Re-examining export-led growth hypothesis: a multivariate cointegration analysis for India
This paper re-examines the export-led-growth (ELG) hypothesis using a vector autoregressive (VAR) model by considering the relationship between real GDP, real exports and terms of trade for India during the period 1961-93. In re-examining the ELG hypothesis, this study, perhaps for the first time, employs a multivariate framework using Johansen's model selection and maximum likelihood cointegration procedure. The results sugest that there is one long-run equilibrium relationship among the three variables, and the causal relationship flows from the growth in GDP and terms of trade to the growth in exports. The causality from exports to GDP appears to be a short run phenomenon, suggesting that the recent export promotion strategies adopted in India have the potential of bearing growth in the future.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 31 (1999)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:31:y:1999:i:4:p:525-530. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.