Abstract:
This study investigates the effects of exchange rate volatility on trade between Pakistan and its major trading partners on the basis of imports and exports: America, China, United Arab Emirates, United Kingdom, Spain, Bangladesh, Italy, India, Kuwait, Singapore, Malaysia, Japan, Iran, Belgium, Netherland and Saudi Arabia for the period of 1982 to 2013. The import and export models are estimated to assess the impact of exchange rate volatility. Empirical findings indicate that exchange rate volatility has significant impact on export to UK, Netherland and USA. Exchange rate volatility also has significant impact of Pakistan’s imports from UK, USA and china but all other insignificant impact on imports and exports of Pakistan.
