This paper studies the relationship between India's real exchange rate and its trade balance with her major trading partners using quarterly trade data for 15 countries over the period 1975 Q1-2011 Q1. Apart from oft used bilateral trade model we use Pooled Mean Group estimator of Pesaran and...

This paper looks at the determinants and effects of exchange rate exposure using data on 500 Indian firms over the period 1995-2011. Unlike the existing papers in the literature, we use a measure of 'operational' currency exposure based on foreign currency revenues and costs of firms. Among...

This paper studies the impact of real exchange rate volatility on firm level investment using data on Indian manufacturing firms. Real exchange rate volatility is found to have a negative impact on firm level investment spending. The impact is non-linear in the level of exchange rate volatility...

This paper studies the impact of real exchange rate volatility on firm level employment using a dynamic panel data model applied on a panel of 700 Indian manufacturing firms. Real exchange rate volatility is found to have a significant and negative impact on firm level employment growth. Access...

We explore the impact of Real Exchange Rate changes on the performance of Indian manufacturing firms over the period 2000-2012. Our empirical analysis shows that real exchange rate movements have a significant impact on Indian firms' performance through the cost as well as the revenue channel....