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A Baseline Measure for Post-Covid19 Export Performance: The Case of India

Author

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  • MIANKHEL, ADIL KHAN

    (Australian National University, Australia)

Abstract

During crises, governments resort to extraordinary fiscal and financial measures and these policy choices along with aggregate demand and supply shocks affect the exporting environment of a country through many channels. Therefore, to analyze any post COVID pandemic inefficiencies, it is important to distinguish the already inherent inefficiencies in the exporting environment to provide a benchmark for comparative purposes. This study investigates the prevalence of inefficiencies in the exporting environment in India during the post GFC period (2010-18) using a stochastic frontier gravity model. The empirical analysis reveals that inefficiencies were already present in the post GFC period before the onset of COVID, which has increased over time. Using the data from the Economic Freedom Index, among other factors, the study found out that sound money dimension, including the November 2016 sudden implementation of the demonetization policy by the Indian Government was crucial in influencing India’s export efficiency.

Suggested Citation

  • Miankhel, Adil Khan, 2024. "A Baseline Measure for Post-Covid19 Export Performance: The Case of India," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 49(1), pages 73-96, March.
    • Handle: RePEc:ris:jecdev:0081
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    File URL: https://jed.cau.ac.kr/archives/49-1/49-1-5.pdf
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    More about this item

    Keywords

    Exports; Inefficiency; Productivity; Stochastic Frontier Gravity Model; COVID; India; Potential Exports;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy

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