Abstract
This paper examines the exchange rate exposure of firms in the manufacturing and service sectors in India, and measures this exposure by considering the trade weighted exchange rate as an explanatory variable by using monthly data from January 2000 to December 2013. The results show that Indian firms were highly exposed to the exchange rate during that period. A comparison of firms in the manufacturing and service sectors showed that the degree of exposure was higher for firms in the manufacturing sector. Overall, the results suggest that firms were more vulnerable to exchange rate changes in the post‐ than pre‐crisis period.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Economic Papers: A journal of applied economics and policy
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
