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Impact of Exchange Rate on Exports in Case of Pakistan

Author

Listed:
  • Khalil Ahmed

    (Govt Civil Lines, Islamia College, Lahore, Pakistan & National College of Business Administration and Economics (NCBA&E), Lahore, Pakistan)

  • Muhammad Qasim

    (University of Lahore, Pakpatan Campus, Pakistan & National College of Business Administration and Economics (NCBA&E), Lahore, Pakistan)

  • Muhammad Irfan Chani

    (COMSATS Institute of Information Technology, Vehari, Pakistan)

Abstract

Export of a country is one of the main factors indicating economics health of a country. This study examines the impact of exchange rate on exports in case of Pakistan by using annual time series data over the period from 1970 to 2015. Secondary data is taken from International monetary fund (IMF) and World bank (WDI). Study use Augmented Dicky-Fuller (ADF) and Phillip-Perron (PP) to check the stationary of the data. The study use Auto Regressive Distributive lag (ARDL) to check the relationship between the variables which are under consideration. Results of the study show that exchange rate have negative but insignificant impact on exports of Pakistan while World’s income have positive and significant effect to exports.

Suggested Citation

  • Khalil Ahmed & Muhammad Qasim & Muhammad Irfan Chani, 2017. "Impact of Exchange Rate on Exports in Case of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 6(2), pages 98-102, June.
    • Handle: RePEc:rfh:bbejor:v:6:y:2017:i:2:p:98-102
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    References listed on IDEAS

    as
    1. Hooper, Peter & Kohlhagen, Steven W., 1978. "The effect of exchange rate uncertainty on the prices and volume of international trade," Journal of International Economics, Elsevier, vol. 8(4), pages 483-511, November.
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    5. Aristotelous, Kyriacos, 2001. "Exchange-rate volatility, exchange-rate regime, and trade volume: evidence from the UK-US export function (1889-1999)," Economics Letters, Elsevier, vol. 72(1), pages 87-94, July.
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    7. Asseery, A. & Peel, D. A., 1991. "The effects of exchange rate volatility on exports : Some new estimates," Economics Letters, Elsevier, vol. 37(2), pages 173-177, October.
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    9. Bailey, Martin J. & Tavlas, George S. & Ulan, Michael, 1987. "The impact of exchange-rate volatility on export growth: Some theoretical considerations and empirical results," Journal of Policy Modeling, Elsevier, vol. 9(1), pages 225-243.
    10. Augustine Arize & John Malindretos & Krishna Kasibhatla, 2003. "Does exchange-rate volatility depress export flows: The case of LDCs," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 9(1), pages 7-19, February.
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    Citations

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    Cited by:

    1. Peter Nuhu & Dramani Bukari, 2021. "An analysis of export, import and exchange rate oscillation in Ghana," International Journal of Economic Policy Studies, Springer, vol. 15(2), pages 301-327, September.
    2. Brun,Martin & Gambetta,Juan Pedro & Varela,Gonzalo J., 2020. "Slow Rockets and Fast Feathers or the Link between Exchange Rates and Exports : A Case Study for Pakistan," Policy Research Working Paper Series 9353, The World Bank.
    3. Khalil Ahmad & Amjad Ali & Michael Yang, 2022. "The Effect Of Trade Liberalization On Expenditure Structure Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(1), pages 73-84, March.
    4. Muhammad Shahid Hassan & Amna Kausar & Noman Arshed, 2022. "Investigating Export Determinants: A Time Series Evidence From Canada," SAGE Open, , vol. 12(2), pages 21582440221, June.
    5. Saghir Pervaiz GHAURI & Hina QADIR & Rizwan Raheem AHMED & Dalia STREIMIKIENE & Justas STREIMIKIS, 2022. "The Exports Performance of Pakistan: Evidence from the ARDL Cointegration Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 150-168, December.
    6. Ahmed Pirzada, 2019. "Do exchange rate shocks matter for Pakistan's export performance?," Bristol Economics Discussion Papers 19/711, School of Economics, University of Bristol, UK.

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    More about this item

    Keywords

    exchange rate; exports; world income; Pakistan;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F30 - International Economics - - International Finance - - - General

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