Econometric Analysis of Total Factor Productivity in India

This article attempts to investigate the potential relationship and significance of various determinants Total Factor Productivity (TFP) in India for 1980–2016 time period. Specifically, this is achieved two stages. In first, standard growth accounting approach used measure changes TFP. Then, main model establishing TFP estimated using autoregressive distributed lag (ARDL) model. Our results suggest that inflation financial development have a statistically positive impact on Foreign direct investment, imports, capital formation are found but insignificant On other hand, exports, government size, natural calamities negative Therefore, order accelerate TFP, governments policymakers need design implement policies increase access private sector, while maintaining price stability; exports high-value products; increased economic integration global economy benefit from foreign investment flows, which brings new technology. JEL Classification: O4, O40, O47