Asymmetric impact of Exchange Rate on Exports and Imports in India
Asymmetry of Exchange Rate on India’s Exports and Imports-by Debesh Bhowmik
,published in Integral Research,3(8),25-36,2026, https://doi.org/10.57067
Abstract
In this paper, author econometrically verified the asymmetric shocks of exchange rate of Rupee US Dollar on Indian exports and imports during 1970-2025 applying NARDL model. The paper revealed that exchange rate has suffered from short run asymmetry and long run symmetry when negative responses of cumulative dynamic multiplier of exchange rate of previous period is positively related with incremental export in the long run and negatively associated with both the positive and negative responses in the short run during 1970-2025. On the other hand, both the positive and negative responses of cumulative dynamic multiplier of exchange rate of previous period and current period are negatively associated with incremental import in the short run during 1970-2025 while no long run relationship was found significant and there was no asymmetry in the short run as well as in the long run. The cointegration equations in both incremental export and import are diverging away from the equilibrium.
Please read the paper from here
https://drive.google.com/file/d/1uYyqsQzAO_bqdna-WTHf6hd3pDhXus1O/view?usp=sharing
