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Linkages between Export, Import and Capital Formation in India

Author Affiliations

  • 1 Department of Business Economics, Faculty of Commerce, the M.S. University of Baroda, Vadodara Gujarat INDIA

Int. Res. J. Social Sci., Volume 2, Issue (3), Pages 16-19, March,14 (2013)


Linkages between export, import and capital formation investigated by time series econometric techniques like Unit root test, Co-integration and Granger causality during the period of 1991 to 2010 for India. This study checked that whether there is uni-directional or bidirectional causality between export, import and capital formation in India. In this paper, the results reveal that there is bidirectional causality between gross domestic capital formation and export growth. The traditional Granger causality test also suggests that there is uni-directional causality between capital formation and import and export.


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