Export and Economic Growth: An Empirical Analysis for India

Recent advances in time series analysis have permitted the investigation of the long-run and short-run relationship between export and economic growth in terms of co integration analysis and error correction mechanism. The paper empirically examines the relationship between export and economic growth in the short-run and long-run by using Indian data over the period, 1950-51 to 2000-2001. There is some evidence of co integration to establish a long-run relationship between export and economic growth found through Johansen and Johansen Juselius Co integration tests. Using the Granger Causality test we find empirical support for unidirectional Granger causality running from export to economic growth.