The Asymmetric Effects of Exchange Rate Volatility on Trade Flows of Pakistan
Year: 2024
Type: article
Abstract: This research investigates the effects of asymmetric volatility exchange rate on Pakistan's trade performance with major trade partners. The effects of exchange rate trade (import & export) by utilizing variables such as real bilateral exchange rate, bilateral exchange rate volatility, and economic activities measured for Pakistan's major trading partners from 1985 to 2020.The researcher uses non-linear ARDL and linear ARDL techniques for estimation. They also apply co-integration tests, with the F-test being used for lagged value significance and the t-test for establishing significance. The linear ARDL of export and import in the short-run reveals that exchange rate volatility positively impacts Pakistan's exports. In the long run, all the partners positively impact imports.
Author: Nimra Gul1; Misbah Nosheen2; Muqdas Bibi3
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6911888149
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