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Trade-Growth Relationship in India in the Pre and Post Trade Agreements Regime

Author

Listed:
  • Ishita Ghoshal

    (Symbiosis School of Economics, Symbiosis International University)

Abstract

The paper tries to delve into the causal relationship between trade and growth in India, with particular emphasis on the effect of introduction of various trade agreements on this relationship. A lot has been discussed about the impact (good or bad) of RTAs, PTAs and FTAs on an economy. The author has tried to check whether there has been any causal relationship between trade and growth in India in general and whether any change (positive or negative) was brought about by the implementation of the agreements. It is found here that, before India became a part of the trade agreements, exports led to growth but growth didn?t lead to export formation. However, with the advent of the trade agreements, the relationship was seen to be swapped, the causation running in the opposite direction and the relation seemed to be strengthened. Also, it is seen that in the pre trade agreements regime, though exports caused growth, the effect on growth was insignificant; whereas in the post agreements regime GDP caused exports and the relationship is statistically significant and negative (rise in GDP led to fall in exports).

Suggested Citation

  • Ishita Ghoshal, 2015. "Trade-Growth Relationship in India in the Pre and Post Trade Agreements Regime," Proceedings of Economics and Finance Conferences 2204958, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iefpro:2204958
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    File URL: https://iises.net/proceedings/4th-economics-finance-conference-london/table-of-content/detail?cid=22&iid=018&rid=4958
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    Citations

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    Cited by:

    1. Rajesh Sharma & Pradeep Kautish & D. Suresh Kumar, 2018. "Impact of Selected Macroeconomic Determinants on Economic Growth in India: An Empirical Study," Vision, , vol. 22(4), pages 405-415, December.
    2. Mrutyunjaya SAHOO & Praveen SAHU, 2023. "Does the effectiveness of money supply and foreign direct investment determine the industrial growth performance in India?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(635), S), pages 83-102, Summer.

    More about this item

    Keywords

    Trade-growth; Causality; Regional Trade Agreements;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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