Volume : IV, Issue : V, May - 2014

Impact of Trade Liberalization on Economic growth in India

Kali Charan Modak, Pallabi Mukherjee

Abstract :

The paper empirically analyzes the impact of trade liberalization on the economic growth of India over the period 1990–2010. Trade openness, Gross Fixed Capital Formation (GFCF), Foreign Direct Investment (FDI) and Inflation are important explanatory variables, while Real GDP is dependent variable used for the model specification. The study used Johensen Co–integration approach developed by Johensen & Jeslius (1990) for long run relationship. The result shows that trade liberalization and Gross Fixed Capital Formation have positive and significant impact on economic growth. Foreign Direct Investment and inflation negatively affect growth of economy. Residual test are used to check the overall fitness of model.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Kali Charan Modak, Pallabi Mukherjee Impact of Trade Liberalization on Economic growth in India Indian Journal of Applied Research, Volume.4, Issue.5, May-2014

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