Cover IMF Working Papers
Buy Book in Print
Price and Income Elasticity of Indian Exports—The Role of Supply-Side Bottlenecks
Author:
Mr. Mehdi Raissi
Search for other papers by Mr. Mehdi Raissi in
Current site
Google Scholar Close
and
Mr. Volodymyr Tulin
Search for other papers by Mr. Volodymyr Tulin in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 161
Language:
English
Publication Date:
17 Jul 2015
DOI:
https://doi.org/10.5089/9781513544816.001
ISBN:
9781513544816
ISSN:
1018-5941
Pages:
16
Keywords:
WP; export; price; product; elasticity; India; export demand; manufacturing; income and price elasticity; energy shortages; export demand equation; merchandise export data; goods export; volume indices; elasticity estimate; industries export; export demand function; export destination; income elasticity; disaggregated export datum; export basket; India's export basket; Exports; Export performance; Price elasticity; Personal income; Export prices; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1 MB) Download Epub
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.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund