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An Error-Correction Analysis Of India-Us Trade Flows

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  • AVIRAL KUMAR TIWARI

    (ICFAI University Tripura)

Abstract

The study finds that India¡¯s exports to the US have been significantly affected by GDP per capita of the US, WPI of the India and the US, and exchange rate; and India¡¯s import from the US is significantly affected the India¡¯s GDP and WPI in the long-run. Static analysis of causality asserts that WPI of the US Granger causes the India¡¯s exports to the US and the GDP of the US. Further, WPI of the India Granger causes the GDP of the US and the exchange rate Granger causes WPI of the US. Moreover, GDP of the India Granger causes her imports from the US; and WPI of the India and exchange rate Granger cause WPI of the US.

Suggested Citation

  • Aviral Kumar Tiwari, 2012. "An Error-Correction Analysis Of India-Us Trade Flows," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(1), pages 29-51, March.
    • Handle: RePEc:jed:journl:v:37:y:2012:i:1:p:29-51
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    References listed on IDEAS

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    More about this item

    Keywords

    Bilateral Trade; Granger-Causality; IRFs;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • F15 - International Economics - - Trade - - - Economic Integration

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