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

  • Abhijit Sharma
  • Theodore Panagiotidis


    (Department of Economics, The University of Sheffield)

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.

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Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2003004.

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Length: 31 pages
Date of creation: Nov 2003
Date of revision: Nov 2003
Handle: RePEc:shf:wpaper:2003004
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