Reforms, Exchange Rate Pass-Through and India’s Export Prices

  • Saikat Sinha Roy
  • Pradyut Kumar Pyne


Using a Demand–Supply model of export determination along the lines of an imperfect substitutes model, exchange rate pass-through is estimated in this study. This is done using a time comparable panel dataset and the panel data econometric technique. The results show incomplete and low exchange rate pass-through to India’s aggregate export prices. However, the extent of exchange rate pass-through varies across product groups. The findings on exchange rate pass-through have implications for exchange rate being used as a policy instrument for export promotion and growth during reforms on the one hand, and in narrowing the current account deficit, on the other hand.


Exchange Rate Real Exchange Rate Exchange Rate Regime Foreign Exchange Market Export Price 
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© Springer India 2014

Authors and Affiliations

  1. 1.Department of EconomicsJadavpur UniversityKolkataIndia

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