The Role of Infrastructure, Trade dynamics and Governance in influencing Economic Growth in India: A Quantile Regression Approach

Abstract

This study aims to examine the heterogeneous effects of Infrastructure, FDI, Trade openness and governance indicators (Political Stability, Voice and Accountability, Control of Corruption and Regulatory Quality) on GDP growth in the Indian economy. This study adopts quantile regression methodology to figure out the influence of these variables on GDP growth across its distribution, yielding insights beyond the average effects, the findings conclude that Infrastructure is a critical driver of growth GDP growth over the quantiles, Trade Openness and Regulatory Quality show positive influence over the higher quantiles and PSAV having negative effect over growth. The study concludes that policy measures should be tailored according to the growth phases focusing on improving state of governance and fostering sustainable and balanced economic growth in Indian Economy.