Investigating the impact of global financial crisis on indian economy in an aggregate demand framework
AbstractIn this paper, the impact of global financial crisis on India’s Gross Domestic Product (GDP) is investigated upon in an aggregate demand framework using quarterly data for the period from Q2 of 1996 to Q1 of 2010. GDP, consumption expenditure, capital formation and export were found to be co-integrated. Co-integration estimation re-affirms that domestic consumption remains the key driver of India’s GDP growth. Our analysis establishes that though India’s trade sector dwindled and investment activity declined in the aftermath of global financial crisis, its GDP growth slackened only marginally as domestic consumption provided the necessary buffer in limiting the adverse impact of global financial crisis on the Indian economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40416.
Date of creation: Jul 2012
Date of revision:
India; Aggregate Demand; Trade; Financial Crisis;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- E29 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jarko Fidrmuc & Iikka Korhonen, 2009.
"The Impact of the Global Financial Crisis on Business Cycles in Asian Emerging Economies,"
CESifo Working Paper Series
2710, CESifo Group Munich.
- Fidrmuc, Jarko & Korhonen, Iikka, 2010. "The impact of the global financial crisis on business cycles in Asian emerging economies," Journal of Asian Economics, Elsevier, vol. 21(3), pages 293-303, June.
- Korhonen, Iikka & Fidrmuc , Jarko, 2009. "The impact of the global financial crisis on business cycles in Asian emerging economies," BOFIT Discussion Papers 11/2009, Bank of Finland, Institute for Economies in Transition.
- Abhijit Das & Rashmi Banga & Dinesh Kumar, 2011.
"Global Economic Crisis : Impact and Restructuring of the Services Sector in India,"
Trade Working Papers
23225, East Asian Bureau of Economic Research.
- Abhijit Das & Rashmi Banga & Dinesh Kumar, 2011. "Global Economic Crisis : Impact and Restructuring of the Services Sector in India," Microeconomics Working Papers 23225, East Asian Bureau of Economic Research.
- Das, Abhijit & Banga, Rashmi & Kumar, Dinesh, 2011. "Global Economic Crisis: Impact and Restructuring of the Services Sector in India," ADBI Working Papers 311, Asian Development Bank Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.