K. Krishnamurty (Institute of Economic Growth) V. Pandit (Delhi School of Economics)
Abstract
The paper presents a moderately disaggregative model of India's trade flows covering the period 1971-91. It incorporates distinct demand -supply factors, takes into account the effect of relative prices, import tariffs, export subsidies, and levels of economic activity and allows for adjustments in domestic prices in response to exchange rate adjustments. The model is solved forward to assess the impact on trade flows and possible policy implications under the following scenarios: (a) accelerated domestic growth, (b) depreciation of nominal exchange rate, (c) reduction in tariffs and subsidies, and (d) sustained higher world economic growth.
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Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.
Volume (Year): 31 (1996) Issue (Month): 1 (January) Pages: 57-89 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: F31 - International Economics - - International Finance - - - Foreign Exchange F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation