Empirical Investigation of Impact of Capital Formation by Agriculture and Industry on Industrial Productivity in India

摘要

This paper investigated the impact of the capital formation by agriculture and Industry on Industrial productivity in India during the period 2004-2011. In this study, time series data over the period 2004-2011 was used. The study employed two and multi -variable regression analysis model specified on the basic of hypothesized functional relationship between capital formations as the explanatory variables, while Index of Industrial production constituted the explained variable. The model for the study was estimated using the ordinary least square (OLS) technique. The result shows that capital formation by agriculture and industry has positive statistically significant impact on the industrial productivity of the economy in the reviewed period.