Mapping the Causal Connections betweenExchange Rate Fluctuations and AgricultureProduction: New Evidence fromPakistanUtilizing CointegrationAnalysis
Journal Title: Pakistan Journal of Economic Studies - Year 2022, Vol 5, Issue 1
Abstract
This study is on the foreign exchange rate and export sector and its impact on macroeconomic variables. The objective is to research the experiential association between the rate of exchange and the export sectors of Pakistan. The time series data has been used which covered 1980-2021. In this study, we used three major sectors that have been selected for this research with the Agricultural sector as the dependent variable. Rate of exchange, foreign direct investment, rate of inflation, and interest rate are being used as explanatory variables in this study. For the long run and short run estimation among variables; we used the Auto regressive distributed lag model (ARDL). The long-run findings of this study illustrated that in the model, the exchange rate is a positive and significant impact on agriculture production. Foreign direct investment, money supply (M2).Trade openness has a positive and significant impact on agriculture.
Authors and Affiliations
Hina Shafiq, Aiman Javaid, Hina Ali
Keywords
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