Artikel
Does trade openness affect economic growth in India? Evidence from threshold cointegration with asymmetric adjustment
This paper investigates the long-run equilibrium relationship between economic growth and trade openness in India during the period 1960-2018 using the asymmetric error-correction model with threshold cointegration. To evaluate the robustness impact of trade openness on economic growth under different regimes, we divide the full sample period into two sub-periods, i.e., pre-trade reforms period 1960-1990, and post-trade reforms period 1991-2018. The study indeed confirms the evidence of asymmetric cointegration between economic growth and trade openness in India during the period under evaluation and over the different sub-periods. The estimated asymmetric error-correction model exhibits a different speed of adjustment in trade openness in response to positive and negative economic growth shocks in the short-run. More specifically, during the pre-reforms period, deviations from the long-run equilibrium due to a relative increase in economic growth have a lower speed of adjustment in comparison to deviations caused by a corresponding decrease in economic growth in India.
- Sprache
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Englisch
- Erschienen in
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Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 8 ; Year: 2020 ; Issue: 1 ; Pages: 1-26 ; Abingdon: Taylor & Francis
Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
Economic Impacts of Globalization: Macroeconomic Impacts
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
trade openness
threshold cointegration
error correctionmechanism
Ranjan Behera, Smruti
- DOI
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doi:10.1080/23322039.2020.1782659
- Handle
- Letzte Aktualisierung
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12.07.2024, 13:21 MESZ
Objekttyp
- Artikel
Beteiligte
- Mallick, Lingaraj
- Ranjan Behera, Smruti
- Taylor & Francis
Entstanden
- 2020