Article Sidebar
Main Article Content
Abstract
Purpose ― The present study investigates the asymmetric effect of exchange rate changes on the domestic production of selected South Asian economies from 1980-2019.
Design/Method/Approach―The study introduces nonlinearity into the adjustment process by decomposing the exchange rate into depreciation and appreciation and relying on the Nonlinear ARDL approach to cointegration.
Findings ― The findings show significant evidence of asymmetric effects of exchange rate changes on domestic production in the case of South Asian economies. Surprisingly, depreciation promotes economic growth while appreciation impedes it in almost all economies.
Practical Implications ― The findings refute the notion of symmetry, indicating that depreciation and appreciation have different effects on South Asian economies. An undervalued exchange rate may provide short-term economic relief. The study recommends that a market-based equilibrium exchange rate is crucial for these economies.
Originality/Value ― By using a Nonlinear ARDL approach to separate exchange rate appreciation and depreciation, this study adds to the body of knowledge about the relationship between exchange rate and growth, particularly in South Asia.
Keywords
Article Details
Copyright (c) 2022 Mark Wohar
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Economic Journal of Emerging Markets by Center for Economic Studies, Universitas Islam Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
- Abbasi, G. A., & Iqbal, D. J. (2021). The asymmetric impact of RER-Misalignment on economic growth: An application of Hodrick–Prescott filter technique. Singapore Economics Review. https://doi.org/10.1142/S0217590821500375
- Aguirre, Á., & Calderón, C. (2005). Real exchange rate misalignments and economic performance (Central Bank of Chile Working Papers No. 315) (Vol. 315). Agustinas.
- Ahmad, A., Ahmad, N., & Ali, S. (2013). Exchange rate and economic growth in Pakistan (1975-2011). Journal of Basic and Applied Scientific Research, 3(8), 740–746.
- Ahmad, N., Hayat, M. F., Luqman, M., & Ullah, S. (2012). The causal links between foreign direct investment and economic growth in Pakistan. European Journal of Business and Economics, 6, 20–211. https://doi.org/10.12955/ejbe.v6i0.137
- Akhtar, S., & Malik, F. (2000). Pakistan’s trade performance vis-a-vis its major trading partners. The Pakistan Development Review, 39(1), 37–50. https://doi.org/10.30541/v39i1pp.37-50
- Algaeed, A. H., & Algethami, B. S. (2022). Monetary volatility and the dynamics of economic growth: An empirical analysis of an oil-based economy, 1970–2018. OPEC Energy Review. https://doi.org/10.1111/opec.12235
- Ali, S. Z., & Anwar, S. (2016). Can exchange rate pass-through explain the price puzzle? Economics Letters, 145, 56–59. Retrieved from 10.1016/j.econlet.2016.05.023
- An, P. T. H., Binh, N. T., & Cam, H. L. N. (2020). The impact of exchange rate on economic growth case studies of countries in the ASEAN region. Global Journal of Management and Business Research, 9(7), 965–970.
- Ayubu, V. (2013). Monetary policy and inflation dynamics: An empirical case study of the Tanzanian economy. Master’s Program in Economics, Umea Universitet.
- Bahmani-Oskooee, M., & Aftab, M. (2017). On the asymmetric effects of exchange rate volatility on trade flows: New evidence from US-Malaysia trade at the industry level. Economic Modelling, 63, 86–103. https://doi.org/10.1016/j.econmod.2017.02.004
- Bahmani-Oskooee, M., & Bahmani, S. (2015). Nonlinear ARDL approach and the demand for money in Iran. Economics Bulletin, 35(1), 381–391.
