IDEAS home Printed from https://ideas.repec.org/a/cvv/journ2/v3y2016i4p629-641.html

Appropriate Exchange Rate Regime for Economic Structure of Pakistan

Author

Listed:
  • Muhammad Naveed TAHIR

    (Forman Christian College (A Chartered University), Economics Department, Lahore, Pakistan.)

  • Faran ALI

    (University of Management and Technology, School of Business & Economics, Lahore, Pakistan.)

  • Dawood MAMOON

    (University of Management and Technology, School of Business & Economics, Lahore, Pakistan.)

Abstract

This study attempts to find the appropriate exchange rate regime for economic structure of Pakistan. To this end the study uses ARDL bond testing approach to estimate long run and for the estimation of short run analysis Error correction model (ECM) is applied. Time series data is used over the period from 1984 to 2012. Findings reveal that Trade openness, foreign exchange reserves, and inflation rate are important determinant while choosing appropriate exchange-rate regime for economy having features like Pakistan. On the basis of analysis, this study suggests that both extreme ends hard peg and free float are unfavorable for it. The results also survive during robustness check. However, caution is required while making a policy decision as clear-cut answer is absent. Nonetheless, choice of regime is a difficult task in empirical analysis because few factors cannot explain actual regime.

Suggested Citation

  • Muhammad Naveed TAHIR & Faran ALI & Dawood MAMOON, 2016. "Appropriate Exchange Rate Regime for Economic Structure of Pakistan," Turkish Economic Review, EconSciences Journals, vol. 3(4), pages 629-641, December.
    • Handle: RePEc:cvv:journ2:v:3:y:2016:i:4:p:629-641
    as

    Download full text from publisher

    File URL: http://econsciences.com/index.php/TER/article/download/1094/1075
    Download Restriction: no
    File URL: http://econsciences.com/index.php/TER/article/view/1094
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cvv:journ2:v:3:y:2016:i:4:p:629-641. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bilal KARGI (email available below). General contact details of provider: https://journals.econsciences.com/index.php/TER .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.