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India’S Trade Flows: Alternative Policy Scenarios: 1995-2000

Author

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  • K. Krishnamurty

    (Institute of Economic Growth)

  • V.Pandit

    (Delhi School of Economics)

Abstract

The paper presents a moderately disaggregative model of India's trade flows covering the period 1971-91. It incorporates distinct demand-supply factors, takes into account the effect of relative prices, import tariffs, export subsidies, and levels of economic activity, and allows for adjustments in domestic prices in response to exchange rate adjustments. The model is solved forward to assess the impact on trade flows and possible policy implications under the following scenarios- (a) accelerated domestic growth, (b) depreciation of nominal exchange rate, (c) reduction in tariffs and subsidies, and (d) sustained higher world economic growth.

Suggested Citation

  • K. Krishnamurty & V.Pandit, 1995. "India’S Trade Flows: Alternative Policy Scenarios: 1995-2000," Working papers 32, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:32
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    Cited by:

    1. Madhu BALA, 2010. "Credit Constraints, Heterogeneity of Firms and International Trade: An Empirical Analysis of Exports Determinants for India," EcoMod2010 259600017, EcoMod.
    2. Sinha Roy, Saikat, 2007. "Demand and Supply Factors in the Determination of India's Disaggregated Manufactured Exports: A Simultaneous Error-Correction Aprroach," MPRA Paper 68589, University Library of Munich, Germany.

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