The purpose of this paper is to provide an overview of various economic growth and employment approaches that have been popular throughout economic history, with a focus on linking and delinking aspects of GDP and employment in the Indian economy. The semi-log quadratic model was used for the trends of GDP and employment across the selected countries. For the determination of the linkages between the variables, the Granger causality test promulgated by Engel and Granger (1987), and the maximum likelihood-based technique of Johansen and Julius (1990) and Johansen (1992) were used in the study. The results found that employment and GDP are two different aspects of an economy not only in the Indian economy but across the majority of the world economies. The results of model specification proved the presence of both long-run and short-run relationships between GDP and employment by the Johansen co-integration test in the Indian economy over the period. It has been found that the increase in GDP is negatively influencing the employment level by the VECM model as a 1 per cent increase in GDP results in 0.28 per cent of job losses in the Indian economy. This study aims to provide an overview of several approaches to economic growth and employment that have been popular throughout economic history up to the present, with an emphasis on linking and delinking aspects of economic growth and employment. In the context of an economy, economic growth and employment are two distinct aspects that should be tackled with separate economic strategies.
| Published in | International Journal of Economic Behavior and Organization (Volume 12, Issue 1) |
| DOI | 10.11648/j.ijebo.20241201.12 |
| Page(s) | 25-33 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Economic Growth, Employment, Johansen Co-integrating Test, Granger Causality Test, Indian Economy, Post-Reform Period
| [1] | Unni, J. (2016). Employment and Industrial Development in India. Economics, 229–258. |
| [2] |
Sankaran, U., Abraham, V., & Joseph, K. J. (2010). Impact of Trade Liberalisation on Employment: The Experience of India's Manufacturing Industries. The Indian Journal of Labour Economics, 587-601. Retrieved from
https://labordoc.ilo.org/permalink/41ILO_INST/kc2336/alma994627483402676 |
| [3] |
Ghose, A. K. (2016). India Employment Report: Challenges and the Imperative of Manufacturing- Led Growth. New Delhi: Oxford University Press. Retrieved from
https://global.oup.com/academic/product/india-employment-report-2016-9780199472574?cc=id&lang=en& |
| [4] | Papola, T. (2012). Structural Changes in the Indian Economy: Emerging Patterns and Implications. Institute for Studies in Industry Development, 1-29. Retrieved from |
| [5] | Padder, A. H. (2018). Changing Pattern of Economic Development and Employment in India: An Interstate Analysis. Social Science and Humanities International, 1-29. Retrieved from |
| [6] | Nagaraj, R. (2020). TIF-Understanding India’s Economic Slowdown. |
| [7] | Padder, A. H., & Mathavan, B. (2021). The Relationship between Unemployment and Economic Growth in India: Granger Causality Approach. NVEO-NATURAL VOLATILES & ESSENTIAL OILS Journal| NVEO, 8(4), 1265-71. Retrieved from |
| [8] | Aggarwal, A. (2019). Economic Growth, Structural Change and Productive Employment Linkages in India: Did Market Transition Matter? South Asia Economic Journal, 64-85. |
| [9] |
S, K. (2005). The Employment Intensity of Growth: Trends and Macroeconomic. Labor Markets in Asia: Issues and Perspectives, 143-163. Retrieved from
https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_elm/documents/publication/wcms_143163.pdf |
| [10] |
Dopke. (2001). The Employment Intensity of Growth in Europe. Kiel Working Paper. Retrieved from
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.570.8411&rep=rep1&type=pdf |
| [11] |
Schmid. (2008). Full Employment in Europe: Managing Labour Market Transitions and Risks. MA: Edward Elgar. Retrieved from
https://labordoc.ilo.org/permalink/41ILO_INST/kc2336/alma995042293302676 |
| [12] | Granger, C. W. (1969). Investigating Causal Relations by Econometric Models and Cross-spectral Methods. Econometrica, 37(3), 424-38. Retrieved from |
| [13] |
Ayoyinka, S. O., & Isaiah, O. O. (2011). Employment and Economic Growth Nexus in Nigeria. International Journal of Business and Social Science, 232-239. Retrieved from
http://ijbssnet.com/journals/Vol._2_No._11_[Special_Issue-June_2011]/33.pdf |
| [14] |
Michael, E. O., Emeka, A., & Emmanuel, E. N. (2016). The Relationship between Unemployment and Economic Growth in Nigeria: Granger Causality Approach. Research Journal of Finance and Accounting, 7(24), 153-62. Retrieved from
https://iiste.org/Journals/index.php/RJFA/article/view/34823 |
| [15] | Habanabakize, T., & Muzindustsi, P. F. (2018). Analysis of the Keynesian Theory of Employment and Sectoral Job Creation: The Case of the South African Manufacturing Sector. Folia Oeconomica Stetinensia, 18(1), 123-143. |
| [16] | Rosoiu, L., & Rosoiu, A. (2014). The Relation between Unemployment Rate and Economic Growth in USA. International Journal of Economic Practices and Theories, 4(2), 162-67. Retrieved from |
| [17] | Bah, E.-h. M. (2016, May-June). Structural Transformation Path Across Countries. Emerging Markets Finance and Trade, 47(2), 5-19. doi: |
| [18] |
Padder, A. H., & Mathavan, B. (2021). Structural Transformation Path Across Countries: Is It Systematic Pattern. Design Engineering, 2021(7), 12679-12687. Retrieved from
http://www.thedesignengineering.com/index.php/DE/article/view/4485 |
| [19] |
Kannan, K. P., & Raveendran, G. (2019). From Jobless to Job-loss Growth, Gainers and Losers During 2012-18. Economic and Political Weekly, 54(44), 38-44. Retrieved from
https://www.epw.in/journal/2019/44/insight/jobless-job-loss-growth.html |
