Economics, Econometrics and Finance
4 years ago

Exchange rate volatility in Pakistan boosts exports, imports key for growth

SSRN Electronic Journal
Exchange Rate Volatility and Its Effect on Pakistan’s Export Volume
Najia Saqib

Paper Summary

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Exchange rate volatility in Pakistan affects the country's export volume. The study looked at data from 1981 to 2010 and found that the Real Effective Exchange Rate (REER) has a negative impact on exports. Import volume is directly related to export volume, meaning increasing exports is more effective in reducing trade deficits than decreasing imports. This is especially important for developing nations like Pakistan.