Abstract: This study seeks to examine empirically the relationship between Act east policy and Economic Growth and their causality in the context of India. The objective of this paper is to investigate the dynamics of the causal relationship between Act East policy and economic growth in India for the period spanning from 1991 to 2016. The study uses time series data for the time period ranging from 1991 to 2016 (annual data sets) on variables Gross Domestic Product (GDP) which measures the overall economic growth of the country, and Export, Imports and Foreign exchange reserves (FER) as measures of Act East policy expansion indicator(IAEP). The results indicate existence of the cointegration between them. There have a long-run equilibrium relationship between both policy implications and economic growth, although they may be in disequilibrium. The study also clarifies the existence of a long-run unidirectional causality running from act east policy to GDP in the long-run.
Keywords: Act-East-Policy, South-East-Asia, India, Economic Growth, Causality etc.
Title: Causality between Act East Policy and Economic Growth: Empirical evidence from a South East Asian country
Author: Monuj Das
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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