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Exchange Rate and Exports Growth
A Study of India in the Post-Liberalization Period
Engleski
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As of now Indian rupee has been under the market determined exchange rate system for almost 16 years and in this period one would expect more fluctuation in the exchange rate. This paper seeks to revisit the issue of exchange rate (Rupee-Dollar exchange rate) and its impact on exports to see whether there is any significant relationship between them in the post-liberalisation period (April 1991 to December 2007). Using a multiple regression model (in which monthly data of all the variables are taken), the study finds that exchange rate is not the main factor, there are such other factors as lagged values of exchange rate, India's GDP, and its domestic demand which are affecting India's exports.
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