1Research Scholar, Department of Economics and Co-operation, University of Mysore, Manasagangothri, Mysuru
2Research Guide and Professor, Department of Economics and Co-operation, University of Mysore, Manasagangothri, Mysuru
Online published on 25 October, 2016.
The present study examines the short and long run relationship between agricultural exports and Gross State Domestic Product (GSDP) in Karnataka. This study is based on the advanced time series techniques such as co integration, Vector Error Correction Model and Granger Causality test. The main objective is to test the dynamics of relationship between agricultural exports and GSDP in Karnataka. The study utilizes secondary information and the data period spans from 1996–97 to 2014–15. The co integration test confirms the long run relationship between agricultural exports and GSDP, whereas the result of the VECM indicates that there exists short run equilibrium relationship between agricultural exports and GSDP in Karnataka. Finally, the results of granger causality test exhibits the unidirectional relationship between agricultural exports and GSDP in the state, which reveals that agricultural export does granger cause GSDP and not the other way round.
Agricultural exports, Economic Growth, GSDP, Cointegration, and Granger Causality
