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 542
- Downloads 35
PRINCIPLES OF VENTURE AND BUSINESS-ANGEL INVESTMENTS
Positive state policies in the developed countries of the world are directed towards fundamental transformation and development of innovative economical sector. One of the most principle ways for solving tasks of priorit...
THE IMPACT OF MATCH-FIXING SCANDALS ON THE STOCK RETURNS OF PARENT COMPANIES AND SPONSORS: EVIDENCE FROM CHINESE PROFESSIONAL BASEBALL LEAGUE IN TAIWAN
Although an increasing number of literature indicate the positive impact of sponsoring major sports events or themed competitions, few studies have examined how a match-fixing scandal occurring in the most popular and na...
SYNCHRONIZATION OF ECONOMIC SYSTEMS WITH FRACTIONAL ORDER DYNAMICS USING ACTIVE SLIDING MODE CONTROL
Synchronization of chaos has widely spread as an important issue in nonlinear systems and is one of the most important branches on the problem of controlling of chaos. In this paper, among different chaotic systems the e...
ECONOMIC AND SOCIAL DUALITY IN IRAN (USING FUZZY TOPSIS DECISION-MAKING)
One of the planners and policy-makers? aims on the one hand is optimum allocating and distributing of credits and facilities among regions and on the other hand is providing and compiling a suitable model aiming at achie...
CAPITAL INFLOWS AND ASSET PRICES: THE RECENT EVIDENCE OF SELECTED EAST ASIAN ECONOMIES
This paper aims at providing empirical evidence on the relationship between capital inflows and asset prices, focusing on China, Hong Kong, Indonesia, Korea and Thailand. Main findings are: the positive responses of shar...