Impact of Devaluation on Trade Balance in Pakistan
AbstractThe purpose of this paper is to find the impact of devaluation on trade balance in Pakistan in both long and short run using bound testing approach to Cointegration and Error Correction Mechanism (ECM). The result shows that devaluation is effective in improving trade balance and there is a cointegrated relationship between the real effective exchange rate and trade balance in the long run.
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Bibliographic InfoArticle provided by Saphira Publishing House in its journal Oeconomics of Knowledge.
Volume (Year): 3 (2011)
Issue (Month): 3 (July)
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Find related papers by JEL classification:
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
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- Halicioglu, Ferda, 2008.
"The J-Curve Dynamics of Turkey: An Application of ARDL Model,"
6824, University Library of Munich, Germany.
- Ferda Halicioglu, 2008. "The J-curve dynamics of Turkey: an application of ARDL model," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2423-2429.
- Upadhyaya, Kamal P., 1999. "Currency devaluation, aggregate output, and the long run: an empirical study," Economics Letters, Elsevier, vol. 64(2), pages 197-202, August.
- Thanh, Nguyen Ngoc & Kalirajan, Kaliappa, 2006. "Can devaluation be effective in improving the balance of payments in Vietnam?," Journal of Policy Modeling, Elsevier, vol. 28(4), pages 467-476, May.
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