A multivariate concept cannot be determined on a single factor

A multivariate concept cannot be determined on a single factor

Author: 
Dr. Agarwal, D. R., Prof. Emeritus and Ms. Suruchi Kapur
Abstract: 

Economic Growth implies increase in GDP or a continuous and steady increase in national income. Economic growth of a community is reflected in people’s high standard of living, better food and housing , improved education and medical facilities, advance means of transport and communication, reduction in poverty and inequalities in the distribution of economic power, expansion of job opportunities, increase in productivity with the advancement of science and technology, increase in the wages of the poor, promoting human skills and health rapidly, increase in human development index (life expectancy index, adult literacy, mean years of schooling, purchasing power etc.) and above all sustainable development that is meeting the needs of the present generation without compromising the need of future generations. Hence growth is a multivariable concept and it cannot be judged on the basis of a single factor in isolation. The behaviour of rate of growth (percentage point) and gross fixed capital formation (as percentage of GDP) from 2011-12 to 2016-17, they are not establishing a positive relationship between the two (normally it is believed that there is a positive correlation between the two in a developing economy). This paper examines the reality of the situation.

Paper No: 
1763