ARDL – Analysis of the Relationship among Exports, FDI, Current Account Deficit and Economic Growth in Pakistan

نویسندگان

1 SDM, Education Department, Dera Ismail Khan, Pakistan

doi
10.22059/ier.2020.76010
چکیده

This paper empirically examines the relationship among exports, foreign direct investment, current account deficit, and economic growth in Pakistan during 1975-2016. We adopted the autoregressive distributed lag (ARDL) approach to co-integration together with ECM techniques to trace long-run and short-run relationships. The results demonstrate a positive and significant relationship between exports, foreign direct investment, and economic growth in Pakistan in the long and short-run. In contrast, results depict that the current account deficit is negatively and significantly correlated to economic growth in the long-run and short-run. Furthermore, the Granger causality test reports the unidirectional causality from exports to economic growth.

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