Causal relationship between agricultural exports and economic growth: a diagnostic approach
This study attempts to investigate the causal relationship that exists between agricultural exports and economic growth for the time period starting from 1992-93 to 2018-19. Gross Domestic Product (GDP) has been used as the proxy of the economic growth. The study applied the unit root testing for ch...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2021-06-01
|
| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1538.pdf
|
| Summary: | This study attempts to investigate the causal relationship that exists between agricultural
exports and economic growth for the time period starting from 1992-93 to 2018-19. Gross Domestic
Product (GDP) has been used as the proxy of the economic growth. The study applied the unit root
testing for checking the stationarity of the data which comes out to be integrated at level 2. The
study used Johansen co-integration test to understand if there is any co-integration between the two
variables of the study i.e. agricultural exports and economic growth. Vector Error Correction Model
has been used to know if there is short run or long run causality between them. The results revealed
that there is short run causality between the taken variables when GDP is taken as independent and
agricultural exports as dependent variable but not vice-versa. Granger-Causality test shows that
there is unidirectional causality running from gross domestic product to exports of agricultural
products. The study would help in policy formulation in a way that gives boost to economic growth
and thus the agricultural exports. |
|---|---|
| ISSN: | 1841-8678 1844-0029 |