- Bahmani-Oskooee, M., & Fariditavana, H. (2015). Nonlinear ARDL approach, asymmetric effects, and the J-curve. Journal of Economic Studies, 42(3), 519–530. https://doi.org/10.1108/JES-03-2015-0042
- Bahmani-Oskooee, M., & Hajilee, M. (2010). On the relation between currency depreciation and domestic investment. Journal of Post Keynesian Economics, 32(4), 645–660. https://doi.org/10.2753/PKE0160-3477320409
- Bahmani-Oskooee, M., Halicioglu, F., & Mohammadian, A. (2018). On the asymmetric effects of exchange rate changes on domestic production in Turkey. Economic Change and Restructuring, 51(2), 97–112. https://doi.org/10.1007/s10644-017-9201-x
- Bahmani-Oskooee, M., Iqbal, J., & Khan, S. U. (2017). Impact of exchange rate volatility on the commodity trade between Pakistan and the US. Economic Change and Restructuring, 50(2), 161–187. https://doi.org/10.1007/s10644-016-9187-9
- Bahmani-Oskooee, M., Iqbal, J., & Muzammil, M. (2017). Pakistan-EU commodity trade: Is there evidence of J-curve effect? Global Economy Journal, 17(2), 20160067. https://doi.org/10.1515/gej-2016-0067
- Bahmani-Oskooee, M., Iqbal, J., & Nosheen, M. (2016). Commodity trade between Pakistan and the US: Is there evidence of the J-curve? Applied Economics, 48(11), 957–965. https://doi.org/10.1080/00036846.2015.1090552
- Bahmani-Oskooee, M., Iqbal, J., & Salam, M. (2016). Short run and long run effects of exchange rate volatility on commodity trade between Pakistan and Japan. Economic Analysis and Policy, 52, 131–142. https://doi.org/10.1016/j.eap.2016.09.002
- Bahmani-Oskooee, M., & Kandil, M. E. (2007). Exchange rate fluctuations and output in oil-producing countries: The case of Iran. International Monetary Fund, 46(3), 23–45.
- Bahmani-Oskooee, M., & Miteza, I. (2006). Are devaluations contractionary? Evidence from panel cointegration. Economic Issues, 11(1), 49–64.
- Bahmani-Oskooee, M., & Mohammadian, A. (2017). Asymmetry effects of exchange rate changes on domestic production in Japan. International Review of Applied Economics, 31(6), 774–790. https://doi.org/10.1080/02692171.2017.1324410
- Bahmani-Oskooee, M., Nosheen, M., & Iqbal, J. (2017). Third-country exchange rate volatility and Pakistan-US trade at commodity level. The International Trade Journal, 31(2), 105–129. https://doi.org/10.1080/08853908.2016.1269701
- Bahmani‐Oskooee, M., & Baek, J. (2020). On the asymmetric effects of the real exchange rate on domestic investment in G7 countries. Australian Economic Papers, 59(4), 303– 318. https://doi.org/10.1111/1467-8454.12187
- Bahmani‐Oskooee, M., & Mohammadian, A. (2016). Asymmetry effects of exchange rate changes on domestic production: Evidence from nonlinear ARDL approach. Australian Economic Papers, 55(3), 181–191. https://doi.org/10.1111/1467-8454.12073
- Bank, W. (2017). Global economic prospects, January 2017: Weak investment in uncertain times.
- Baron, D. P. (1976). Fluctuating exchange rates and the pricing of exports. Economic Inquiry, 14(3), 425–438. https://doi.org/10.1111/j.1465-7295.1976.tb00430.x
- Bini-Smaghi, L. (1991). Exchange rate variability and trade: Why is it so difficult to find any empirical relationship? Applied Economics, 23(5), 927–936. https://doi.org/10.1080/00036849100000041
- Chishti, M. Z., Iqbal, J., Mahmood, F., & Azeem, H. S. M. (2020). The implication of the oscillations in exchange rate for the commodity-wise trade flows between Pakistan and China: An evidence from ARDL approach. Review of Pacific Basin Financial Markets and Policies, 23(4), 1–33. https://doi.org/10.1142/S0219091520500307
- Cushman, D. O. (1983). The effects of real exchange rate risk on international trade. Journal of International Economics, 15(1–2), 45–63. Retrieved from 10.1016/0022-1996(83)90041-7
- De Grauwe, P., & Verfaille, G. (1988). Exchange rate variability. In Misalignment of exchange rates: Effects on trade and industry (pp. 77–104). National Bureau of Economic Research, Inc. Retrieved from http://www.nber.org/chapters/c8055.pdf
- Devarajan, S., & Nabi, I. (2006). Economic growth in South Asia: promising, unequalising. Sustainable?. Economic and Political Weekly, 41(33), 3573–3580.
- Dhasmana, A. (2015). Transmission of real exchange rate changes to the manufacturing sector: The role of financial access. International Economics, 143, 48–69. https://doi.org/10.1016/j.inteco.2015.04.006
- Dornbusch, R., Krugman, P., & Cooper, R. N. (1976). Flexible exchange rates in the short run (Brookings Papers on Economic Activity No. 3).
