ABSTRACT
The aim of this study is to empirically analyze the relationship between urbanization, economic growth and poverty level in India during the period 2001 to 2016. With the help of an econometric model, data were analyzed and it was found that there is a relationship that exists between the variables. Out of all the three variables, we find GDP and urbanization are positively correlated, while poverty is negatively correlated with both the variables. To check whether the variables—GDP and urbanization—are integrated in the long run, the Johansen cointegration test was applied to the time-series data. This revealed the fact that both the variables are cointegrated in the long run. The test of causality showed that there exists a unidirectional causality from urbanization to GDP, but insignificant causality from GDP to urbanization. This represents that urbanization is the cause of GDP, but GDP is not the cause for urbanization. The study found that there is a negative relationship between economic growth and BPL, and also between urbanization and BPL.
