On the Relationship between the Nominal Exchange Rate and Export Demand in India

IF 0.3 Q4 ECONOMICS

South Asian Journal of Macroeconomics and Public Finance Pub Date : 2018-09-28 DOI:10.1177/2277978718795777

Ranajoy Bhattacharyya, Bipradas Rit

引用次数: 5

Abstract

This article attempts to determine the effect of nominal exchange rates on Indian exports between 1996 and 2014. We begin by assuming that the nominal exchange rate can affect export directly as well as indirectly via its pass through on domestic prices. The analysis is conducted with quarterly data after controlling for the effect of exchange rate volatility on exports. The main results that we get are the following: There is no direct evidence that the nominal exchange rate or its volatility influences exports. However, there is a significant relationship between the relative price ratio (domestic to foreign) and export. Further, we find strong evidence of pass through of the nominal exchange rate on prices (about 54%) in the long run. We interpret this result as an evidence of the nominal exchange rate affecting exports indirectly through domestic prices. The results suggest that the debate on the influence of exchange rates on Indian export is still an open one. JEL Classification: F14, E31, G15

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论印度名义汇率与出口需求的关系

本文试图确定名义汇率对1996年至2014年间印度出口的影响。我们首先假设名义汇率可以直接影响出口，也可以通过对国内价格的传导间接影响出口。在控制汇率波动对出口的影响后，使用季度数据进行分析。我们得到的主要结果如下:没有直接证据表明名义汇率或其波动性影响出口。然而，相对价格比率(国内对国外)与出口之间存在显著关系。此外，我们发现有强有力的证据表明，名义汇率在长期内会对价格产生传导作用(约54%)。我们将这一结果解释为名义汇率通过国内价格间接影响出口的证据。结果表明，汇率对印度出口的影响仍然是一个开放的辩论。JEL分类:F14, E31, G15

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

South Asian Journal of Macroeconomics and Public Finance ECONOMICS-

CiteScore

2.10

自引率

11.10%

发文量

期刊介绍： The purpose of the Journal is to publish (in English language) peer-reviewed articles, reviews and scholarly comments on issues relating to contemporary global macroeconomics and public finance by which is understood: The Journal is for all professionals concerned with contemporary Macroeconomics and Public Finance and is a forum for all views on related subjects. The Editorial Board welcomes articles of current interest on research and application on the areas mentioned above. The Journal will be international in the sense that it seeks research papers from authors with an international reputation and articles that are of interest to an international audience. In pursuit of the above, the journal shall: a. draw on and include high quality work from the international community of scholars including those in the major countries of Asia, Europe, Asia Pacific, the United States, other parts of the Americas and elsewhere with due representation for considerations of the readership. The Journal shall include work representing the major areas of interest in contemporary research on Macroeconomics and Public Finance and on a wide range of issues covering macro- economics, tax and fiscal issues, banking and finance, international trade, labour economics, computational and mathematical methods, etc. The Journal would particularly engage papers on pure and applied economic theory and econometric methods. b. avoid bias in favour of the interests of particular schools or directions of research or particular political or narrow disciplinary objectives to the exclusion of others. c. ensure that articles are written in a terminology and style which makes them intelligible, not merely within the context of a particular discipline or abstract mode, but across the domain of relevant disciplines.