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Export-Led Growth Hypothesis in India: Some Further Evidences

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  • Md. Zulquar Nain
  • Wasim Ahmad

Abstract

This paper seeks to re-examine the export-led growth hypothesis in India using the quarterly data for the period 1996 to 2009. It uses Granger causality test (Toda and Yamamoto, 1995) and forecast error variance decomposition (within VAR framework) to investigate the interrelationship among exports, imports, real effective exchange rate, and economic growth in the short run as well as long run. The results of the study do not support the export-led growth hypothesis, rather it supports the growth-led export hypothesis.

Suggested Citation

  • Md. Zulquar Nain & Wasim Ahmad, 2010. "Export-Led Growth Hypothesis in India: Some Further Evidences," The IUP Journal of Monetary Economics, IUP Publications, vol. 0(3), pages 69-82, August.
  • Handle: RePEc:icf:icfjmo:v:08:y:2010:i:3:p:69-82
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    Cited by:

    1. Ayhan Orhan & Melek Emikönel & Murat Emikönel & Rui Alexandre Castanho, 2022. "Reflections of the “Export-Led Growth” or “Growth-Led Exports” Hypothesis on the Turkish Economy in the 1999–2021 Period," Economies, MDPI, vol. 10(11), pages 1-18, October.
    2. Muhammad Shafiullah & Ravinthirakumaran Navaratnam, 2016. "Do Bangladesh and Sri Lanka Enjoy Export-Led Growth? A Comparison of Two Small South Asian Economies," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 114-132, March.
    3. Lim, Shiok Ye & Ho, Chong Mun, 2013. "Nonlinearity in ASEAN-5 export-led growth model: Empirical evidence from nonparametric approach," Economic Modelling, Elsevier, vol. 32(C), pages 136-145.
    4. Adusei Poku, Eugene & Broni-Pinkrah, Samuel & Effah Nyamekye, Gabriel, 2016. "Modelling and assessment of the effect of income on service exports in Ghana," MPRA Paper 72312, University Library of Munich, Germany.

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