The Role of Exchange Rate on Balance of Trade: Empirical From Pakistan

European Journal of Social Sciences, Vol. 14, No. 1, p. 150, 2010

7 Pages Posted: 30 Sep 2010

See all articles by Adnan Hussain

Adnan Hussain

Benazir Bhutto Shaheed University, Lyari, Karachi; University of Karachi - Applied Economics Research Centre

Sulaiman D. Muhammad

Federal Urdu University of Arts Science & Technology

Date Written: September 29, 2010

Abstract

Objective of this study is to estimate the impact of real exchange rate depreciation on balance of trade in Pakistan. The study examines validity of the Marshall Lerner condition in Pakistan data (1970-2008) by using impulse response function which fulfills the J-curve idea. To evaluate long run association among the variables by employing Johansson Co-integration test. The end consequence of test shows that there is long run relationship among the variables at vector two.

Keywords: Exchange Rate Depreciation, Balance of Trade

JEL Classification: F31, F32

Suggested Citation

Hussain, Adnan and Muhammad, Sulaiman D., The Role of Exchange Rate on Balance of Trade: Empirical From Pakistan (September 29, 2010). European Journal of Social Sciences, Vol. 14, No. 1, p. 150, 2010, Available at SSRN: https://ssrn.com/abstract=1684608

Adnan Hussain

Benazir Bhutto Shaheed University, Lyari, Karachi ( email )

Faqir Mohammad Dura Khan Road,
Near cheel chowk
Karachi, Sindh 75500
Pakistan

HOME PAGE: http://www.bbsul.edu.pk

University of Karachi - Applied Economics Research Centre ( email )

Mail University Road
Karachi University
Karachi, SC Sind 75270
Pakistan

Sulaiman D. Muhammad (Contact Author)

Federal Urdu University of Arts Science & Technology ( email )

Sector G-7/1, Main University Road
Gulshan-e-Iqbal
Karachi, Sindh 744000
Pakistan

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