Abstract:
We analyse causality relationships between industry and foreign trade in three major areas of the world economy: India, China and OECD countries for the period 1960-2002, and found that the effect of imports is usually positive and significant to favour industrial and non-industrial development, from a mixed approach to economic growth which has into account demand and supply sides. We use several approaches to causality, including Granger´s bivariate and trivariate tests and analysis of contemporaneous relationships.