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IMPACT OF EXCHANGE RATE VOLATILITY ON UNEMPLOYMENT IN PAKISTAN

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05 Pages : 49-66

http://dx.doi.org/10.31703/ger.2021(VI-II).05      10.31703/ger.2021(VI-II).05      Published : Jun 2021

Impact of Exchange Rate Volatility on Unemployment in Pakistan

Abstract

    Unemployment is an alarming issue for bothdeveloped and developing countries, which sometimesvaries from region to region as well. Unemployment accompaniedwith Exchange Rate Volatility (ERV, hereafter) worsens thesituation. This paper tries to explore the relationship between ERVand unemployment and other selected factors in the case ofPakistan from 1980 to 2018. After necessary simulation, the studysupported the analyses through the autoregressive distributed lagmodel. Where, long-run coefficient reveals that ERV and exportsboth are positively affecting unemployment; whereas, import isinversely related to unemployment. Alternatively, export and GDPare inversely affecting unemployment in the short run; further,stability tests also support the relationship between the selectedvariables to achieve the long-run equilibrium. The study furthersuggests that the Government of Pakistan need to stabilizeexchange rate to control unemployment, which is 8 percent in thelong-run and 11 percent in the short run.

    Exchange Rate Volatility, Unemployment, Economy of Pakistan

    (1) Atiq Ur Rahman
    MPhil, Department of Economics, Bacha Khan University, Charsadda, KP, Pakistan.
    (2) Salyha Zulfiqar Ali Shah
    Assistant Professor, School of Economics, Bahauddin Zakariya University Multan, Punjab, Pakistan.
    (3) Qamar uz Zaman
    College of Economics and Management, Nanjing University of Aeronautics and Astronautics, China.
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Cite this article

APA

CHICAGO

    CHICAGO : Rahman, Atiq Ur, Salyha Zulfiqar Ali Shah, and Qamar uz Zaman. 2021. "Impact of Exchange Rate Volatility on Unemployment in Pakistan." Global Economics Review, VI (II): 49-66 doi: 10.31703/ger.2021(VI-II).05

HARVARD

    HARVARD : RAHMAN, A. U., SHAH, S. Z. A. & ZAMAN, Q. U. 2021. Impact of Exchange Rate Volatility on Unemployment in Pakistan. Global Economics Review, VI, 49-66.

MHRA

    MHRA : Rahman, Atiq Ur, Salyha Zulfiqar Ali Shah, and Qamar uz Zaman. 2021. "Impact of Exchange Rate Volatility on Unemployment in Pakistan." Global Economics Review, VI: 49-66

MLA

    MLA : Rahman, Atiq Ur, Salyha Zulfiqar Ali Shah, and Qamar uz Zaman. "Impact of Exchange Rate Volatility on Unemployment in Pakistan." Global Economics Review, VI.II (2021): 49-66 Print.

OXFORD

    OXFORD : Rahman, Atiq Ur, Shah, Salyha Zulfiqar Ali, and Zaman, Qamar uz (2021), "Impact of Exchange Rate Volatility on Unemployment in Pakistan", Global Economics Review, VI (II), 49-66

TURABIAN

    TURABIAN : Rahman, Atiq Ur, Salyha Zulfiqar Ali Shah, and Qamar uz Zaman. "Impact of Exchange Rate Volatility on Unemployment in Pakistan." Global Economics Review VI, no. II (2021): 49-66. https://doi.org/10.31703/ger.2021(VI-II).05