The Impact of Macroeconomic, Oil Prices and Socio-economic Factors on Exchange Rate in Pakistan: An Auto Regressive Distributed Lag Approach

Volume: 7 Number: 1 March 1, 2017
  • Suresh Ramakrishnan
  • Shamaila Butt
  • Melati Ahmad Anuar
EN

The Impact of Macroeconomic, Oil Prices and Socio-economic Factors on Exchange Rate in Pakistan: An Auto Regressive Distributed Lag Approach

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 to 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.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Suresh Ramakrishnan This is me

Shamaila Butt This is me

Melati Ahmad Anuar This is me

Publication Date

March 1, 2017

Submission Date

March 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 1

APA
Ramakrishnan, S., Butt, S., & Anuar, M. A. (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), 489-499. https://izlik.org/JA87HA29XP
AMA
1.Ramakrishnan S, Butt S, Anuar MA. The Impact of Macroeconomic, Oil Prices and Socio-economic Factors on Exchange Rate in Pakistan: An Auto Regressive Distributed Lag Approach. IJEFI. 2017;7(1):489-499. https://izlik.org/JA87HA29XP
Chicago
Ramakrishnan, Suresh, Shamaila Butt, and Melati Ahmad Anuar. 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): 489-99. https://izlik.org/JA87HA29XP.
EndNote
Ramakrishnan S, Butt S, Anuar MA (March 1, 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 1 489–499.
IEEE
[1]S. Ramakrishnan, S. Butt, and M. A. Anuar, “The Impact of Macroeconomic, Oil Prices and Socio-economic Factors on Exchange Rate in Pakistan: An Auto Regressive Distributed Lag Approach”, IJEFI, vol. 7, no. 1, pp. 489–499, Mar. 2017, [Online]. Available: https://izlik.org/JA87HA29XP
ISNAD
Ramakrishnan, Suresh - Butt, Shamaila - Anuar, Melati Ahmad. “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 (March 1, 2017): 489-499. https://izlik.org/JA87HA29XP.
JAMA
1.Ramakrishnan S, Butt S, Anuar MA. The Impact of Macroeconomic, Oil Prices and Socio-economic Factors on Exchange Rate in Pakistan: An Auto Regressive Distributed Lag Approach. IJEFI. 2017;7:489–499.
MLA
Ramakrishnan, Suresh, et al. “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, vol. 7, no. 1, Mar. 2017, pp. 489-9, https://izlik.org/JA87HA29XP.
Vancouver
1.Suresh Ramakrishnan, Shamaila Butt, Melati Ahmad Anuar. The Impact of Macroeconomic, Oil Prices and Socio-economic Factors on Exchange Rate in Pakistan: An Auto Regressive Distributed Lag Approach. IJEFI [Internet]. 2017 Mar. 1;7(1):489-9. Available from: https://izlik.org/JA87HA29XP