Are exports and imports cointegrated in India and China? An empirical analysis
This study analysis the sustainability of the trade deficits in the two giant economies of Asia, namely India and China with allowance of endogenous structural breaks. We found that trade deficit is sustainable in case of India but not in case of China. This implies that macroeconomic policies of India but not of China have been effective in leading exports and imports to long run steady state equilibrium relationship.
Volume (Year): 31 (2011)
Issue (Month): 1 ()
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- Paresh Kumar Narayan & Seema Narayan, 2005. "Are exports and imports cointegrated? Evidence from 22 least developed countries," Applied Economics Letters, Taylor & Francis Journals, vol. 12(6), pages 375-378.
- Paresh Kumar Narayan & Stephan Popp, 2009.
"A New Unit Root Test with Two Structural Breaks in Level and Slope at Unknown Time,"
2009_11, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- Paresh Kumar Narayan & Stephan Popp, 2010. "A new unit root test with two structural breaks in level and slope at unknown time," Journal of Applied Statistics, Taylor & Francis Journals, vol. 37(9), pages 1425-1438.
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