Import demand of crude oil and economic growth: Evidence from India

Sajal Ghosh ()

Energy Policy, 2009, vol. 37, issue 2, 699-702

Abstract: This study establishes a long-run equilibrium relationship among quantity of crude oil import, income and price of the imported crude in India for the time span 1970-1971 to 2005-2006 using autoregressive distributed lag (ARDL) bounds testing approach of cointegration. Empirical results show that the long-term income elasticity of imported crude in India is 1.97 and there exists a unidirectional long-run causality running from economic growth to crude oil import. So reduction of crude oil import will not affect the future economic growth in India in the long-run. India should take various energy efficiency and demand side management measures in transport sector along with other measures like expanding and strengthening indigenous resource-base, substituting imported fuels by domestic fuels and de-controlling the price of petroleum products to reduce its import dependence.

Keywords: Crude; oil; import; India; ARDL (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (68)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:37:y:2009:i:2:p:699-702

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