The relationship between Foreign Currency trading and Economic Development: A case Study of Pakistan

Mashkoor, Asim and Ahmed, Ovais and Herani, Dr. Gobin (2015): The relationship between Foreign Currency trading and Economic Development: A case Study of Pakistan. Published in: Institute of Interdisciplinary Business Research , Vol. 5, No. 1 (1 May 2013): pp. 537-560.

Abstract

In order to determine the relationship between few factors whom not calculated or evaluated by central bank is a tough job. The researcher tried to accumulate such secondary factors which are directly combined together and form very important primary factors. The researchers have reviewed many international researches in order to enhance the accuracy and focus of the research data and their variables. These researches has provided many new variables which are not very commonly used in our monetary research paradigm. This is a descriptive research where the researchers identified some new dimensions of usage of secondary variables into the formation of primary variables. There are many limitations researchers have during the course of the research. The most important and notable is the unavailability of the statistical data regarding many important statistical aspects of the economy. In the conclusion the researchers have found that the inflation, interest rate and exchange rates are highly correlated with currency trading. By manipulating such factors, inflation and exchange rates are exert influenced by central banks and varies impact currency and inflation. The valuation of foreign currency trading needs high attention from capital formation, determinants of inflation rate and proper utilization of supply of money in economy. The growth rate of GDP is essential factor for both economic development and foreign currency trading.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic development, Foreign Currency Trade.
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G20 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O23 - Fiscal and Monetary Policy in Development; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy

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