- Easterly, W., & Levine, R. (1997). Africa’s growth tragedy: Policies and ethnic divisions. The Quarterly Journal of Economic, 112(4), 1203–1250.
- Farrington, J., & Clarke, J. (2006). Growth poverty reduction and development assistance in Asia: Options and prospects. Development Policy Review, 24(s1), 13–28.
- Fischer, S. (1992). Macroeconomic stability and growth. Cuadernos de Economía, 29(87), 171–186.
- Granger, C. W. J., & Yoon, G. (2002). Hidden Cointegration (Department of Economics Discussion Paper No. 2002–02). San Diego. https://doi.org/10.2139/ssrn.313831
- Gros, D. (1987). Exchange rate variability and foreign trade in the presence of adjustment costs (Working paper Département des Sciences Economiques No. 2619075–8). Exchange rate variability and foreign trade in the presence of adjustment costs: Louvain-la-Neuve.
- Hamid, N., & Mir, A. S. (2017). Exchange rate management and economic. The Lahore Journal of Economics, 22, 73–110.
- Hasan, M. A., & Khan, A. H. (1994). Impact of devaluation on Pakistan’s external trade: An econometric approach. The Pakistan Development Review, 33(4), 1205–1215.
- Hassan, B. D., Fausat, A. F., & Baba, Y. A. (2016). Impact of monetary policy in Nigeria on inflation, exchange rate and economic growth. International Journal of Economics and Business Management, 2(5), 67–82.
- Hatemi-J, A. (2012). Asymmetric causality tests with an application. Empirical Economics, 43(1), 447–456. https://doi.org/10.1007/s00181-011-0484-x
- Hooy, C. W., & Choong, C. K. (2010). The impact of exchange rate volatility on world and intra-trade flows of SAARC countries. Indian Economic Review, 45(1), 67–86.
- Iqbal, G. A. A. J. (2020). Exchange rate volatility with third-country risk impact: A bilateral analysis of Pakistan with major trading partners. Pakistan Social Sciences Review, 4(IV), 29–46.
- Iqbal, J., Aziz, S., & Nosheen, M. (2020). The asymmetric effects of exchange rate volatility on US-Pakistan trade flows: New evidence from nonlinear ARDL approach. Economic Change and Restructuring, 5(1), 225–255. https://doi.org/10.1007/s10644-020-09310-8
- Iqbal, J., Aziz, S., & Nosheen, M. (2022). The asymmetric effects of exchange rate volatility on US–Pakistan trade flows: New evidence from nonlinear ARDL approach. Economic Change and Restructuring, 55(1), 225–255. https://doi.org/10.1007/s10644-020-09310-8
- Iqbal, J., Khan, S. U., & Nosheen, M. (2019). The J-Curve between Pakistan and the SAARC region: Empirical evidence from aggregated and commodity level trade flows. NUST Journal of Social Sciences and Humanities, 5(2), 177–208. https://doi.org/10.51732/njssh.v5i2.45
- Iqbal, J., Nosheen, M., Panezai, G. R., & Salahuddin. (2021). Asymmetric cointegration, Non-linear ARDL, and the J-curve: A bilateral analysis of Pakistan and its trading partners. International Journal of Finance & Economics, 26(2), 2263–2278. https://doi.org/10.1002/ijfe.1905
- Iqbal, J., Nosheen, M., & Rehman Panezai, G. (2021). Asymmetric cointegration, Non‐linear ARDL, and the J‐curve: A bilateral analysis of Pakistan and its trading partners. International Journal of Finance & Economics, 26(2), 2263–2278. https://doi.org/10.1002/ijfe.1905
- Iqbal, J., Nosheen, M., Tariq, R., & Manan, S. (2015). Testing for Marshall-Lerner condition: Bilateral trade between Pakistan and its major trading partners. Forman Journal of Economic Studies, 11(1), 1–14.
- Javed, Z., & Farooq, M. (2009). Economic growth and exchange rate volatility in the case of Pakistan. Pakistan Journal of Life and Social Sciences, 7(2), 112–118.
