataset of companies disclosing ESG parameters during 2014–2021 from the S&P BSE 500 index, this study investigates the role of ESG disclosure on firm performance. We divide the constituent securities into three factors—size, value, and disclosure to study the premiums generated by firms on each factor using single-, double-, and triple-sorting approaches. We utilize time series regressions along with GRS tests to empirically test the presence of factor premiums. We find the significant role of factors size, value, disclosure, and a dummy variable for the COVID-19 pandemic period to explain the portfolio returns. The study found a negative ESG disclosure premium stating that firms with high levels of disclosure earn less returns compared with the firms with less disclosures. The findings of this study contrast with multiple studies in the past that have found a positive disclosure premium. Our findings help reconcile the mixed evidence on the disclosure–returns relationship

Integrating the issue of infrastructural investment with economic growth: The case of India

The development of a country’s infrastructure is instrumental in accelerating its economic growth. The inadequacy in the infrastructure provisions hinders population to promote self reliance in economic sectors, thereby proving to be a hindering factor to economic growth. Through this paper, we have aimed to investigate the relationship between investment in key infrastructure sectors and economic growth, in order to see how these sectors impact India’s economic growth and how significant this impact is. Further, a detailed qualitative analysis of all the infrastructure sectors involved in our study has been done with a focus on explaining the reasons behind significance/ insignificance of a particular sector. In the final part of analysis, a budget allocation model has been formulated with the help of linear programming technique. This model gives us a fresh viewpoint of the prospective inclination of government budget, and its extent of allocation to the diversity of infrastructure sectors

Economic Value Added Research: Mapping Thematic Structure and Research Trends

The purpose of this article is to examine the academic literature about the function, structure, calculation, and weaknesses of economic value added (EVA). EVA has been used as a measure of economic profit and captures the inadequacies of using traditional rates of return. In addition, this article tackles the main residual earnings (RI) modifications used to calculate EVA. A keyword search for publications was conducted in early 2022. This study couples an inferential analysis with descriptive analyses of the existing research. The articles were sorted into different clusters based on bibliographic coupling analysis. This study identifies the main areas and current dynamics of EVA research while evaluating the quality and impact of the scientific output. Three broad themes emerged from the analysis of the cluster related to the use and application of EVA: residual income and valuation, financial performance, and performance management. In doing so, we hope to enhance the understanding and contributions of EVA research to advance its theory and practice