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Econometric perspective of agricultural exports and economic growth relationship: with reference to India and China

Author

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  • Shabnam Kumari
  • Deepti Kakar

Abstract

The present study is entitled to disseminate the relationship between agricultural exports and economic growth of India and China for the period of 1990 to 2020. And, the findings evince that the co-integration has been found in terms of both the country's economic growth (GDP) and other macroeconomic variables: consumer price index, gross fixed capital, labour force, and exports of fresh fruits, fresh vegetables and whole cow milk. Later on, the vector error correction model confirms the existence of long-term causality in the log series of China but not in India. The results of forecasted error variance decomposition (FEVD) and impulse response function exhibit that one fourth of the variation in GDP returns of India and China has been caused by the inflation in their respective country. The results of the present study are of immense use to agricultural exporters, government institutions, and policymakers of the Indian and Chinese economies.

Suggested Citation

  • Shabnam Kumari & Deepti Kakar, 2023. "Econometric perspective of agricultural exports and economic growth relationship: with reference to India and China," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 29(2), pages 221-242.
    • Handle: RePEc:ids:ijicbm:v:29:y:2023:i:2:p:221-242
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