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An Analysis of Exports and Growth in India: Some Empirical Evidence (1971-2001)

Author

Listed:
  • Abhijit Sharma
  • Theodore Panagiotidis

    (Department of Economics, The University of Sheffield)

Abstract

The relationship between exports and economic growth has been analysed by a number of recent empirical studies. This paper re-examines the sources of growth for the period 1971-2001 for India. It builds upon Feder´s model to investigate empirically the relationship between export growth and GDP growth (the export led growth hypothesis), using recent data from the Reserve Bank of India, and by focusing on GDP growth and GDP growth net of exports. We investigate the following hypotheses: i) whether exports and GDP are cointegrated using both the Engle-Granger and the Johansen approach, ii) whether export growth Granger causes GDP growth, iii) and whether export growth Granger causes investment. Finally, a VAR is constructed and impulse response functions (IRFs) are employed to investigate the effects of macroeconomic shocks.

Suggested Citation

  • Abhijit Sharma & Theodore Panagiotidis, 2003. "An Analysis of Exports and Growth in India: Some Empirical Evidence (1971-2001)," Working Papers 2003004, The University of Sheffield, Department of Economics, revised Nov 2003.
    • Handle: RePEc:shf:wpaper:2003004
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mark J. Holmes & Theodore Panagiotidis & Abhijit Sharma, 2007. "The Sustainability of India's current account (1950-2003): Evidence from parametric and non-parametric unit root and cointegration tests," Working Paper series 41_07, Rimini Centre for Economic Analysis.
    2. repec:rim:rimwps:41-07 is not listed on IDEAS
    3. Mark Holmes & Theodore Panagiotidis & Abhijit Sharma, 2011. "The sustainability of India's current account," Applied Economics, Taylor & Francis Journals, vol. 43(2), pages 219-229.
    4. Pradeep Agrawal, 2014. "The Role of Exports in India's Economic Growth," IEG Working Papers 345 JEL Classification: O, Institute of Economic Growth.

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    More about this item

    Keywords

    India; trade; growth; cointegration; Granger causality; impulse response functions;
    All these keywords.

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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