Economics at your fingertips  

How sensitive is commodity trade flows between US and India to currency depreciation?

Mohsen Bahmani-Oskooee () and Rajarshi Mitra

Applied Economics, 2010, vol. 42, issue 3, 267-277

Abstract: Previous studies that investigated the impact of real depreciation of the rupee on Indian trade balance used aggregate trade data and provided no support for real depreciation to be effective in improving India's trade balance. In this article we disaggregate the Indian trade data by commodity and consider the sensitivity of each industry's inpayments (export value) and outpayments (import value) to real rupee-dollar exchange rate. Annual data over the period of 1962 to 2004 from 40 industries that trade between the two countries as well as bounds testing approach are used to show that while in half of the industries real depreciation of rupee has short-run effects on inpayments and outpayments, the short-run effects do not last into the long-run in majority of the cases.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2019-10-08
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:267-277