Does Exchange Rate Volatility Affect Rice Industry Exports? Evidence From Pakistan

Abstract

This research work empirically examines the impact of exchange rate volatility on rice industry exports of Pakistan using time series data for the period from 1982 to 2019. The variables considered for analysis in this study are value of rice exports of Pakistan to world, credit to private sector, world GDP and a measure of exchange rate volatility. The exchange rate volatility is measured using the moving average standard deviation formula. For estimation of long run and short run results Autoregressive Distributed Lag (ARDL) Model has been applied. The findings of this study reveal that exchange rate volatility does not have a significant impact on the rice industry exports of Pakistan while world GDP and credit to private sector have a positive and significant impact on the rice industry exports.