Volume : V, Issue : V, May - 2016

Trade Led Growth Hypothesis in India an Evidence

Dr. Annapurna Dixit

Abstract :

 In the present study, an attempt has been made to examine the trade led growth theory in India. The effective way to explore connectivity in trade and economic growth would be the cointegration analysis between the variables. In the most of the studies on trade led growth the empirical work has been done by using Engel and Granger causality test and some others. For the purpose quarterly time series data from 1996 to 2012 has been taken for the variables gross domestic production at factor cost, export, import, trade balance and terms of trade of India. Data has been taken from various issues of Handbook of Statistics on Indian Economy and Press release on quarterly estimates of GDP of India from Central Statistical Organization. For detecting unite root we used two different test i.e. ADF and PP test. Cointegration test suggest for the model 5 (i.e. Quarterly Growth in GDP, export, import, trade balance and total trade) that there are four cointegrating vectors. The positive effect of trade liberalization results from positive effects of both import and export on economic growth.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Dr. Annapurna Dixit Trade Led Growth Hypothesis in India an EvidenceInternational Journal of Scientific Research, Vol : 5, Issue : 5 MAY 2016

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