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Capital Flow Components and the Real Exchange Rate: Implications for India

Author

Listed:
  • Shashank Goel

    (Indian Institute of Foreign Trade, India)

  • V. Raveendra Saradhi

    (Indian Institute of Foreign Trade, India)

Abstract

This paper analyzes the relationship between the net capital flow components and the real exchange rate in India for the period 1996-1997 to 2012-2013. The empirical results suggest that there is a strong case for further liberalization of foreign direct investment flows, while greater caution is need in liberalization of portfolio and debt creating flows.

Suggested Citation

  • Shashank Goel & V. Raveendra Saradhi, 2015. "Capital Flow Components and the Real Exchange Rate: Implications for India," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 14(2), pages 179-194, December.
    • Handle: RePEc:ijb:journl:v:14:y:2015:i:2:p:179-194
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    References listed on IDEAS

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    Cited by:

    1. Tung-Zong (Donald) Chang & Su-Jane Chen & Hongmei Gu & Aijie Jiang, 2018. "A Market Volatility Analysis of the Shanghai-Hong Kong Stock Connect Program," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 17(2), pages 113-121, September.

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    More about this item

    Keywords

    debt creating flows; foreign direct investment; foreign exchange reserves; foreign portfolio flows; government consumption expenditure; real exchange rate;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

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