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OverviewPakistan trade suffers from persistent trade deficits. It had a favourable balance of trade only twice;once in 1950-51 because of the increase in prices of primary commodities like cotton and other raw materials as a result of the Korean War boom; the second time was after the devaluation of the rupee and the oil crisis in 1972-73. After that the trade deficits of Pakistan's economy have been gradually and steadily increasing. So, can the depreciation of the Pak rupee improve this phenomenon? This present study implies the error correction model to estimate the short run equilibrium and heterogeneous panel cointegration method to examine the long run relationship between the real exchange rate and the bilateral trade balance of Pakistan and her selected 4 major trading partners (USA, UK, China and Germany) for the period 1980-2008. Using annual data, the empirical results indicate the devaluation of the Pakistan rupee deteriorates her bilateral trade balance with China but improves it with USA, UK and Germany. In the panel cointegrated framework, a long- run negative relationship between the real exchange rate and the bilateral trade balance exists for Pakistan. Full Product DetailsAuthor: Mahjabeen Mushtaq Butt , Dr Wasif Siddiqui , Dr Wasif SiddiquiPublisher: LAP Lambert Academic Publishing Imprint: LAP Lambert Academic Publishing Dimensions: Width: 15.20cm , Height: 0.50cm , Length: 22.90cm Weight: 0.127kg ISBN: 9783844308303ISBN 10: 384430830 Pages: 80 Publication Date: 23 February 2011 Audience: General/trade , General Format: Paperback Publisher's Status: Active Availability: In stock We have confirmation that this item is in stock with the supplier. It will be ordered in for you and dispatched immediately. Table of ContentsReviewsAuthor InformationTab Content 6Author Website:Countries AvailableAll regions |