2021
DOI: 10.52131/pjhss.2021.0901.0127
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Analyzing the Impact of Real Effective Exchange Rate and Investment on Trade Deficit in the United Kingdom

Abstract: The major purpose of this study is to determine the long-run and short-run determinants of the trade deficit in the United Kingdom (UK). The autoregressive distributive lagged (ARDL) approach has been employed for estimation purposes in this study. The study finds that there is negative and significant relationship exists between the real effective exchange rate (REER) and the export to import ratio in the long run. The empirical results reveal that a one percent increase in REER causes a decrease in the expor… Show more

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