AN ERROR-CORRECTION ANALYSIS OF INDIA-US TRADE FLOWS

Aviral Tiwari

Journal of Economic Development, 2012, vol. 37, issue 1, 29-51

Abstract: The study finds that India¡¯s exports to the US have been significantly affected by GDP per capita of the US, WPI of the India and the US, and exchange rate; and India¡¯s import from the US is significantly affected the India¡¯s GDP and WPI in the long-run. Static analysis of causality asserts that WPI of the US Granger causes the India¡¯s exports to the US and the GDP of the US. Further, WPI of the India Granger causes the GDP of the US and the exchange rate Granger causes WPI of the US. Moreover, GDP of the India Granger causes her imports from the US; and WPI of the India and exchange rate Granger cause WPI of the US.

Keywords: Bilateral Trade; Granger-Causality; IRFs (search for similar items in EconPapers)
JEL-codes: C31 F15 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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