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Abhijit Sharma
Abhijit
Sharma
Theodore Panagiotidis
Theodore
Panagiotidis
An analysis of exports and growth in India: cointegration and causality evidence (1971 - 2001)
Loughborough University
2005
India
Exports
Growth
Cointegration
Granger causality
Impulse resonse functions
Economics not elsewhere classified
2005-08-02 14:46:45
Preprint
https://repository.lboro.ac.uk/articles/preprint/An_analysis_of_exports_and_growth_in_India_cointegration_and_causality_evidence_1971_-_2001_/9493163
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 (1982) 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, imports and GDP are
cointegrated using the Johansen approach and Breitung’s nonparametric cointegration test, 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.