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 537
- Downloads 35
THE TESTING OF HALL’S PERMANENT INCOME HYPOTHESIS: A CASE STUDY OF IRAN
The objective of this study is to test the Hall’s permanent income hypothesis for Iran using cointegration and error correction model from annual data covering the period of 1980-2010 using annual data from 1980 to 2010....
SAVINGS, FOREIGN DIRECT INVESTMENT INFLOWS AND ECONOMIC GROWTH IN EMERGING ASIAN ECONOMIES
Saving rate is one of the important elements of all the theories of economic growth and foreign direct investment inflows also became an important determinant of economic growth together with the globalization process as...
THE IMPACT OF TRADER BEHAVIOR ON OPTIONS PRICE VOLATILITY
Because relatively few studies have examined the behavior among different types of traders in the options market, this investigation conducts an empirical study examining the impact of trader type on price volatility in...
QUALIFIED AUDIT OPINION, ACCOUNTING EARNINGS MANAGEMENT AND REAL EARNINGS MANAGEMENT: EVIDENCE FROM IRAN
This study examines the relationship between qualified audit opinions and earnings management, as measured by discretionary accruals (accounting earnings management) and abnormal production cost (real earnings management...
INTELLECTUAL CAPITAL AND FIRM PERFORMANCE OF COMMERCIAL BANKS IN MALAYSIA
Intellectual capital is an important element of the theory explaining firm performance. The purpose of this paper is to determine the relationship between the level of intellectual capital efficiency in terms of Human Ca...