Impact of exchange rate movements on exports: An analysis of Indian non-financial sector firms

Cheung, Yin‐Wong; Sengupta, Rajeswari

doi:10.1016/j.jimonfin.2013.06.026

Cited by 91 publications

(41 citation statements)

References 13 publications

(4 reference statements)

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“…We also argue in this article that we expect a differential effect of exchange rates during the appreciation and depreciation of the domestic currency (Cheung & Sengupta, 2013). For less developed countries such as India, a major part of its export consists of raw materials, intermediate goods and relatively lower quality consumer goods.…”

Section: Introductionmentioning

confidence: 73%

“…They found that the real exchange rate was an important factor for export growth. Cheung and Sengupta (2013) examined the effect of the real effective exchange rate on the share of exports of Indian non-financial sector firms for the period 2000–2010. They found a significant negative impact of currency appreciation and currency volatility on export shares of Indian firms.…”

Section: Introductionmentioning

confidence: 99%

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

Bhattacharyya

Rit²

2018

South Asian Journal of Macroeconomics and Public Finance

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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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Section: Introductionmentioning

confidence: 73%

Section: Introductionmentioning

confidence: 99%

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

Bhattacharyya

Rit²

2018

South Asian Journal of Macroeconomics and Public Finance

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“…For Asian countries, the evidence of exchange rate volatility impact on exports points to the predominance of adverse effects (Saang Joon Baak, M. A. Al-Mahmood, and Souksavanh Vixathep 2007;Tajul Arrifin Masron and Mohd Naseem Niaz Ahmad 2009;Myint Moe Chit, Marian Rizov, and Dirk Willenbockel 2010;Norimah Ramli and Jan M. Podivinsky 2011;Yin-Wong Cheung and Rajeswari Sengupta 2013). Cheung and Sengupta (2013) studied the effect of RER and RER volatility in export shares of non-financial Indian companies for the period 2000-2010. The empirical analysis shows that there has been a significant negative impact of exchange rate volatility in exports of Indian companies.…”

Section: Introductionmentioning

confidence: 99%

Real exchange rate volatility and exports: A study for four selected commodity exporting countries

Mordecki

Lescano

2019

Panoeconomicus

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Commodity exports depend on global demand and prices, but the increasing volatility of real exchange rates (RER) introduces an additional factor. Thus, this paper studies the RER volatility dynamics, estimated through GARCH and IGARCH models for Brazil, Chile, New Zealand, and Uruguay from 1990 to 2013. We study the impact of RER volatility on total exports using Johansen's methodology, including proxies for global demand and international prices. The results suggest that exports depend positively on global demand and international prices for all countries; however, conditional RER volatility resulted significant and negative only for Uruguay, in the short-and long-run.

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“…6.These include Sharma (2003), Sinha Roy (2007), Veeramani (2007, 2008), Cheung and Sengupta (2013), Kishore Sahoo et al (2015), Upadhyay and Roy (2016), Thomas (2016) and Rangarajan and Kannan (2017). …”

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confidence: 99%

Impact of Exchange Rate Changes on the Trade Balance of India: An Asymmetric Nonlinear Cointegration Approach

Bhat

2020

Foreign Trade Review

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Applying an asymmetric model, the study reported no evidence of J-curve phenomenon in case of India. In the short-run currency appreciation deteriorates the trade balance and currency depreciation improves it. In the long-run, again the similar response is observed, however, only the impact of currency depreciation is statistically significant. Increase in domestic demand deteriorates the trade balance by a greater magnitude than improvement is observed due to the decline in domestic demand conditions. Finally, foreign demand hike improves the trade balance relatively by a higher magnitude; however, the impact of a foreign demand decline is statistically insignificant. JEL Codes: F4, F41, F42

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Impact of exchange rate movements on exports: An analysis of Indian non-financial sector firms

Cited by 91 publications

References 13 publications

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

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

Real exchange rate volatility and exports: A study for four selected commodity exporting countries

Impact of Exchange Rate Changes on the Trade Balance of India: An Asymmetric Nonlinear Cointegration Approach

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