Monthly data reveals incomplete pricing adjustments in India's export markets.
The article examines how Indian exporters adjust their prices in response to changes in exchange rates. By analyzing data at different frequencies (monthly and annual), the researchers found that incomplete adjustment of prices to exchange rate changes exists in India's export markets. Monthly data show more incomplete adjustment in the short run compared to annual data. This suggests that using higher frequency data is more likely to reveal incomplete adjustment in the short term, even in an emerging market economy like India. In the long run, incomplete adjustment persists in a few industries for both data frequencies.