Exploring Co-Integration and Causality between Foreign Trade and Economic Growth: Econometric Evidence from India

A Study on the Causal Relationship between Foreign Trade and Economic Growth in India

Abstract

The study tries to delve into the causal relationship between trade and growth rate of GDP. The study has tried to check whether there has been any causal relationship between trade and growth rate of GDP in general and whether any change (positive or negative). The study examines the dynamics of the relationship between India’s foreign trade and economic growth in India during 1991-91 to 2017-18. In the present study, an attempt has been made to analyze the data collected through Secondary source. The results discusses the extent of in order to analyze the stationarity of India’s Foreign Trade and GDP and in this section also find out the long run and short run relationship between Foreign Trade and GDP.