Comparative Investigation of Inflation in Pakistan and Turkey: Fresh Insights from the Wavelet Coherence Approach


  • Abdullah Talha GENÇ Sakarya Üniversitesi, İslam Ekonomisi ve Finansı EABD
  • Mervan Selçuk Sakarya Üniversitesi
  • Shabeer KHAN Sakarya Üniversitesi



Pakistan and Turkey share the same macroeconomic fundamentals as energy dependence, double digits inflation, and tremendous currency depreciation. This paper aims at analyzing the impact that exchange rate, interest rate, and oil price have on the inflation rate in Turkey and Pakistan by using the data period of 2010:M1-2021:M12 and employing the wavelet coherence model. The results show that currency deprecation boosts inflation in both economies. Interest contribution to inflation is more significant in the case of Pakistan compared to Turkey while oil prices only increase inflation in Pakistan compared to turkey. To reduce the impact of currency depreciation on inflation in both nations, an increase in export policy can be implemented, similarly, foreign direct investment can be attracted. Additionally, both nations need to increase the inflow of funds and need to reduce the outflow of funds which will also help them stabilize the currency.

Author Biography

Mervan Selçuk, Sakarya Üniversitesi

Mervan Selçuk is currently working as an assistant professor at the Department of Islamic Economics and Finance, Sakarya University. He graduated from the Business Department of Istanbul University in 2014. He received his MA and Ph.D. degrees from Islamic Economics and Finance Department at Sakarya University in 2016 and 2021, respectively. His doctoral dissertation is about the feasibility of a monetary union in Islamic countries. He was a visiting researcher at Kuwait University between November 2018 - May 2019. His research areas include Islamic economics, monetary unions, and cryptocurrencies.





How to Cite

GENÇ, A. T., Selçuk, M., & KHAN, S. (2023). Comparative Investigation of Inflation in Pakistan and Turkey: Fresh Insights from the Wavelet Coherence Approach. International Journal of Contemporary Economics and Administrative Sciences, 13(1), 181–199.