- Kandil, M. (2008). The asymmetric effects of exchange rate fluctuations on output and prices: Evidence from developing countries. Journal of International Trade and Economic Development, 17(2), 257–296. https://doi.org/10.1080/09638190701872772
- Kandil, M., & Mirzaie, I. A. (2008). Comparative analysis of exchange rate appreciation and aggregate economic activity: Theory and evidence from Middle Eastern countries. Bulletin of Economic Research, 60(1), 45–96. https://doi.org/10.1111/j.1467-8586.2007.00272.x
- Kappler, M., Reisen, H., Schularick, M., & Turkisch, E. (2013). The macroeconomic effects of large exchange rate appreciations. Open Economies Review, 24(3), 471–494. https://doi.org/10.1007/s11079-012-9246-4
- Katrakilidis, C., & Trachanas, E. (2012). What drives housing price dynamics in Greece: New evidence from asymmetric ARDL cointegration. Economic Modelling, 29(4), 1064–1069. https://doi.org/10.1016/j.econmod.2012.03.029
- Khan, M. F. H. (2021). Impact of exchange rate on economic growth of Bangladesh. European Journal of Business and Management Research, 6(3), 173–175. https://doi.org/10.24018/ejbmr.2021.6.3.891
- Khan, S. R. (1995). Devaluation and balance of trade in Pakistan: A policy analysis (Research Report Series No. 7). April: Paper presented at the Eleventh Annual General Meeting and Conference of Pakistan Society of Development Economists.
- Knight, M., Loayza, N., & Villanueva, D. (1993). Testing the neoclassical theory of economic growth: A panel data approach. Staff Papers (International Monetary Fund), 40(3), 512–541. https://doi.org/10.2307/3867446
- Kohler, M., Manalo, J., & Perera, D. (2014). Exchange rate movements and economic activity (Reserve Bank of Australia).
- Masih, J., Liu, D., & Pervaiz, J. (2018). The relationship between RMB exchange rate and Chinese trade balance: Evidence from a bootstrap rolling window approach. International Journal of Economics and Finance, 10(2), 35–47. https://doi.org/10.5539/ijef.v10n2p35
- Matthew, O. A., Ede, C., Osabohien, R., Ejemeyovwi, J., Ayanda, T., & Okunbor, J. (2021). Interaction effect of tourism and foreign exchange earnings on economic growth in Nigeria. Global Business Review, 22(1), 7–22. https://doi.org/10.1177/0972150918812985
- Most, S. J., & De Berg, H. V. (1996). Growth in Africa: Does the source of investment financing matter? Applied Economics, 28(11), 1427–1433. https://doi.org/10.1080/000368496327697
- Najibullah, Iqbal, J., & Nosheen, M. (2021). Exploring the asymmetries between trade and consumption-based carbon emissions: Evidence from NPARDL approach. Environmental Science and Pollution Research, 28(31), 41780–41793. https://doi.org/10.1007/s11356-021-13455-y
- Najibullah, Iqbal, J., Nosheen, M., Khan, M. W., Raja, E. U. H., & Jasim, M. (2021). An asymmetric analysis of the role of exports and imports in consumption-based carbon emissions in the G7 economies: Evidence from nonlinear panel autoregressive distributed lag model. Environmental Science and Pollution Research, 28(38), 53804–53818. https://doi.org/10.1007/s11356-021-14465-6
- Nawaz, M. (2012). The impact of exchange rate on output level: Bounds testing approach for Pakistan. The Pakistan Development Review, 51(4), 419–433.
- Nawaz, M., & Ghani, E. (2018). Currency depreciation and output nexus: Evidence from Pakistan. Panoeconomicus, 65(2), 183–200. Retrieved from 10.2298/PAN151222027N
- Nusair, S. A. (2017). The J-curve phenomenon in European transition economies: A nonlinear ARDL approach. International Review of Applied Economics, 31(1), 1–27. https://doi.org/10.1080/02692171.2016.1214109
- Olaniyi, C. (2019). Asymmetric information phenomenon in the link between CEO pay and firm performance. Journal of Economic Studies, 46(2), 306–323. https://doi.org/10.1108/JES-11-2017-0319
- Rahman, S., & Serletis, A. (2009). The effects of exchange rate uncertainty on exports. Journal of Macroeconomics, 31(3), 500–507. https://doi.org/10.1016/j.jmacro.2008.12.005
- Shahbaz, M., Islam, F., & Aamir, N. (2012). Is devaluation contractionary? Empirical evidence for Pakistan. Economic Change and Restructuring, 45(4), 299–316.
