A SIMULTANEOUS-EQUATION MODEL OF SHORT-RUN DETERMINANTS OF THE PKR/USD EXCHANGE RATE
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 12
Abstract
This paper examines the determinants of the exchange rate between the Pakistani rupee (PKR) and the U.S. dollar (USD) based on a simultaneous-equation model consisting of demand for and supply of the U.S. dollar. Empirical results show that the PKR/USD exchange rate is positively associated with the real U.S. policy rate, real GDP in Pakistan, real U.S. stock prices and the expected PKR/USD exchange rate and is negatively affected by the real Pakistani discount rate, U.S. real GDP, and real stock prices in Pakistan. Hence, policy rates, real GDP or income, stock prices and expected exchange rates play important roles in exchange rate determination in the short run.
Authors and Affiliations
Yu Hsing| Department of Management & Business Administration, College of Business, Southeastern Louisiana University, Hammond, Louisiana, USA
Keywords
Related Articles
- EP ID EP2133
- DOI -
- Views 513
- Downloads 30
An ARDL Analysis Of The Exchange Rates Principal Determinants: ASEAN-5 Aligned with The Yen
This study examines an empirical analysis of long-run and short-run forcing variables of purchasing power parity (PPP) for ASEAN-5 currencies: Malaysian Ringgit, Indonesian Rupiah, the Philippines Peso, Thailand Bath, an...
The Determinants of Stock Prices in Pakistan
Stock Investment is always a risky proposition and investors are reluctant to invest in Stock Market. If they came to know about the exact factors influencing the stock prices, they will invest in stocks confidently. Thi...
VALUE DRIVERS TO MAXIMIZE STAKEHOLDER WORTH: THE CASE OF TAIWAN HIGH SPEED RAIL CORPORATION CUSTOMIZING
This study determined that the sustainable value of an enterprise involves not only financial performance but also nonfinancial performance. Therefore, intellectual capital (IC) and corporate social responsibility (CSR)...
THE EFFECTS OF INDEPENDENT MANAGERS, INSTITUTIONAL SHAREHOLDERS AND AUDIT EXPENSES ON THE PROBABILITY OF FINANCIAL CRISIS
This paper examines the impact of independent managers, institutional shareholders and audit expenses on the probability of financial crisis of the listed companies in Tehran Stock Exchange (TSE). The target sample inclu...
ESCAPING THE DUTCH DISEASE: THE ROLE OF PUBLIC INVESTMENT IN NIGER
This paper describes the use of a recursive dynamic computable general equilibrium model to the analysis of two investment strategies of natural resources revenue in Niger. Potential impact of education and infrastructur...