世界経済ジャーナル

Analyzing the Contribution of Indian Civil Industry to Economic Growth in the Pre-covid Era: An ARDL Approach

Abstract

Priyanka Saharia*

This study analyses the contribution of the Indian civil aviation industry to economic growth. Gross Domestic Product at Factor Cost (GDPFC) is representing economic growth. The contribution of the civil aviation industry is considered in terms of the output value of the air transport component of the industry, and it is the key independent variable for the analysis. Other explanatory variables of the objective are total export, the Wholesale Price Index (WPI) of ATF, and trade-based Real Effective Exchange Rate (REER). The duration considered for analysis is from 1981 to 2019. The present study has considered annual time serie data for analysis. The Autoregressive Distributed Lagged model (ARDL) approach is used for the estimation. It employs a bound test-based co- technique to examine if a long-run relationship existsisntegration between the selected variables. The causal relationship among the variables of interest is established using the Innovative Accounting Approach (IAA).