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Exports and Growth Nexus in India: An Econometric Analysis

Author

Listed:
  • Pushpa Trivedi

    (Professor, Department of Humanities and Social Sciences, Indian Institute of Technology, Bombay, Powai, Mumbai – 400076. Corresponding Address: trivedi@hss.iitb.ac.in)

  • Narayan Chandra Pradhan

    (Research Scholar, Department of Humanities and Social Sciences, Indian Institute of Technology, Bombay, Powai, Mumbai – 400076)

Abstract

The study focuses on the ‘export openness’ of Indian economy which is expected to have a positive impact on economic growth. The temporal coverage of the empirical analysis carried out spans the period 1970-71 to 2008-09. The research question addressed in the study is whether exports are related to growth and if so, then in what direction? Empirical verification of export-led growth hypothesis by applying various time series techniques in this study confirms both short-run and long-run relationship between exports and economic growth. Bivariate Granger causality test suggests that the direction of causality runs from export growth to GDP growth. This implies that one can use export performance also to predict the growth of Indian economy rather than depending only on the time-series models. JEL Codes: F1, F43, O53.

Suggested Citation

  • Pushpa Trivedi & Narayan Chandra Pradhan, 2010. "Exports and Growth Nexus in India: An Econometric Analysis," Millennial Asia, , vol. 1(1), pages 97-121, January.
  • Handle: RePEc:sae:millen:v:1:y:2010:i:1:p:97-121
    DOI: 10.1177/097639961000100106
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    References listed on IDEAS

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    More about this item

    Keywords

    International Trade in Goods and Services; Economic Growth; India;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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