Unveiling the impact of macroeconomic factors in export destinations on Indian textile exports

  • 36 Views
  • 10 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

In recent times, macroeconomic factors have become a central focus of interest in international trade research. The economic environment in international trade directly affects trade performance and the global market. The study analyzes the export performance of Indian textile exports and the macroeconomic factors influencing them from the perspective of export destinations. The study incorporates the key macroeconomic variables, including exchange rate, interest rate, Gross Domestic Product (GDP) per capita, the inflation rates of export destination countries, and crude oil prices. The study includes secondary data gathered on a monthly basis, employing the vector auto-regressive (VAR) model and the Granger causality test to analyze the dynamic linkages and causal relationships between the variables in the study. The Granger causality test results revealed that Japan’s and South Africa’s GDP (p < 0.05) impacts India’s textile exports to these countries. Additionally, the inflation in Japan (p < 0.05) affects the performance of Indian textile exports. The VAR model further revealed that the USA’s and China’s interest rate, Japan’s exchange rate, GDP, and interest rate, as well as South Africa’s GDP, significantly influence the export performance of Indian textiles.

view full abstract hide full abstract
    • Figure 1. Export data of textiles from India to the world
    • Table 1. Granger causality test
    • Table 2. VAR regression estimates
    • Table 3. Fitness summary of estimated VAR equations
    • Conceptualization
      Raksha Jain, Geetha E.
    • Data curation
      Raksha Jain
    • Formal Analysis
      Raksha Jain
    • Funding acquisition
      Raksha Jain, Geetha E., Linsy Mathew, Aleena Joseph
    • Investigation
      Raksha Jain, Linsy Mathew
    • Methodology
      Raksha Jain, Geetha E.
    • Resources
      Raksha Jain, Geetha E., Linsy Mathew, Aleena Joseph
    • Software
      Raksha Jain, Aleena Joseph
    • Writing – original draft
      Raksha Jain, Aleena Joseph
    • Writing – review & editing
      Raksha Jain, Geetha E., Linsy Mathew, Aleena Joseph
    • Project administration
      Geetha E., Linsy Mathew
    • Supervision
      Geetha E., Linsy Mathew
    • Validation
      Geetha E., Linsy Mathew
    • Visualization
      Geetha E.
Related Articles

  • The effectiveness of exchange rate channel in Azerbaijan: an empirical analysis

    Shahriyar Mukhtarov , Serhat YükselORCID Researcher ID, Elvsevar Ibadov , Hamid Hamidov doi: http://dx.doi.org/10.21511/bbs.14(1).2019.10
    Banks and Bank Systems Volume 14, 2019         Issue #1         pp. 111-121 Views: 1971 Downloads: 331 TO CITE АНОТАЦІЯ

    The main purpose of this study is to make an analysis to understand whether the exchange rate channel is effective in Azerbaijan. In this framework, quarterly data between 2001:01 and 2017:02 is examined in this study. Furthermore, VAR method is taken into the consideration in the analysis process. The findings show that exchange rate channel is very important for Azerbaijani economy. In other words, the exchange rate channel is working on the total output and price axis. Hence, it is recommended that necessary actions should be taken by a central bank regarding the effective usage of exchange rate channel to contribute to industrial production and employment.

  • The impact of United States monetary policy uncertainty on the Gulf Cooperation Council stock markets

    Abdullah Saeed S Alqahtani , Hongbing Ouyang , Shayem Saleh doi: http://dx.doi.org/10.21511/imfi.16(1).2019.10
    Investment Management and Financial Innovations Volume 16, 2019         Issue #1         pp. 128-143 Views: 1965 Downloads: 138 TO CITE АНОТАЦІЯ

    Most of the GCC countries currencies are pegged to the US dollar, which make the economy those countries susceptible to the US monetary policy change. This paper used the non-structural VAR tests to examine the spillovers impact of the two recently developed US monetary policy uncertainty indices (the BBD MPU and the HRS MPU) shocks on GCC stock markets from 2003: M01 to 2017: M07. The result revealed that during the period under review, the two MPU have slight significant impact on some GCC markets. But the HRS MPU has more impact than the BBD MPU. Besides this, unidirectional causality running from HRS MPU to Bahraini and Kuwaiti Stock market was detected within the period. Hence, policymakers should realize the heterogeneity impacts from US MPU to stock markets in GCC countries. The findings also help investors and portfolio managers to better understand the effects of US monetary policy uncertainty on the stock markets.

  • Oil price and Indonesian economic growth

    SultanORCID , Julius Jhonny Sarungu , Albertus Maqnus Soesilo , Siti Aisyah Tri Rahayu doi: http://dx.doi.org/10.21511/ppm.17(1).2019.14
    Problems and Perspectives in Management Volume 17, 2019         Issue #1         pp. 152-162 Views: 1738 Downloads: 227 TO CITE АНОТАЦІЯ

    Oil prices and economic growth are important indicators to see the success of Indonesia’s development performance. The use of oil as the world’s main energy source in general and Indonesia in particular is driven by industrialization. The more industries, the greater the energy resources needed. In the same context, economic growth will also increase oil demand. The purpose of this study is to examine and create empirical evidence of the relationship between world oil prices and economic growth towards domestic oil prices. Furthermore, to test and create empirical evidence on the relationship of domestic oil prices, agriculture, trade, investment, inflation, interest rates, industry, labor, exchange rates and balance of payments to economic growth. The expected output of this research will be to provide information on the policy of the transmission mechanism of oil prices and economic growth in Indonesia. The method used is descriptive and econometric approach to the analysis of simultaneous equation models with two stages of the least squares method. The results of the study indicate that there is a simultaneous relationship between oil prices and economic growth. Economic growth, world oil prices and domestic oil prices a year ago had a positive effect on domestic oil prices. The second result shows that domestic oil, agriculture, investment, interest rates, industry, exchange rates, balance of payments and economic growth in the previous year have a positive effect on economic growth, while trade, inflation and labor have a negative influence on economic growth.

Download Preview
Close
Problems and Perspectives in Management
Problems and Perspectives in Management