IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/16429.html
   My bibliography  Save this paper

ELG hypothesis is valid for India: An Evidence from Structural Causality

Author

Listed:
  • Asghar, Zahid

Abstract

Causality is important for empirical analysis in economics but not easily detected. Therefore, it is always important that one should investigate the problem not only on statistical grounds but also add extra statistical information which may come from economic events happening over a time about the problem under study. This extra statistical information helps in introducing asymmetry in the relationship. Most of the studies are based on Granger Causality for determining causal direction between export and economic growth for individual countries. In this paper we use a method suggested by Hoover (2001) for detecting causality which incorporates extra statistical information, economic theory and statistical analysis. We apply this technique to a simulated data and also apply it to the export-led growth hypothesis for India. Our results indicate that there is unidirectional causality from export to economic growth.

Suggested Citation

  • Asghar, Zahid, 2009. "ELG hypothesis is valid for India: An Evidence from Structural Causality," MPRA Paper 16429, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:16429
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/16429/1/MPRA_paper_16429.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hoover,Kevin D., 2001. "Causality in Macroeconomics," Cambridge Books, Cambridge University Press, number 9780521002882.
    2. Dierk HERZER & Felicitas NOWAK-LEHMANN D. & Boriss SILIVERSTOVS, 2006. "Export-Led Growth In Chile: Assessing The Role Of Export Composition In Productivity Growth," The Developing Economies, Institute of Developing Economies, vol. 44(3), pages 306-328.
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Structural Causality; Conditional and Marginal probability distributions; Granger Causality; Export Led Economic Growth;

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:16429. 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: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.