An Analysis of Exchange Rate, J Curve and Debt Burden in Pakistan: An Analysis of Bound Testing
Rate of exchange is a significant monetary variable that control balance of trade. J curve theory explains that depreciation in domestic currency wills sure that foreign goods costly for the domestic persons and domestic goods are inexpensive for the other country. In this result, imports will reduc...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Institute of Business Management
2018-12-01
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| Series: | International Journal of Experiential Learning & Case Studies |
| Subjects: | |
| Online Access: | http://jmsnew.iobmresearch.com/index.php/ijelcs/article/view/326 |
| _version_ | 1797868376857509888 |
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| author | Hina Ali Ramzan Sheikh Laraib Abrar |
| author_facet | Hina Ali Ramzan Sheikh Laraib Abrar |
| author_sort | Hina Ali |
| collection | DOAJ |
| description | Rate of exchange is a significant monetary variable that control balance of trade. J curve theory explains that depreciation in domestic currency wills sure that foreign goods costly for the domestic persons and domestic goods are inexpensive for the other country. In this result, imports will reduce and exports will rises. Therefore, trade balance would be improved. This theory proved that J curve have no exist in Pakistan because imports of Pakistan contains a large numbers of necessities and this imports present no movement in exchange rate. Therefore, rate of exchange and balance of trade both have negative relationship. Debt and GDP have positive related with each other because Government of Pakistan takes the debt to promote the economic growth. This study opens new perspectives for the decision makers. |
| first_indexed | 2024-04-09T23:54:57Z |
| format | Article |
| id | doaj.art-afe98e15e562476599b1ea82ca1e7e49 |
| institution | Directory Open Access Journal |
| issn | 2520-4475 2521-9359 |
| language | English |
| last_indexed | 2024-04-09T23:54:57Z |
| publishDate | 2018-12-01 |
| publisher | Institute of Business Management |
| record_format | Article |
| series | International Journal of Experiential Learning & Case Studies |
| spelling | doaj.art-afe98e15e562476599b1ea82ca1e7e492023-03-17T03:52:03ZengInstitute of Business ManagementInternational Journal of Experiential Learning & Case Studies2520-44752521-93592018-12-0132219235326An Analysis of Exchange Rate, J Curve and Debt Burden in Pakistan: An Analysis of Bound TestingHina AliRamzan SheikhLaraib AbrarRate of exchange is a significant monetary variable that control balance of trade. J curve theory explains that depreciation in domestic currency wills sure that foreign goods costly for the domestic persons and domestic goods are inexpensive for the other country. In this result, imports will reduce and exports will rises. Therefore, trade balance would be improved. This theory proved that J curve have no exist in Pakistan because imports of Pakistan contains a large numbers of necessities and this imports present no movement in exchange rate. Therefore, rate of exchange and balance of trade both have negative relationship. Debt and GDP have positive related with each other because Government of Pakistan takes the debt to promote the economic growth. This study opens new perspectives for the decision makers.http://jmsnew.iobmresearch.com/index.php/ijelcs/article/view/326exchange ratedebtgross domestic productdebt burdenpakistan |
| spellingShingle | Hina Ali Ramzan Sheikh Laraib Abrar An Analysis of Exchange Rate, J Curve and Debt Burden in Pakistan: An Analysis of Bound Testing International Journal of Experiential Learning & Case Studies exchange rate debt gross domestic product debt burden pakistan |
| title | An Analysis of Exchange Rate, J Curve and Debt Burden in Pakistan: An Analysis of Bound Testing |
| title_full | An Analysis of Exchange Rate, J Curve and Debt Burden in Pakistan: An Analysis of Bound Testing |
| title_fullStr | An Analysis of Exchange Rate, J Curve and Debt Burden in Pakistan: An Analysis of Bound Testing |
| title_full_unstemmed | An Analysis of Exchange Rate, J Curve and Debt Burden in Pakistan: An Analysis of Bound Testing |
| title_short | An Analysis of Exchange Rate, J Curve and Debt Burden in Pakistan: An Analysis of Bound Testing |
| title_sort | analysis of exchange rate j curve and debt burden in pakistan an analysis of bound testing |
| topic | exchange rate debt gross domestic product debt burden pakistan |
| url | http://jmsnew.iobmresearch.com/index.php/ijelcs/article/view/326 |
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