Causality between international trade and gross domestic product: the case of the Indian agricultural and manufacturing sectors
Singh, J.P. and Konya, L. (2006) 'Cointegration and causality between Indian export, import, and GDP', Asia Pacific Journal of Economics and Business, Vol. 10, pp.20-35; studied the relationship between the Indian gross domestic product (GDP), exports and imports from 1950/1951 to 2003/2004. A further logical step is to investigate the same issue for two major sectors of the Indian economy: agriculture and manufacturing. In both of these sectors there is Granger causality between GDP and total exports, imports. In particular, agricultural GDP causes imports, exports cause agricultural GDP, and any two variables jointly cause the third one. There is also some evidence for the agricultural GDP causing exports and imports causing agricultural GDP, though these results are sensitive to model specification. As regards manufacturing, there is a two-way causality between manufacturing GDP and exports, imports cause manufacturing GDP, manufacturing GDP and imports jointly cause exports, and exports and imports jointly cause manufacturing GDP, but manufacturing GDP and exports do not seem to cause imports. Finally, there is also some evidence for manufacturing GDP causing imports, but this result is also sensitive to model specification.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 1 (2009)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.inderscience.com/browse/index.php?journalID==310|
When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:1:y:2009:i:1:p:61-75. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Darren Simpson)
If references are entirely missing, you can add them using this form.