- Shin, Y., Yu, B., & Greenwood-Nimmo, M. (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL Framework. In R. Sickles & W. Horrace (Eds.), Festschrift in Honor of Peter Schmidt (pp. 281–314). New York: Springer. https://doi.org/10.1007/978-1-4899-8008-3_9
- Yang, J. (1997). Exchange rate pass-through in US manufacturing industries. Review of Economics and Statistics, 79(1), 95–104. https://doi.org/10.1162/003465397556430
References
Abbasi, G. A., & Iqbal, D. J. (2021). The asymmetric impact of RER-Misalignment on economic growth: An application of Hodrick–Prescott filter technique. Singapore Economics Review. https://doi.org/10.1142/S0217590821500375
Aguirre, Á., & Calderón, C. (2005). Real exchange rate misalignments and economic performance (Central Bank of Chile Working Papers No. 315) (Vol. 315). Agustinas.
Ahmad, A., Ahmad, N., & Ali, S. (2013). Exchange rate and economic growth in Pakistan (1975-2011). Journal of Basic and Applied Scientific Research, 3(8), 740–746.
Ahmad, N., Hayat, M. F., Luqman, M., & Ullah, S. (2012). The causal links between foreign direct investment and economic growth in Pakistan. European Journal of Business and Economics, 6, 20–211. https://doi.org/10.12955/ejbe.v6i0.137
Akhtar, S., & Malik, F. (2000). Pakistan’s trade performance vis-a-vis its major trading partners. The Pakistan Development Review, 39(1), 37–50. https://doi.org/10.30541/v39i1pp.37-50
Algaeed, A. H., & Algethami, B. S. (2022). Monetary volatility and the dynamics of economic growth: An empirical analysis of an oil-based economy, 1970–2018. OPEC Energy Review. https://doi.org/10.1111/opec.12235
Ali, S. Z., & Anwar, S. (2016). Can exchange rate pass-through explain the price puzzle? Economics Letters, 145, 56–59. Retrieved from 10.1016/j.econlet.2016.05.023
An, P. T. H., Binh, N. T., & Cam, H. L. N. (2020). The impact of exchange rate on economic growth case studies of countries in the ASEAN region. Global Journal of Management and Business Research, 9(7), 965–970.
Ayubu, V. (2013). Monetary policy and inflation dynamics: An empirical case study of the Tanzanian economy. Master’s Program in Economics, Umea Universitet.
Bahmani-Oskooee, M., & Aftab, M. (2017). On the asymmetric effects of exchange rate volatility on trade flows: New evidence from US-Malaysia trade at the industry level. Economic Modelling, 63, 86–103. https://doi.org/10.1016/j.econmod.2017.02.004
Bahmani-Oskooee, M., & Bahmani, S. (2015). Nonlinear ARDL approach and the demand for money in Iran. Economics Bulletin, 35(1), 381–391.
Bahmani-Oskooee, M., & Fariditavana, H. (2015). Nonlinear ARDL approach, asymmetric effects, and the J-curve. Journal of Economic Studies, 42(3), 519–530. https://doi.org/10.1108/JES-03-2015-0042
Bahmani-Oskooee, M., & Hajilee, M. (2010). On the relation between currency depreciation and domestic investment. Journal of Post Keynesian Economics, 32(4), 645–660. https://doi.org/10.2753/PKE0160-3477320409
Bahmani-Oskooee, M., Halicioglu, F., & Mohammadian, A. (2018). On the asymmetric effects of exchange rate changes on domestic production in Turkey. Economic Change and Restructuring, 51(2), 97–112. https://doi.org/10.1007/s10644-017-9201-x
Bahmani-Oskooee, M., Iqbal, J., & Khan, S. U. (2017). Impact of exchange rate volatility on the commodity trade between Pakistan and the US. Economic Change and Restructuring, 50(2), 161–187. https://doi.org/10.1007/s10644-016-9187-9
Bahmani-Oskooee, M., Iqbal, J., & Muzammil, M. (2017). Pakistan-EU commodity trade: Is there evidence of J-curve effect? Global Economy Journal, 17(2), 20160067. https://doi.org/10.1515/gej-2016-0067
Bahmani-Oskooee, M., Iqbal, J., & Nosheen, M. (2016). Commodity trade between Pakistan and the US: Is there evidence of the J-curve? Applied Economics, 48(11), 957–965. https://doi.org/10.1080/00036846.2015.1090552
Bahmani-Oskooee, M., Iqbal, J., & Salam, M. (2016). Short run and long run effects of exchange rate volatility on commodity trade between Pakistan and Japan. Economic Analysis and Policy, 52, 131–142. https://doi.org/10.1016/j.eap.2016.09.002
Bahmani-Oskooee, M., & Kandil, M. E. (2007). Exchange rate fluctuations and output in oil-producing countries: The case of Iran. International Monetary Fund, 46(3), 23–45.
