Theoretical and Applied Economics
No. 3 / 2020 (624), Autumn
Does exchange rate has any impact on economic growth in India? An empirical analysis
Dr. Abdul Haq Urdu University, India
Babu RAO G
Dr. Abdul Haq Urdu University, India
Abstract. 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.
Contents
Social protection systems and economic growth
Analysis of the impact generated by COVID-19 in banking institutions and possible economic effects
Covid crisis: Fiscal, monetary and macro-financial policy responses
Simulation of financial contagion effect using the NetLogo software at the level of the banking network
Impact of education and government effectiveness on the shadow economy
Financial development and income inequality: An empirical analysis on the emerging market economies
Aspects and evolutions specific to monetary policy in Romania. A complex topical analysis
Foreign trade policy and economic growth: Indian evidence
The effect of external debt on long run economic growth in developing economies: Evidence from heterogeneous panel data models with cross sectional dependency
Structural modeling of fiscal structure for policy analysis: A case study of India
Macroeconomic variables and market expectations: Indian Stock Market
Relationship analysis of stocks prices and exchange rates of three leading Asian economies
Bitcoins as a determinant of stock market movements: A comparison of Indian and Chinese Stock Markets
The causal relationship between Indian energy consumption and the GDP: A shift from conservation to feedback hypothesis post economic liberalisation
The dependence and dynamic correlation between Islamic and conventional insurances and stock market: A multivariate short memory approach
Does exchange rate has any impact on economic growth in India? An empirical analysis
Corruption, technological innovation and environmental quality in South Asian countries: An empirical insight
Analysis of the quarterly evolution of the Gross Domestic Product
The main theoretical aspects regarding the capital adequacy models
Considerations regarding the effects of COVID-19 on the tourism market