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The Effect Of Trade Openness On Inflation In Pakistan

Author

Listed:
  • FIAZ AHMAD SULEHRI

    (Lahore School of Accountancy and Finance, University of Lahore.)

  • JAVARIA KHAN

    (Lahore School of Accountancy and Finance, University of Lahore)

Abstract

This study empirically verifies the existence of significant relationship between inflation and trade openness for Pakistan using annual time-series data for the period of 1980 to 2014. The basic objective of this study is to examine the Romer’s hypothesis for Pakistan with real agriculture value added, real exchange rate, real gross domestic product, money & quasi money and used trade openness, import openness and export openness ratios separately as explanatory variables with inflation rate as dependent variables. For this purpose, we have used ARDL technique the expected empirical findings show that there is no long-run relationship between inflation and trade openness, which rejects the existence of Romer’s hypothesis for Pakistan.

Suggested Citation

  • Fiaz Ahmad Sulehri & Javaria Khan, 2020. "The Effect Of Trade Openness On Inflation In Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(3), pages 135-140, September.
    • Handle: RePEc:rfh:bbejor:v:9:y:2020:i:3:p:135-140
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    References listed on IDEAS

    as
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    Cited by:

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    2. Ismail Senturk & Fiaz Ahmad Sulehri & Syeda Mehak Ali, 2022. "Financial Development and Innovation Led-Growth: A Case of Selected Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 81-97, September.
    3. Fiaz Ahmad Sulehri & Muhammad Rizwan & Ismail Senturk, 2022. "The Impact Of Intangible Assets And Firm-Specific Factors On Cash Flows: An Empirical Analysis Of Public Firms Listed On The Pakistan Stock Exchange," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(3), pages 16-26.

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    More about this item

    Keywords

    trade openness; inflation; real exchange rate; real gross domestic product;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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