Exchange Rate Instability and Sectoral Exports: Evidence from Pakistan
Exports of a country is one of the main factors indicating economic health of a country and fluctuating exchange rates and relative price can significantly affect the level of exports and it is an alarming situation for a country when its exports are affected by exchange rate volatility. Impact of e...
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| Format: | Article |
| Language: | English |
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University of Central Punjab
2014-12-01
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| Series: | Paradigms |
| Subjects: | |
| Online Access: | http://paradigms.ucp.edu.pk/rcc/vol8/paradigms-foc-ucp-14-0031.pdf |
| _version_ | 1819148146604769280 |
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| author | Muhammad Haseeb Muhammad Awais Iqbal |
| author_facet | Muhammad Haseeb Muhammad Awais Iqbal |
| author_sort | Muhammad Haseeb |
| collection | DOAJ |
| description | Exports of a country is one of the main factors indicating economic health of a country and fluctuating exchange rates and relative price can significantly affect the level of exports and it is an alarming situation for a country when its exports are affected by exchange rate volatility. Impact of exchange rate volatility and relative price on trade has been a heated debate in the field of finance and most of work has been done on aggregate and bilateral trade. Few researches are found on product basis especially in the scenario of Pakistan. This research will provide an overview of the exports of 13 different products from Pakistan. Secondary data is used to analyze the impact of exchange rate instability on the exports of different products from Pakistan to all over the world. Significance of the study depends on the right choice of estimation method. We use auto regressive distributive lags (ARDL) method to check the relationship of two main variables. Glass, meat and paper & board products show that relative price affects negatively to exports so Government should make policies to strengthen the exports of these three products. Government can provide subsidies on these products in order to boost up the exports and make these products competitive in international market. Under the shadow of our results we conclude that exchange rate volatility has significant negative relationship with the exports of food processing machinery, grapes, meat and petroleum products so government needs to be focused on it when exchange rate are highly instable. Iron & steel bars show short run negative impact of exchange rate however this impact is adjusted in the long run. |
| first_indexed | 2024-12-22T13:41:05Z |
| format | Article |
| id | doaj.art-e90702b720d346e0bbd72630a251b1d5 |
| institution | Directory Open Access Journal |
| issn | 1996-2800 2410-0854 |
| language | English |
| last_indexed | 2024-12-22T13:41:05Z |
| publishDate | 2014-12-01 |
| publisher | University of Central Punjab |
| record_format | Article |
| series | Paradigms |
| spelling | doaj.art-e90702b720d346e0bbd72630a251b1d52022-12-21T18:23:56ZengUniversity of Central PunjabParadigms1996-28002410-08542014-12-0182640Exchange Rate Instability and Sectoral Exports: Evidence from PakistanMuhammad Haseeb0Muhammad Awais Iqbal1UCP Business School, University of Central PunjabUCP Business School, University of Central PunjabExports of a country is one of the main factors indicating economic health of a country and fluctuating exchange rates and relative price can significantly affect the level of exports and it is an alarming situation for a country when its exports are affected by exchange rate volatility. Impact of exchange rate volatility and relative price on trade has been a heated debate in the field of finance and most of work has been done on aggregate and bilateral trade. Few researches are found on product basis especially in the scenario of Pakistan. This research will provide an overview of the exports of 13 different products from Pakistan. Secondary data is used to analyze the impact of exchange rate instability on the exports of different products from Pakistan to all over the world. Significance of the study depends on the right choice of estimation method. We use auto regressive distributive lags (ARDL) method to check the relationship of two main variables. Glass, meat and paper & board products show that relative price affects negatively to exports so Government should make policies to strengthen the exports of these three products. Government can provide subsidies on these products in order to boost up the exports and make these products competitive in international market. Under the shadow of our results we conclude that exchange rate volatility has significant negative relationship with the exports of food processing machinery, grapes, meat and petroleum products so government needs to be focused on it when exchange rate are highly instable. Iron & steel bars show short run negative impact of exchange rate however this impact is adjusted in the long run.http://paradigms.ucp.edu.pk/rcc/vol8/paradigms-foc-ucp-14-0031.pdfExchange RateInstabilitySectoral ExportsARDLPakistan |
| spellingShingle | Muhammad Haseeb Muhammad Awais Iqbal Exchange Rate Instability and Sectoral Exports: Evidence from Pakistan Paradigms Exchange Rate Instability Sectoral Exports ARDL Pakistan |
| title | Exchange Rate Instability and Sectoral Exports: Evidence from Pakistan |
| title_full | Exchange Rate Instability and Sectoral Exports: Evidence from Pakistan |
| title_fullStr | Exchange Rate Instability and Sectoral Exports: Evidence from Pakistan |
| title_full_unstemmed | Exchange Rate Instability and Sectoral Exports: Evidence from Pakistan |
| title_short | Exchange Rate Instability and Sectoral Exports: Evidence from Pakistan |
| title_sort | exchange rate instability and sectoral exports evidence from pakistan |
| topic | Exchange Rate Instability Sectoral Exports ARDL Pakistan |
| url | http://paradigms.ucp.edu.pk/rcc/vol8/paradigms-foc-ucp-14-0031.pdf |
| work_keys_str_mv | AT muhammadhaseeb exchangerateinstabilityandsectoralexportsevidencefrompakistan AT muhammadawaisiqbal exchangerateinstabilityandsectoralexportsevidencefrompakistan |