Page 28 - IILMGSM Journal_Management Perspective
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clusion still retains some characteristics of an import
substituting economy.
Several arguments suggest, however, that the positive
productivity effects predicted by the export-led From this discussion, it follows that the productivity
growth hypothesis do not necessarily occur in effects of exports are ambiguous and depend upon
developing countries. One concern is that many several factors, such as the level of primary export
developing countries are heavily dependent on dependence, the degree of absorptive capacity, and
primary commodity exports. Furthermore, exports the degree of business and labor regulations. An
of primary goods tend to be subject to large price important implication of this is that the effects of
and volume fluctuations. exports on output through productivity may differ
significantly from country to country. Another
This study has examined export led growth (ELG) implication of the above discussion is that the
hypothesis in the Indian context, covering the post- productivity effects of exports may differ over time,
liberalization period. Efforts have also been made as well. For example, in the short run, exports may
to capture the effects of liberalization on India’s increase productivity through specialization
exports and output growth. In this analysis, the results according to comparative advantage. Accordingly,
fail to find support for the hypothesis that exports exports may have positive short-run, but negative
Granger cause GDP. This strengthens the argument long run effects.
against the ELG hypothesis for the case of India and
strengthens the argument that in spite of reforms, it
(28)
substituting economy.
Several arguments suggest, however, that the positive
productivity effects predicted by the export-led From this discussion, it follows that the productivity
growth hypothesis do not necessarily occur in effects of exports are ambiguous and depend upon
developing countries. One concern is that many several factors, such as the level of primary export
developing countries are heavily dependent on dependence, the degree of absorptive capacity, and
primary commodity exports. Furthermore, exports the degree of business and labor regulations. An
of primary goods tend to be subject to large price important implication of this is that the effects of
and volume fluctuations. exports on output through productivity may differ
significantly from country to country. Another
This study has examined export led growth (ELG) implication of the above discussion is that the
hypothesis in the Indian context, covering the post- productivity effects of exports may differ over time,
liberalization period. Efforts have also been made as well. For example, in the short run, exports may
to capture the effects of liberalization on India’s increase productivity through specialization
exports and output growth. In this analysis, the results according to comparative advantage. Accordingly,
fail to find support for the hypothesis that exports exports may have positive short-run, but negative
Granger cause GDP. This strengthens the argument long run effects.
against the ELG hypothesis for the case of India and
strengthens the argument that in spite of reforms, it
(28)
