| ID | 159810 |
| Title Proper | Remittances and real effective exchange rate |
| Other Title Information | an empirical exercise with Indian data |
| Language | ENG |
| Author | Sengupta, Partha Pratim ; Dutta, Ujjal Protim |
| Summary / Abstract (Note) | Remittances in India have been growing rapidly since 1991. Most of the studies find that remittance has had a significant impact on real effective exchange rate (REER). It is imperative to evaluate the impact of a transfer such as remittance and aid on country’s competitiveness. This article is an attempt to investigate the impact of workers’ remittances and some selected macro-variables on REER of India using annual data from 1980–2015. The study conducted autoregressive distributive lag (ARDL) bound test co-integration approach to explore this long-run relationship. The ARDL bound test approach confirms significant long-run relationships among the selected variables at 1 per cent level of significance. In addition to this, the ARDL short-run error correction model implies that while REER may temporarily deviate from its long-run equilibrium, the deviations adjust towards the equilibrium level in the long run. |
| `In' analytical Note |
South Asia Economic Journal Vol. 19, No.1; Mar 2018: p.124-136 |
| Journal Source | South Asia Economic Journal 2018-06 19, 1 |
| Key Words | Remittances ; Official Development Assistance ; Competitiveness ; Real Effective Exchange Rate ; Co-Integration |