Causal Relationship between Trade and Economic Growth in India during Post WTO Period
Published: 2018
Author(s) Name: N.M. Varshini and M. Manonmani |
Author(s) Affiliation: Research Scholar, Dept. of Eco., Avinashilingam Inst. for Home Sci. and Higher Edu. for Women, TN.
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Abstract
This paper investigates in to the
impact of WTO on the causal relationship
among exports, imports
and economic growth between 1995
and 2016. The study
used Granger Causality test to
know the short run relationship
between the variables and
Johansen Co-integration approach
for long run relationship.
Augmented Dickey Fuller (ADF)
test was applied to check
stationarity of the variables used
in the study. The variables were
stationary at first and second
level difference level. There was
sufficient evidence that there existed
long run relationship between
export and economic
growth and also between import
and economic growth. The results
provide evidence that economic
growth in India was propelled by
a growth led import strategy as
well as export led growth.
Keywords: N.A.
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