GDP GROWTH RATE AND TEA EXPORT IN INDIA: COINTEGRATION AND VECTOR AUTOREGRESSION ANALYSIS

Abstract

Tea, only because of its ability to twist our mood and make us feel re- freshed, in the world it has become the second most consumed beverages next to water leaving behind coffee, soda and others;on the other hand India has become the second largest tea producer and fourth largest tea exporter in the world owing to its strong geographical indications, heavy investments in tea processing units, continuous innovation, augmented product mix and strategic market expansion. In this present juncture, the researchers has made a deliberate attempt in this paper to establish the behaviour of Indian tea exports during the period 1951-52 to 2013-14 and to find out the nexus between Indian tea export and GDP growth rate showing co-integration, causality, Vector Auto regression, and Vector Er- ror Correction during the study period and also to prescribe some policies relating to export management of tea.