Determinants of Capital Formation in India

Vol-4 \| Issue-6 \| June 2019 \| Published Online: 12 June 2019 PDF ( 378 KB )
Author(s)
Dr. Rakesh Kumar ¹
¹Lecturer in Economics, Government Senior Secondary School Akbarpur Barota, Sonipat, Haryana (India); formerly, Research Scholar, Department of Economics, Jai Narain Vyas University, Jodhpur, Rajasthan (India)
Abstract
In any economy, capital formation, also termed as investment is an important macroeconomic variable which plays a very important role in the development and growth process. In this paper an attempt is made to find out various determinants of this variable. The time period considered for analysis in this study is from 1950-51 to 2005-06. The research findings revealed that Inflation affects capital formation adversely; but Gross Domestic Product and Fixed Capital Formation in Public Sector are found to be positively related.
Keywords
Capital Formation, Determinants, Economy, Gross Domestic Product, Investment, Log-linear model, Savings.
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