Is Real Depreciation or Rising Government Debt Contractionary in India? A Simultaneous-Equation Model

Yu Hsing, Wen Jen Hsieh

Research output: Contribution to journalArticle

Abstract

Based on a sample during 1978-2014, this paper finds that India's real GDP has a positive relationship with real depreciation during 1978-2002, the government debt/GDP ratio, the real stock price, the growth rate of U.S. real GDP, and a negative relationship with real depreciation during 2003-2014, the real lending rate and the expected inflation rate. Therefore, the stage of economic development may play an important role in deciding whether real depreciation or real appreciation may promote economic growth.

Original languageEnglish
Article number20170010
JournalGlobal Economy Journal
Volume13
Issue number1
DOIs
Publication statusPublished - 2017 Jan 1

Fingerprint

India
Government debt
Depreciation
Simultaneous equations model
Real GDP
Economic development
Economic growth
Inflation rate
Stock prices
Expected inflation
Lending

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

@article{29148172da9c4767866c5ad55d5bacb6,
title = "Is Real Depreciation or Rising Government Debt Contractionary in India? A Simultaneous-Equation Model",
abstract = "Based on a sample during 1978-2014, this paper finds that India's real GDP has a positive relationship with real depreciation during 1978-2002, the government debt/GDP ratio, the real stock price, the growth rate of U.S. real GDP, and a negative relationship with real depreciation during 2003-2014, the real lending rate and the expected inflation rate. Therefore, the stage of economic development may play an important role in deciding whether real depreciation or real appreciation may promote economic growth.",
author = "Yu Hsing and Hsieh, {Wen Jen}",
year = "2017",
month = "1",
day = "1",
doi = "10.1515/gej-2017-0010",
language = "English",
volume = "13",
journal = "Global Economy Journal",
issn = "1524-5861",
publisher = "Berkeley Electronic Press",
number = "1",

}

Is Real Depreciation or Rising Government Debt Contractionary in India? A Simultaneous-Equation Model. / Hsing, Yu; Hsieh, Wen Jen.

In: Global Economy Journal, Vol. 13, No. 1, 20170010, 01.01.2017.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Is Real Depreciation or Rising Government Debt Contractionary in India? A Simultaneous-Equation Model

AU - Hsing, Yu

AU - Hsieh, Wen Jen

PY - 2017/1/1

Y1 - 2017/1/1

N2 - Based on a sample during 1978-2014, this paper finds that India's real GDP has a positive relationship with real depreciation during 1978-2002, the government debt/GDP ratio, the real stock price, the growth rate of U.S. real GDP, and a negative relationship with real depreciation during 2003-2014, the real lending rate and the expected inflation rate. Therefore, the stage of economic development may play an important role in deciding whether real depreciation or real appreciation may promote economic growth.

AB - Based on a sample during 1978-2014, this paper finds that India's real GDP has a positive relationship with real depreciation during 1978-2002, the government debt/GDP ratio, the real stock price, the growth rate of U.S. real GDP, and a negative relationship with real depreciation during 2003-2014, the real lending rate and the expected inflation rate. Therefore, the stage of economic development may play an important role in deciding whether real depreciation or real appreciation may promote economic growth.

UR - http://www.scopus.com/inward/record.url?scp=85020550420&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85020550420&partnerID=8YFLogxK

U2 - 10.1515/gej-2017-0010

DO - 10.1515/gej-2017-0010

M3 - Article

AN - SCOPUS:85020550420

VL - 13

JO - Global Economy Journal

JF - Global Economy Journal

SN - 1524-5861

IS - 1

M1 - 20170010

ER -