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Export and Economic Growth in India: Causal Interpretation

  • Alok Kumar Pandey

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).

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Article provided by Research Centre for Social Sciences,Mumbai, India in its journal Journal of Global Economy.

Volume (Year): 2 (2006)
Issue (Month): 4 (December)
Pages: 245-277

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Handle: RePEc:jge:journl:241
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  1. Kavoussi, Rostam M., 1984. "Export expansion and economic growth : Further empirical evidence," Journal of Development Economics, Elsevier, vol. 14(1), pages 241-250.
  2. Bahmani-Oskooee, Mohsen & Mohtadi, Hamid & Shabsigh, Ghiath, 1991. "Exports, growth and causality in LDCs : A re-examination," Journal of Development Economics, Elsevier, vol. 36(2), pages 405-415, October.
  3. Michaely, Michael, 1977. "Exports and growth : An empirical investigation," Journal of Development Economics, Elsevier, vol. 4(1), pages 49-53, February.
  4. Esfahani, Hadi Salehi, 1991. "Exports, imports, and economic growth in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 35(1), pages 93-116, January.
  5. Chow, Peter C. Y., 1987. "Causality between export growth and industrial development : Empirial evidence from the NICs," Journal of Development Economics, Elsevier, vol. 26(1), pages 55-63, June.
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