Determinants of India's Exports in the Post-Reforms Period

International Journal of Economics and Management Studies
© 2020 by SSRG - IJEMS Journal
Volume 7 Issue 12
Year of Publication : 2020
Authors : Rajiv Gurung, Runa Rai
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How to Cite?

Rajiv Gurung, Runa Rai, "Determinants of India's Exports in the Post-Reforms Period," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 12, pp. 74-79, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I12P111

Abstract:

This paper tries to identify the major determinants of India's exports in the post-reform period. It is based on secondary data for 25 years from 1990-91 to 2014-15, and the data is used from the RBI Handbook of Statistics and the World Bank datasets. To identify the determinants of export supply and demand, two different regression analyses were employed. Thus, two equations have been estimated to identify the export demand function and export supply function. The stationarity of the data was checked using the Augmented Dickey-Fuller Test. Among the external factors, world income is the most important and dominant factor in determining India's exports. The study found that world income, relative price are the significant determinants of export demand while GDP, REER, and trade openness are the most important determinants of export supply. In terms of the policy, this study identifies important domestic and international macroeconomic variables that have to be handled to boost India's exports.

Keywords:

Determinants, Exports, REER, GDP, Trade Openness, India.

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