THE IMPACT OF THE EXCHANGE RATE FLUCTUATIONS ON PAKISTAN’S EXPORT SECTORS: AN EMPIRICAL ANALYSIS BASED ON THE SECTORIAL DATA
Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 6
Abstract
This study examines the relationship between the exchange rates and the export sectors of Pakistan. The objective is to study the empirical relationship between the exchange rates and the export sectors. The analysis was conducted on the sectorally segregated monthly data of the exports from July 2003 to April 2010 with nominal exchange rates. The empirical estimation has been resorted to detect both the effects of the nominal exchange rates and the respective volatility of the exchange rates on the export sectors. For the estimation of the long run relationship cointegration and an autoregressive time series regression models are used while generalized autoregressive conditional heteroskedastic methodology has been used to estimate the effects of the exchange rates volatility on export sectors. The results of cointegration and ordinary least square revealed a significant longrun relationship between exchange rates and export sectors, which confirmed that the depreciating currency in case of Pakistan improves the competitiveness of the export sectors, while there is an evidence of volatility effects on the export sectors.
Authors and Affiliations
Abid Ali Shah| PhD Scholar, Faculty of Management Science, International Islamic University, Islamabad, Pakistan., Iftikhar Mehboob| Faculty of Management Sciences, National University of ModernLanguages, Islamabad, Pakistan., Syed Hassan Raza| Associate Professor, Faculty of Business Administration, Allama Iqbal Open University, Islamabad, Pakistan.
Keywords
Related Articles
- EP ID EP1817
- DOI -
- Views 509
- Downloads 35
EMPIRICAL TESTING OF EXCHANGE RATE AND INTEREST RATE TRANSMISSION CHANNELS IN CHINA
This paper examines the exchange rate and interest rate volatility transmission channels in China by applying Granger causality, Johansen cointegration, and the VAR model. Empirical results taken from the exchange rate c...
ANALYZING FACTORS TO IMPROVE SERVICE QUALITY OF LOCAL SPECIALTIES RESTAURANTS: A COMPARISON WITH FAST FOOD RESTAURANTS IN SOUTHERN VIETNAM
The top fast food restaurant brands like KFC and MacDonald?s have gone global and demonstrated their successful business strategies through providing quick-service and convenience for customers. Meanwhile, local specialt...
INVESTIGATING THE CAUSAL RELATIONSHIP BETWEEN STOCK MARKET AND AGGREGATE ECONOMIC PERFORMANCE OF SOUTH AFRICA
Stock is one of the key securities traded in the capital markets and as such, has attracted the attention of researchers. While it is said to propel economic activities, empirical studies conducted on different countries...
DETERMINING REAL EXCHANGE RATE FLUCTUATIONS IN THE OIL-BASED GCC ECONOMIES
This paper attempts to empirically determine the relationship between oil price fluctuations and movements in the dollar-pegged Gulf Cooperation Council (GCC) countries? exchange rates. Panel unit root tests are applied,...
FINANCIAL CRISIS AND FINANCIALIZATION ACUITY ON THE DIVERSIFICATION BENEFITS OF COMMODITIES: A STOCHASTIC ASSET ALLOCATION FRAMEWORK
This research investigates the portfolio diversification benefits of commodities in the backdrop of uncertainty caused by the financial crisis, increased Financialization and speculation in commodity markets. Portfolios...