The Economic Exchange Rate Exposure: Evidence for a Small Open Economy
AbstractThis study examines the economic exchange rate exposure of 22 industries in Pakistan. The key findings of the study are: firstly, the findings show that industry-level share values are statistically significantly influenced by changes in the Pakistani Rupee (PKR)/US-dollar exchange rate, in general. Secondly, a statistically significant lagged response of stock values to exchange rate change is reported. Finally, the highly capital-intensive industries are, however, found to be more exposed to changes in exchange rate in comparison to the less capital-intensive industries. Further, the robustness of the exchange rate exposure does not fall over time.
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Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Monetary Economics.
Volume (Year): VIII (2010)
Issue (Month): 4 (November)
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Other versions of this item:
- Rashid, Abdul, 2009. "The Economic Exchange Rate Exposure: Evidence for a Small Open Economy," MPRA Paper 21500, University Library of Munich, Germany.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
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