Exchange rate misalignment in Pakistan and its general equilibrium distributional implications
Recent findings in the growth literature suggest that developing countries need to keep a devalued exchange rate to stimulate their economic growth. Building on these findings, we econometrically evaluate to what ex-tent the real exchange rate of Pakistan has been aligned with its economic fundament...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2014
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/151464 |
| _version_ | 1855528201974972416 |
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| author | Debowicz, Darío Saeed, Wajiha |
| author_browse | Debowicz, Darío Saeed, Wajiha |
| author_facet | Debowicz, Darío Saeed, Wajiha |
| author_sort | Debowicz, Darío |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Recent findings in the growth literature suggest that developing countries need to keep a devalued exchange rate to stimulate their economic growth. Building on these findings, we econometrically evaluate to what ex-tent the real exchange rate of Pakistan has been aligned with its economic fundamentals, and find that the Pa-kistan rupee has been significantly and systematically overvalued during the last years. We then simulate the general equilibrium effects of an eventual re-alignment of the real exchange rate with economic fundamen-tals, and find not only an expected increase in the relative size of the tradable sector - where productivity in-creases tend to be faster – but also an associated improvement in the income of the poorest groups. |
| format | Artículo preliminar |
| id | CGSpace151464 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1514642025-11-06T06:31:33Z Exchange rate misalignment in Pakistan and its general equilibrium distributional implications Debowicz, Darío Saeed, Wajiha economic growth markets computable general equilibrium models trade exchange rate Recent findings in the growth literature suggest that developing countries need to keep a devalued exchange rate to stimulate their economic growth. Building on these findings, we econometrically evaluate to what ex-tent the real exchange rate of Pakistan has been aligned with its economic fundamentals, and find that the Pa-kistan rupee has been significantly and systematically overvalued during the last years. We then simulate the general equilibrium effects of an eventual re-alignment of the real exchange rate with economic fundamen-tals, and find not only an expected increase in the relative size of the tradable sector - where productivity in-creases tend to be faster – but also an associated improvement in the income of the poorest groups. 2014 2024-08-01T02:57:30Z 2024-08-01T02:57:30Z Working Paper https://hdl.handle.net/10568/151464 en Open Access application/pdf International Food Policy Research Institute Debowicz, Dario and Saeed, Wajiha. 2014. Exchange rate misalignment in Pakistan and its general equilibrium distributional implications. PSSP Working Paper 16. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/151464 |
| spellingShingle | economic growth markets computable general equilibrium models trade exchange rate Debowicz, Darío Saeed, Wajiha Exchange rate misalignment in Pakistan and its general equilibrium distributional implications |
| title | Exchange rate misalignment in Pakistan and its general equilibrium distributional implications |
| title_full | Exchange rate misalignment in Pakistan and its general equilibrium distributional implications |
| title_fullStr | Exchange rate misalignment in Pakistan and its general equilibrium distributional implications |
| title_full_unstemmed | Exchange rate misalignment in Pakistan and its general equilibrium distributional implications |
| title_short | Exchange rate misalignment in Pakistan and its general equilibrium distributional implications |
| title_sort | exchange rate misalignment in pakistan and its general equilibrium distributional implications |
| topic | economic growth markets computable general equilibrium models trade exchange rate |
| url | https://hdl.handle.net/10568/151464 |
| work_keys_str_mv | AT debowiczdario exchangeratemisalignmentinpakistananditsgeneralequilibriumdistributionalimplications AT saeedwajiha exchangeratemisalignmentinpakistananditsgeneralequilibriumdistributionalimplications |