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Is trade deficit sustainable in India? An inquiry

Tiwari, Aviral (2010): Is trade deficit sustainable in India? An inquiry.

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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.

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