Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) December 2015 Vol. 4(11), pp 413-421

Copyright © 2015 Global Advanced Research Journals   

 

Original Research Articles

The Impact of Globalization on Real Exchange Rate in Pakistan (1980-2014)

Dr Sher Ali1, Dr Abdur Rauf, Amjad Ali

1Assistant Professor and Ph.D., Department of Economics, Islamia College University Peshawar,

2Lecturer at IM/Sciences ,

3PhD scholar in University of Peshawar, KPK, PAKISTAN.

Contact : E-mail: ali_820423@yahoo.com  Cell # 0092-314-9629499.

Accepted 19 September 2015



Abstract 

This research paper empirically investigated the impact of Globalization on real exchange rate (PKR/$) in Pakistan, using annual time series data for the period of 1980 to 2010. Two measures are used for economic globalization: trade openness and financial integration. This study reveals a significant positive impact of globalization on real exchange rate. The result of Real Exchange Rate model indicates that Globalization measures leads to increase real exchange rate (PAK/US). The increase in real exchange rate means, the depreciation in real exchange rate (Pak rupee depreciated against US Dollar). The impact of financial integration is more impressive both in term of the coefficient and significance level. The impact of Globalization’s measure is insignificant in short run. The impact of controlled variable TOT is positive and significant in both the short and long run. Government consumption has no significant contribution to real exchange rate determination in both short and long run. This study provides empirical evidence that the process of globalization is one of the factors that affect real exchange rate. Real exchange rate plays an important role in the achievement of sustainable economic growth, employment generation, investment decision and consumption pattern of the country. Thus proper attention should be given to the determinants of real exchange rate and exchange rate policies in order to stabilize the country. 

Keywords: Globalization, Real Exchange rate, ARDL, Pakistan.







Related Articles


Original Research Articles
Nadir Hussain Shah, Saqib Mahmood, Muhammad Rashid and Samina Naz
Determinants of supplier selection and evaluation their impact on business key performance indicator of buying companies In the context of telecom companies in Pakistan
Glo. Adv. Res. J. Manage. Bus. Stud. July 2013 Vol: 2(7): - [Abstract] [Full Text - PDF] (217 KB)
Muhammad Ishfaq, Rana Mazher Abbas andIdrees Ahmad Nasir
Effect of Bud Wood Age, Budding Height and Stock Looping, On Bud Take in Sweet Orange (Citrus Sinensis L.) Var. Pine Apple
Glo. Adv. Res. J. Manage. Bus. Stud. November 2012 Vol: 1(9): - [Abstract] [Full Text - PDF] (110 KB)
Reviews
Orusha JO, Chikaire J, Onogu B, Tim- Ashama A, Alukogu CT, Ohuaka P and Nwaigwe MO
Investing in sound foundation education: A recipe for food security and poverty reduction in Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. June 2012 Vol: 1(5): - [Abstract] [Full Text - PDF] (174 KB)
A Nicolaides
Globalisation and Americanisation – the hijacking of indigenous African culture
Glo. Adv. Res. J. Manage. Bus. Stud. August 2012 Vol: 1(6): - [Abstract] [Full Text - PDF] (392 KB)
Original Research Articles
Asad Sarwar Qureshi
Improving food security and livelihood resilience through groundwater management in Pakistan
Glo. Adv. Res. J. Manage. Bus. Stud. October 2015 Vol: 4(10): - [Abstract] [Full Text - PDF] (455 KB)
Abdul Latif and Usman Bashir
Person organization fit job satisfaction and turnover intention An empirical study in the context of Pakistan
Glo. Adv. Res. J. Manage. Bus. Stud. July 2013 Vol: 2(7): - [Abstract] [Full Text - PDF] (177 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Sher Ali1 on Google Scholar
Sher Ali1 on Pubmed
Dr Abdur Rauf on Google Scholar
Dr Abdur Rauf on Pubmed
Amjad Ali on Google Scholar
Amjad Ali on Pubmed

Statistics

Viewed 2622
Printed 752
Downloaded 2642
Powered By iPortal Works