TIE AMONG DOMESTIC INVESTMENT, EXPORTS AND ECONOMIC GROWTH: EMPIRICAL ANALYSIS FROM INDIA

Nissar  Fakraoui; Sayef  Bakari

Nissar Fakraoui Department of Economics Sciences, Higher Institute of Companies Administration, University of Gafsa
Sayef Bakari Department of Economics Sciences, LIEI, Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar

Abstract

The contribution of this paper is investigating the relationship between domestic investment, exports and economic growth in India. To attempt this purpose annual data was collected for the period 1960 – 2017 and was tested by using cointegration analysis and vector error correction model. Empirical analyses show that there is no relationship between exports domestic investment and economic in the long run. However, only exports cause economic growth in the short run. These results provide on evidence that domestic investment and exports are not seen as source of economic growth in India during this considerable period and bear a lot of issues and inappropriate economic strategy.