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


Review
Laura Echavarría Canto
Global city and migrants subjects: The case of Mexican Laborers
Glo. Adv. Res. J. Manage. Bus. Stud. August 2013 Vol: 2(8): - [Abstract] [Full Text - PDF] (172 KB)
Original Research Article
Nadiya A. Al-Saady, Saleem K. Nadaf, Ali H. Al-Lawati and Saleh A. Al-Hinai
Genetic Diversity of Indigenous Chickpea (Cicerarietinum L.) Germplasm Collection
Glo. Adv. Res. J. Manage. Bus. Stud. April 2019 Vol: 8(4): - [Abstract] [Full Text - PDF] (367 KB)
Review
Asma Mahsood and Amanullah Khan Miankhel
Baluchistan Insurgency: Dynamics and Implications
Glo. Adv. Res. J. Manage. Bus. Stud. March 2013 Vol: 2(3): - [Abstract] [Full Text - PDF] (178 KB)
Original Research Articles
Muhammad Waseem
The impact of service quality on brand loyalty A descriptive study of Smartphone users in higher educational institutions of district Vehari Punjab Pakistan
Glo. Adv. Res. J. Manage. Bus. Stud. January 2016 Vol: 5(1): - [Abstract] [Full Text - PDF] (354 KB)
Sheikh Maniruzzaman, Tahmina Akter, Md. Azizur Rahman, Md. Hasibur Rahaman Hera and , Md. Maksudul Haque
Effect of Level of Phosphorus and Mulching on Growth and Yield of Tomato Lycopersicon lycopersicum L
Glo. Adv. Res. J. Manage. Bus. Stud. November 2018 Vol: 7(11): - [Abstract] [Full Text - PDF] (268 KB)
Aijaz Ahmed Soomro, Naimatullah Leghari, Ayaz Ahmed Soomro, Toqeer Ahmed Shaikh, Abid Hussain Jatoi
A study to analyze the real efficiency of Distillery Spent Wash (DSW) in comparison of NPK (standard chemical fertilizer) at seedling stage of wheat (Triticum aestivum L.)
Glo. Adv. Res. J. Manage. Bus. Stud. May 2015 Vol: 4(5): - [Abstract] [Full Text - PDF] (244 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 1506
Printed 595
Downloaded 1936
Powered By iPortal Works