AN EMPIRICAL ANALYSIS OF THE DETERMINANTS OF INDIA’S HIGH-TECHNOLOGY EXPORTS
Mohd. Fayaz and
Regional and Sectoral Economic Studies, 2019, vol. 19, issue 2, 29-44
The present study analyzed the determinants of high technology exports of India over the period 1980-2016 using cointegration and Granger causality procedures. The results indicate the existence of long-run equilibrium relationship for high tech exports of India with the said variables implying that Indian exports are influenced by these factors. Further Granger causality test reveals the direction of causality from technological activities, R&D, and world demand to high-tech exports. Hence, the results proved the significance of the world demand, FDI, and R&D in determining the high-tech exports of India. Thus there is a need to build an enabling environment for investments in high technology activities, and R&D expenditure should also be increased in technical innovations.
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