The aspiration of this research paper is to investigate the impact of international gold prices on the equity returns of Karachi Stock Index (KSE100 index) of Pakistan Stock Exchange. Our paper suggests that if the real exchange rate, inflation rate, and interest rate go up then also the export earrings go up for the perspective of the Bangladesh economy. Although there is a strong relationship between the variables, CUSUM and CUSUM square test shows that our model is not stable. Our analysis shows that there was a positive relationship between export earnings, real exchange rate, inflation rate, and interest rate. We also used ECM, CUSUM test and CUSUM square test. Johansen tested for cointegration the test helps to find out the cointegration between all those variables. ADF result shows that data is stationary. Augmented Dickey-Fuller (Unit root test) used to shows whether our data are stationary or not. To finding out an objective of our paper we have been using different types of test. For analysis of our macroeconomic data, we have used Eviews 9. Data have been collected from different sources like the World Economic indicator, Bangladesh Bureau of Statistics and the central bank of Bangladesh (Bangladesh Bank). For achieving paper goals, we have used the exchange rate, inflation rate, interest rate as an independent variable and total export earnings as dependent variables. The purpose of this research is to find out the relationship between export earnings with the macroeconomic factors in Bangladesh for the year of 1971-2018.
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