Abstract: It is frequently argued that exchange rate movements can impact productivity. Balassa (1964) and Samuelson (1964) have shown that real exchange rate will appreciate in countries where productivity growth is faster compared to the rest of the world. However, for developing countries one cannot generalize the hypothesis that a real appreciation of one currency will positively impact productivity. The present study estimates productivity growth in Indian organized manufacturing industries with more up to date and comprehensive data for the manufacturing sector of the economy. Tornqvist Productivity Index technique is used to compute total factor productivity and thereafter find total factor productivity growth. Multi-variate regression model is tested between individual industry productivity growth and independent variables.
Keywords: real exchange rate, Index technique, Growth Rate, Indian Manufacturing Sector.
Title: Influence of Exchange Rate Fluctuations on the Growth Rate of Productivity in the Indian Manufacturing Sector - An Empirical Analysis
Author: Dr. Nilesh Pandya, Tejas Joshi
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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