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Third-Country Exchange Rate Volatility and Pakistan-U.S. Trade at Commodity Level

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  • Mohsen Bahmani-Oskooee
  • Misbah Nosheen
  • Javed Iqbal

Abstract

We add to the literature on the “Third-Country” effect by assessing the impact of rupee-dollar volatility on 116 U.S. industries that export to Pakistan and 53 U.S. industries that import from Pakistan. As two measures of “Third-Country” effects, we include volatility measures of rupee-yuan and dollar-yuan rates due to the increased role of China in the global economy. We find evidence of “Third-Country” effects in more than half of the industries. Among affected industries are many of the large U.S. exporting industries, but not large U.S. importing industries.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Misbah Nosheen & Javed Iqbal, 2017. "Third-Country Exchange Rate Volatility and Pakistan-U.S. Trade at Commodity Level," The International Trade Journal, Taylor & Francis Journals, vol. 31(2), pages 105-129, March.
    • Handle: RePEc:taf:uitjxx:v:31:y:2017:i:2:p:105-129
    DOI: 10.1080/08853908.2016.1269701
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    2. Ayesha Liaqat & Mian Sajid Nazir & Iftikhar Ahmad, 2019. "Identification of multiple stock bubbles in an emerging market: application of GSADF approach," Economic Change and Restructuring, Springer, vol. 52(3), pages 301-326, August.
    3. Andrew Phiri, 2020. "Structural changes in exchange rate-stock returns dynamics in South Africa: examining the role of crisis and new trading platform," Economic Change and Restructuring, Springer, vol. 53(1), pages 171-193, February.
    4. Salahuddin & Javed Iqbal & Misbah Nosheen, 2020. "Economic & Cultural Distance & Regional Integration: Evidence from Gravity Model Using Disaggregated Data for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(2), pages 243-274.
    5. Noman Ahmad & Alam Khan & Ihtisham ul Haq & Muhammad Hasnain Khalid & Seemab Ahmad, 2024. "The Impact of Terrorism on International Trade: A Panel Study for SAARC Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 671-676.
    6. Ponomarev, Yuriy (Пономарев, Юрий) & Rey, Aleksey (Рей, Алексей) & Radchenko, Darya (Радченко, Дарья), 2018. "Investigation of the Relationship between the Intensity of International Trade and the Volatility of Paired Exchange Rates of the Russian Federation and its Trading Partners [Исследование Взаимосвя," Working Papers 061823, Russian Presidential Academy of National Economy and Public Administration.
    7. Ayesha Liaqat & Mian Sajid Nazir & Iftikhar Ahmad & Hammad Hassan Mirza & Farooq Anwar, 2020. "Do stock price bubbles correlate between China and Pakistan? An inquiry of pre‐ and post‐Chinese investment in Pakistani capital market under China‐Pakistan Economic Corridor regime," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 323-335, July.
    8. Bisharat Hussain Chang & Suresh Kumar Oad Rajput & Niaz Ahmed Bhutto, 2019. "Impact of Exchange Rate Volatility on the US Exports: A New Evidence From Multiple Threshold Nonlinear ARDL Model," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-26, June.

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