Abstract

https://ssrn.com/abstract=2775559
 


 



Exchange Rate Uncertainty and Employment Dynamics: Evidence from India


Anubha Dhasmana


Indian Institute of Management (IIMB), Bangalore

May 5, 2016

IIM Bangalore Research Paper No. 513

Abstract:     
This paper studies the impact of real exchange rate volatility on firm level employment using a dynamic panel data model applied on a panel of 700 Indian manufacturing firms. Real exchange rate volatility is found to have a significant and negative impact on firm level employment growth. Access to domestic equity finance is found to reduce the negative impact of exchange rate uncertainty significantly but the same cannot be said about foreign equity finance. Further, exposure to international trade in the form of exports and imports affects employment dynamics in the face of exchange rate uncertainty.

Number of Pages in PDF File: 36

Keywords: Real Exchange Rate Volatility, Trade Exposure, Employment

JEL Classification: F1, F4


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Date posted: May 5, 2016  

Suggested Citation

Dhasmana, Anubha, Exchange Rate Uncertainty and Employment Dynamics: Evidence from India (May 5, 2016). IIM Bangalore Research Paper No. 513. Available at SSRN: https://ssrn.com/abstract=2775559

Contact Information

Anubha Dhasmana (Contact Author)
Indian Institute of Management (IIMB), Bangalore ( email )
Bannerghatta Road
Bangalore, Karnataka 560076
India

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