Title: Export and Economic Growth in the Economy of India: An Econometric Study (1971-2005)
Abstract: This study examines the existence of any short-run and long-run relationship between GDP growth and export growth in India over the period 1971-2005. Income growth (Yt) and export growth (Xt) are found to be stationary variables and both the series are I(0). There exists a long-run relationship between income growth and export growth. The estimation of Vector Error Correction (VEC) model confirms the stability of the long-run relationship. The study with VAR model confirms the presence of 'unidirectional causality'. The Impulse Response Functions (IRS) indicate that export shocks were long-lived for economic growth. Variance decomposition study firmly confirms that export shocks were more important than income shocks in accounting for short-run variations in export growth.
Publication Year: 2010
Publication Date: 2010-10-01
Language: en
Type: article
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