Does exchange rate has any impact on economic growth in India? An empirical analysis
In the present globalization economic world exchange rate plays a major role in every countries economic activity. Here, Exchange rate policy has been identified as one of the endogenous factors that can affect the economic performance of a nation. Exchange rate plays a key role in international eco...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2020-09-01
|
| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1485.pdf
|
| _version_ | 1818507677050863616 |
|---|---|
| author | Khulsum SHAIK Babu RAO G |
| author_facet | Khulsum SHAIK Babu RAO G |
| author_sort | Khulsum SHAIK |
| collection | DOAJ |
| description | In the present globalization economic world exchange rate plays a major role in every
countries economic activity. Here, Exchange rate policy has been identified as one of the
endogenous factors that can affect the economic performance of a nation. Exchange rate plays a
key role in international economic transactions because no nation can remain in isolation due to
varying factor endowment. Movements in the exchange rate have ripple effects on other economic
growth. The study used secondary data and which was collected from the World Development
Indicators data base respectively and were analysed. The study used the Ordinary Least Square
(OLS) method of estimation for data covering the period from 1990 to 2017. The results from the
econometric analyses show that there is a short-run relationship between exchange rate, inflation
rate, interest rate and GDP. The result obtained from the unit root analysis indicates at least one
time series variable property is stationary. The study concludes that in India, the factors that
influence the level of growth rate are extent of Exchange rate and its variables. Based on the
findings, from the Granger causality investigation procedure at 5% critical value are EXCH, INT,
INF, IMP and EXP among other variables affects economic growth. The study recommends the need
to be technological incline in all sectors of Indian economy, excess and over budgetary inflation and
implementation should be cut to barest minimal level to avert the ideal of external borrowing which
most consequently result in external debt and services. The Indian government should show to the
path of redirecting its investment profile by channeling it towards capital projects of the government. |
| first_indexed | 2024-12-10T22:21:25Z |
| format | Article |
| id | doaj.art-8d4ba372b69a4365a6fac967c684500e |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-10T22:21:25Z |
| publishDate | 2020-09-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-8d4ba372b69a4365a6fac967c684500e2022-12-22T01:31:18ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292020-09-01XXVII322323418418678Does exchange rate has any impact on economic growth in India? An empirical analysisKhulsum SHAIK0Babu RAO G1 Dr. Abdul Haq Urdu University, India Dr. Abdul Haq Urdu University, India In the present globalization economic world exchange rate plays a major role in every countries economic activity. Here, Exchange rate policy has been identified as one of the endogenous factors that can affect the economic performance of a nation. Exchange rate plays a key role in international economic transactions because no nation can remain in isolation due to varying factor endowment. Movements in the exchange rate have ripple effects on other economic growth. The study used secondary data and which was collected from the World Development Indicators data base respectively and were analysed. The study used the Ordinary Least Square (OLS) method of estimation for data covering the period from 1990 to 2017. The results from the econometric analyses show that there is a short-run relationship between exchange rate, inflation rate, interest rate and GDP. The result obtained from the unit root analysis indicates at least one time series variable property is stationary. The study concludes that in India, the factors that influence the level of growth rate are extent of Exchange rate and its variables. Based on the findings, from the Granger causality investigation procedure at 5% critical value are EXCH, INT, INF, IMP and EXP among other variables affects economic growth. The study recommends the need to be technological incline in all sectors of Indian economy, excess and over budgetary inflation and implementation should be cut to barest minimal level to avert the ideal of external borrowing which most consequently result in external debt and services. The Indian government should show to the path of redirecting its investment profile by channeling it towards capital projects of the government. http://store.ectap.ro/articole/1485.pdf exchange rateordinary least square (ols) structural adjustment programmegranger causality testforeign currencyeconomy |
| spellingShingle | Khulsum SHAIK Babu RAO G Does exchange rate has any impact on economic growth in India? An empirical analysis Theoretical and Applied Economics exchange rate ordinary least square (ols) structural adjustment programme granger causality test foreign currency economy |
| title | Does exchange rate has any impact on economic growth in India? An empirical analysis |
| title_full | Does exchange rate has any impact on economic growth in India? An empirical analysis |
| title_fullStr | Does exchange rate has any impact on economic growth in India? An empirical analysis |
| title_full_unstemmed | Does exchange rate has any impact on economic growth in India? An empirical analysis |
| title_short | Does exchange rate has any impact on economic growth in India? An empirical analysis |
| title_sort | does exchange rate has any impact on economic growth in india an empirical analysis |
| topic | exchange rate ordinary least square (ols) structural adjustment programme granger causality test foreign currency economy |
| url |
http://store.ectap.ro/articole/1485.pdf
|
| work_keys_str_mv | AT khulsumshaik doesexchangeratehasanyimpactoneconomicgrowthinindiaanempiricalanalysis AT baburaog doesexchangeratehasanyimpactoneconomicgrowthinindiaanempiricalanalysis |