Bahmani-Oskooee, M., & Miteza, I. (2006). Are devaluations contractionary? Evidence from panel cointegration. Economic Issues, 11(1), 49–64.
Bahmani-Oskooee, M., & Mohammadian, A. (2017). Asymmetry effects of exchange rate changes on domestic production in Japan. International Review of Applied Economics, 31(6), 774–790. https://doi.org/10.1080/02692171.2017.1324410
Bahmani-Oskooee, M., Nosheen, M., & Iqbal, J. (2017). Third-country exchange rate volatility and Pakistan-US trade at commodity level. The International Trade Journal, 31(2), 105–129. https://doi.org/10.1080/08853908.2016.1269701
Bahmani‐Oskooee, M., & Baek, J. (2020). On the asymmetric effects of the real exchange rate on domestic investment in G7 countries. Australian Economic Papers, 59(4), 303– 318. https://doi.org/10.1111/1467-8454.12187
Bahmani‐Oskooee, M., & Mohammadian, A. (2016). Asymmetry effects of exchange rate changes on domestic production: Evidence from nonlinear ARDL approach. Australian Economic Papers, 55(3), 181–191. https://doi.org/10.1111/1467-8454.12073
Bank, W. (2017). Global economic prospects, January 2017: Weak investment in uncertain times.
Baron, D. P. (1976). Fluctuating exchange rates and the pricing of exports. Economic Inquiry, 14(3), 425–438. https://doi.org/10.1111/j.1465-7295.1976.tb00430.x
Bini-Smaghi, L. (1991). Exchange rate variability and trade: Why is it so difficult to find any empirical relationship? Applied Economics, 23(5), 927–936. https://doi.org/10.1080/00036849100000041
Chishti, M. Z., Iqbal, J., Mahmood, F., & Azeem, H. S. M. (2020). The implication of the oscillations in exchange rate for the commodity-wise trade flows between Pakistan and China: An evidence from ARDL approach. Review of Pacific Basin Financial Markets and Policies, 23(4), 1–33. https://doi.org/10.1142/S0219091520500307
Cushman, D. O. (1983). The effects of real exchange rate risk on international trade. Journal of International Economics, 15(1–2), 45–63. Retrieved from 10.1016/0022-1996(83)90041-7
De Grauwe, P., & Verfaille, G. (1988). Exchange rate variability. In Misalignment of exchange rates: Effects on trade and industry (pp. 77–104). National Bureau of Economic Research, Inc. Retrieved from http://www.nber.org/chapters/c8055.pdf
Devarajan, S., & Nabi, I. (2006). Economic growth in South Asia: promising, unequalising. Sustainable?. Economic and Political Weekly, 41(33), 3573–3580.
Dhasmana, A. (2015). Transmission of real exchange rate changes to the manufacturing sector: The role of financial access. International Economics, 143, 48–69. https://doi.org/10.1016/j.inteco.2015.04.006
Dornbusch, R., Krugman, P., & Cooper, R. N. (1976). Flexible exchange rates in the short run (Brookings Papers on Economic Activity No. 3).
Easterly, W., & Levine, R. (1997). Africa’s growth tragedy: Policies and ethnic divisions. The Quarterly Journal of Economic, 112(4), 1203–1250.
Farrington, J., & Clarke, J. (2006). Growth poverty reduction and development assistance in Asia: Options and prospects. Development Policy Review, 24(s1), 13–28.
Fischer, S. (1992). Macroeconomic stability and growth. Cuadernos de Economía, 29(87), 171–186.
