Impact Of Real Exchange Rates On Exports Of Agricultural Commodities: Evidence From India
AbstractThis study attempts to analyze the effect of volatility in the real exchange rate of Indian Rupee with US Dollar, UK Pound, Euro and Japanese Yen on India’s real exports of agricultural commodities such as Tea, Coffee, Cereals and Rice to Euro area, USA, UK and Japan for the period 2002-2009 using panel data analysis. The real exports of Coffee, Tea, Cereals, and Rice of India to Euro Area, USA, UK and Japan were taken from the COMTRADE Data base of United Nations. The real GDP index of the respective trading partners of India and their CPI is collected from the “OECD stat” data base of OECD. Monthly nominal exchange rate of Indian rupee with Euro, US Dollar, UK pound and Japanese were collected from the “Business Beacon” database provided by Centre for monitoring Indian Economy (CMIE). The results indicate that the exports of Tea and Coffee are affected by the real exchange rate volatility whereas the exports of Cereals and Rice are affected by real exchange rate.
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Bibliographic InfoArticle provided by Alexandru Ioan Cuza University, Faculty of Economics and Business Administration in its journal Review of Economic and Business Studies.
Volume (Year): (2013)
Issue (Month): 11 (June)
real exchange rate; India; Real exchange rate volatility; Agricultural exports;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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