Openness and Inflation Volatility: A Case Study SAARC Country
The objective of this research paper is to check the impact of openness on inflation volatility. The time period ranges from 1986-2014 by utilizing Panel data for SAARC countries. Four proxy variables are used to calculate openness by using Generalized Method of Moment (GMM) and Impulse Response fo...
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doaj-f9763f33bbee4dd1a6a010dc7ee288d62021-02-02T19:48:49ZengCSRC PublishingJournal of Accounting and Finance in Emerging Economies2519-03182518-84882020-12-016410.26710/jafee.v6i4.1459Openness and Inflation Volatility: A Case Study SAARC CountryHuma Johar0Nadeem Iqbal 1Alishba Asif2Lecturer at Department of Economics Shaheed Benazir Bhutto Women University, Peshawar, PakistanAssistant Professor at the Department of Economics University of Peshawar, PakistanVisiting Lecturer, Department of Economics Shaheed Benazir Bhutto Women University, Peshawar, Pakistan The objective of this research paper is to check the impact of openness on inflation volatility. The time period ranges from 1986-2014 by utilizing Panel data for SAARC countries. Four proxy variables are used to calculate openness by using Generalized Method of Moment (GMM) and Impulse Response for the existence of short run and long run relationship. GMM results indicates that the relation depend on the proxy variable being used in the model. Export to GDP and KOF index shows negative impact on inflation volatility while Trade to GDP ratio has significant positive impact on inflation volatility. The empirical study suggests that exports should be encouraged as it resulted in decreasing rate of inflation as along with imports inflation is also imported in terms of commodity price. https://www.publishing.globalcsrc.org/ojs/index.php/jafee/article/view/1459openness on inflation volatilityTrade to GDP |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Huma Johar Nadeem Iqbal Alishba Asif |
spellingShingle |
Huma Johar Nadeem Iqbal Alishba Asif Openness and Inflation Volatility: A Case Study SAARC Country Journal of Accounting and Finance in Emerging Economies openness on inflation volatility Trade to GDP |
author_facet |
Huma Johar Nadeem Iqbal Alishba Asif |
author_sort |
Huma Johar |
title |
Openness and Inflation Volatility: A Case Study SAARC Country |
title_short |
Openness and Inflation Volatility: A Case Study SAARC Country |
title_full |
Openness and Inflation Volatility: A Case Study SAARC Country |
title_fullStr |
Openness and Inflation Volatility: A Case Study SAARC Country |
title_full_unstemmed |
Openness and Inflation Volatility: A Case Study SAARC Country |
title_sort |
openness and inflation volatility: a case study saarc country |
publisher |
CSRC Publishing |
series |
Journal of Accounting and Finance in Emerging Economies |
issn |
2519-0318 2518-8488 |
publishDate |
2020-12-01 |
description |
The objective of this research paper is to check the impact of openness on inflation volatility. The time period ranges from 1986-2014 by utilizing Panel data for SAARC countries. Four proxy variables are used to calculate openness by using Generalized Method of Moment (GMM) and Impulse Response for the existence of short run and long run relationship. GMM results indicates that the relation depend on the proxy variable being used in the model. Export to GDP and KOF index shows negative impact on inflation volatility while Trade to GDP ratio has significant positive impact on inflation volatility. The empirical study suggests that exports should be encouraged as it resulted in decreasing rate of inflation as along with imports inflation is also imported in terms of commodity price.
|
topic |
openness on inflation volatility Trade to GDP |
url |
https://www.publishing.globalcsrc.org/ojs/index.php/jafee/article/view/1459 |
work_keys_str_mv |
AT humajohar opennessandinflationvolatilityacasestudysaarccountry AT nadeemiqbal opennessandinflationvolatilityacasestudysaarccountry AT alishbaasif opennessandinflationvolatilityacasestudysaarccountry |
_version_ |
1724292089711165440 |