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Exports, Imports and Economic Growth in India

Author

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  • László Kónya

    () (School of Economics, La Trobe University)

  • Jai Pal Singh

    (Department of Business Management CCS Haryana Agricultural University, Hisar, India)

Abstract

With the advent of WTO, India entered into the era of trade reforms in 1991 and is moving gradually towards an open economy. It is widely believed that export and import growth is crucial in providing the impetus for economic growth in developing countries and imports provide the important 'virtuous' link between trade and output growth. Therefore, our aim, here, is to address the export/import-led growth and growth-driven export/import hypotheses for India. In spite of some ambiguity, the results clearly show that exports and imports Granger-cause GDP, both individually and jointly, lending support to the export/import led growth hypotheses. There is also some indication of GDP and exports jointly Granger- causing imports, and GDP and imports jointly Granger-causing exports, but the growth driven export/import hypotheses seem implausible. A possible reason for the results is the favourable trade environment of India.

Suggested Citation

  • László Kónya & Jai Pal Singh, 2006. "Exports, Imports and Economic Growth in India," Working Papers 2006.06, School of Economics, La Trobe University.
  • Handle: RePEc:trb:wpaper:2006.06
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    References listed on IDEAS

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    Cited by:

    1. repec:blg:reveco:v:69:y:2017:i:4:p:53-67 is not listed on IDEAS
    2. László Kónya & Jai Pal Singh, 2007. "Causality between Indian Exports, Imports, and Agricultural, Manufacturing GDP," Working Papers 2007.02, School of Economics, La Trobe University.

    More about this item

    Keywords

    Export; Import; Economic Growth; India; Unit root; Co-integration; Causality;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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