The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL Approach
The study examines the linkages among the nominal exchange rate, oil prices, terrorism and three selected macroeconomic variables: real growth rate, inflation rate and interest rate. The paper employed Auto Regressive Distributed Lag to test the long run and short run dynamics over the period 1980...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2017-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/3494 |
| _version_ | 1797918125650345984 |
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| author | Suresh Ramakrishnan Shamaila Butt Melati Ahmad Anuar |
| author_facet | Suresh Ramakrishnan Shamaila Butt Melati Ahmad Anuar |
| author_sort | Suresh Ramakrishnan |
| collection | DOAJ |
| description |
The study examines the linkages among the nominal exchange rate, oil prices, terrorism and three selected macroeconomic variables: real growth rate, inflation rate and interest rate. The paper employed Auto Regressive Distributed Lag to test the long run and short run dynamics over the period 1980 to 2015 in the context of Pakistan. A novel technique to this research is that we demarcate the relationship among macroeconomic variables, financial variable and socio-economic variable. The findings of the research depict a robust long run relationship among variables. Furthermore, the results showed that the adjustment process is slow and short run adjustment indicating that the discrepancies adjust completely in the same period. Hence, the efficient monetary and fiscal policy should keep into consideration before devising policies that have a greater influence on the variability of exchange rate.
Keywords: Nominal Exchange Rate, Macroeconomic Variables, Terrorism, Auto Regressive Distributed Lag
JEL Classifications: F02, F31, F41
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| first_indexed | 2024-04-10T13:24:33Z |
| format | Article |
| id | doaj.art-455581d89e2c4eb4a7ee91450795570d |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:24:33Z |
| publishDate | 2017-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-455581d89e2c4eb4a7ee91450795570d2023-02-15T16:11:53ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-01-0171The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL ApproachSuresh Ramakrishnan0Shamaila Butt1Melati Ahmad Anuar2Universiti Teknologi MalaysiaUniversiti Teknologi MalaysiaUniversiti Teknologi Malaysia The study examines the linkages among the nominal exchange rate, oil prices, terrorism and three selected macroeconomic variables: real growth rate, inflation rate and interest rate. The paper employed Auto Regressive Distributed Lag to test the long run and short run dynamics over the period 1980 to 2015 in the context of Pakistan. A novel technique to this research is that we demarcate the relationship among macroeconomic variables, financial variable and socio-economic variable. The findings of the research depict a robust long run relationship among variables. Furthermore, the results showed that the adjustment process is slow and short run adjustment indicating that the discrepancies adjust completely in the same period. Hence, the efficient monetary and fiscal policy should keep into consideration before devising policies that have a greater influence on the variability of exchange rate. Keywords: Nominal Exchange Rate, Macroeconomic Variables, Terrorism, Auto Regressive Distributed Lag JEL Classifications: F02, F31, F41 https://econjournals.com/index.php/ijefi/article/view/3494 |
| spellingShingle | Suresh Ramakrishnan Shamaila Butt Melati Ahmad Anuar The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL Approach International Journal of Economics and Financial Issues |
| title | The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL Approach |
| title_full | The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL Approach |
| title_fullStr | The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL Approach |
| title_full_unstemmed | The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL Approach |
| title_short | The Impact of Macroeconomic, Oil Prices and Socio-Economic Factors on Exchange Rate in Pakistan: An ARDL Approach |
| title_sort | impact of macroeconomic oil prices and socio economic factors on exchange rate in pakistan an ardl approach |
| url | https://econjournals.com/index.php/ijefi/article/view/3494 |
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