The findings reveal a positive and significant relationship between oil prices in Pakistan and exports.
Authors
Sakshi Malik, Assistant Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
Vishal Dagar, Great Lakes Institute of Management, Gurgaon, 122 413, Haryana, India.
Summary
International trade is key to boosting the economic growth and development of an economy. Hence, it becomes critical to analyze its determinants. The present study attempts to empirically analyze the determinants of trade exports of Pakistan with its top-5 trade partners.
The prior literature suffers from biased findings due to deploying the aggregate data and ignoring the likely asymmetries in the drivers of the exports. The present study has used the monthly data of oil prices and macroeconomic uncertainty in order to empirically investigate the determinants of exports.
For the purpose of analysis, several advanced econometric (quantile unit root, cointegration, and granger causality) tests and (quantile-on-quantile regression) techniques are utilized to handle the issue of asymmetries in the modeled series.
The findings reveal a positive and significant relationship between oil prices in Pakistan and exports. Furthermore, macroeconomic uncertainty has a significantly negative impact on the country’s exports. Based on the results, key policy implications are provided.
Published in: Environmental Science and Pollution Research
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