Steering Through Uncertainty: Commodity Price Shocks and Pakistan's Automobile Industry
Journal Title: Pakistan Journal of Economic Studies - Year 2023, Vol 6, Issue 2
Abstract
Purpose - Recently, conflicts among countries have caused many economic shocks in the global economy. Commodity price shocks are one of the most essential shocks resulting from these conflicts. Industries like automobiles are always most vulnerable to these shocks. This paper examines the impact of commodity price shocks on the automobile industry of Pakistan. Design/methodology/approach - We used monthly data from July 2008 to June 2020 and employed the SVAR model for our analysis. Findings - The pattern of the response of the automobile industry to commodity price shocks showed that commodity price shocks' impact on Pakistan's automobile industry is dominant on the supply side. Energy, education, and housing price shocks cause an excess supply of automobiles, whereas transportation prices reduce supply. On the demand side, food, clothing, and footwear price shocks negatively affect demand. Originality/value - This study increases the knowledge of the impact of commodity price shocks on the automobile industry and is the first study that addresses this issue in Pakistan. It also provides policymakers guidelines and helps them make policies for the development of the automobile industry accordingly.
Authors and Affiliations
Humera Iram, Uzma Bashir
Keywords
Related Articles
- EP ID EP735726
- DOI -
- Views 60
- Downloads 1
Constructive Role of Idle Cash in Pakistan: An Empirical Analysis
Idle cash is a short-run phenomenon that turns into active cash and enhances the pace of economic growth. People for short period keep away a part of their cash from the running flow of transaction and injects it into tr...
Child Well-being and Economic Growth: A Cross Country Analysis
This study investigates the relationship between various indicators of child well-being and economic growth. It groups indicators of child well-being into four key dimensions, namely child health,...
Natural Resources Depletion and Economic Growth: Evidence from ASEAN Countries
The economic growth of any country determines how developed a country is. It determines the development of any economy. However, many factors such as less labor, fewer resources, destruction of land etc., are now devalua...
Regional Institutional Barriers and Trade Outcomes: A New Empirical Evidence from Developing Economies of Four Continents
Objective: This study aims to explore the path of traditional nexus i.e. Trade Policy and Growth by using new road to development in which economic geography seems to be the driving force in institutional building and ul...
Stagnate Economic Analysis of Regime Change & Administration shuffling Impact on Pakistan economy
Pakistan has faced a political instability since its creation. The country remains under the undemocratic dictatorship of Military rulers for more than three decades. This has made it difficult to strengthen the democrat...