Structural Breaks and Unit Roots in Indian Macroeconomic Variables
This study intends to examine the presence of structural breaks in Indian GDP, GNP and its various components. We have used recently developed unit root test suggested by Narayan and Popp (2010), which can identify two structural breaks. It is found that the extensive reforms in the 1990’s affected...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2015-12-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1139.pdf
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| Summary: | This study intends to examine the presence of structural breaks in Indian GDP,
GNP and its various components. We have used recently developed unit root test suggested
by Narayan and Popp (2010), which can identify two structural breaks. It is found that the
extensive reforms in the 1990’s affected the growth of GDP, GNP and sectors such as
trade, Finance and public administration while agriculture and manufacturing sectors are
unaffected. The 1980’s initial reforms have impact on GDP, GNP, Finance and public
administration. It is found that post 1990 reforms implemented in India failed to have an
effect on agriculture and manufacturing. This necessitates further reforms in agriculture
and manufacturing sector to accelerate the growth in these sectors. This is the first study to
use the Narayan and Popp (2010) unit root test with two structural breaks to check the
stationarity of the economic times series and identify the breaks in Indian context. |
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| ISSN: | 1841-8678 1844-0029 |