Razzaque H. Bhatti (Kashmir Institute of Development Studies, University of Azad Jammu & Kashmir, Muzaffarabad.)
Abstract
This paper presents some empirical evidence on long-run purchasing power parity (PPP) for eight Pak-rupee exchange rates over the period 1982:1–1994:4. Results obtained from testing for cointegration and coefficient restrictions using the Johansen (1988, 1991) procedure are supportive of PPP in almost all cases. These results are also supported by those obtained from testing for mean reversion in the real exchange rate using the Sims (1988) Bayesian test. One of the conclusions that emerge from these results is that devaluation of Pak-rupee vis-à-vis major industrial currencies under investigation may be unlikely to improve the country’s external competitiveness and, consequently, the deficit in its trade balance.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Contact details of provider: Postal: Quaid-i-Azam University Campus, P.O.Box 1091, Islamabad-44000 Phone: (92)(51)9206610 Fax: (92)(51)9210886 Email: Web page: http://www.pide.org.pk More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Irfan Shakeel).
Related research
Keywords:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)