AN ECONOMETRIC STUDY OF EXCHANGE RATE, CURRENT ACCOUNT AND INFLATION OF PAKISTAN FROM 1976 TO 2012.

arfa shafiq

Abstract


This paper is confined to investigate the relation between the dependent variable  exchange rates, and independent variables inflation, and current account. . Relevant data has been taken for the period 1976 to 2012 and  econometric tests such as unit root, Johansen juselius (1990) co-integration , ECM, and CUSUM, and CUSUMSQ tests ( for stability) have been carried out. The likelihood ratio test, of Johansen shows one co- integrating equation at 5 % level of significance with normalized coefficients  INF and CA having  elasticities of 0.35 and 0.30 respectively. CUSUM and CUSUM SQUARES  statistics indicate that there are signs of structural instability .


فروشگاه اینترنتی Full Text: PDF

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

ISSN : 2251-1547