An Empirical Study of Export and Economic Growth in India since 1960:A Co integration Analysis

Seyed Mohammadreza Hosseini () and D.S.Leelavathi
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Seyed Mohammadreza Hosseini: Department of Studies in Economics, University of Mysore, Mysore
D.S.Leelavathi: Department of Economics, DOS in Economics & Cooperation, University of Mysore.

Iranian Economic Review (IER), 2014, vol. 18, issue 1, 53-64

Abstract: The current study aims to explore the relationship between the two main macroeconomic variables, the export and economic growth,based on the export-led growth hypothesis (ELGH) in India for the period 1960 to 2010. The ELGH is an economic strategy used in the international trade policy of some developing countries for tracing the impact of trade on their economic growth. The ELGH is tested by the co-integration, error correction modeling and Granger causality approach. The results of the study show that there is evidence of unidirectional causality between export and economic growth for India. In fact, the economic growth causes export growth.

Keywords: Export-Led Growth Hypothesis; Export; Economic growth; co integration; Error correction model. (search for similar items in EconPapers)
Date: 2014
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