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

Nissar Fakraoui, Sayef Bakari

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.


Full Text:

PDF

References


Albiman M, Suleiman NN (2016). The Relationship among Export, Import, Capital Formation and Economic Growth in Malaysia. Journal of Global Economy 4: 186. doi:10.4172/2375-4389.1000186.

Azam, J.P, and Bhatia, K (2012): “Provoking Insurgency in a Federation: Theory and Application to India”, TSE Working Paper n° 12-329, August 2012.

Bakari, S. (2017a). The long run and short run impacts of exports on economic growth: Evidence from Gabon. Economic Research Guardian. 7(1), 40-57.

Bakari, S. (2017b). Appraisal of trade: Potency on economic growth in Sudan: New empirical and policy analysis. Asian Development Policy Review, 5(4), 213-225.

Bakari, S (2017c). “The Relationship between Export, Import, Domestic Investment and Economic Growth in Egypt: Empirical Analysis.” EuroEconomica. Issue 2(36)/2017.

Bakari, S. (2018). The Impact of Domestic Investment on Economic Growth: New Policy Analysis from Algeria. Bulletin of Economic Theory and Analysis, 3(1), 35-51.

Bakari, S., Mabrouki, M and elmakki, A, (2017). "The Impact of Domestic Investment in the Industrial Sector on Economic Growth with Partial Openness: Evidence from Tunisia," Economics Bulletin, Volume 38, Issue 1, pages 111-128

Bakari, S., Mabrouki, M and Othmani A (2018). "The Six Linkages between Foreign Direct Investment, Domestic Investment, Exports, Imports, Labor Force and Economic Growth: New Empirical and Policy Analysis from Nigeria". Journal of Smart Economic Growth, Volume 3, Number 1, Year 2018.

Bawa, K.S and al (2010). China, India, and the environment. Science 327: 1457–59.

Burney, J., and V. Ramanathan (2014), Recent climate and air pollution impacts on Indian agriculture, Proc. Natl. Acad. Sci. U. S. A., 111, 16,319–16,324

Dickey, D. A., & Fuller, W. A. (1979). Distribution of estimators of autoregressive time series with a unit root. Journal of the American Statistical Association, 74, 427-31.

Dickey, D. A., & Fuller, W. A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-72.

Gupta, A. (2012). Red tape: bureaucracy, structural violence, and poverty in India. Durham: Duke University Press.

Gupta, P., R. Hasan, and U. Kumar (2009). “Big Reforms but Small Payoffs: Explaining the Weak Record of Growth in Indian Manufacturing.” India Policy Forum, Volume 5 , 2008-09.

Gurtoo, A., and Williams, C.C., (2009). Entrepreneurship and the informal sector: some lessons from India. Entrepreneurship and Innovation. 10, 1–8.

Hossain, I. (1998). ‘Bangladesh-India Relationship: The Ganges Water–Sharing Treaty and Beyond’, An American Review 25(3):131-151

Iftikhar S, Nisa F, Ali M, Umar S (2016). Gross Domestic Capital Formation, Exports and Economic Growth. Journal of Economics and Sustainable Development. (7)13: 44-48 .

Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2–3), 231 – 254.

Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in gaussian vector autoregressive models. Econometrica, 59, 1551-1580.

Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration, with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52, 169-210.

Kumar, K.K., Kumar, R.K., Ashrit, R.G., Deshpande, N.R., Hansen, J.W., (2004). Climate impacts on Indian agriculture. International Journal of Climatology. 24, 1375–1393.

Mahadevan, P. (2012). The Maoist insurgency in India: Between crime and revolution. Small Wars & Insurgencies, 23(2): 203-220.

Malhotra, P. (2010). Water Issues between Nepal, India, and Bangladesh. Institute of Peace and Conflict Studies, New Delhi, India.

Mbulawa, S. (2017). “The impact of economic infrastructure on long term economic growth in Botswana.” Journal of Smart Economic Growth. Volume 2, Number 1, Year 2017.

Mukherjee S (2017) Colonial origins of Maoist insurgency in India: Historical institutions and civil war. Journal of Conflict Resolution 62(10): 2232–2274.

Saleem M, Zaheer R (2018) A Study on Influence of Domestic Investment on the Economic Growth during 1980-2016. J Glob Econ 6: 302. doi: 10.4172/2375-4389.1000302

Sims, C. A. (1980), "Macroeconomics and Reality," Econometrica, 48, 1-48.


Refbacks

  • There are currently no refbacks.




Creative Commons License

All the articles published in JSEG are licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.