An Empirical Analysis of Determinants of Exchange Rate for Economy of Pakistan (2000 – 2023)
DOI:
https://doi.org/10.56976/rjsi.v5i4.189Keywords:
Exchange Rate, Interest Rate, Inflation, Export and ImportAbstract
This study will work on some core variables including exchange rate that is considered as an important variable for different nations and size of level of development. In economics different functions are impacted here by exchange rate changes and it is very important to analyze that the macroeconomic factors including interest rate, inflation rate may impact on exchange rate positively or negatively. For the economy of Pakistan covering the period 2000 to 2023 it is analyzed that the multiple regression model by using exchange rate, inflation rate, interest rate, the value of exports and the value of imports in Pakistan having some important results for country. This study has used unit root test co-integration test and ARDL for evaluation of short run and long run effect of some core variables. This research found and concluded that all the right side variables in multiple regression model having some important impact on relationship for the determination of exchange rate and it is explored that the inflation rate interest rate import and export are captured to regressive exchange rate in the economy of Pakistan.
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Copyright (c) 2023 Allah Bux Lakhan, Zulfiqar Ali Keeryo, Fiaz Ahmed Bhutto
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