The export-income relationship: the case of India

P. J. Dawson
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P. J. Dawson: School of Agriculture, Food and Rural Development, University of Newcastle upon Tyne NE1 7RU, UK, P.J.Dawson@ncl.ac.uk

Progress in Development Studies, 2005, vol. 5, issue 1, 16-29

Abstract: Export promotion has been central to India’s export-import policies since the late 1990s and exports are seen as a potential engine of growth. This paper examines India’s export-income relationship for 1950-99 using vector autoregressive models. Results show no cointegrating long-run relationship but Granger-causality tests and impulse responses indicate short-run feedback: a 1% increase in exports (income) leads to a 0.06% (0.35%) increase in income (exports) in the following year and these effects are long-lived. Export promotion policies appear justified.

Keywords: export-income relationship; India; vector autoregressive models (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:sae:prodev:v:5:y:2005:i:1:p:16-29

DOI: 10.1191/1464993405ps098oa

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