Real Exchange Rates and Manufactured Exports: A Study of India's Exports to the USA

Bishnupriya Gupta and Amit Ray

CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: This paper presents an empirical analysis of India's exports of manufactured items to the USA. The paper identifies items at the SITC 3-digit level of disaggregation which could be considered potential exports from India to the US and econometrically estimates the role of real exchange rates in exploiting India's expor potential in these markets. In the list of potential rates we find both simple labor intensive manufactures (traditional and non-traditional) as well as technologically sophisticated products. For most of the items in both categories, India's real exchange rate appears to be a significant determinant of market share. The paper concludes that within the framework of India's new economic policy with a thrust on getting the exchange rate right, India can expect to improve its export performance in developed country markets.

Keywords: Exchange rates and exports; market share (search for similar items in EconPapers)
JEL-codes: F14 O19 (search for similar items in EconPapers)
Date: 1997-10
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Persistent link: https://EconPapers.repec.org/RePEc:san:crieff:9725

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