Is trade deficit sustainable in India? An inquiry

Aviral Tiwari

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the sustainability of trade deficit with allowance of structural breaks and seasonal adjustments as both variables have been subject to structural changes and affected by seasons. We find that, in all the cases, there is long run relationship between export and import. This implies that foreign trade deficit is sustainable in the Indian context.

Keywords: export; import; unit root; structural breaks; seasonal adjustment; cointegration. (search for similar items in EconPapers)
JEL-codes: C12 C13 C22 F14 (search for similar items in EconPapers)
Date: 2010-08-16
New Economics Papers: this item is included in nep-cwa and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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