The Role of New Era Exporters on the Financial Growth in India

Abstract

The present study aims to investigate the relationships among India's financial development, international trade, and the evolution of economic growth. The study's primary focal areas have been the real GDP, which has replaced economic growth, export and import services, international commerce, gross capital creation, and exchange rate as independent variables. More frequent traders are often found to have excellent advancement rates and to have a positive influence on the growth of the financial industry and the economy. The research will also examine if there is a sustained correlation between various macroeconomic factors in India from 2000 to 2018, such as trade growth, financial development, and other macroeconomic variables. Regarding the previous sentence, the study employed the Johansen co-integration approach, KPSS, ADF, and PP to ascertain if financial development, economic growth, and trade variables continue to be associated over an extended period of time. These techniques were also applied to investigate the long-term relationships between particular variables. The direction of causation between variables can be ascertained using the Granger causality test. All of the variables have been shown to be non-stationar, and the study demonstrates that there is a long-term correlation between financial development, economic growth, and international trade. The study's conclusions show the interdependence of trade, financial development, and economic development; yet, while macroeconomic policy is stable, negative macroeconomic variables, such increasing inflation, might impede economic progress.