| [20] | Roy, S. (2016). Faltering Manufacturing Growth and Employment: Is 'Making' the Answer? Economic and Political Weekly, 51(13), 35-42. Retrieved from |
| [21] |
Abraham, V. (2017). Stagnant Employment Growth; Last Three Years May Have Been Worst. Economic and Political Weekly, 52(38), 13-17. Retrieved from
https://www.epw.in/journal/2017/38/commentary/stagnant-employment-growth.html |
| [22] | Hu, A. (2004). Economic Growth and Employment Growth in China (1978–2001). Asian Economic Papers, 3(2), 166–176. |
| [23] | Li, T. (n.d.). China’s Economic Development and the Change in Production and Employment in China. |
| [24] | William Seyfried. (2015). Examining the relationship between electricity consumption and economic growth in Uganda. 13–24. |
| [25] | Khan, A. Q. K., Khattak, N. U. R. K., & Hussain, A. H. (2008). Inter-Relationship of Gross Domestic Product (GDP) Growth and Unemployment in Pakistan (1960-2005). |
APA Style
Padder, A. H. (2024). Linking and Delinking Aspects of Economic Growth and Employment in the Indian Economy: Granger Causality Approach. International Journal of Economic Behavior and Organization, 12(1), 25-33. https://doi.org/10.11648/j.ijebo.20241201.12
ACS Style
Padder, A. H. Linking and Delinking Aspects of Economic Growth and Employment in the Indian Economy: Granger Causality Approach. Int. J. Econ. Behav. Organ. 2024, 12(1), 25-33. doi: 10.11648/j.ijebo.20241201.12
AMA Style
Padder AH. Linking and Delinking Aspects of Economic Growth and Employment in the Indian Economy: Granger Causality Approach. Int J Econ Behav Organ. 2024;12(1):25-33. doi: 10.11648/j.ijebo.20241201.12
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ijebo.20241201.12,
author = {Altaf Hussain Padder},
title = {Linking and Delinking Aspects of Economic Growth and Employment in the Indian Economy: Granger Causality Approach
},
journal = {International Journal of Economic Behavior and Organization},
volume = {12},
number = {1},
pages = {25-33},
doi = {10.11648/j.ijebo.20241201.12},
url = {https://doi.org/10.11648/j.ijebo.20241201.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20241201.12},
abstract = {The purpose of this paper is to provide an overview of various economic growth and employment approaches that have been popular throughout economic history, with a focus on linking and delinking aspects of GDP and employment in the Indian economy. The semi-log quadratic model was used for the trends of GDP and employment across the selected countries. For the determination of the linkages between the variables, the Granger causality test promulgated by Engel and Granger (1987), and the maximum likelihood-based technique of Johansen and Julius (1990) and Johansen (1992) were used in the study. The results found that employment and GDP are two different aspects of an economy not only in the Indian economy but across the majority of the world economies. The results of model specification proved the presence of both long-run and short-run relationships between GDP and employment by the Johansen co-integration test in the Indian economy over the period. It has been found that the increase in GDP is negatively influencing the employment level by the VECM model as a 1 per cent increase in GDP results in 0.28 per cent of job losses in the Indian economy. This study aims to provide an overview of several approaches to economic growth and employment that have been popular throughout economic history up to the present, with an emphasis on linking and delinking aspects of economic growth and employment. In the context of an economy, economic growth and employment are two distinct aspects that should be tackled with separate economic strategies.
},
year = {2024}
}
TY - JOUR T1 - Linking and Delinking Aspects of Economic Growth and Employment in the Indian Economy: Granger Causality Approach AU - Altaf Hussain Padder Y1 - 2024/04/02 PY - 2024 N1 - https://doi.org/10.11648/j.ijebo.20241201.12 DO - 10.11648/j.ijebo.20241201.12 T2 - International Journal of Economic Behavior and Organization JF - International Journal of Economic Behavior and Organization JO - International Journal of Economic Behavior and Organization SP - 25 EP - 33 PB - Science Publishing Group SN - 2328-7616 UR - https://doi.org/10.11648/j.ijebo.20241201.12 AB - The purpose of this paper is to provide an overview of various economic growth and employment approaches that have been popular throughout economic history, with a focus on linking and delinking aspects of GDP and employment in the Indian economy. The semi-log quadratic model was used for the trends of GDP and employment across the selected countries. For the determination of the linkages between the variables, the Granger causality test promulgated by Engel and Granger (1987), and the maximum likelihood-based technique of Johansen and Julius (1990) and Johansen (1992) were used in the study. The results found that employment and GDP are two different aspects of an economy not only in the Indian economy but across the majority of the world economies. The results of model specification proved the presence of both long-run and short-run relationships between GDP and employment by the Johansen co-integration test in the Indian economy over the period. It has been found that the increase in GDP is negatively influencing the employment level by the VECM model as a 1 per cent increase in GDP results in 0.28 per cent of job losses in the Indian economy. This study aims to provide an overview of several approaches to economic growth and employment that have been popular throughout economic history up to the present, with an emphasis on linking and delinking aspects of economic growth and employment. In the context of an economy, economic growth and employment are two distinct aspects that should be tackled with separate economic strategies. VL - 12 IS - 1 ER -
Department of Economics, Government Degree College Gool, Ramban, India
