Entrepreneurship and Inequalities in India: An ARDL Bounds Testing Approach
Published: 2021
Author(s) Name: Poonam Sharma and Kajal Gupta |
Author(s) Affiliation: Senior Research Fellow, University Business School, Panjab University, Chandigarh, India.
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Abstract
This study revisits the link between entrepreneurship
and income inequalities
in India over the period 1981-
2017 using the Autoregressive Distributed
Lag (ARDL) Bounds Testing
Approach of Cointegration and Error
Correction Model (ECM). The
study is based on the registered manufacturing
sector with Gini coefficient
being used as a proxy of income inequality
and gross capital formation
and profits earned being used as an
indicator of entrepreneurship. It finds
that capital formation has a positive
impact on Gini coefficient in the shortrun;
In the long-run, the impact is
negative. It also reveals that an increase
in Gini coefficient increases
the profits in both short-run and longrun,
the profits in turn decreases Gini
coefficient in short-run. The study
concludes that there exists a two-way
association between entrepreneurship
and income inequalities in India.
Keywords: N.A.
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