@article{MAKHILLIBM2016101926721,
    title = {Test of Causality Between Two Macro Variables:
A Case of India},
    journal = {International Business Management},
    volume = {10},
    number = {19},
    pages = {4653-4658},
    year = {2016},
    issn = {1993-5250},
    doi = {ibm.2016.4653.4658},
    url = {https://makhillpublications.co/view-article.php?issn=1993-5250&doi=ibm.2016.4653.4658},
    author = {Bipasha},
    keywords = {Causality,VECM,VAR,GDP,GE},
    abstract = {There are a plenty of research attempted to capture the causal relationship between GDP and Government Expenditures (GE). Since, the direction of causal relationship between these two macro variables is still inconclusive, I have taken a modest attempt to test a few hypotheses with respect to the relationship in question through this research. I gathered data on GDP and GE over a period 1960-2014 and fit the Vector Autoregressive (VAR) and Vector Error-Correction (VEC) models to data. Out of three hypotheses, one is confirmed that is GE Granger causes GDP of India. Policy makers/managers would get insight from the findings of this research to formulate better public policy/business strategy.}
    }