On finding the patterns and Inter-Dependence of Key Factors in the Economic Growth of India

Abstract

In the past and recent years a number of methods have been devised to find the critical factors affecting the economic growth of one or a group of countries. These methods are mostly statistics based, using correlation techniques to evaluate the inter dependence and the trends in an economy. In this article, I present a new graphical method; Recurrence Plot (RP) and Recurrence Quantitative Analysis (RQA) technique, to visualize the patterns and compute the interdependence of key factors that affect the economic growth of a country. To demonstrate this technique, I choose India, as a country example. The reason mainly being twofold, firstly it’s one of the fastest growing economy in the world, and as a result the conclusions and trends found from this article may be useful for other studies, mainly in the field of public policy, social studies, governance etc. Secondly, the author has a better understanding of Indian economy and its market dynamics.