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The impact of macroeconomic, oil prices and socio-economic factors on exchange rate in Pakistan: an auto regressive distributed lag approach

Ramakrishnan, Suresh and Butt, Shamaila and Ahmad Anuar, Melati (2017) The impact of macroeconomic, oil prices and socio-economic factors on exchange rate in Pakistan: an auto regressive distributed lag approach. International Journal of Economics and Financial Issues, 7 (1). pp. 489-499. ISSN 2146-4138

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Abstract

The study examines the linkages among the nominal exchange rate, oil prices, terrorism and three selected macroeconomic variables: Real growth rate, inflation rate and interest rate. The paper employed auto regressive distributed lag to test the long run and short run dynamics over the period 1980-2015 in the context of Pakistan. A novel technique to this research is that we demarcate the relationship among macroeconomic variables, financial variable and socio-economic variable. The findings of the research depict a robust long run relationship among variables. Furthermore, the results showed that the adjustment process is slow and short run adjustment indicating that the discrepancies adjust completely in the same period. Hence, the efficient monetary and fiscal policy should keep into consideration before devising policies that have a greater influence on the variability of exchange rate.

Item Type:Article
Uncontrolled Keywords:Nominal Exchange Rate, Macroeconomic Variables, Terrorism, Auto Regressive Distributed Lag
Subjects:H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:Management
ID Code:80594
Deposited By: Fazli Masari
Deposited On:27 Jun 2019 14:10
Last Modified:27 Jun 2019 14:10

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