IDEAS home Printed from https://ideas.repec.org/a/aoj/econom/v7y2020i1p59-68id1811.html
   My bibliography  Save this article

An Analysis of the Relationship among Economic Growth, External Debt and Exports in India (1970-2018)

Author

Listed:
  • Smita Nath

Abstract

This paper attempts to examine the relationship among debt servicing, exports and GDP for India during 1970 – 2018 using co-integration test, error correction model and Granger causality test. In the bi-variate model with constant trend specification GDP and exports seem to have no long-term relationship. However, change in GDP Granger causes change in exports. For the restricted constant trend specification, in the short run, GDP affects exports positively and significantly. GDP and debt services seem to have a positive and significant long-term relationship in the bivariate model. The tri-variate model including GDP, Exports and debt service reveals a long term relationship among the variables where both exports and debt services affect GDP positively and significantly. GDP, exports and debt stocks do not have any long term relationship with constant trend specification, but change in GDP is found to Granger cause change in exports. For the restricted constant trend specification, however, there seems to be a long term relationship among them. In the short run GDP affects exports positively and significantly. In general, results indicate a positive and significant impact of GDP on exports. A significant positive long run impact of external debt on economic growth is also observed when debt service is the indicator of external debt. The short run impacts of external debt in terms of both debt servicing and debt stocks, however, produce diverse and insignificant results.

Suggested Citation

  • Smita Nath, 2020. "An Analysis of the Relationship among Economic Growth, External Debt and Exports in India (1970-2018)," Economy, Asian Online Journal Publishing Group, vol. 7(1), pages 59-68.
    • Handle: RePEc:aoj:econom:v:7:y:2020:i:1:p:59-68:id:1811
    as

    Download full text from publisher

    File URL: http://asianonlinejournals.com/index.php/Economy/article/view/1811/1541
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emrah Be e & Haven Swint Friday & Cihan zden, 2021. "Is India Financing Its Emissions Through External Debt?," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 170-179.
    2. Hikma Bachegour & Ahlam Qafas, 2023. "Does External Debt Worsen Environmental Pollution? Evidence from Morocco," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 68-76, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:econom:v:7:y:2020:i:1:p:59-68:id:1811. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: http://asianonlinejournals.com/index.php/Economy/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.