RELATIONSHIP BETWEEN TRADE OPENNESS AND ECONOMIC GROWTH OF INDIA: A TIME SERIES ANALYSIS Cover Image
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RELATIONSHIP BETWEEN TRADE OPENNESS AND ECONOMIC GROWTH OF INDIA: A TIME SERIES ANALYSIS
RELATIONSHIP BETWEEN TRADE OPENNESS AND ECONOMIC GROWTH OF INDIA: A TIME SERIES ANALYSIS

Author(s): Monojit Chaterji, Sushil Mohan, Sayantan Ghosh Dastidar
Subject(s): Economy
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Keywords: Trade openness; economic growth; India; time series analysis

Summary/Abstract: The empirical relationship between trade openness and economic growth of India has been a debatable issue. The existing literature fails to provide an unambiguous answer.The paper examines this empirical relationship for the time period 1970-2010 using Vector Autoregression method and demonstrates thatthe relationship has evolved over time following the regime change in the early 1980s when the Indian economy started to move from a state-led growth model to a pro-market regime. Therefore, any assumption of a static trade-growth nexus may lead to inaccurate findings.Our econometric results indicate that growth in trade volumes accelerates economic growth of India since 1980-81 onwards. We do not find evidence of any significant association between trade barriers and growth.

  • Issue Year: 6/2014
  • Issue No: 1
  • Page Range: 45-69
  • Page Count: 25
  • Language: English
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