Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289364 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 9 [Issue:] 1 [Article No.:] 2148871 [Year:] 2022 [Pages:] 1-26
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
Having an exchange rate close to its equilibrium is critical for foreign investors and policymakers during times of macroeconomic instability. This study measures the real exchange rate (RER) misalignment in eight Pakistani manufacturing industries from January 2002 to June 2020. The ARDL approach is used to examine the long-run relationship between the RER and its fundamentals in each industry. The findings show that government spending and interest rates significantly explain RER at the aggregate and industrial levels. Furthermore, the misalignment of RER varies significantly across industries. Some industries have highly misaligned RER, while others have close to zero misalignments. These findings can assist us in making fiscal policy and competitive devaluation decisions to improve the trade deficit.
Subjects: 
Pakistan
ARDL
industries
Real exchange rate misalignment
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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