Modeling India's External Sector: Review and Some Empirics
Publication dateMay, 2014
DetailsNIPFP Working Paper No. 138
AuthorsN.R. Bhanumurthy, Sukanya Bose and Swayamsiddha Panda
In the aftermath of global food & fuel price spikes and the recent global financial crisis, understanding of external sector behaviour has become crucial. More specifically, the transmission mechanism of external sector shocks to domestic macroeconomic variables is essential for undertaking relevant policies to mitigate adverse impact of such shocks. Here an attempt has been made to review the theoretical and empirical issues relating to India’s external sector behaviour and present a suitable analytical framework for macro modeling.