GENERAL DIAGNOSTIC TEST FOR SUSTAINABLE ECONOMIC GROWTH MULTI DEPENDENT PANELS: A STUDY OF PAK-US TRADE

Abstract

The basic purpose of this study to General Diagnostic test for Sustainable Economic Growth Multi Dependent Panels of Cross Section. The two sample models are using “USA import from Pakistan impact on USA economy” and “Pakistan export to USA impact on Pakistan economy” with multi macroeconomic dependent variables of each country for the period of 2012 to 2021 and examine through a new General Diagnostic test of Cross-section diagnostic test (CSDT) that highly recommended for future examination of research data. The Results showing the high impact “Import on US Macroeconomic variables” and “Export on Pakistan Macroeconomic variables” that influencing the country economy. The Cross-section diagnostic test (CSDT) result also indicates each macroeconomic dependent variable of a country highly influenced by import and export. Like Pakistan face balance of payment issue and export helping indicator and USA shortage of agricultural product, dairy and natural resources production, import strengthen the usage (meet the need), standard living and economy. Research implications are very clear import and export of a country is highly significant that meet the need of financial and usage of a country. This study has two main recommendations. First, strongly recommends for Policy maker more focus on exports with the help of country resources and meet the need of country. Second, the study is strongly recommended to research institution, and research scholar the new General Diagnostic test Multi Dependent Panels of Cross Section (for Sustainable Economic Growth) is suggested to use for future examination of research data.