A Comparison of Exchange Rate Exposure between Manufacturing vis-à-vis Service Sector Firms in India†

Mohapatra, S M (2016) A Comparison of Exchange Rate Exposure between Manufacturing vis-à-vis Service Sector Firms in India†. Economic Papers. ISSN 0812-0439 (In Press)

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Abstract

This paper examines the exchange rate exposure of firms in the manufacturing and service sectors in India, and measures this exposure by considering the trade weighted exchange rate as an explanatory variable by using monthly data from January 2000 to December 2013. The results show that Indian firms were highly exposed to the exchange rate during that period. A comparison of firms in the manufacturing and service sectors showed that the degree of exposure was higher for firms in the manufacturing sector. Overall, the results suggest that firms were more vulnerable to exchange rate changes in the post- than pre-crisis period.

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IITH Creators:

IITH Creators	ORCiD

Item Type:

Article

Additional Information:

†The author thank David Prentice (the editor) and anonymous referees for their valuable feedback, suggestions and comments on the earlier version of the paper. The author is grateful to Dr Badri Narayan Rath and Dr Kailash Chandra Pradhan for research assistance.

Uncontrolled Keywords:

exchange rate exposure;manufacturing sector;pre-crisis;post-crisis;service sector;stock prices

Subjects:

Social sciences > Business Finance

Divisions:

Department of Liberal Arts

Depositing User:

Team Library

Date Deposited:

01 Aug 2016 05:22

Last Modified:

01 Aug 2016 05:22