Granger, C. W. J., & Yoon, G. (2002). Hidden Cointegration (Department of Economics Discussion Paper No. 2002–02). San Diego. https://doi.org/10.2139/ssrn.313831
Gros, D. (1987). Exchange rate variability and foreign trade in the presence of adjustment costs (Working paper Département des Sciences Economiques No. 2619075–8). Exchange rate variability and foreign trade in the presence of adjustment costs: Louvain-la-Neuve.
Hamid, N., & Mir, A. S. (2017). Exchange rate management and economic. The Lahore Journal of Economics, 22, 73–110.
Hasan, M. A., & Khan, A. H. (1994). Impact of devaluation on Pakistan’s external trade: An econometric approach. The Pakistan Development Review, 33(4), 1205–1215.
Hassan, B. D., Fausat, A. F., & Baba, Y. A. (2016). Impact of monetary policy in Nigeria on inflation, exchange rate and economic growth. International Journal of Economics and Business Management, 2(5), 67–82.
Hatemi-J, A. (2012). Asymmetric causality tests with an application. Empirical Economics, 43(1), 447–456. https://doi.org/10.1007/s00181-011-0484-x
Hooy, C. W., & Choong, C. K. (2010). The impact of exchange rate volatility on world and intra-trade flows of SAARC countries. Indian Economic Review, 45(1), 67–86.
Iqbal, G. A. A. J. (2020). Exchange rate volatility with third-country risk impact: A bilateral analysis of Pakistan with major trading partners. Pakistan Social Sciences Review, 4(IV), 29–46.
Iqbal, J., Aziz, S., & Nosheen, M. (2020). The asymmetric effects of exchange rate volatility on US-Pakistan trade flows: New evidence from nonlinear ARDL approach. Economic Change and Restructuring, 5(1), 225–255. https://doi.org/10.1007/s10644-020-09310-8
Iqbal, J., Aziz, S., & Nosheen, M. (2022). The asymmetric effects of exchange rate volatility on US–Pakistan trade flows: New evidence from nonlinear ARDL approach. Economic Change and Restructuring, 55(1), 225–255. https://doi.org/10.1007/s10644-020-09310-8
Iqbal, J., Khan, S. U., & Nosheen, M. (2019). The J-Curve between Pakistan and the SAARC region: Empirical evidence from aggregated and commodity level trade flows. NUST Journal of Social Sciences and Humanities, 5(2), 177–208. https://doi.org/10.51732/njssh.v5i2.45
Iqbal, J., Nosheen, M., Panezai, G. R., & Salahuddin. (2021). Asymmetric cointegration, Non-linear ARDL, and the J-curve: A bilateral analysis of Pakistan and its trading partners. International Journal of Finance & Economics, 26(2), 2263–2278. https://doi.org/10.1002/ijfe.1905
Iqbal, J., Nosheen, M., & Rehman Panezai, G. (2021). Asymmetric cointegration, Non‐linear ARDL, and the J‐curve: A bilateral analysis of Pakistan and its trading partners. International Journal of Finance & Economics, 26(2), 2263–2278. https://doi.org/10.1002/ijfe.1905
Iqbal, J., Nosheen, M., Tariq, R., & Manan, S. (2015). Testing for Marshall-Lerner condition: Bilateral trade between Pakistan and its major trading partners. Forman Journal of Economic Studies, 11(1), 1–14.
Javed, Z., & Farooq, M. (2009). Economic growth and exchange rate volatility in the case of Pakistan. Pakistan Journal of Life and Social Sciences, 7(2), 112–118.
