Foreign Direct Investment, Export and Economic Growth in India: An Application of Ardl Model
Asian African Journal of Economics and Econometrics, Vol.10, No.2, 245-259, 2010
15 Pages Posted: 2 May 2013
Date Written: 2010
Abstract
This study examines the causal nexus among Export, Economic Growth and Foreign Direct Investment (FDI) in India using the autoregressive distributed lag (ARDL) cointegration procedure on monthly data over the period 1992 to 2008. The stability of the short-run as well as long-run coefficients in the model is tested too. The analysis reveals a long run interrelationship among Export, Economic Growth and FDI in India. In the short run the study find the evidence of bidirectional relationship between Export and Economic Growth and a unidirectional causal relationship from Export to FDI. As a result, during the post liberalization period, trade liberalization has not only caused trade expansion but also increased the inflow of FDI in India which stimulate economic growth.
Keywords: Foreign Direct Investment, Export, Economic Growth, ARDL
JEL Classification: F21, F43
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By David T. Coe and Elhanan Helpman
-
By David T. Coe
-
International R&D Spillovers and Institutions
By David T. Coe, Elhanan Helpman, ...
-
International R&D Spillovers and Institutions
By David T. Coe, Elhanan Helpman, ...
-
International R&D Spillovers and Institutions
By David T. Coe, Elhanan Helpman, ...
-
Are There International R&D Spillovers Among Randomly Matched Trade Partners?: A Response to Keller
-
By David T. Coe, Elhanan Helpman, ...
