Analyzing the role of Imports in Economic Growth of Pakistan; Evidence from ARDL Bound Testing Approach

Abstract

Imports were considered to be expenditure of an economy's budget in post liberalization era but soon world economies has realized the importance and value of imports in accomplishing requirements of growing economic development. Thus protectionist's policies were sidelined in the interest of economy and promote acknowledgement of technical and resource diffusion from developed economies. Pakistan is a developing country and with many problems it also experiencing deficit in balance of trade since independence. That is why this study attempted to endeavor the role of imports and its determinants in economic growth in Pakistan applying ARDL Bound testing approach. The study found optimistic and noteworthy effect of imports and its determinants in economic growth of Pakistan supportive of world income and other trade policy variables too.