TRADE REFORMS AND PERFORMANCE IN INDIAN MANUFACTURING SECTOR: A PANEL DATA ANALYSIS
The rupee exchange rate, growth rate of output, and productivity growth are the important indicators in economy, including the Indian economy. The debate regarding the relationship among the exchange rate, trade liberalization, and productivity growth has been persisting for several decades. The aim of this research is to obtain the empirical evidence of the causal relationship among the exchange rate, trade liberalization, and productivity growth by using the annual data from 1991 to 2013. For calculation of Total Factor Productivity (TFP) present study used Tran slog Index. Present study found that key macro-economic variables like employment, exchange rate, real wage rate, growth rate of output, direction and composition of foreign trade have significant impact on productivity after the post liberalization period.