Tiwari, Aviral (2010): Is trade deficit sustainable in India? An inquiry.
Download (107kB) | Preview
This study examines the sustainability of trade deficit with allowance of structural breaks and seasonal adjustments as both variables have been subject to structural changes and affected by seasons. We find that, in all the cases, there is long run relationship between export and import. This implies that foreign trade deficit is sustainable in the Indian context.
|Item Type:||MPRA Paper|
|Original Title:||Is trade deficit sustainable in India? An inquiry|
|English Title:||Is trade deficit sustainable in India? An inquiry|
|Keywords:||export, import, unit root, structural breaks, seasonal adjustment, cointegration.|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General
F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C22 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
|Depositing User:||aviral tiwari|
|Date Deposited:||16. Aug 2010 11:53|
|Last Modified:||19. Feb 2013 10:21|
Arize, A.C. (2002). Imports and exports in 50 countries: tests of cointegration and structural breaks. International Review of Economics and Finance 11, pp. 101-115.
Franses, P. H. (1990). Testing for seasonal unit roots in monthly data. Econometric Institute Report No. 9032A, Erasmus University Rotterdam.
Franses, P. H. and Hobijn, B. (1997). Critical values for unit root tests in seasonal time series. Journal of Applied Statistics 24, pp. 25-46.
Husted, S. (1992). The emerging u.s. current account deficit in the 1980s: a cointegration analysis. Review of Economics and Statistics 74, pp. 159-166.
Hylleberg, S., Engle, R. F., Granger, C. W. J. and Yoo, B. S. (1990). Seasonal integration and cointegration. Journal of Econometrics 44, pp. 215-238.
Johansen, S., Mosconi, R. and Nielsen, B. (2000). Cointegration analysis in the presence of structural breaks in the deterministic trend. Econometrics Journal 3, pp. 216–249.
Konya, L. and J. P. Singh. (2008). Are Indian exports and imports cointegrated? Applied Econometrics and International Development 8, pp. 77-186.
Lanne, M., L¨utkepohl, H. and Saikkonen, P. (2001). Test procedures for unit roots in time series with level shifts at unknown time. Discussion paper, Humboldt-Universit at Berlin.
Lanne, M., Lutkepohl, H. and Saikkonen, P. (2002). Comparison of unit root tests for time series with level shifts. Journal of Time Series Analysis 27, pp. 663-685.
Saikkonen, P. and Lütkepohl, H. (2000). Testing for the cointegrating rank of a var process with an intercept. Econometric Theory 16, pp. 373-406.
Upender, M. (2007). Long run equilibrium between India’s exports and imports during 1949-50 – 2004-05. Applied Econometrics and International Development 7, pp. 187-196.
Available Versions of this Item
- Is trade deficit sustainable in India? An inquiry. (deposited 16. Aug 2010 11:53) [Currently Displayed]