{"title":"Exchange rate and its impact on India's trade with its major trading partners: a pooled mean group approach","authors":"T. K. D. Kumar, B. Poornima, P. Sudarsan","doi":"10.1504/ijtgm.2022.10030245","DOIUrl":null,"url":null,"abstract":"The study examines short-run and long-run impact of exchange rate on India's export and import with its select trading partners for a period from 1993Q1 to 2019Q3. The study employs panel cointegration and pooled mean group (PMG) estimation method. The results establish the presence of long-run relationship among exports, imports, exchange rate, GDP of India and its trading partners. Further, in the long-run and short run, the exchange rate has impact on exports but not on India's imports. The result reveals that there is a significant impact of exchange rate for Indias export to the countries like Belgium, China, Japan, Germany, Switzerland, UAE, USA and UK. However, the exchange rate depreciation has significant effects only on India's imports from China, UAE and USA. Also, the results of Marshal-Lerner condition indicate depreciation of Indian rupee increases India's exports.","PeriodicalId":56183,"journal":{"name":"International Journal of Trade and Global Markets","volume":"1 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2021-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Trade and Global Markets","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1504/ijtgm.2022.10030245","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
引用次数: 0
Abstract
The study examines short-run and long-run impact of exchange rate on India's export and import with its select trading partners for a period from 1993Q1 to 2019Q3. The study employs panel cointegration and pooled mean group (PMG) estimation method. The results establish the presence of long-run relationship among exports, imports, exchange rate, GDP of India and its trading partners. Further, in the long-run and short run, the exchange rate has impact on exports but not on India's imports. The result reveals that there is a significant impact of exchange rate for Indias export to the countries like Belgium, China, Japan, Germany, Switzerland, UAE, USA and UK. However, the exchange rate depreciation has significant effects only on India's imports from China, UAE and USA. Also, the results of Marshal-Lerner condition indicate depreciation of Indian rupee increases India's exports.
期刊介绍：
IJTGM fosters discussion on the various interrelationships between economic growth at national and international levels and international trade. The journal will emphasise the implications that trade policy exerts on economic growth and vice versa, as well the role of national governments, international organisations and the business community on related issues of worldwide concern. Topics covered include International trade Economic growth The role of international economic organisations in the global economy International economic issues Interaction between global markets and trade Implications of globalisation on markets and trade WTO and its policies FDI and the international economics The role of IT in the process of globalisation The importance of growing wealth disparity in trade and management The impact of government debts on international trade and management issues The role of oil and gas: industry intentions, pricing strategies, etc. Trade as determined by currency instability Financing trade deficits.
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