IMPACT OF INFLATION AND NET EXPORT ON ECONOMIC GROWTH: A PAKISTAN PERSPECTIVE

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Volume 2 Issue 2 2021

Author(s):

Maryam Ali
Ilma university

Shaher Bano
University of Sindh, Jamshoro

Benish Zeb
University of Karachi

Abstract The paper seeks to empirically test the impact of inflation and net export on economic growth (GDP). To achieve the core purpose of the study annual data of inflation, net exports and economic growth (GDP) of Pakistan economy for the period 1990-2020 is used. Econometrics technique applied is: ARDL (Autoregressive Distributed Lag) bound test to analyze the short run and long run association between the variables. The study confirms that inflation and net exports impact positively economic growth in short run. If the inflation continues in long run then, it reduces economic growth while net exports continue boost positively to economic growth in long run also. In short run inflation and net export both are effective to economic growth. While for long run net export fruits positively in term of increased economic growth whereas, inflation in long run negates the economic growth.
Keywords Gross Domestic Product (GDP), Net Export, Inflation
Year 2021
Volume 2
Issue 2
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name ILMA Journal of Social Sciences & Economics
Publisher Name ILMA University
Jel Classification -
DOI http://dx.doi.org/
ISSN no (E, Electronic) 2790-5896
ISSN no (P, Print) 2709-2232
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Manuscript Processing Blind Peer Reviewed
Format PDF
Paper Link http://ijsse.ilmauniversity.edu.pk/arc/Vol2/pdf/v2/4.pdf
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