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Export and Economic Growth in India: Causal Interpretation

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  • Alok Kumar Pandey

Abstract

The relationship between export and economic growth has been an important issue of discussion among scholars and economist throughout the world. The existence of nexus in between export and economic growth can be examined in several ways like growth rates relating to GDP and export, proportion of export to growth, several policies relating to accelerate economic growth and export etc. The effective way to explore nexus in export and economic growth would be the causal analysis between two variables. In the present paper, an attempt has been made to explore the relationship in between export and economic growth in Indian economy with the help of technique of causality and error correction mechanism. For this purpose, data relating to export and GDP for the period 1950-51 to 2001-02 have been taken into account. Data regarding GDP has been taken for the period 1950-51 to 2001-02 at current prices as well as at constant prices. Moreover, in order to examine causality in between export and economic growth, GDP and its components (at current and constant prices) as (1) NDP at factor cost, (2) GDP at market prices, (3) NDP at market prices, (4) GNP at factor cost, (5) NNP at factor cost, (6) GNP at market price, (7) NNP at market prices have been taken in the present study (Handbook of Statistics on Indian Economy, Economic Survey).

Suggested Citation

  • Alok Kumar Pandey, 2006. "Export and Economic Growth in India: Causal Interpretation," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 2(4), pages 245-277, December.
    • Handle: RePEc:jge:journl:241
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    Cited by:

    1. Biru Paksha Paul & Anupam Das, 2012. "Export-led Growth in India and the Role of Liberalisation," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 6(1), pages 1-26, February.
    2. Fatima Subhani & Atif Yaseen & Bashir Ahemd Khan & Anees Ayyub, 2017. "Productivity and Externality Effects of Exports: An Application of FEDER Model in Pakistan and India," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 5(1), pages :36-60, June.
    3. Manoj Kumar DAS & Titiksha DAS, 2020. "Determinants of economic growth in India: A time series perspective," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(623), S), pages 263-280, Summer.

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    JEL classification:

    • F1 - International Economics - - Trade

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