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Mining export, industrial production and economic growth: A cointegration and causality analysis for India

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  • Sahoo, Auro Kumar
  • Sahoo, Dukhabandhu
  • Sahu, Naresh Chandra

Abstract

This paper investigates the relationship among mining export, industrial production, and economic growth in India using annual time series data from 1981 to 2010. It is based on the secondary sources of data extracted from Reserve Bank of India database. The multivariate cointegration technique has been employed to see the long run equilibrium relationship among variables. Further, Granger causality based on vector error correction model (VECM) has been adopted to see both short run and long run causality among the variables. The cointegration results confirm that mineral exports, industrial production and economic growth are cointegrated, indicating an existence of long run equilibrium relationship among variables. Similarly, the VECM Granger causality result holds that there is a long-run Granger causality relationship running from economic growth and industrial production to the mineral export of India.

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  • Sahoo, Auro Kumar & Sahoo, Dukhabandhu & Sahu, Naresh Chandra, 2014. "Mining export, industrial production and economic growth: A cointegration and causality analysis for India," Resources Policy, Elsevier, vol. 42(C), pages 27-34.
  • Handle: RePEc:eee:jrpoli:v:42:y:2014:i:c:p:27-34
    DOI: 10.1016/j.resourpol.2014.09.001
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    3. Izabela Jonek-Kowalska & Marian Turek, 2022. "The Economic Situation of Polish Cities in Post-Mining Regions. Long-Term Analysis on the Example of the Upper Silesian Coal Basin," Energies, MDPI, vol. 15(9), pages 1-21, April.
    4. Zhao, Qian & Qin, Chuan & Ding, Longfei & Cheng, Ying-Yue & Vătavu, Sorana, 2023. "Can green bond improve the investment efficiency of renewable energy?," Energy Economics, Elsevier, vol. 127(PB).
    5. Gitana Dudzeviciute & Agne Shimelyte & Jurate Antanaviciene, 2017. "Causal Nexus Between Export and Economic Growth in the European Union Countries," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(2), pages 107-120.
    6. repec:mje:mjejnl:v:12:y:2017:i:2:p:107-120 is not listed on IDEAS
    7. Bosupeng, Mpho, 2015. "Exports Multiplicity and The Dutch Disease," MPRA Paper 77919, University Library of Munich, Germany, revised 2015.
    8. Ramzi, Knani & Asma, Madouri & Chebbi, Ali, 2017. "Growth, fluctuations and macroeconomic policies: Evidence from Arab open economies," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 132-146.
    9. Amri, Fethi, 2017. "Intercourse across economic growth, trade and renewable energy consumption in developing and developed countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 527-534.
    10. Magdalena Vlahova-Veleva, 2020. "The Euro‘s effect on trade," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 26-45,46-65.
    11. Emrah İ. Çevik & Erdal Atukeren & Turhan Korkmaz, 2019. "Trade Openness and Economic Growth in Turkey: A Rolling Frequency Domain Analysis," Economies, MDPI, vol. 7(2), pages 1-16, May.
    12. Wang, Bo & Yang, Haoting & Tian, Wenjuan & Bi, Chunyu, 2023. "Determinants of trade of mineral resources between China and ASEAN," Resources Policy, Elsevier, vol. 85(PB).
    13. Baharudin, Azfar Hilmi, 2018. "A Bayesian Vector Autoregressive Analysis of Price and Industrial Shocks on the Malaysian Economy," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 191-204.
    14. J. Fernando Larios-Meoño & Benoit Mougenot & V. Josué Álvarez-Quiroz, 2021. "Short-Run and Long-Run Effects of Copper Mining on Peru’s Recent Economic Growth," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 27(2), pages 131-145, May.

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    More about this item

    Keywords

    Mineral export; Industrial production; Economic growth; Cointegration; Causality;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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