Impact of Exchange Rate Movements on Exports: An Analysis of Indian Non-Financial Sector Firms

Cheung, Yin‐Wong; Sengupta, Rajeswari

doi:10.2139/ssrn.2289749

Cited by 21 publications

(31 citation statements)

References 26 publications

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“…Doğanlar (2002) and Cheung and Sengupta (2013), the economic literature has found that this is not always true. Therefore, we investigate the impact of the volatility of exchange rate on Egyptian molasses exports.…”

Section: Results and Disscusionmentioning

confidence: 99%

Demand for Egyptian Molasses in the World Market: a Panel Estimation

Alboghdady¹

2015

مجلة الإقتصاد الزراعى و التنمیة الریفیة

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Although Egypt is considered one of the most important export countries for molasses in the world market, Egyptian molasses export witnessed notable fluctuations during the last decade. Nevertheless, there is almost no study investigates and estimates the factors affecting its demand in the world market. The present study aims mainly toestimate demand function of the Egyptian molasses in the global market and in each individual importer market. Competitors' relative prices, income of import country, exchange rate of rival exporters, and volatility of relative prices and exchange rate were the proposed determinants of the exported quantity of Egyptian molasses in the global market. Random effects analysis was conducted to estimate the demand function using panel data of three importer countries during the period of 1986-20012. The results showed that Egypt/India price ratio, Egypt/Pakistan exchange rate, and pricesvolatilityare significantly affecting negativelythe Egyptian molasses exports. The results of the estimation of demand function for each importer country independently showed nearly the same conclusions with minor differences. The responsiveness of Egyptian molasses exports to UK, Italy, and Spain Markets to the price ratios were measured by the price ratios elasticities in each market. The elasticities of Egypt/Pakistan Price ratio showed highest elasticities in UK and Spain markets by 4.85% and 4.12%, respectively. The Egypt/India price elasticity was the highest in Italy market by -5.

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Section: Results and Disscusionmentioning

confidence: 99%

Demand for Egyptian Molasses in the World Market: a Panel Estimation

Alboghdady¹

2015

مجلة الإقتصاد الزراعى و التنمیة الریفیة

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“…This suggests that if firms are not able to sell domestically, accumulation of large inventory may reduce their future investment. In India, Cheung and Sengupta (2013) studied the impact of real effective exchange rate volatility on the share of exports-to-sales ratio for a sample of a few thousand Indian non-financial sector firms using data from 2000 to 2010. The authors found a negative effect of exchange rate uncertainty on Indian non-financial firms.…”

Section: Previous Empirical Studiesmentioning

confidence: 99%

Exchange rate uncertainty and private investment in BRICS economies

Ruzima

Boachie

2017

Asia-Pac J Reg Sci

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Macroeconomic uncertainty is a major challenge facing policymakers. Exchange rate is usually associated with high level of volatility in developing economies. This has potential effect on other economic variables such as investment. This paper empirically examines the impact of exchange rate uncertainty on private investment in the BRICS bloc. Using cross-country time series data from World Development Indicators, for 1997-2015, we built an ARCH-based measure of exchange rate volatility to proxy uncertainty. The results show that uncertainty resulting from exchange rate volatility has a negative effect on private investment in both random and fixed effects as well as GMM estimations. Therefore, policy may focus on stabilizing domestic currencies in BRICS countries.

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“…Yet, there are few studies in the literature using firmlevel data (Solakoglu et al, 2008;Solakoglu, 2010;Cheung and Sengupta, 2013;Guillou, 2008;Hericourt and Poncet, forthcoming;Dekle and Ryoo, 2007;Gourlay and Seaton, 2004).…”

Section: Introductionmentioning

confidence: 99%

Does exchange rate volatility matter for international sales? Evidence from US firm level data

Tunç

Solakoğlu

2016

Economics Letters

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h i g h l i g h t s• We analyze the effect of exchange rate volatility on firms' foreign sales.• We use destination-specific US firm-level data and utilize quantile regression.• The effect of the volatility on foreign sales depends on firm characteristics. a r t i c l e i n f o b s t r a c tWe explore the effect of exchange rate volatility on firms' foreign sales using destination-specific US firm-level data at different quantiles of the conditional distribution. Results show that the sign and significance of the effect depend on the economic conditions, firm characteristics, the sector that the firms operate and the quantile of the conditional distribution. Hence, using aggregated data, utilizing mean-regression methods and ignoring firm-specific factors can explain the mixed results provided by the existing literature.

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Impact of Exchange Rate Movements on Exports: An Analysis of Indian Non-Financial Sector Firms

Cited by 21 publications

References 26 publications

Demand for Egyptian Molasses in the World Market: a Panel Estimation

Demand for Egyptian Molasses in the World Market: a Panel Estimation

Exchange rate uncertainty and private investment in BRICS economies

Does exchange rate volatility matter for international sales? Evidence from US firm level data

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