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Asia and Pacific > India

You are looking at 1 - 2 of 2 items for :

  • Type: Journal Issue x
  • 'Panel Data Models; Spatio-temporal Models' x
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Cover IMF Working Papers
Price and Income Elasticity of Indian Exports—The Role of Supply-Side Bottlenecks
Mr. Mehdi Raissi
and
Mr. Volodymyr Tulin
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.
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
Cover IMF Working Papers
Does Inflation Slow Long-Run Growth in India?
Mr. Kamiar Mohaddes
and
Mr. Mehdi Raissi
This paper examines the long-run relationship between consumer price index industrial workers (CPI-IW) inflation and GDP growth in India. We collect data on a sample of 14 Indian states over the period 1989–2013, and use the cross-sectionally augmented distributed lag (CSDL) approach of Chudik et al. (2013) as well as the standard panel ARDL method for estimation—to account for cross-state heterogeneity and dependence, dynamics and feedback effects. Our findings suggest that, on average, there is a negative long-run relationship between inflation and economic growth in India. We also find statistically-significant inflation-growth threshold effects in the case of states with persistently-elevated inflation rates of above 5.5 percent. This suggest the need for the Reserve Bank of India to balance the short-term growthinflation trade-off, in light of the long-term negative effects on growth of persistently-high inflation.
Keywords:
WP; India; inflation; growth; threshold effects; cross-sectional heterogeneity; dependence; data from the CEIC database; panel ARDL approach; inflation threshold effect; CS-DL estimation strategy; growth rate; CPI-RL data; inflation-growth trade-off; CS-DL result; ARDL specification; anti-inflation effort; CS-DL estimate; Consumer price indexes; Production growth; Threshold analysis