Are the Responses of Sectoral Energy Imports Asymmetric to Exchange Rate Volatilities in Pakistan? Evidence From Recent Foreign Exchange Regime
نویسندگان
چکیده
Growing energy demand but stagnant production followed by volatile exchange rate leads Pakistan to imbalances and potential economic contraction. Yet, studies on sectoral imports are limited inconclusive without accessing the asymmetric effect of currency fluctuations. We examine impacts Pakistani rupee volatility monthly based nonlinear autoregressive distributed lag (NARDL) estimations. Augmented Dickey–Fuller Phillips–Perron tests were used conduct unit root testing, bound testing approach was long-term cointegration. The long-run asymmetry tested with Wald test, using NARDL model, we examined both short-run effects imports. test established supported through ECMt−1 ( t -test), cointegrating relationship between in a long term. Among others, found for crude oil, coal, electricity, petroleum products. Rupee depreciation increased oil electricity imports, while appreciation insignificant. Overall, empirical assessment reveals that foreign is specific Pakistan. It offers new insights into re-strategizing policy refining import substitution plan.
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ژورنال
عنوان ژورنال: Frontiers in Energy Research
سال: 2021
ISSN: ['2296-598X']
DOI: https://doi.org/10.3389/fenrg.2021.614463