Abstract
The study examines the impact of total exports of goods and services, imports of goods and services, Foreign Direct Investment net inflows, GNI per capita, and inflation on the economic growth of Pakistan. The empirical analysis is conducted by using time series data from (1980-2012) from Pakistan. The ARDL technique is used to detect the relationship between exogenous variables and endogenous variable. The estimated results show that explanatory variables Exports, GNI and FDI have positive and significant impact on the economy of Pakistan. The results also show that an increase in the exports of Goods and services, the Foreign direct investment so that output of the country is boost up. Similarly, Inflation and Imports has negative influence on the economy of Pakistan. It concludes that international trade may play an important role to improve the economy of Pakistan. Keywords: Economic growth; Imports; Exports; Inflation; Pakistan. DOI : 10.7176/IAGS/79-02 Publication date: January 31 st 2020
Highlights
Todaro and Smith (2003) have stated that globalization presents new possibilities for eliminating global poverty and globalization can benefit poor countries directly and indirectly through cultural, social, scientific and technological exchanges as well as trade and finance.To reduce poverty and attain development in developing countries have been promoted by International Financial Institutions (IFIs) especially, International Monetary Fund (IMF) and World Bank (WB) since their foundation
Conclusion and policy implications This paper explores the factors which affect the Economic growth as share of real GDP in Pakistan
Using the two specifications the study finds that predictors of Economic growth have co-integrating relationship with each other
Summary
Todaro and Smith (2003) have stated that globalization presents new possibilities for eliminating global poverty and globalization can benefit poor countries directly and indirectly through cultural, social, scientific and technological exchanges as well as trade and finance.To reduce poverty and attain development in developing countries have been promoted by International Financial Institutions (IFIs) especially, International Monetary Fund (IMF) and World Bank (WB) since their foundation. Investment promoting and poverty alleviating policies have significant positive impact to promote economic growth in Pakistan (Fatima et al 2012).
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