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ReserarchID
F00QF
Crossref Journal DOI 10.17406/GJHSS
Print ISSN 0975-587X
e-ISSN 2249-460X
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In this paper, author tried to establish econometric relation of US grants, credits and assistance to India with exports and imports of USA and India and gross national income of USA during Bretton Woods regime through cointegration and vector error correction model taking data from US Bureau of Economic Research and United Nations Conference on Trade and Development. The paper observed that US grants, credits and assistance to India during 1945-1970 had been growing at the rate of 39.61% per year significantly which had three upwards structural breaks with long run upward cyclical trend. US grants, credits and assistance to India during 1945-1970 had three significant cointegrating equations with exports and imports of USA and India and national income of USA. The vector error correction model is stable, non-stationary and non-normal having problem of autocorrelation. US grants and credits to India have short run causalities from India’s imports and US gross national income.
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