Price and Income Elasticity of Indian Exports-The Role of Supply-Side Bottlenecks /

This paper estimates the short-term and long-run price and income elasticity of Indian exports, and investigates the role of supply-side bottlenecks in shaping India's export demand relationship. We use disaggregated export volume data for 45 Indian industries over the period 1990-2013, as well...

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Bibliographic Details
Main Author: Raissi, Mehdi
Other Authors: Tulin, Volodymyr
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2015.
Series:IMF Working Papers; Working Paper ; No. 2015/161
Online Access:Full text available on IMF
Description
Summary:This paper estimates the short-term and long-run price and income elasticity of Indian exports, and investigates the role of supply-side bottlenecks in shaping India's export demand relationship. We use disaggregated export volume data for 45 Indian industries over the period 1990-2013, as well as industry-specific international relative prices, for estimation. Our results indicate that Indian exports are sensitive to international relative-price competitiveness, world demand, and energy shortages. In addition, binding supply-side constraints (notably energy shortages) dampen price responsiveness in the short-term.
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Physical Description:1 online resource (16 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students