Record Details

Appropriate Exchange Rate Regime for Economic Structure of Pakistan

Turkish Economic Review

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Title Appropriate Exchange Rate Regime for Economic Structure of Pakistan
 
Creator TAHIR, Muhammad Naveed; Economics Department
Forman Christian College (A Chartered University)
ALI, Faran; School of Business & Economics
University of Management and Technology (UMT)
MAMOON, Dawood; University of Management and Technology
C-II, Johar Town,
54770
Lahore, Pakistan
 
Subject Exchange Rate Regime; Classification; ARDL.
F31; F33; F44.
 
Description Abstract. This study attempts to find the appropriate exchange rate regime for economic structure of Pakistan. To this end the study uses ARDL bond testing approach to estimate long run and for the estimation of short run analysis Error correction model (ECM) is applied. Time series data is used over the period from 1984 to 2012. Findings reveal that Trade openness, foreign exchange reserves, and inflation rate are important determinant while choosing appropriate exchange-rate regime for economy having features like Pakistan. On the basis of analysis, this study suggests that both extreme ends hard peg and free float are unfavorable for it. The results also survive during robustness check. However, caution is required while making a policy decision as clear-cut answer is absent.  Nonetheless, choice of regime is a difficult task in empirical analysis because few factors cannot explain actual regime.Keywords. Exchange Rate Regime, Classification, ARDL.JEL. F31, F33, F44.
 
Publisher Turkish Economic Review
Turkish Economic Review
 
Contributor —
 
Date 2016-12-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/TER/article/view/1094
10.1453/ter.v3i4.1094
 
Source Turkish Economic Review; Vol 3, No 4 (2016): December; 629-641
Turkish Economic Review; Vol 3, No 4 (2016): December; 629-641
2149-0414
 
Language eng
 
Relation http://www.kspjournals.org/index.php/TER/article/view/1094/1075
 
Rights Copyright (c) 2017 Turkish Economic Review
http://creativecommons.org/licenses/by-nc/4.0