IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v10y2023i2p2235817.html
   My bibliography  Save this article

The US dollar and trade balance: New findings from the international trade of India with the European Union

Author

Listed:
  • Ho Hoang Gia Bao
  • Hoang Phong Le
  • Ba Hoang Nguyen
  • Thanh An Vu

Abstract

The US dollar is the most prevalent currency to settle internationally traded merchandise. A few existing studies demonstrate that the US dollar can significantly impact a country’s trade balance with a non-US partner. Nevertheless, the current literature indicates the remarkable deficiency of empirical results for the case of India despite the vital importance of the US dollar in its international trade. Recognizing the European Union (EU) as the largest trading partner of India over the 2000Q1–2022Q2 period, this study is the first to explore how the US dollar influences India’s trade balance with the EU by employing the Nonlinear Autoregressive Distributed Lag (NARDL) method. The results show that, no matter if the US dollar is employed, the depreciation of rupee cannot facilitate India’s trade balance, and the appreciation has a negative effect. Therefore, devaluation is an ineffectual policy for supporting India’s trade balance with the EU.

Suggested Citation

  • Ho Hoang Gia Bao & Hoang Phong Le & Ba Hoang Nguyen & Thanh An Vu, 2023. "The US dollar and trade balance: New findings from the international trade of India with the European Union," Cogent Business & Management, Taylor & Francis Journals, vol. 10(2), pages 2235817-223, December.
    • Handle: RePEc:taf:oabmxx:v:10:y:2023:i:2:p:2235817
    DOI: 10.1080/23311975.2023.2235817
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2023.2235817
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2023.2235817?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oabmxx:v:10:y:2023:i:2:p:2235817. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.