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The Dynamics of the Relationship between Imports and Economic Growth in India

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  • P. K. Mishra

Abstract

In a developing country like India, the role of international trade is very significant. And, the relevance of export-led growth hypothesis in India has been the major issue of many empirical studies. But, the other aspect concerning the importance of imports in the economic growth of the country is yet a moot point. This article is an attempt to investigate the dynamics of the relationship between imports and economic growth in India for the period 1970–1971 to 2009–2010. Using time series techniques such as vector error correction estimates and Granger causality tests, we show the existence of a two-way relationship between import growth and income growth in the long run.

Suggested Citation

  • P. K. Mishra, 2012. "The Dynamics of the Relationship between Imports and Economic Growth in India," South Asian Journal of Macroeconomics and Public Finance, , vol. 1(1), pages 57-79, June.
    • Handle: RePEc:sae:smppub:v:1:y:2012:i:1:p:57-79
    DOI: 10.1177/227797871200100105
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    References listed on IDEAS

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    Cited by:

    1. Daniel Sakyi & José Villaverde & Adolfo Maza & Isaac Bonuedi, 2017. "The Effects of Trade and Trade Facilitation on Economic Growth in Africa," African Development Review, African Development Bank, vol. 29(2), pages 350-361, June.
    2. Nomfundo Portia Vacu & Nicholas M. Odhiambo, 2017. "A Review of Imports Structure and Reforms in Ghana," EuroEconomica, Danubius University of Galati, issue 1(36), pages 144-158, May.

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    More about this item

    Keywords

    Imports; real GDP; India; error correction model; Granger causality; C32; F43; O24;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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