Indian Journal of Industrial Relations: Economics & Social Dev.

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Causal Relationship Between Trade & Economic Growth in India During Post WTO Period


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1 Department of Economics, Avinashilingam Institute for Home Science, Coimbatore - 641043, India
     

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This paper investigates in to the impact of WTO on the causal relationship among exports, imports and economic growth between1995 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.
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  • Causal Relationship Between Trade & Economic Growth in India During Post WTO Period

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Authors

N. M. Varshini
Department of Economics, Avinashilingam Institute for Home Science, Coimbatore - 641043, India
M. Manonmani
Department of Economics, Avinashilingam Institute for Home Science, Coimbatore - 641043, India

Abstract


This paper investigates in to the impact of WTO on the causal relationship among exports, imports and economic growth between1995 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.

References