TY  - JOUR
T1  - Test of Causality Between Two Macro Variables:
A Case of India
AU - Maity, Bipasha 
JO  - International Business Management
VL  - 10
IS  - 19
SP  - 4653
EP  - 4658
PY  - 2016
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2016.4653.4658
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2016.4653.4658
KW  - Causality
KW  -VECM
KW  -VAR
KW  -GDP
KW  -GE
AB  - 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.
ER  -