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Asian Journal of Development Matters
Year : 2013, Volume : 7, Issue : 2
First page : ( 99) Last page : ( 118)
Print ISSN : 0973-9629. Online ISSN : 0976-4674.

Trade liberalization and macroeconomic variables: An empirical study in India since 1970

Hosseini Seyed Mohammad Reza1, Dr. Leelavathi D.S.2

1Research Scholar, Department of Studies in Economics, University of Mysore, Mysore, India. mehranhosseini163@gmail.com

2Professor of Economics DOS, Economics & Cooperation University of Mysore, India. leelavathi@economics.uni-mysore.ac.in

JEL: F14-Empirical Studies of Trade

Online published on 20 February, 2014.

Abstract

This paper examines impact of trade liberalization on macroeconomic variables such as export, import, balance of payment and industrial growth pre and post trade liberalization, 1991, in India. To identify the impacts of trade liberalization, total time period, 1970–2010, is divided into two sub periods before trade liberalization i.e. (1970 to 1990) and after trade liberalization i.e. (1991 to 2010). The variables identified in the main objective of the study are tested hypothetically and quantitative analytical methods are applied to make accurate and reliable conclusions. Graphical presentations and T -test are used to compare pre and post trade policy reform. Findings of the study confirm that there is no evidence that the trade liberalization has positive effect on macroeconomic variables in India after trade liberalization.

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Keywords

Trade Liberalization, Industrial Growth, Export, Import, Balance of payment.

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