OECD GDP, Exchange Rate and Exports Performance of India in the Post Reform Period: An Empirical Analysis (Report‪)‬

Abstract This study uses exchange rate and OECD GDP to explain the exports of India for the period 1994 to 2008. Since the ADF and Phillips-Perron tests show the first order cointegration in Indian exports, OECD GDP and exchange rate, the first difference of the log of exports of India has been regressed on first differences of the log of OECD GDP and the log of one of the four exchange rate variables at a time namely the Trade weighted Real effective exchange rate(REERT), Exports weighted Real Effective exchange rate(REERX), Trade weighted Nominal Effective exchange rate(NEERT) and Export weighted nominal effective exchange rate(NEERX). The empirical results indicate that only OECD GDP is significant in explaining the Indian exports.