Testing asymmetry of exchange rate changes on the commodities' exports in Pakistan: a nonlinear ARDL model

Haider Mahmood

Global Business and Economics Review, 2019, vol. 21, issue 2, 219-231

Abstract: Depreciation may help in up-lifting the commodities' exports and this article finds this evidence for Pakistan. This research has investigated the impact of real effective exchange rate (REER) on Pakistan commodities' exports by using a nonlinear auto-regressive distributive lag (ARDL) co-integration developed by Shin et al. (2014) and by using a monthly series of a period of June 2003-June 2016. The long run results confirm the positive impact of world income on the most of commodities' exports. Further, depreciation of Pak rupee has been found helpful in increasing 17 out of 21 commodities' exports and appreciation has depressed the 12 out of 21 commodities' exports. Asymmetrical effects of depreciation and appreciation of exchange rate have also been found in the most of commodities' exports. Furthermore, J-curve hypothesis has been found in the 13 out of 21 commodities' exports. This study recommends the devaluation of Pak rupee to increase commodities' exports.

Keywords: devaluation; commodities' exports; asymmetrical effects; co-integration. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=98086 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:21:y:2019:i:2:p:219-231

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().