TY  - THES
AB  - The relationship between exports and economic growth has been analyzed by many empirical  studies in the past. This paper examines the sources of economic growth for India for the  period 1980 to 2020. It empirically investigates the relationships in the short run as well as  the long run between exports and GDP, exports and GDP net exports. The latter half of the  paper focuses on assessing the impact of diversification of exports on the growth of GDP,  instead of just considering the level of exports. Using the inverse of the Herfindahl index to  construct the diversification index, both short and long-run relationships between  diversification and GDP growth are tested. Relevant variables such as Foreign direct  investment, Capital formation, Human Capital (Secondary Enrolment ratio), etc. are used in  the analysis. The following hypotheses are tested in this paper. (i) whether exports, imports, and GDP have a long-run relationship using the Johansen cointegration test; which showed  no evidence of a long term relationship between exports and GDP growth, using a variety of  control variables (ii) whether exports and GDP are cointegrated using the Breitung test; which also provided evidence against existence of a long term relationship (iii) if export  growth Granger causes GDP growth; where through the Granger causality test, it was found  that exports granger cause GDP growth but GDP growth does not granger cause Export  growth (iv) whether diversification of exports has an impact on the growth of GDP; which  through the use of the inverse of the Herfindahl index, evidence was found against the growth  of GDP through diversification of exports (v) whether factors such as human capital and  foreign investments cause an impact on GDP growth, where it was found that human capital  and FDI have a positive impact on the GDP growth. Impulse response functions are also  drawn for change in exports and diversification of exports, to assess the impact of  macroeconomic shocks on the economic system, where it can clearly be seen that a one SD  shock in exports, caused a change in the GDP, which eventually died out, indicating a more  short- term impact and not long-term impact.
AD  - University of Chicago
AU  - Desiraju, Naga Lavanya
DA  - 2022-06
DO  - 10.6082/uchicago.3771
DO  - doi
ED  - Kotaro Yoshida
ID  - 3771
KW  - Export led growth
KW  - Impulse response
KW  - Cointegration
KW  - Herfindahl index
L1  - https://knowledge.uchicago.edu/record/3771/files/Lavanya%20Thesis%20Draft%20final.pdf
L2  - https://knowledge.uchicago.edu/record/3771/files/Lavanya%20Thesis%20Draft%20final.pdf
L4  - https://knowledge.uchicago.edu/record/3771/files/Lavanya%20Thesis%20Draft%20final.pdf
LA  - eng
LK  - https://knowledge.uchicago.edu/record/3771/files/Lavanya%20Thesis%20Draft%20final.pdf
N2  - The relationship between exports and economic growth has been analyzed by many empirical  studies in the past. This paper examines the sources of economic growth for India for the  period 1980 to 2020. It empirically investigates the relationships in the short run as well as  the long run between exports and GDP, exports and GDP net exports. The latter half of the  paper focuses on assessing the impact of diversification of exports on the growth of GDP,  instead of just considering the level of exports. Using the inverse of the Herfindahl index to  construct the diversification index, both short and long-run relationships between  diversification and GDP growth are tested. Relevant variables such as Foreign direct  investment, Capital formation, Human Capital (Secondary Enrolment ratio), etc. are used in  the analysis. The following hypotheses are tested in this paper. (i) whether exports, imports, and GDP have a long-run relationship using the Johansen cointegration test; which showed  no evidence of a long term relationship between exports and GDP growth, using a variety of  control variables (ii) whether exports and GDP are cointegrated using the Breitung test; which also provided evidence against existence of a long term relationship (iii) if export  growth Granger causes GDP growth; where through the Granger causality test, it was found  that exports granger cause GDP growth but GDP growth does not granger cause Export  growth (iv) whether diversification of exports has an impact on the growth of GDP; which  through the use of the inverse of the Herfindahl index, evidence was found against the growth  of GDP through diversification of exports (v) whether factors such as human capital and  foreign investments cause an impact on GDP growth, where it was found that human capital  and FDI have a positive impact on the GDP growth. Impulse response functions are also  drawn for change in exports and diversification of exports, to assess the impact of  macroeconomic shocks on the economic system, where it can clearly be seen that a one SD  shock in exports, caused a change in the GDP, which eventually died out, indicating a more  short- term impact and not long-term impact.
PB  - University of Chicago
PY  - 2022-06
T1  - Testing the Export Led Growth Hypothesis in context of the Indian Economy A study from 1980 – 2020
TI  - Testing the Export Led Growth Hypothesis in context of the Indian Economy A study from 1980 – 2020
UR  - https://knowledge.uchicago.edu/record/3771/files/Lavanya%20Thesis%20Draft%20final.pdf
Y1  - 2022-06
ER  -