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Relationship between trade openness and economic growth of India: A time series analysis

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  • Monojit, Chatterji
  • Sushil, Mohan
  • Sayantan Ghosh, Dastidar

Abstract

The paper aims to examine the empirical relationship between trade openness and economic growth of India for the time period 1970-2010. Trade openness is a multi-dimensional concept and hence measures of both trade barriers and trade volumes have been used as proxies for openness. The estimation results from Vector Autoregressive method suggest that growth in trade volumes accelerate economic growth in case of India. We do not find any evidence from our analysis that trade barriers lower growth.

Suggested Citation

  • Monojit, Chatterji & Sushil, Mohan & Sayantan Ghosh, Dastidar, 2013. "Relationship between trade openness and economic growth of India: A time series analysis," SIRE Discussion Papers 2013-27, Scottish Institute for Research in Economics (SIRE).
    • Handle: RePEc:edn:sirdps:462
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    7. Mkadmi, Jamel Eddine & Bakari, Sayef & Msai, Achwak, 2021. "Assessing the Impact of Tax Policies on Economic Growth in Tunisia: New Empirical and Policy Analysis," MPRA Paper 109023, University Library of Munich, Germany.
    8. Sayantan Ghosh Dastidar, 2017. "Impact of Remittances on Economic Growth in Developing Countries: The Role of Openness," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(2), pages 1-12, June.
    9. Thando Vilakazi & Anthea Paelo, 2017. "Understanding intra-regional transport: Competition in road transportation between Malawi, Mozambique, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series 046, World Institute for Development Economic Research (UNU-WIDER).
    10. Gaetsewe, Tshepiso & Kapunda, Stephen M. & Motlaleng, G. R., 2015. "An Econometric Approach to Exchange Control Liberalization and Economic Growth: The Case of Botswana," African Journal of Economic Review, African Journal of Economic Review, vol. 3(1), January.
    11. Bakari, Sayef, 2021. "Are Domestic Investments in Spain a Source of Economic Growth?," MPRA Paper 105526, University Library of Munich, Germany.
    12. Reenu Kumari & Sunil Kumar Singh, 2024. "Impact of ICT Infrastructure, Financial Development, and Trade Openness on Economic Growth: New Evidence from Low- and High-Income Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7069-7098, June.

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    More about this item

    Keywords

    Trade openness; economic growth; India; time series analysis;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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