Kandil, M. (2008). The asymmetric effects of exchange rate fluctuations on output and prices: Evidence from developing countries. Journal of International Trade and Economic Development, 17(2), 257–296. https://doi.org/10.1080/09638190701872772
Kandil, M., & Mirzaie, I. A. (2008). Comparative analysis of exchange rate appreciation and aggregate economic activity: Theory and evidence from Middle Eastern countries. Bulletin of Economic Research, 60(1), 45–96. https://doi.org/10.1111/j.1467-8586.2007.00272.x
Kappler, M., Reisen, H., Schularick, M., & Turkisch, E. (2013). The macroeconomic effects of large exchange rate appreciations. Open Economies Review, 24(3), 471–494. https://doi.org/10.1007/s11079-012-9246-4
Katrakilidis, C., & Trachanas, E. (2012). What drives housing price dynamics in Greece: New evidence from asymmetric ARDL cointegration. Economic Modelling, 29(4), 1064–1069. https://doi.org/10.1016/j.econmod.2012.03.029
Khan, M. F. H. (2021). Impact of exchange rate on economic growth of Bangladesh. European Journal of Business and Management Research, 6(3), 173–175. https://doi.org/10.24018/ejbmr.2021.6.3.891
Khan, S. R. (1995). Devaluation and balance of trade in Pakistan: A policy analysis (Research Report Series No. 7). April: Paper presented at the Eleventh Annual General Meeting and Conference of Pakistan Society of Development Economists.
Knight, M., Loayza, N., & Villanueva, D. (1993). Testing the neoclassical theory of economic growth: A panel data approach. Staff Papers (International Monetary Fund), 40(3), 512–541. https://doi.org/10.2307/3867446
Kohler, M., Manalo, J., & Perera, D. (2014). Exchange rate movements and economic activity (Reserve Bank of Australia).
Masih, J., Liu, D., & Pervaiz, J. (2018). The relationship between RMB exchange rate and Chinese trade balance: Evidence from a bootstrap rolling window approach. International Journal of Economics and Finance, 10(2), 35–47. https://doi.org/10.5539/ijef.v10n2p35
Matthew, O. A., Ede, C., Osabohien, R., Ejemeyovwi, J., Ayanda, T., & Okunbor, J. (2021). Interaction effect of tourism and foreign exchange earnings on economic growth in Nigeria. Global Business Review, 22(1), 7–22. https://doi.org/10.1177/0972150918812985
Most, S. J., & De Berg, H. V. (1996). Growth in Africa: Does the source of investment financing matter? Applied Economics, 28(11), 1427–1433. https://doi.org/10.1080/000368496327697
Najibullah, Iqbal, J., & Nosheen, M. (2021). Exploring the asymmetries between trade and consumption-based carbon emissions: Evidence from NPARDL approach. Environmental Science and Pollution Research, 28(31), 41780–41793. https://doi.org/10.1007/s11356-021-13455-y
Najibullah, Iqbal, J., Nosheen, M., Khan, M. W., Raja, E. U. H., & Jasim, M. (2021). An asymmetric analysis of the role of exports and imports in consumption-based carbon emissions in the G7 economies: Evidence from nonlinear panel autoregressive distributed lag model. Environmental Science and Pollution Research, 28(38), 53804–53818. https://doi.org/10.1007/s11356-021-14465-6
Nawaz, M. (2012). The impact of exchange rate on output level: Bounds testing approach for Pakistan. The Pakistan Development Review, 51(4), 419–433.
Nawaz, M., & Ghani, E. (2018). Currency depreciation and output nexus: Evidence from Pakistan. Panoeconomicus, 65(2), 183–200. Retrieved from 10.2298/PAN151222027N
Nusair, S. A. (2017). The J-curve phenomenon in European transition economies: A nonlinear ARDL approach. International Review of Applied Economics, 31(1), 1–27. https://doi.org/10.1080/02692171.2016.1214109
Olaniyi, C. (2019). Asymmetric information phenomenon in the link between CEO pay and firm performance. Journal of Economic Studies, 46(2), 306–323. https://doi.org/10.1108/JES-11-2017-0319
Rahman, S., & Serletis, A. (2009). The effects of exchange rate uncertainty on exports. Journal of Macroeconomics, 31(3), 500–507. https://doi.org/10.1016/j.jmacro.2008.12.005
Shahbaz, M., Islam, F., & Aamir, N. (2012). Is devaluation contractionary? Empirical evidence for Pakistan. Economic Change and Restructuring, 45(4), 299–316.
Shin, Y., Yu, B., & Greenwood-Nimmo, M. (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL Framework. In R. Sickles & W. Horrace (Eds.), Festschrift in Honor of Peter Schmidt (pp. 281–314). New York: Springer. https://doi.org/10.1007/978-1-4899-8008-3_9
Yang, J. (1997). Exchange rate pass-through in US manufacturing industries. Review of Economics and Statistics, 79(1), 95–104. https://doi.org/10.1162/003465397556430