Why Devaluation Failed Exports

J A Rosario revaluation was expected to make Indian exports cheaper and so expand the demand for them in world markets. To test whether this has been in tact achieved, the author traces movements in the quantity and unit value of exports of 26 major commodities during June-December 1966, There is, however, no discernible pattern in the movements to support the view that devaluation has helped exports. While the prices of some goods had gone up, so had their exports, and for some other goods both prices and exports had fallen. Devaluation had no predictable effect on the price level m terms of foreign exchange.