Impact of Exchange Rate on Exports in Case of Pakistan
Keywords:
exchange rate, exports, world income, PakistanAbstract
Export of a country is one of the main factors indicating economics health of a country. This study examines the
impact of exchange rate on exports in case of Pakistan by using annual time series data over the period from 1970 to
2015. Secondary data is taken from International monetary fund (IMF) and World bank (WDI). Study use
Augmented Dicky-Fuller (ADF) and Phillip-Perron (PP) to check the stationary of the data. The study use Auto Regressive Distributive lag (ARDL) to check the relationship between the variables which are under consideration. Results of the study show that exchange rate have negative but insignificant impact on exports of Pakistan while World’s income have positive and significant effect to exports.