An Econometric Analysis between Foreign Trade and Economic Growth in India

Abstract

Foreign trade or international trade is one of the key indicators of country’s economic growth. Economic development is considered as one of the major concerns for any developing countries like India. India’s foreign trade plays a pivotal role in ascertaining the performance of GDP growth in a country.The present study examines the relationship between export, import, trade openness and economic growthof India using the secondary sources from 1997-2021collected from World Bank Database.The analysis of the series has been carried out accordingly with the help of Augmented Dickey Fuller (ADF) Test, Johansen Co-integration, Vector Error Correction Estimates and Granger Causality Test using EViews-12.