This paper investigates the causes of China’s output and trade balance fluctuations in the period of 1985–2000, with special attention to the role of the real exchange rate. The effects of four types of shock – the foreign supply shock, the domestic supply shock, the relative demand shock and the nominal shock – are examined, employing a near -VAR that embodies the long-run properties of a ‘dep...

Many developing countries including Pakistan face the problem of trade deficit. These countries use various measures to improve the trade balance. One of the components is devaluation of domestic currency. The purpose of this paper is to find whether the devaluation using REER is effective in improving the trade balance in Pakistan or not. The bound testing approach of ARDL is used to estimate ...

Foreign Direct Investment (FDI) is frequently regarded as a key driver of global economic integration because it brings job opportunities, capital investment, and business experience. The current study examines the impact of foreign direct investment on Afghanistan's economic growth using time-series data from 2007 to 2019, which are collected from the World Bank and the International Monetary ...