International Journal of Foreign Trade and International Business
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P-ISSN: 2663-3140, E-ISSN: 2663-3159
International Journal of Foreign Trade and International Business
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2023, Vol. 5, Issue 2, Part A
Exports of manufactured goods and economic growth in India after 1991: A granger causality approach

Dikki N Marak and KC Biswal

The purpose of this study is to examine the relationship between manufactured goods exports and economic growth in India. Previous studies have found that exporting manufactured goods has a favorable impact on economic growth in several countries throughout the world. This study takes 30 years after the 1991 economic reformation. Because India's economic growth improved with the adoption of the LPG model, this study aims to evaluate the causal relationship between exports and economic growth in the post-reform era. In this study, the unit root test revealed that the variables are I (1) hence, the Johansen cointegration test is used and the findings showed that there exists no long-run nexus between the variables hence the Granger causality test is performed to determine short-run causality. The test results showed that there is unidirectional causality running from manufactured goods exports to economic growth. Based on the results, this study suggests that the export-led growth hypothesis is applicable in the case of India and recommends that the manufacturing units should be provided with adequate support so that they can improve their production and incentives be given to enhance exports of manufactured goods.
Pages : 08-10 | 446 Views | 231 Downloads


International Journal of Foreign Trade and International Business
How to cite this article:
Dikki N Marak, KC Biswal. Exports of manufactured goods and economic growth in India after 1991: A granger causality approach. Int J Foreign Trade Int Bus 2023;5(2):08-10. DOI: 10.33545/26633140.2023.v5.i2a.89
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