An Empirical Analysis on Relationship Between Current Account, Capital Account and Gross Domestic Product in India

Dr. Sachin Mehta

Authors

Dr. Sachin Mehta Assistant Professor, D R Patel and R B Patel Commerce College, Bharthan (Vesu), Veer Narmad South Gujarat University Surat, Gujarat, India. https://orcid.org/0009-0002-8635-7504

Keywords:

Current Account, Capital Account, Gross Domestic Product

Abstract

This paper examines the link between Current Account, Capital Account and GDP using pairwise Granger Causality Test. This study analyzed the trend and pattern of balance of payment during the before and after devaluation period. It is furthermore assess impact of devaluation on balance of payment using paired sample‘t’ test. The result exposed that the one way causality rerunning from GDP to Capital Account. We also found that one way causality rerunning from Current Account to GDP. The result indicates that there is significant improvement in balance of payments during the pre- to post-devaluation period.

Metrics

Metrics Loading ...

References

 Agrawal, M. R. (1984): "Devaluation, Determination of International Trade Flows and Payments Imbalances", Indian economic Journal, VOL 31, pp 24-77  Agrwal A.N. (2013): Indian Economy problems with Development and turning out with, metropolis New Age International Publishers.  Amin, R B. "Economic Implications and Consequences of Devaluation", Devaluation of the Rupee, 1967, pp. 45-55.  Bhole, L M. (1985): Impacts of economic Policy, Himalaya business firm, New Delhi. Mishra and Puri (2012) Indian Economy, city Himalya business firm.

 Granger (1969): Investing causal Relations by Econometric Models and Cross Spectral Methods. Econometrica.  Purna Chandra Parida (2002), Currency Devaluation; balance of trade and so the Balance of Payments in India, University of Maysore, Maysore  Sachin Meehta (2013) Analysis of Trends in Trade Balance and the Balance of Payments in India, Voice of Research, VOL 2, pp 80-83  Wooldridge, J. M. (2007). Introductory political economy a up to date Approach third Edition. South- Western: Thomson Corporation.

 Handbook of Statistics on Indian Economy. Reserve Bank of India 2013.

 https://www.scribd.com

 https://www.voiceofresearch.org.