Economic Growth, Exports and Domestic Demand in India: In search of a New Pardigm of Development
Since the 1970s, several developing countries have witnessed remarkable transformation of their economies with Export-Led Growth (ELG) as a major development paradigm. Considering the latent limitation of the ELG to meet eminent stagnation in the long run, there were strong sentiments expressed by the East Asian countries towards switching over to alternative DDLG strategy after the ‘Asian Crisis’. It was debated in the literature that large countries like China and India pursued the policies of ELG and DDLG policies in different phases of global business cycle to ensure sustainability of high growth during the 2000s and after. The empirical evidence on this issue of examining ELG-DDLG hypothesis using cointegration in the VECM framework for the period 1974-2010 suggests that India has been using the twin development strategies alternatively in different periods to evade adverse effects of the global business cycle and to maintain sustained economic growth. India’s new version of export-led growth stance will continue as long as it has not exhausted its global competitiveness and becoming the part of the upper middle-income country. Considering India’s trade becoming ‘Asia Centric’, concentrating on imports for new phase of industrialisation and consolidating of its ‘Look East Policy’, Country’s integration with the EAS process would increase its trade dependence with the region.
|This chapter was published in: ||This item is provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Chapters with number
2011-rpr-10-06.||Handle:|| RePEc:era:chaptr:2011-rpr-10-06||Contact details of provider:|| Postal: The ASEAN Secretariat Mezzanine Floor, 70A Jl.Sisingamangaraja, Jakarta 12110|
Web page: http://www.eria.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Subrata Ghatak & Chris Milner & Utku Utkulu, 1997. "Exports, export composition and growth : cointegration and causality evidence for Malaysia," Applied Economics, Taylor & Francis Journals, vol. 29(2), pages 213-223.
- Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
- Heller, Peter S. & Porter, Richard C., 1978. "Exports and growth : An empirical re-investigation," Journal of Development Economics, Elsevier, vol. 5(2), pages 191-193, June.
- Jung, Woo S. & Marshall, Peyton J., 1985. "Exports, growth and causality in developing countries," Journal of Development Economics, Elsevier, vol. 18(1), pages 1-12.
- Filippini, Carlo & Molini, Vasco, 2003. "The determinants of East Asian trade flows: a gravity equation approach," Journal of Asian Economics, Elsevier, vol. 14(5), pages 695-711, October.
- Love, Jim & Chandra, Ramesh, 2005. "Testing export-led growth in Bangladesh in a multivarate VAR framework," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1155-1168, January.
- Michaely, Michael, 1977. "Exports and growth : An empirical investigation," Journal of Development Economics, Elsevier, vol. 4(1), pages 49-53, February.
- 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.
- Tyler, William G., 1981. "Growth and export expansion in developing countries : Some empirical evidence," Journal of Development Economics, Elsevier, vol. 9(1), pages 121-130, August.
- Kavoussi, Rostam M., 1984. "Export expansion and economic growth : Further empirical evidence," Journal of Development Economics, Elsevier, vol. 14(1), pages 241-250.
- Krueger, Anne O, 1980.
"Trade Policy as an Input to Development,"
American Economic Review,
American Economic Association, vol. 70(2), pages 288-92, May.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
- Montek S. Ahluwalia, 2002. "Economic Reforms in India Since 1991: Has Gradualism Worked?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 67-88, Summer.
- Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
- Khan, Mohsm S. & Ross, Knud Z., 1977. "The functional form of the aggregate import demand equation," Journal of International Economics, Elsevier, vol. 7(2), pages 149-160, May.
- Boylan, T. A. & Cuddy, M. P. & O'Muircheartaigh, I., 1980. "The functional form of the aggregate import demand equation : A comparison of three European economies," Journal of International Economics, Elsevier, vol. 10(4), pages 561-566, November.
- T.P. Bhat, 2012. "India and China," India Quarterly: A Journal of International Affairs, , vol. 68(1), pages 69-87, March.
When requesting a correction, please mention this item's handle: RePEc:era:chaptr:2011-rpr-10-06. 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: (Hiroshi Okasaki)
If references are entirely missing, you can add them using this form.