IDEAS home Printed from https://ideas.repec.org/a/ids/ijexpo/v1y2017i3p264-302.html
   My bibliography  Save this article

Vector autoregression approach for pricing to market of Indian exporting firms

Author

Listed:
  • Manoj Kumar

Abstract

This paper applies panel vector autoregression (VAR) techniques to analyse the pricing to market (PTM) behaviour of India's exporting firms during the 2002 to 2016 period. Quarterly data by sector and region, drawn from CII surveys, are employed to study the dynamic relationship between pricing policies of exporting firms, their cost competitiveness and demand conditions. A partial equilibrium imperfect competition model provides the structure according to which the orthogonality of structural shocks is derived. Impulse-response analysis helps assessing the reaction of export-domestic price margins to unanticipated changes in cost competitiveness and demand levels. These factors appear to exert non-negligible effects even though they turn to be very low persistent. For the period 2014 to 2016, a typical PTM behaviour emerges, while during the most recent years favourable foreign demand conditions allowed exporting India's firms to increase their export-domestic price margin in face of a strong deterioration of their cost competitiveness.

Suggested Citation

  • Manoj Kumar, 2017. "Vector autoregression approach for pricing to market of Indian exporting firms," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(3), pages 264-302.
    • Handle: RePEc:ids:ijexpo:v:1:y:2017:i:3:p:264-302
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=85449
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijexpo:v:1:y:2017:i:3:p:264-302. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=449 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.