On the Link between Indian Rupee and Its Trade in Services: An Asymmetric Analysis

Mohsen Bahmani-Oskooee () and Sujata Saha
Additional contact information
Mohsen Bahmani-Oskooee: University of Wisconsin-Milwaukee, U.S.A
Sujata Saha: Wabash College, U.S.A

Journal of Economic Development, 2024, vol. 49, issue 1, 1-20

Abstract: Almost all studies that have estimated trade models have relied upon trade in tangible commodities. However, a new direction today is to consider trade in service sectors to identify the sectors that could benefit from currency depreciation. This new literature is in its infancy, and we add to this emerging literature by considering India’s trade in eight service sectors/categories. We followed two approaches of symmetric (linear) and asymmetric (nonlinear) estimation methods and considering that the two approaches complement each other, we found that the outpayments and inpayments of all the eight sectors respond to changes in the effective exchange rate of Indian Rupee in the short run. But in the long run, only six service categories are affected. The two unaffected sectors are insurance and travel.

Keywords: India; Trade in 8 Service Categories; Real Effective Exchange Rate; Asymmetric Analysis (search for similar items in EconPapers)
JEL-codes: C22 F14 G20 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://jed.cau.ac.kr/archives/49-1/49-1-1.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:jecdev:0077

Access Statistics for this article

Journal of Economic Development is currently edited by Sung Y. Park

More articles in Journal of Economic Development from The Economic Research Institute, Chung-Ang University Room 1040, Building 310, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 06974, South Korea. Contact information at EDIRC.
Bibliographic data for series maintained by Tram Nguyen ().