The Growth Nexus: Investigating ICT Infrastructure, Green Energy, and FDI in India's Economy

Abstract

This study aims to investigate the empirical, long run cointegration and causal relation among ICT infrastructure (fixed telephone subscriptions, mobile cellular subscriptions, and fixed broadband subscriptions), green energy usage, and total FDI in India for the period 2000 to 2023 using ARDL model. In order to find the causality Granger causality test was done. The finding of the study confirms the existence of long term cointegrating relationship among the variable under consideration, with economic growth being elastic to any change in fixed telephone subscription, fixed broadband subscription, renewable electricity consumption and total FDI inflows. Study also showed a bidirectional relationship between green energy usage and economic growth and unidirectional causality between ICT infrastructure and FDI. The findings of the study suggest the policies to enhance the ICT efficiency, increased public private partnership investment decisions in ICT infrastructure segments and to deal with the barriers creating hindrance in promoting green energy usage.