Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach

Volume: 7 Number: 1 March 1, 2017
  • Haider Mahmood
  • Tarek Yousaf Tawfik Al-khateeb
EN

Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach

Abstract

Present study explores the impact of devaluation and appreciation (negative and positive movements of exchange rate) on services sector trade by applying Non Linear ARDL technique of Shin et al. (2014). This study confirms asymmetrical effects in case of all sectors in short run and long run effects may improve the trade balance of all sectors. Overall devaluation confirms existence of J-curve after some lag. This study also found that appreciation of a Saudi currency may put up adverse effects on trade balance in all services sectors except travel, construction and tourism sectors. The increase in world income may support to enhance exports of Saudi Arabia, while rise in Saudi Arabia’s income may have negative effects on trade balance of all services sectors except travel and tourism.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Haider Mahmood This is me

Tarek Yousaf Tawfik Al-khateeb This is me

Publication Date

March 1, 2017

Submission Date

March 1, 2017

Acceptance Date

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Published in Issue

Year 2017 Volume: 7 Number: 1

APA
Mahmood, H., & Al-khateeb, T. Y. T. (2017). Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach. International Journal of Economics and Financial Issues, 7(1), 73-77. https://izlik.org/JA39CM94DN
AMA
1.Mahmood H, Al-khateeb TYT. Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach. IJEFI. 2017;7(1):73-77. https://izlik.org/JA39CM94DN
Chicago
Mahmood, Haider, and Tarek Yousaf Tawfik Al-khateeb. 2017. “Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach”. International Journal of Economics and Financial Issues 7 (1): 73-77. https://izlik.org/JA39CM94DN.
EndNote
Mahmood H, Al-khateeb TYT (March 1, 2017) Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach. International Journal of Economics and Financial Issues 7 1 73–77.
IEEE
[1]H. Mahmood and T. Y. T. Al-khateeb, “Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach”, IJEFI, vol. 7, no. 1, pp. 73–77, Mar. 2017, [Online]. Available: https://izlik.org/JA39CM94DN
ISNAD
Mahmood, Haider - Al-khateeb, Tarek Yousaf Tawfik. “Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach”. International Journal of Economics and Financial Issues 7/1 (March 1, 2017): 73-77. https://izlik.org/JA39CM94DN.
JAMA
1.Mahmood H, Al-khateeb TYT. Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach. IJEFI. 2017;7:73–77.
MLA
Mahmood, Haider, and Tarek Yousaf Tawfik Al-khateeb. “Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach”. International Journal of Economics and Financial Issues, vol. 7, no. 1, Mar. 2017, pp. 73-77, https://izlik.org/JA39CM94DN.
Vancouver
1.Haider Mahmood, Tarek Yousaf Tawfik Al-khateeb. Testing Asymmetrical Effect of Exchange Rate on Saudi Service Sector Trade: A Non-Linear ARDL Approach. IJEFI [Internet]. 2017 Mar. 1;7(1):73-7. Available from: https://izlik.org/JA39CM94DN