Impact of Devaluation on Trade Balance in Pakistan

Impact of Devaluation on Trade Balance in Pakistan

The purpose of this paper is to find the impact of devaluation on trade balance in Pakistan in both long and short run using bound testing approach to Cointegration and Error Correction Mechanism (ECM). The result shows that devaluation is effective in improving trade balance and there is a cointegr...

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Bibliographic Details
Main Authors: Kashif RASHID, Muhammad ASIF
Format: Article
Language:English
Published: Saphira Publishing 2011-07-01
Series:Oeconomics of Knowledge
Subjects:
REER
Devaluation
Trade Balance
Cointegration
Pakistan
Online Access:https://sites.google.com/site/oeconomicsofknowledge/v3_i3_3q_2011_ar.pdf
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spelling doaj-4fa072b74e8543208aa11341dcc49a032020-11-24T23:41:38ZengSaphira PublishingOeconomics of Knowledge2066-83252011-07-01331625Impact of Devaluation on Trade Balance in PakistanKashif RASHIDMuhammad ASIFThe purpose of this paper is to find the impact of devaluation on trade balance in Pakistan in both long and short run using bound testing approach to Cointegration and Error Correction Mechanism (ECM). The result shows that devaluation is effective in improving trade balance and there is a cointegrated relationship between the real effective exchange rate and trade balance in the long run.https://sites.google.com/site/oeconomicsofknowledge/v3_i3_3q_2011_ar.pdfREERDevaluationTrade BalanceCointegrationPakistan
collection DOAJ
language English
format Article
sources DOAJ
author Kashif RASHID
Muhammad ASIF
spellingShingle Kashif RASHID
Muhammad ASIF
Impact of Devaluation on Trade Balance in Pakistan
Oeconomics of Knowledge
REER
Devaluation
Trade Balance
Cointegration
Pakistan
author_facet Kashif RASHID
Muhammad ASIF
author_sort Kashif RASHID
title Impact of Devaluation on Trade Balance in Pakistan
title_short Impact of Devaluation on Trade Balance in Pakistan
title_full Impact of Devaluation on Trade Balance in Pakistan
title_fullStr Impact of Devaluation on Trade Balance in Pakistan
title_full_unstemmed Impact of Devaluation on Trade Balance in Pakistan
title_sort impact of devaluation on trade balance in pakistan
publisher Saphira Publishing
series Oeconomics of Knowledge
issn 2066-8325
publishDate 2011-07-01
description The purpose of this paper is to find the impact of devaluation on trade balance in Pakistan in both long and short run using bound testing approach to Cointegration and Error Correction Mechanism (ECM). The result shows that devaluation is effective in improving trade balance and there is a cointegrated relationship between the real effective exchange rate and trade balance in the long run.
topic REER
Devaluation
Trade Balance
Cointegration
Pakistan
url https://sites.google.com/site/oeconomicsofknowledge/v3_i3_3q_2011_ar.pdf
work_keys_str_mv AT kashifrashid impactofdevaluationontradebalanceinpakistan
AT muhammadasif impactofdevaluationontradebalanceinpakistan
_version_ 1725506298652393472

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