Rest aa eS ued
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“The stucly examines the sources of export instal in India by using tie series data
‘rom 1987-88 t0 2012-13. In this context, most of the stuales argued that instaDlity
in exports relates with commodity and geographic concentration of exports. Some
‘oiner studies have shown that over dependence on primary exports is the major
‘cause of export instability of developing countries. Inthe present study we have tried
fo determine various causes or determinants ef export insiabilty in India by taking
‘expianalory variables as primary exports instabitiy index, chemical products export
Instabilty index, engineering products exports instabilty index, petroleum products
‘expos instabity Index, commodity concentration index and geographic concentration
‘index by using multiple regression analysis. The paper fins that variables including
‘expo Istabiity oF texte products, pevoieum products nave negative and significant
relationship with total export instablity of india, while export Instabilty of primary
products, chemical products, engineering products and geographical concentration of
‘expos have positive and significant relation wit fotal export stably.
Keywords: Exports, Commodity Concentration, Instability Index, Geographic
Goncenwration
Introduction
‘A-countrys exports sector growth depends upon a large number of domestic and
Intemational factors. In case of merchandise exports, if domestic industries, agriculture
‘and alied sectors are efficient enough to produce quality products at eompetiive cost,
‘only then exports sector will be robust and growing. With growing openness of world
‘economy, extemal sector fuctuations especially those of exports earrings can cause
‘serious destabilzing impact on domestic economy. Export earnings and thet stabilty
‘depend upon demand side as well as supply side factors. Exports instablly ss often
‘ilcized as it can have negative impact on economic growth. Destabilzing impact
‘of export instabilty is through impacts on capacity to impor and domestic demand
‘f export economy. Pattern of export instabily ullmately depends upon growth and
changing composition of exports sector (Altman, 1980).
[At aggregate level, exports eaming fluctuations may be relatively smoothed by