Short run and long run effects of exchange rate volatility on commodity trade between Pakistan and Japan

Mohsen Bahmani-Oskooee, Javed Iqbal and Muhammad Salam

Economic Analysis and Policy, 2016, vol. 52, issue C, 131-142

Abstract: Earlier studies that examined the impact of exchange rate volatility on trade flows of Pakistan used aggregate trade data either between Pakistan and the rest of the world or at bilateral trade between Pakistan and her major trading partners. Not much support was found for significant impact of exchange rate uncertainty on trade flows by either group. Suspecting that they suffer from aggregation bias, we consider Pakistan–Japan trade flows but disaggregate them by commodity. In total, 44 Pakistani export industries to Japan and 60 Pakistani import industries from Japan were analysed. Contrary to our expectation and other disaggregated studies, not many industries were affected by exchange rate volatility neither in the short run nor in the long run.

Keywords: Exchange rate volatility; Commodity trade; Pakistan; Japan (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S031359261630114X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:52:y:2016:i:c:p:131-142

DOI: 10.1016/j.eap.2016.09.002

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().