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Does globalization affect export performance in India? An empirical insight
Author(s) -
Dash Aruna Kumar
Publication year - 2021
Publication title -
journal of public affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.221
H-Index - 20
eISSN - 1479-1854
pISSN - 1472-3891
DOI - 10.1002/pa.2209
Subject(s) - economics , globalization , per capita , relative price , real gross domestic product , distributed lag , short run , gross domestic product , exchange rate , monetary economics , macroeconomics , international economics , econometrics , market economy , population , demography , sociology
The present paper examines the effect of economic globalization on India's aggregate export performance during the period from 1995:M1 to 2016:M12. We use various macroeconomic variables such as export, relative price, nominal effective exchange rate (NEER), GDP per capita, and economic globalization. We employ Auto Regressive Distributed Lag (ARDL) model to find out the long‐run equilibrium relationship among the variables considered. The empirical results indicate that there exists a long‐run equilibrium relationship between export, relative price, NEER, GDP per capita and economic globalization. Further, in the long run, we find that India's export performance is influenced by economic globalization, GDP per capita and relative price. However, in the short run, export performance is influenced by economic globalization, relative price, NEER and GDP per capita. In the short run, 1% increase in economic globalization will lead to increase in the volume of export by 0.77%; whereas, in the long run, it is 3.40%. Hence, sustainability of export in the long run is a matter of concern for policy makers.