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.
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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)
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