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ABSTRACT Arvind Subramanian argues indicators like growth in export, import and private credit predict India’s growth before 2011 but fail to do so after the 2011 change in GDP estimation… Click to show full abstract
ABSTRACT Arvind Subramanian argues indicators like growth in export, import and private credit predict India’s growth before 2011 but fail to do so after the 2011 change in GDP estimation methodology, implying growth was overestimated post 2011. We find, however, these indicators underestimate growth before 2011 too, and also either overestimate or underestimate growth in a large number of countries. His empirical design is therefore flawed. His regressions cannot be used for predicting growth or for concluding growth is overestimated or for pointing to problems in the GDP estimation methodology. His subsequent more heuristic defence against widespread criticisms is also flawed.
Journal Title: Macroeconomics and Finance in Emerging Market Economies
Year Published: 2019
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