However, when we compare the coefficient of FDI/GDP with that of GDCF/GDP, we see that FDI is more productive than GDCF
. Globalization has a negative sign, but its coefficient is not significant in the t-test.
Of the regulated utilities, water is the exception to falling bills because of the need to finance investment programmes which have amounted to some 2.5 per cent of total national GDCF
- for an industry accounting for only 1 per cent of consumers' expenditure.
Secondly, investment variables (components of GDCF
) also appear as explanatory variables in some of the supply functions in the production sub-bloc.
(Rangarajan and Srivastava, 2004) The present paper therefore considers a Log Linear regression model with the natural logarithmic of real GDP (at factor cost) as the dependent variable, and the natural logarithms of the explanatory variables viz., Gross fiscal deficit (henceforth GFD), Gross domestic capital formation (henceforth GDCF) and Gross domestic savings (henceforth GDS).
A Log-lin regression model (log-log in this case) having the natural log of GDP at factor cost as the dependent variable (regressand), and natural logarithms of the variables of the explanatory variables viz; Gross fiscal deficit (henceforth GFD), Gross domestic capital formation (henceforth GDCF) and Gross domestic savings (henceforth GDS) is considered for the present study.
The gentle distributed coordination function (GDCF
) proposed by Wang et al.