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| Volume 14, No. 2, December
2015 |
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Capital Flow Components
and
the Real Exchange Rate: |
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Implications
for India |
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Shashank Goel |
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Indian Institute of Foreign Trade,
India
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V. Raveendra Saradhi
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Indian
Institute of Foreign Trade,
India |
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| Abstract |
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This paper analyzes the relationship between the net
capital flow components and the real exchange rate
in India for the period 1996–1997 to 2012–2013.
The empirical results suggest that there is a strong
case for further liberalization of foreign direct
investment flows, while greater caution is need in
liberalization of portfolio and debt creating flows.
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Key words:
debt creating flows;
foreign direct investment;
foreign exchange
reserves;
foreign
portfolio
flows;
government consumption expenditure;
real exchange rate
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JEL
classification:
F30;
F36;
F40;
F62;
F65 |
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