IDEAS home Printed from https://ideas.repec.org/a/rej/journl/v16y2013i47p201-214.html
   My bibliography  Save this article

Impact of Trade and Human Capital on Economic Growth of India: An Empirical Analysis

Author

Listed:
  • Majid Karimzadeh

    (Economics Department, Aligarh Muslim University, India)

  • Behzad Karimzadeh

    (Economics Department, Sistan and Balochistan University, Iran)

Abstract

Trade is the principal channel through which the flow of ideas, knowledge and technology will take place. But it is not clear to what extent the recipient country can take advantage of these variables. Adoption, imitation and production process, by and large, depend on human capital in the recipient country, and also on how the different components of human capital (e.g. on-the-job-training versus academic training) are distributed. This paper uses Ordinary Least Square to investigate relationship between trade, human capital and economic growth. The empirical result shows that there is a significant relationship between trade, human capital and economic growth. The study shows that any progress in human capital will positively affect economic growth. In turn, higher economic growth will lead to more employment, higher income and profit, which means more investment in human capital.

Suggested Citation

  • Majid Karimzadeh & Behzad Karimzadeh, 2013. "Impact of Trade and Human Capital on Economic Growth of India: An Empirical Analysis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(48), pages 201-214, June.
    • Handle: RePEc:rej:journl:v:16:y:2013:i:47:p:201-214
    as

    Download full text from publisher

    File URL: http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2013-06-01/1927/y20karimzadeh.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pei-Pei Chen & Rangan Gupta, 2006. "An Investigation of Openness and Economic Growth Using Panel Estimation," Working Papers 200622, University of Pretoria, Department of Economics.
    2. Krueger, Anne O, 1997. "Trade Policy and Economic Development: How We Learn," American Economic Review, American Economic Association, vol. 87(1), pages 1-22, March.
    3. Sailesh Tanna & Kitja Topaiboul, 2005. "Human Capital, Trade, FDI and Economic Growth in Thailand: What causes What?," DEGIT Conference Papers c010_046, DEGIT, Dynamics, Economic Growth, and International Trade.
    4. Sumei Tang & E. A. Selvanathan & S. Selvanathan, 2008. "Foreign Direct Investment, Domestic Investment and Economic Growth in China: A Time Series Analysis," The World Economy, Wiley Blackwell, vol. 31(10), pages 1292-1309, October.
    5. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.
    6. Romain Wacziarg & Karen Horn Welch, 2008. "Trade Liberalization and Growth: New Evidence," The World Bank Economic Review, World Bank, vol. 22(2), pages 187-231, June.
    7. Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
    8. Svitlana Maksymenko & Mahbub Rabbani, 2011. "Economic Reforms, Human Capital, And Economic Growth In India And South Korea: A Cointegration Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(2), pages 39-59, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rabail Amna Intisar & Muhammad Rizwan Yaseen & Rakhshanda Kousar & Muhammad Usman & Muhammad Sohail Amjad Makhdum, 2020. "Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    2. Marinko Škare & Sabina Lacmanovic, 2015. "Human capital and economic growth: a review essay," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(39), pages 735-735, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaukat, Badiea & Zhu, Qigui & Khan, M. Ijaz, 2019. "Real interest rate and economic growth: A statistical exploration for transitory economies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 534(C).
    2. Francisco Rodríguez, 2006. "Openness and Growth: What Have We Learned?," Wesleyan Economics Working Papers 2006-011, Wesleyan University, Department of Economics.
    3. Leonid Azarnert, 2014. "Agricultural Exports, Tariffs and Growth," Open Economies Review, Springer, vol. 25(4), pages 797-807, September.
    4. Michael Bleaney & Mo Tian, 2023. "The trade‐GDP ratio as a measure of openness," The World Economy, Wiley Blackwell, vol. 46(5), pages 1319-1332, May.
    5. Peter Henry, 2007. "Capital Account Liberalization: Theory, Evidence, and Speculation," Discussion Papers 07-004, Stanford Institute for Economic Policy Research.
    6. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    7. Abo-Zaid Salem M, 2011. "The Trade-Growth Relationship in Israel Revisited: Evidence from Annual Data, 1960-2004," Review of Middle East Economics and Finance, De Gruyter, vol. 6(3), pages 63-93, February.
    8. Robert E. Baldwin, 2004. "Openness and Growth: What's the Empirical Relationship?," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 499-521, National Bureau of Economic Research, Inc.
    9. Claudius Gräbner & Philipp Heimberger & Jakob Kapeller & Florian Springholz, 2021. "Understanding economic openness: a review of existing measures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 87-120, February.
    10. Antoni Estevadeordal & Alan M. Taylor, 2013. "Is the Washington Consensus Dead? Growth, Openness, and the Great Liberalization, 1970s–2000s," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1669-1690, December.
    11. Francisco J. Buera & Alexander Monge‐Naranjo & Giorgio E. Primiceri, 2011. "Learning the Wealth of Nations," Econometrica, Econometric Society, vol. 79(1), pages 1-45, January.
    12. Mr. Stephen Tokarick & Mr. James H Cassing, 2005. "Trade and Growth in the Presence of Distortions," IMF Working Papers 2005/012, International Monetary Fund.
    13. Chang, Roberto & Kaltani, Linda & Loayza, Norman V., 2009. "Openness can be good for growth: The role of policy complementarities," Journal of Development Economics, Elsevier, vol. 90(1), pages 33-49, September.
    14. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    15. Kuo-Hsing Kuo & Cheng-Te Lee & Chen Fang, 2014. "Free Trade and Economic Growth," Australian Economic Papers, Wiley Blackwell, vol. 53(1-2), pages 69-76, June.
    16. David Kohn & Fernando Leibovici & Michal Szkup, 2021. "Financial Frictions and International Trade," Working Papers 2021-009, Federal Reserve Bank of St. Louis.
    17. Tommaso Nannicini & Andreas Billmeier, 2011. "Economies in Transition: How Important Is Trade Openness for Growth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(3), pages 287-314, June.
    18. Timothy J. Kehoe & Kim J. Ruhl, 2010. "Why Have Economic Reforms in Mexico Not Generated Growth?," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 1005-1027, December.
    19. repec:hal:spmain:info:hdl:2441/6flqrv4et09btppk9s58qgp979 is not listed on IDEAS
    20. Steve Onyeiwu, 2011. "Does Lack of Innovation and Absorptive Capacity Retard Economic Growth in Africa?," WIDER Working Paper Series wp-2011-019, World Institute for Development Economic Research (UNU-WIDER).
    21. Ferreira, Pedro Cavalcanti & Trejos, Alberto, 2001. "On the long run effects of barriers to trade," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 436, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).

    More about this item

    Keywords

    Trade; Human Capital; Economic Growth; India;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rej:journl:v:16:y:2013:i:47:p:201-214. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu Lupu (email available below). General contact details of provider: https://edirc.repec.org/data/frasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.