Macro analysis of linkages between export, import and economic growth: evidence from the Indian economy

This paper examines the long run and short run relationship between export and import of goods and services and Gross Domestic Product (GDP) in India from 1991 to 2023 using cointegration analysis, Vector Autoregressive (VAR) test, VAR Granger Causality test and Impulse Response Function analyses. T...

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Main Authors: Athira A, Rajendran S
Format: Article
Language:English
Published: General Association of Economists from Romania 2025-03-01
Series:Theoretical and Applied Economics
Subjects:
Online Access: http://store.ectap.ro/articole/1822.pdf
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author Athira A
Rajendran S
author_facet Athira A
Rajendran S
author_sort Athira A
collection DOAJ
description This paper examines the long run and short run relationship between export and import of goods and services and Gross Domestic Product (GDP) in India from 1991 to 2023 using cointegration analysis, Vector Autoregressive (VAR) test, VAR Granger Causality test and Impulse Response Function analyses. The Johansen cointegration tests find that, there is no consistent, long-term relationship between GDP, export, and imports. Further the result of VAR Granger causality Test shows that export cause effect GDP, Import cause effect GDP, and Export cause import, which confirm that causality between the variables.
format Article
id doaj-art-21613b02b24349eabb5d5bbf0441c995
institution OA Journals
issn 1841-8678
1844-0029
language English
publishDate 2025-03-01
publisher General Association of Economists from Romania
record_format Article
series Theoretical and Applied Economics
spelling doaj-art-21613b02b24349eabb5d5bbf0441c9952025-08-20T01:51:23ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292025-03-01XXXII128930218418678Macro analysis of linkages between export, import and economic growth: evidence from the Indian economyAthira A0Rajendran S1 Institute of Economic Growth, India The Gandhigram Rural Institute, India This paper examines the long run and short run relationship between export and import of goods and services and Gross Domestic Product (GDP) in India from 1991 to 2023 using cointegration analysis, Vector Autoregressive (VAR) test, VAR Granger Causality test and Impulse Response Function analyses. The Johansen cointegration tests find that, there is no consistent, long-term relationship between GDP, export, and imports. Further the result of VAR Granger causality Test shows that export cause effect GDP, Import cause effect GDP, and Export cause import, which confirm that causality between the variables. http://store.ectap.ro/articole/1822.pdf economic growthtradecointegration and causality
spellingShingle Athira A
Rajendran S
Macro analysis of linkages between export, import and economic growth: evidence from the Indian economy
Theoretical and Applied Economics
economic growth
trade
cointegration and causality
title Macro analysis of linkages between export, import and economic growth: evidence from the Indian economy
title_full Macro analysis of linkages between export, import and economic growth: evidence from the Indian economy
title_fullStr Macro analysis of linkages between export, import and economic growth: evidence from the Indian economy
title_full_unstemmed Macro analysis of linkages between export, import and economic growth: evidence from the Indian economy
title_short Macro analysis of linkages between export, import and economic growth: evidence from the Indian economy
title_sort macro analysis of linkages between export import and economic growth evidence from the indian economy
topic economic growth
trade
cointegration and causality
url http://store.ectap.ro/articole/1822.pdf
work_keys_str_mv AT athiraa macroanalysisoflinkagesbetweenexportimportandeconomicgrowthevidencefromtheindianeconomy
AT rajendrans macroanalysisoflinkagesbetweenexportimportandeconomicgrowthevidencefromtheindianeconomy