Table 2.
Variables descriptions.
Source: Authors’ compilation
| Abbreviation | Variable | Description | Source |
|---|---|---|---|
| rem | Remittances to India | Foreign remittances sent by migrants to India (Billion USD). It is termed as “Private transfers” in Balance of Payment | Handbook of Statistics on Indian Economy, RBI |
| gdp | Home country GDP | Gross Domestic Product of India(Billion INR). Spliced to 2011 series. Seasonally adjusted | Handbook of Statistics on Indian Economy, RBI |
| ner | Nominal exchange rate | Nominal exchange rate of INR vis-à-vis USD | Handbook of Statistics on Indian Economy, RBI |
| oil | Oil price | Global crude oil price (Brent). Measured in USD per barrel | FRED, Federal Reserve Bank of St. Louis |
| usg | Host country GDP | Gross Domestic Product of USA (Billions of Chained 2012 Dollars). Seasonally adjusted | FRED, Federal Reserve Bank of St. Louis |
| ird | Interest rate differential | Difference between Treasury Bill and LIBOR | RBI & FRED |
| inf | Relative inflation | Difference between the Indian inflation (INF) and USA inflation (USU) | OECD & FRED |
| smd | Stock market differential | Difference between the stock market returns of India (BSE SENSEX) and United States (NASDAQ) | RBI & FRED |