Accounting for City Real Exchange Rates: The Case of Pakistan

Authors

  • Zahid Hussain Shaikh Assistant Professor, Sukkur IBA University, Sukkur, Sindh, Pakistan.
  • Niaz Hussain Ghumro Professor, Department of Business Administration Sukkur-IBA University, Sukkur, Sindh, Pakistan.

DOI:

https://doi.org/10.56976/jsom.v2i3.66

Keywords:

Accounting, City Real Exchange Rates, Pakistan

Abstract

In this study we scrutinize the role of traded and non-traded goods in the fluctuations of city real exchange rates in Pakistan. We decompose the city real exchange rates into traded and non-traded goods by Mean Square Error (MSE). We consider 17 cities and compute 272 bilateral real exchange rates, to find the proportion of traded and non-traded goods in variation real exchange rates at different horizons of data.  Our findings suggest that non-traded goods averagely explains 25% to 30% of the fluctuations of city real exchange rates in Pakistan. This would be the first study which constructed the traded and non-traded price indices and analyses their contribution in city exchange rates

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Published

2023-12-31

How to Cite

Shaikh, Z. H., & Ghumro, N. H. (2023). Accounting for City Real Exchange Rates: The Case of Pakistan. Journal of Social &Amp; Organizational Matters, 2(3), 161–178. https://doi.org/10.56976/jsom.v2i3.66

Issue

Vol. 2 No. 3 (2023): JSOM

Section

Articles

License

Copyright (c) 2023 Zahid Hussain Shaikh, Niaz Hussain Ghumro

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.