Impact of Exchange Rate and Oil Prices on Inflation in Pakistan

Qasim, Tahira Bano; Ali, Hina; Baig, Alina; Khakwani, Maria Shams

doi:10.47067/reads.v7i2.349

Cited by 10 publications

(8 citation statements)

References 15 publications

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“…So, it can be concluded that lower pump diesel and petrol prices significantly decline inflation in Pakistan. The results of this study are consistent with those of (Qasim et al, 2021;Iqbal et al, 2021;Malik, 2016;Saleem & Ahmad, 2015).…”

Section: Resultssupporting

confidence: 91%

“…This study is different from previous studies on the research topic as it measures energy prices in domestic pump diesel prices and pump gasoline prices. While the previous studies have measured the energy prices on the basis of international crude oil prices per barrels and ignore the cost of government taxes, transportation cost, profits of the organization (Qasim et al, 2021;Iqbal et al, 2021;Aziz et al 2016;Saleem & Ahmad, 2015). The energy prices on the basis of international crude oil prices is not a good measure of domestic energy prices.…”

Section: Figure 2 Consumer Price Index(cpi)mentioning

confidence: 99%

“…of price and income polices should be used for each energy source. Qasim et al (2021) studied the impact of exchange rate and oil prices on inflation for the period 2004 to 2019 in Pakistan. The results show that exchange rate and oil prices significantly impact the inflation.…”

Section: Literature Reviewmentioning

confidence: 99%

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Investigating the Role of Energy Prices in Enhancing Inflation in Pakistan: Fresh Insight from Asymmetric ARDL Model

Maqbool¹,

Bashir²,

Rehman³

et al. 2021

RAMSS

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The aim of this study is to examine the export performance and competitiveness of Pakistan's toy exports by using different indices of revealed comparative advantage. The data were looked at from the International Trade Centre (ITC) for Pakistan’s toys exports during 2004-2020. The results of this study show that Pakistan enjoyed a comparative advantage in exporting toys to the world market during 2004-2020, because the RCA index is greater than 1. The positive values of RSCA and LnRCA indicate that Pakistan had a CA in the concerned sector during 2004-2020. The study also observed that Pakistan had a competitive advantage by employing Vollrath index (RCA#). In addition, the revealed competitiveness index (RC) indicates that Pakistan experienced competitiveness in the toy export sector. The RMA index shows that Pakistan also enjoyed a comparative advantage in the imports of toys during 2004-2020. This means that Pakistan also imports these products from other economies of the world. The index of RTA describes that Pakistan had a net comparative advantage in this sector during analysis. TBI illustrates that Pakistan is the net-exporter in the toys and games sector in the global economy. Pakistan's toy manufacturers need to find new innovative and technologically advanced methods to stimulate domestic toy production and exports.

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Section: Resultssupporting

confidence: 91%

Section: Figure 2 Consumer Price Index(cpi)mentioning

confidence: 99%

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Investigating the Role of Energy Prices in Enhancing Inflation in Pakistan: Fresh Insight from Asymmetric ARDL Model

Maqbool¹,

Bashir²,

Rehman³

et al. 2021

RAMSS

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“…Besides this, the contribution of Islam also explored the influence of human development, money supply, and exchange rates on inflation and suggested that both money supply and exchange rates stimulate inflation in South Asian economies. The impact of petrol prices and exchange rates on inflation was captured by Qasim et al (2021) for Pakistan's economy. They confirmed that inflation was increasing due to an increase in petrol prices, but it was decreasing due to an increase in the exchange rate.…”

Section: Literature Reviewmentioning

confidence: 99%

Monetary Policy, Oil Rents, Exchange Rate and Consumer Prices Nexus: A Case Study of Pakistan

Ahmad,

Saeed,

Mudassar Naushahi

et al. 2024

J. Asian Dev. Studies

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This research examines the effects of monetary policy in the form of nominal money supply, economic growth, exchange rate, and oil rents on domestic prices for Pakistan's economy. By taking an annual data series, this research reports evidence of mixed integrated order of the data series. The estimates of the ARDL bounds test suggest that consumer prices have a long-run cointegrating relation with its factors. The findings also highlight that the money supply supports the causality thesis, indicating that when the money supply stretches, it accelerates domestic prices. Moreover, it is also exposed that domestic output, exchange rates, and oil rents have significant and appreciating effects on consumer prices in both time spans. These results are robust to the diagnostics used in this research ensuring the reliability of the results. Based on these results, money supply and exchange rate should be controlled by the policymakers in such a way that it should not allow domestic prices to rise. Moreover, an attempt should be made via which increase in domestic out, and oil rents should remain greater than the increase in prices.

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“…The results of the DCC-GARCH model verified that there is a positive correlation between wholesale price index (proxy of Inflation) and crude price of oil and it is most near to one except crises period 2007-09 when it became negatively correlated due to lush fluctuations in the rate of exchange of Indian currency during crises period. Qasim et al, (2021) investigated links between the price of oils, ERR and the Islamic stock market of Malaysia with the help of the Vector Autoregressive (VAR) Model. After testing the collected data of Malaysia by using the Vector Autoregressive Model VAR model and Vector Error correct Method, it concluded that there are positive and significant relationships between the crude price of oil and Islamic stock return but the negative and meaningless link with foreign ERR.…”

Section: Literature Reviewmentioning

confidence: 99%

Oil Price Shocks and their Implications for Stock Market in the United States

Ali¹

2022

JDSS

Self Cite

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The current study calculated the asymmetric effect of Oil Price on the Stocks Market of the USA from 1996 to 2009 by applying the asymmetric Autoregressive Distributed Lag (ARDL) co-integration technique. The generated results proved the long-term asymmetries between Oil price and Stock Market Index. Oil Price shocks affect the stock market of the USA significantly and positively. Both negative and positive Oil Price shocks have a positive effect on the stock market index of the USA. By applying the Phillips and Peron (PP) Unit root Test it is concluded that data is stationer at mixture which allowed to apply the ARDL technique. After applying the Bound test study move towards NARDL to verify the long-term relationship between Oil Price and Stock Market Index. The dependent variable is Stock Market Index, the Main independent variable is Oil Price and other related independent variables are the Exchange rate and Foreign Direct Investment. In this way, positive and negative prices of oil shock waves are advantageous for the oil exporters like the USA. The effect of FDINI is also favorable since once foreign investors finance in the host country then job opportunities, employment, income and purchasing power increase and then economic development and export also increase

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Impact of Exchange Rate and Oil Prices on Inflation in Pakistan

Cited by 10 publications

References 15 publications

Investigating the Role of Energy Prices in Enhancing Inflation in Pakistan: Fresh Insight from Asymmetric ARDL Model

Investigating the Role of Energy Prices in Enhancing Inflation in Pakistan: Fresh Insight from Asymmetric ARDL Model

Monetary Policy, Oil Rents, Exchange Rate and Consumer Prices Nexus: A Case Study of Pakistan

Oil Price Shocks and their Implications for Stock Market in the United States

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